Age/Pension Pot

R_P_W

I'm 31' starting paying 6% into pension when 19 and my employer paid 7. I increased it last year to 9 and they match it.

Think my pot is around 70k, which doesn't sound enough so far to me! So was surprised that having 35k at 35 age is a rule of thumb!

planteria

marathonic wrote: »

My company contributes 4% up until the age of 30 if we contribute 2%. That's a total of 6% and is the level most people in my company pay - and none of my work colleagues are 12 years old

From 30, it increases to 3% and 6%. Still not enough.

the key thing there is that everyone who can should be investing their 2% to get 6%, and then their 3% to get 9%........whether you want to make additional provision is a matter of choice, and if you do, whether to add it to that same pot, or do something elsewhere would be interesting. i Think i would fancy something external alongside.

planteria

agreed ggs & gem. i'd rather aim too high than not high enough.

planteria

R_P_W wrote: »

I'm 31' starting paying 6% into pension when 19 and my employer paid 7. I increased it last year to 9 and they match it.

Think my pot is around 70k, which doesn't sound enough so far to me! So was surprised that having 35k at 35 age is a rule of thumb!

6+7 and 9+9 sound great to me. whether 70k is good, or not, depends on how you earn, of course....but if you can afford to keep going, do so. don't average down to the rule of thumb.:T

planteria

i am going to work out what i would need to put aside/year to grow a £1m pot in 22 and 30 years. thoughts? what rates to use for projections:think:?

somethingcorporate

R_P_W wrote: »

I'm 31' starting paying 6% into pension when 19 and my employer paid 7. I increased it last year to 9 and they match it.

Think my pot is around 70k, which doesn't sound enough so far to me! So was surprised that having 35k at 35 age is a rule of thumb!

I think we share the same employer

Similar boat although I now contribute 11% and get the 9% contribution to have 20% of my salary going into the pot.

I am a few years behind you (28 but have a pot of £38k rising about £10k ish pa) so expect to be in a very similar position at your age.

My wife has no employer contribution so it has been a really hard slog and massive financial commitment to get her SIPP up to around £28k in the almost 3 years we have been doing it, but well worth the sacrifice to have security knowing we are laying foundations for a poverty-free old age.

planteria

just out of interest, why do you pay the extra 2% in, rather than set something else up? is the scheme really good?

Southend1

marathonic wrote: »

My company contributes 4% up until the age of 30 if we contribute 2%. That's a total of 6% and is the level most people in my company pay - and none of my work colleagues are 12 years old

From 30, it increases to 3% and 6%. Still not enough.

I wonder how this doesn't breach the Equality Act? Surely it's illegal age discrimination?

marathonic

Southend1 wrote: »

I wonder how this doesn't breach the Equality Act? Surely it's illegal age discrimination?

It's possible that it does - but noone has ever challenged it, nor do I think they ever will. I know I wouldn't bother anyway.

Southend1

marathonic wrote: »

It's possible that it does - but noone has ever challenged it, nor do I think they ever will. I know I wouldn't bother anyway.

If it were me I would take advice as its entirely possible that you should have been entitled to higher contributions at a younger age.

There seems no logical reason for structuring the contributions in this way.