How much should i have at 55?

Gatser

Some great common sense from you guys!
I have to agree that folk that are well organised with their retirement plans are those that honestly address the KEY questions:

1. How much do you want/desire/need in retirement?
2. How much do you have in Pensions/Savings NOW?
3. How do you plan to save/invest to get from (2) to (1)?

Often the HONEST answer to (3) is to cut back on standard of living in the early years to save enough and benefit from compound interest over the years. Most people prefer the flashy 5 series BMW (on HP!) and ignore the inconvenient reality of retirement planning.

But that's not us is it? :T

gadgetmind

Gatser wrote: »

Most people prefer the flashy 5 series BMW (on HP!) and ignore the inconvenient reality of retirement planning.
But that's not us is it? :T

Crikey, no! I always bought my BMW 540is, and now Audi A8s, used, and for cash. Yes, I'm prepared to suffer if required. :-)

de1amo

gadgetmind wrote: »

I can't see why either insurance or the state should pay for your long-term care, or mine.

i pay uk tax and national insurance which in the past has 'assured' old age care BUT i dont or never will live in the uk again.- my business will pay for my coverage into 'death'--however, no one on this pension theme seems to consider that no one will 'foot' the bill for prolonged care--the government will ransack your hard earnt savings and devour the pension income while you suffer the state care---of course for 5 times the rate you could go private!

i left the uk because i saw it as an economy that was heading towards a crash-for baby boomers like me!

Moby

I think a balanced view is needed. Too much self denial and concentrating on wealth accumulation for old age can mean that you deny yourself things that you should/could be enjoying now. I've spent thousands of ££'s on travel over the last 25 years. I know from experience that the places I've been to.... Africa, India, South America etc are best enjoyed when you are young/physically fit.
Of course always plan for the future....that's common sense as said above.... but remember you will not always have your health and physical capabilities to do things that you might want to do now and remember..... life is for living and there are no pockets in shrouds!

atush

I must admit to having overspent, esp on travel, thru the years and continue to do so. But saving for something like retirement is very important, and too many don't save enough. So you won't see me telling others not to save as much as they can.

property.advert

I now live very comfortably for a month on less than I used to spend in a week back in the 1990s, despite earning multiples of what I did then. No need for eating out all week and wasting money without a thought. Heady days back then but some good memories.

How much at 55 really depends on whether you have paid off your house. If you have, then you need much less. If you are renting, then you are pretty much screwed I'd say.

If you need £2500 a month or £30,000 a year, then at 3% drawdown, you need £1,000,000, much less if buying an annuity.

gadgetmind

property.advert wrote: »

If you need £2500 a month or £30,000 a year, then at 3% drawdown, you need £1,000,000, much less if buying an annuity.

3% drawdown is *very* cautious. Even 4% will nearly always last for 30 years, and you can even exceed 5% for brief periods, perhaps until state pension age.

property.advert

gadgetmind wrote: »

3% drawdown is *very* cautious. Even 4% will nearly always last for 30 years, and you can even exceed 5% for brief periods, perhaps until state pension age.

I agree but it may need to last for more than 30 years, certainly if you are only 55. High inflation also reduces any drawdown as capital needs to be preserved.

Lastly, not everyone can perform mental calculus but they may be able to work out 3% of £1m is £30k. Or not

gadgetmind

property.advert wrote: »

Lastly, not everyone can perform mental calculus but they may be able to work out 3% of £1m is £30k. Or not

Unfortunately, it's not as simple as calculus as you really need to do Monte Carlo simulations based on the past volatility record of various equity markets.

Or you just look at the bookmarked pages in Smart Investing to check the figures for your chosen portfolio.