Advice on my pension provision

Loughton_Monkey

mania112 wrote: »

you really think someone should be able to put £650 in a pension when they have £2k, per month?

That doesn't sound realistic to me.

What about other savings? Saving for retirement isn't the only requirement.

This is perfectly realistic. On average, about a third of my gross income went, one way or another, into long term savings/investments. This helps to explain why I could retire at age 56.

But OP must realise that every person is different and that there's no 'correct' formula. Retirement is simply about mathematics.

1. You earn.
2. You spend.
3. (1) minus (2) is 'saved'
4. Depending upon the type of 'savings' [investment] it will provide a certain amount to continue spending after earnings have ceased.

So in round figures, the amount you need to put away for retirement is directly related to the amount of spending you wish to partake of in your retired years. If [like me] you want to continue spending the same sort of amount (as when you were earning) then you need to be investing in the region of 25% over the period.

Those who plan to sit at home upon retirement and stop having holidays can afford to save less. Those (like me) who want to travel more, keep a decent car going [having had company cars], and not be restrained about living 'well' need to save more.

Sensible people will go through working life with an intimate knowledge of what they spend, what they earn, and what their 'net worth' is [and it changes every year] will fine tune along the way and get it right. Those who 'hit and hope' either will or they won't.