RE: First Pension aged forty

jamiefly

atush wrote: »

Utter tosh from you.

Most people in this country have/buy things that are luxuries not needs. From sky TV, to the latest gadgets to exp mobile phone contracts, take out meals etc.

Yes, they should live a life. But living today and not thinking about tomorrow will mean a retirement spent in poverty.

Please can you elaborate and can you tell me and the OP what kind of income he should expect to receive on an annuity of £15,000.... £60 a month.

So the OP has explained his outgoings are fairly lean already so what's he going to sacrifice? Heating or eating?

Lokolo

jamiefly wrote: »

Please can you elaborate and can you tell me and the OP what kind of income he should expect to receive on an annuity of £15,000.... £60 a month.

So the OP has explained his outgoings are fairly lean already so what's he going to sacrifice? Heating or eating?

And who are you to say thats the only thing they have to cut back on!?

The OP hasn't given us any indication of their spending habits, only income, so to assume "oh they can only sacrifice heating or eating" is frankly ridiculous.

The fact you suggested to the OP they put the money into silver just confirms how ridiculous you are.

jamiefly

Why is it ridiculous to suggest having some precious metals as part of a balanced portfolio? Indeed ~20% of my wealth is in precious metals and mining stocks what's wrong with that strategy especially as I'm up nearly 25% since May last year alone.

So what is £15,000 going to buy the OP on the open market then? Why can't the people on here who have a vested interest in selling pensions answer this simple question?

jamiefly

Spudsey wrote: »

I have a basic mobile, no sky tv but I have a tv , and take aways are extremely rare!!

This indicates a fairly lean spend unless he's spending money on Porsches and Mercedes Benz. Oh ridiculous me, there you go OP I've found you £1,000 a month of savings.

Lokolo

jamiefly wrote: »

Why is it ridiculous to suggest having some precious metals as part of a balanced portfolio? Indeed ~20% of my wealth is in precious metals and mining stocks what's wrong with that strategy especially as I'm up nearly 25% since May last year alone.

Nothing, but thats not what you said.

BLB53

In April I will be automatically enrolled with a contribution of 1% from me, and 1% from the company.

Just be aware that this is the starting rate for auto enrolment pensions. Over the next 6 years the minimum will rise to 4% from you and 3% from your employer.

Even so, as you are a late starter, you have a lot of ground to catch up.

jamiefly

Lokolo wrote: »

Nothing, but thats not what you said.

Lokolo wrote: »

Nothing, but thats not what you said.

Balanced portfolio:

40% State Pension
40% Throwing yourself at the mercy of means tested benefits
20% Silver

Against my...

40% State Pension
40% Private Pension (contributing £10k annually, optimistically hoping for £2.50 per £1k contribution monthly income from aged 55)
20% PMs

Different approach; same outcome - a balanced portfolio.

His approach now should be to make do and mend; reduce outgoings/debts and introduce some self-sufficiency (get an allotment and/or solar hot water system (if he owns the home (not too big I hope) he expects to retire in). Once he has got his house in order he should then look to pension savings which fall outside of working age calculations for means-tested benefits should he fall on hard times.

Thrugelmir

jamiefly wrote: »

Why is it ridiculous to suggest having some precious metals as part of a balanced portfolio? Indeed ~20% of my wealth is in precious metals and mining stocks what's wrong with that strategy especially as I'm up nearly 25% since May last year alone.

Who isn't up since last year? QE has had a beneficial impact on share prices. Though corporate earnings may well disappoint. So the upside is limited.

Far better to start contributing to a pension scheme with whatever you afford. Dull, boring, unexciting but sound.

PS. RTZ annoucement was a major wake up call this morning.

Spudsey

jamiefly wrote: »

Balanced portfolio:

40% State Pension
40% Throwing yourself at the mercy of means tested benefits
20% Silver

Against my...

40% State Pension
40% Private Pension (contributing £10k annually, optimistically hoping for £2.50 per £1k contribution monthly income from aged 55)
20% PMs

Different approach; same outcome - a balanced portfolio.

His approach now should be to make do and mend; reduce outgoings/debts and introduce some self-sufficiency (get an allotment and/or solar hot water system (if he owns the home (not too big I hope) he expects to retire in). Once he has got his house in order he should then look to pension savings which fall outside of working age calculations for means-tested benefits should he fall on hard times.

I'm not sure if 'his approach now' is meant for me jamiefly or not but firstly I am a she and do already have a make do and mend attidude, and have an allotment
House is slowly being put in order, just replaced our rotten wooden framed windows with new ones after wildlife came visiting!

I think most of my money apart from the usual bills and mortgage goes on my pets to be honest! I have cats and rabbits, the cats are insured and I spend a fair bit on their food and do treat them to new stuff most months, but then I'm almost forty and have no kids and don't intend having any so they are my babies!

I also try and save a certain amount every month as I have for years been terrible with my money and also due to other personal circumstances have never been able to put any money away. I now save every month which has meant we have been able to buy things outright such as our new windows which has been great. I also put away any overtime money I may have earnt during the month.

I need to seriously think more about what amount to put in a pension, but to be honest I want to be able to keep my savings up too as its a nice feeling knowing that I have that back up.

marathonic

jamiefly wrote: »

Please can you elaborate and can you tell me and the OP what kind of income he should expect to receive on an annuity of £15,000.... £60 a month.

About £60 a month sounds right. Now, assumming the new flat rate pension is still the policy upon retirement, you'd be getting a maximum of £144 per week pension.

Now let's assume the mortgage is paid off and a hypothetical pensioner has the following income/expenditure:

Income:
Pension: £144

Expenditure:
Council Tax: £20 (Band B - after 70+ council tax reduction)
Weekly Shop: £30 (includes food/toiletries/cleaning products)
Electricity: £10
Heating: £15
Water: £7
TV Licence: £3
Home Phone/Internet: £5
Mobile Phone: £2
Insurance: £4 (buildings/contents)
Car: £0 (you're unlikely to be able to run a car with no private pension)
Emergency Fund: £5 (you'll have to replace the boiler or do some house maintenance at some point)
Gifts: £5 (this only allows £60 per year to buy birthday/christmas presents for all grandchildren)
Clothing: £5
Sundry: £3 (haircuts, etc)
Total: £114

The above shows that, assuming no debt and a paid off mortgage, one could survive on the proposed state pension and have £30 per week left over for taking grandchildren to the cinema, going away for a weekend every few months, etc.

If something happened that required a loan, the luxuries (like taking grandchildren for icecream) would probably have to go.

Given the above, minimal outgoings, a pensioners disposable income would be £30 per week. So what difference does a £60 monthly income make? The answer - about a 50% increase in your disposable income.