what should my monthly contribution be to get a decent pension?

dunstonh

Will your confirm that if I keep paying 12% into my company pension until I reach 65 and then I will get my targeted pension income?

No-one can confirm that. Its subject to investment returns but its as good basis to work on

You should note that state retirement age is going to 67 for you and not 65. So, if you want to retire earlier than state retirement age, you ought to be building up more to cover that gap.

Is the figure you quoted before or after tax?

Before tax

worcester1

Thanks a lot for your replies. Dunstonh

What is your professional opion? Do you think it could be far less than what I am targeting?

I don't mind if it is less than £100 - £150 per month as long as I get close to what I have targeted.


I would really love to retire at 65 if possible 63, how can I ensure that I get my full forcasted state pension
at 63? and my targeted monthly income. How can I build up more to cover that gap?

dunstonh

What is your professional opion? Do you think it could be far less than what I am targeting?

My professional opinion costs money and comes with a liability. So here it is just discussion

£270 pm for 30 years = £317k (at 7% p.a. returns) I will ignore increases that you will make to offset inflation. £317k @ 5% = £15,850 a year before tax.

If you want to go at 63, make sure you are able to fund that gap between 63 and state retirement age of 67.

worcester1

Thanks a lot dunstohn, I am happy with that:rotfl: and will continue to put aside the £250 a month I mentioned before and hopefully this should be enough to retire on at 65

Gorgeous_George

dunstonh wrote:

My professional opinion costs money and comes with a liability. So here it is just discussion

£270 pm for 30 years = £317k I will ignore increases that you will make to offset inflation. £317k @ 5% = £15,850 a year before tax.

If you want to go at 63, make sure you are able to fund that gap between 63 and state retirement age of 67.

I make it that saving at 5% would require a monthly saving of £380 to reach £317K. I assume the £270 before tax or something.

My query is what happens to the fund if/when the owner dies?

I make it that £317K would give an income of almost £22,500 for 25 years before the fund = £0 and the OP would be 92 years old. Or, £32K for 13 years.

If only we knew when our day was going to come, we'd be able to plan more efficiently



GG

worcester1

well i guess you're right if only I would when i will die, then things would have been lot easier. I guess there is no way of knowing how much I need to contribute to be comfortable in my old age. I guess 12% of my wage plus + state pension + personal savings + equity on property (when I downsize) should be enough.

I got to enjoy life as well whilst I am young and make sure that my family don't suffer while I put most of what I earn into something I might never live to see or enjoy for that matter.

I also have life assurance cover at work (upto £1million) should I die in service, my wife and kids will get something to go by.

Gorgeous_George

I know so many people in their 70's and 80's who have saved for their old age only to be too ill to enjoy it. How I wish they'd spent it when they were younger.

Don't get me wrong, people need to save for their retirement - but there's a balance to be struck. A 100% IHT would sort it out.



GG