Pension plan at 21?

03jatkin

Does anybody know of any pension calculators to work out how much I need to pay into a pension to come out with £1000 net pay at 55?

At the current company I work at when you pay in up to £30 they contribute double as well i.e I pay £30 they pay £60 or I pay £40 they pay £60.

Thanks

mania112

There's plenty online: http://www.aviva-pensioncalculator.co.uk/

I assume you mean £1000 per month? Most calculators work on annual amount (£12k in your case). Not sure how this Aviva one works.

good luck

atush

And join that pension Now!

generally speaking, as a quick and dirty estimate, you should put in (incl tax rel and your employers bit) 1/2 your age at starting, in your case that would be 10.5%.

JoeCrystal

Here is another calculator. http://www.hl.co.uk/pensions/interactive-calculators/pension-calculator

However, keep in mind that it is impossible to figure out what the tax is going to be in 34 years time. So according to the calculator I mentioned, if you want potentially £12,000 per year gross by 55, then the combined contribution (if everything goes very well) need to be £480 per month. But it gets lower as you allow more year, so £340 at 60 and £245 at 65. So really, it is quite ambitious to retire at 55!

As I pointed out before, as long you start early and with a realistic amount of contribution earnings/index-linked, then you will be well on your way.

So join the pension scheme! (It cost you £24 in order to get £90 in pension fund, better than nothing!)

N.B. I am annoyed by the fact company is only willing to pay £60 per month at maximum. Companies that pay employer contribution tend to pay up to percentage rather than fixed amount. On other hand, it is still better than companies that pay none!