AIMING FOR £50,000 per year of pensions at 65

dunstonh

no response yet....... how many times I have been there with Scot Eq!!!!

Cardew

peterg1965 wrote:

My aim is to retire at 65 (in 2030) with at least £50,000 per year of pensions (at todays money), between myself and my wife.

Forces Pension - £30,000 pa. This is based on my current rank and me leaving the forces at 53 (in 2018). It comes with a 3x tax free lump sum at 53 and the pension is immediate, and RPI linked from age 55. I may be promoted further in which case pension will rise by another £6,000 based on leaving at 55. Promotion is not guaranteed, therefore I will certainly not count on this.

Total - £47,400 pa at today's prices.

I would certainly hope to work from age 53 to 65 and therefore possibly have another occupational pension.

Any comments gratefully recieved!

A Forces pension of £30,000 at 53 suggests that you are currently a Lt Col(or Royal Navy/Royal Air Force equivalent)To have reached that rank at age 41 suggests that promotion would be a probability rather than a possibility? Therefore the increased pension would enable you to meet your goal.

Is there a reason your calculations are based on retirement at age 53 and not age 55 which would be the normal retiring age? The prospect of a further 2 years earning a minimum of £60k and an increase in pension of £1,600(both figures at 2006 rates) is surely attractive.

As you asked for comments, and leaving aside the financial detail, may I suggest you build in as much flexibility into your retirement planning as possible.

You should consider the possibility that at age 55 or so the prospect of working to age 65(with a 68 year old wife) may not seem so attractive as it does at age 41.

peterg1965

Cardew, very perceptive of you. I am in the Navy and at my current rank I will be compelled to retire at 53, I think this is slightly different from the other two services. Hence my reason for basing retirement at 53 not 55. However, if I were to be promoted I can serve until 55 and therefore have the benefit of maximum service and hence, maximum pension. The rules have changed across the service for new joiners, in fact the Armed Forces pension scheme has changed significantly for those who have recently joined, this brings the AFPS in line with current pension legislation. Thankfully I am permitted to have legacy rights in the old scheme which is broadly speaking a better one, but that depends on your perspective.

You are probably correct about working beyond 55 and it is easy to say that I will now, I will probably feel different about it in 14 years time. If I did work it would be a job that would 'top up' my service pension in terms of salary and possibility accumulate another small pension, I could not see myself starting a second career at that stage.

I am still awaiting a response from Scot Eq ref the question about 'External' funds. I have taken onboard everyones advice reference flexibility etc.

peterg1965

Dunstonh was right, the customer service from Scot Eq is attrocious. I managed to register my pension plan for online access and, after a bit of thinking and investigation, decided to keep the Scot Eq pension plan. I have, however, switched the funds (currently valued at £15800) to a variety of internal and external funds. I have assumed a much higher risk profile as this investment only forms a small percentage of my retirement finances. The fund now looks like this:

Scot Eq Mixed (Internal fund) 20% (approx £3160) Average Risk
Scot Eq Property (Int fund) 10% (approx £1580) Below Av Risk
Scot Eq Ethical (Int fund) 10% (£1580) Above Av Risk
Fidelity European (external fnd) 10% (£1580) Above Av Risk
Invesco Perp Inc 20% (£3160) Above Av Risk
Shroeder UK MID 250 20% (£3160) Above Av Risk
UBS Global Emerging Mkt 10% (£1580) Higher Risk

I will sit back as very much an 'amateur' investor and see how the overall pension fund performs over the next few years. I found City wire very useful, although many of the top performing funds were not available to me whilst I remain with Scot Eq. I suspect I will have a fair bit more taken away in AMCs with the above funds, but there you go!
Many thanks for all your advice and I will let you know how it gets on!

EdInvestor

I will sit back as very much an 'amateur' investor and see how the overall pension fund performs over the next few years.

A good choice for a learning experience - and well worth the bother as you should end up with quite a good chunk to invest one way or the other, and it's well worth learning the skills if you plan to retire early.Investing can be a very useful moneymaking hobby.

jamesd

If Scottish Equitable UBS Global Emerging Markets Equity has a higher fee than Scot Eq Emerging Markets 1% you might consider the latter since the two have identical performance except for a very brief period in January 2005.

moneybelle

More than one year down the line;

Is it still not possible to transfer a Scottish Equitable to a SIPP ?

EdInvestor

moneybelle wrote: »

Is it still not possible to transfer a Scottish Equitable to a SIPP ?

You can transfer if the fund contains non-protected rights.If it has any protected rights money in it, it will hopefully be possible to transfer from October.

dunstonh

moneybelle wrote: »

More than one year down the line;

Is it still not possible to transfer a Scottish Equitable to a SIPP ?

Scot Eq have no restrictions on transfers. As long as its ordinary rights in the pension then you can transfer it.

peterg1965

Wow! I have to say that I was surprised to see my thread resurrected from the depths of the thread archives!

As a matter of interest things have changed considerably in the intervening 14 months.

• I took IFA advice late last year and my finances have changed considerably
• The Scot Eq PR PPP is no longer - it was transfered to an NU PPP to run alongside a new NU PPP funded to the tune of £840/month (net)
• My 'target' for retirement income at 55 has upped from £50K to £60K
• I have an S&S ISA running alongside both PPP with a goal of providing a further cash lump sum at 55.