Help im thick

Muscle750

Right here we go ive got a company pension which im still paying into and can understand the last staatement reasonably easy however ive also got a Pru pension which i havent paid into for a long time. Im also contracted out of SERPs.
Looking at my last Pru staement im confused to say the least.basically its saying.
Transfer value inc any protected rights is £44386
Last years pension payments is £0.00
Last years protected rights payments is £1897

Then goes on to say Future pension excluding protected rights is £402 annually....................WOW ! at 1/2 2024

Furture protected rights pension as at 24/12/27 is £2580 annually.....................WOW!

At present ive got about £18k in my company pension pot

Im just abit confused as to my Pru pot transfer is £44k yet it seems if i dont put anymore in im not exactly gonna have a champagne retirement.

Any pointers as to what action or explain to me in laymen terms please. Many thanks

My retirement date is 24/12/27................if i havent clocked out.:shocked:

jem16

Muscle750 wrote: »

At present ive got about £18k in my company pension pot

Im just abit confused as to my Pru pot transfer is £44k yet it seems if i dont put anymore in im not exactly gonna have a champagne retirement.

Any pointers as to what action or explain to me in laymen terms please. Many thanks

My retirement date is 24/12/27................if i havent clocked out.:shocked:

So basically you have around £62k in your pension pots. That's not a great deal, especially for your age.

You are around 50 years old I take it?

Basically if you want more in reitirement you have to pay more in.

Loughton_Monkey

Muscle750 wrote: »

.......Im just abit confused as to my Pru pot transfer is £44k yet it seems if i dont put anymore in im not exactly gonna have a champagne retirement.

Any pointers as to what action or explain to me in laymen terms please. Many thanks

My retirement date is 24/12/27................if i havent clocked out.:shocked:

I don't know what planet you come from, but in UK, you have to put around 25% of your gross salary - each year- into a pension plan in order to obtain a pension of roughly 67% of your salary when you retire. That's not exactly 'Champagne', but it's 'Comfortable'.

And you think having thrown a few £ into the Pru for a few years entitles you to Champagne?

Muscle750

I didnt ask to get some rather abrubt answers i asked because i was confused no i didnt expect a champagne retiirement if i had id of been a Civil servant or another gravy boat public sector job whom i hasten to add im also paying into their pots throu income tax. I did have a final salary pension with my company but that was pulled years ago obviously.................I cant affiord 25% of my gross salary sadly and in this day i would like to meet people who can i pay 5% of my salary and my company match it

Debbie_A_3

Hi Muscle750,

I am assuming that the projected future pension is in terms of todays prices. In that case it looks reasonable. The Pru are indicating that a pension pot of £44k would yield an annual pension of £2850. This works out at 6.47% per annum. But you don't say what assumptions were being made regarding your age when you plan to take the pension, index linking in retirement, guaranteed minimum term, etc, etc. These make a big difference to the projected annual pension.

As to whether you will have enough income in retirement, you will need to add in you company pension (current pot should yield about £1k each year; future contributions will produce a bit more) and the state pension (currently £5300 pa). Remember that you will not pay NI, and there will probably be no income tax either.

Only you will be able to judge whether this is enough. If not you will either have to hope that you can work longer, or increase your pension contributions and effectively divert spending from the present to the future.

Debbie

keith1950

Hi, from reading the replies you got two answers that basically told it as it is, however jem16 was polite and was in no way abrupt.

I do not pretend to know the actual figures as they depend on many factors but I have, in the past, been told be financial advisers that you need to build up a 'pension pot' of around £200,000 to enable an income of £1000/month. These figures have probably changed due to the slow increase in life expectancy.

As you can see your 'pot' is around a third of this figure so a pension of around £250-£300/month is to be expected.

Why not look into the possibility and pro's and con's of transferring your Pru £44,000 into the company scheme.

At end of the day the only way to ensure a comfortable pension is to pay in much larger amounts which most of us cannot afford.

Muscle750

My last company pension statement forcast a pension of approx £8000 a year and i have a froze final salary scheme which the company are adding to my pot every year to the tune of about £300 and sofar the projection is about £3000 a year on that so correct me if im wrong here if everyrthing stays as it is and i keep paying the company one etc when im 65 including the state pension i will be looking at approx £16k a year or am i wrong. Thats obviously if i dont take lump sums on retirement etc

Muscle750

Didnt start compnay pension until 1998 and yes the final salry is froze as stated in my last post

jem16

Muscle750 wrote: »

My last company pension statement forcast a pension of approx £8000 a year and i have a froze final salary scheme which the company are adding to my pot every year to the tune of about £300 and sofar the projection is about £3000 a year on that so correct me if im wrong here if everyrthing stays as it is and i keep paying the company one etc when im 65 including the state pension i will be looking at approx £16k a year or am i wrong. Thats obviously if i dont take lump sums on retirement etc

£16k seems absolutely fine. Then add in the small pensions that you mentioned in the first post and you're more like £19k. Nothing wrong with that.

Muscle750 wrote: »

Didnt start compnay pension until 1998 and yes the final salry is froze as stated in my last post

Yes but you hadn't given all those details in your 1st post. I have deleted my 2nd post as it made no sense once I read your last post.

I'm not really sure what your complaint is?

keith1950

Hi, given that the projections are realistic then as you say you would get £11,000 from those pensions and by then the universal flat rate state pension ,on todays proposed figures, of £7280.( £140x52 ). So , on todays figures around £18-£19,000.

There are plenty of unexpected things that can happen before you retire, do you think you will still be working for the same company in 10 years time?

I ended up with 4 frozen company pensions, one I took at 54 while still working which at present gives me £6500/year, one gives me £500/year, one gives me £85/year and the other was so small I just took the cash at age 60. I am at present nearly 62 and unfortuneately still working.

jem16

Muscle750 wrote: »

Didnt start compnay pension until 1998 and yes the final salry is froze as stated in my last post

I'm a little confused as to how you only have £18k in the company pension started in 1998 ( so 13 years) but it's expected to get to approx £179k ( to yield £8k pension) in the next 15 years.

How much in £s rather than percentages is being paid in each month?