When to retire......

BobQ

http://www.thisismoney.co.uk/money/pensions/article-2277990/A-quarter-people-retire-dont-want-leave-work.html?ito=newsletter


Not good news for the working population......an economy that is not growing, and an older generation who do not want to or cannot afford to retire. Also 20% of those that do, have debts of £30K.

marathonic

If you told a twenty year old to contribute 10% of his/her salary voluntarily to a pension plan, they would look at you as if you had two heads.

Those same people, later in life, cry about the state pension age being so high and think that, by starting to save £100 per month into a pension plan at 30 years old, they'll be able to retire before state pension age, possibly at 55.

It must be a poor excuse for a maths teacher these people had. With a life expectancy above 80 years old, a 30 year old has 25 years left to contribute towards a retirement that will last, on average, 25 years (assuming retiring at 55).

How much growth does someone expect over 25 years when they hope that their £100 contribution monthly will give them an income of in excess of 10 times this amount?

Hopefully, when financial education becomes compulsory in second level education, this problem will sort itself out. However, in the meantime, there is more than five decades worth of future retirees who didn't go through such education.

CLAPTON

marathonic wrote: »

If you told a twenty year old to contribute 10% of his/her salary voluntarily to a pension plan, they would look at you as if you had two heads.

Those same people, later in life, cry about the state pension age being so high and think that, by starting to save £100 per month into a pension plan at 30 years old, they'll be able to retire before state pension age, possibly at 55.

It must be a poor excuse for a maths teacher these people had. With a life expectancy above 80 years old, a 30 year old has 25 years left to contribute towards a retirement that will last, on average, 25 years (assuming retiring at 55).

How much growth does someone expect over 25 years when they hope that their £100 contribution monthly will give them an income of in excess of 10 times this amount?

Hopefully, when financial education becomes compulsory in second level education, this problem will sort itself out. However, in the meantime, there is more than five decades worth of future retirees who didn't go through such education.

most 20 year olds don't expect to live past 30 (which they know is gross)

did you?

PaulF81

palliative care on the nhs past 72 And freeze the state pension for at least 5 years. austerity over without robbing the young to pay for those who did not pay enough themselves.

marathonic

CLAPTON wrote: »

most 20 year olds don't expect to live past 30 (which they know is gross)

did you?

Suppose that's true.

My pension planning is going okay (well, relative to some co-workers anyway).

My personal contributions between 20 and 30 needed to be 2% to take full advantage of my employer contribution of 4%. Most co-workers stick to this minimum.

Personally, my personal contributions have ranged between 6% and 26% over the years - and will be dropped to 3% this year so I can focus on paying down the mortgage to a 60% LTV to move onto the market leading interest rates.

Luckily, my peak contribution levels happened during the trough of the market a few years ago.

As it stands, my pension pot is at 1.7 times my salary at 30 years old. Therefore, I feel comfortable enough with my updated contributions of 3% employee and 6% employer.

Two rules of thumb I've read are:

• £35,000 by 35 - which I've already exceeded
• contribute a percentage of salary equal to half your age when starting out - a 30 year old would need to contribute 15% and, whilst I'm only contributing 9% total, the growth from my current pot should more than make up the difference

I'm under no illusions though. The above plan will allow me to avoid such measures as going for Tesco Value Horse Burgers in retirement and allow me to go for the premium range instead. However, it's unlikely to provide an income sufficient to go on an annual or twice yearly holiday.

For this reason, I intend to increase my contributions as soon as I get onto a 60% LTV mortgage rate - which I expect to happen within the next 3 years.

CLAPTON

PaulF81 wrote: »

palliative care on the nhs past 72 And freeze the state pension for at least 5 years. austerity over without robbing the young to pay for those who did not pay enough themselves.

yes right

those scum born from 1913 onwards need to be taught a lesson about the value of money

CLAPTON

marathonic wrote: »

Suppose that's true.

My pension planning is going okay (well, relative to some co-workers anyway).

My personal contributions between 20 and 30 needed to be 2% to take full advantage of my employer contribution of 4%. Most co-workers stick to this minimum.

Personally, my personal contributions have ranged between 6% and 26% over the years - and will be dropped to 3% this year so I can focus on paying down the mortgage to a 60% LTV to move onto the market leading interest rates.

Luckily, my peak contribution levels happened during the trough of the market a few years ago.

As it stands, my pension pot is at 1.7 times my salary at 30 years old. Therefore, I feel comfortable enough with my updated contributions of 3% employee and 6% employer.

Two rules of thumb I've read are:

• £35,000 by 35 - which I've already exceeded
• contribute a percentage of salary equal to half your age when starting out - a 30 year old would need to contribute 15% and, whilst I'm only contributing 9% total, the growth from my current pot should more than make up the difference

I'm under no illusions though. The above plan will allow me to avoid such measures as going for Tesco Value Horse Burgers in retirement and allow me to go for the premium range instead. However, it's unlikely to provide an income sufficient to go on an annual or twice yearly holiday.

For this reason, I intend to increase my contributions as soon as I get onto a 60% LTV mortgage rate - which I expect to happen within the next 3 years.

you seem to be on the right track, although I know insufficient about your full details

maybe post on the pension board to get a (non-policitical) view of your overall pension and financial planning.

personally I always buy tescos value brand were possible and see no objection to horse meat (I used to eat rabbit in my youth).
(tesco's value salmond, peaches in syrup and noddles .. fantastic and no meat at all)

PaulF81

CLAPTON wrote: »

yes right

those scum born from 1913 onwards need to be taught a lesson about the value of money

It's not about that. The state and its citizens cannot afford to maintain the healthcare standards that we expect. No amount of well meaning feet stamping will change that. The same scheme would affect me too you know.

CLAPTON

PaulF81 wrote: »

It's not about that. The state and its citizens cannot afford to maintain the healthcare standards that we expect. No amount of well meaning feet stamping will change that. The same scheme would affect me too you know.

it's good to know that it's not about the older generation taking more out than they paid in or any nonsense like that but

why not post up the figures so we can all take a view on the numbers?

PaulF81

http://www.ippr.org/uploadedFiles/research/events/Education/Hawksworth%20-%20Long%20term%20spending%20-%20mar06.ppt

Good place to start.

What's the point of keeping someone going, with significant effect on quality of life, not to mention at huge cost to the state, infrastructure, education budgets and the like to milk a few more years out of someone who is no longer productive? In that situation I would much prefer a comfortable out and be happy in the knowledge that my selfishness hasn't bankrupted the country.

CLAPTON

PaulF81 wrote: »

http://www.ippr.org/uploadedFiles/research/events/Education/Hawksworth%20-%20Long%20term%20spending%20-%20mar06.ppt

Good place to start.

sadly I can't read your link; like old people it requires too much money