Age/Pension Pot

atush

They changed the projected rate of growth is all (which you by far surpassed).

The size of your contributions ALWAYS matters.

planteria

atush wrote: »

Then there is that (IMHO very early retirement age of 55) which will feel quite young when you get there. And how much (if at all) your pension will be reduced for taking it then. Your pension could be reduced by 5% or more for each year early, so if your retirement age is 60, taking it at 55 would mean reducing your pension for life by 25%. Or if it is 65, then reducing it by a staggering 50%.

This can be helped if you save into S&S ISas and a personal pension alongside your FS one. As you could live off these for 5 years instead, so as to not have to reduce your pension when you finally take it.

totally agree. unless you have a very good reason, i would have thought taking your FS pension even a single year early would be an unusual decision. you want to take the max there, and invest alongside too.:)

planteria

atush wrote: »

They changed the projected rate of growth is all (which you by far surpassed).

The size of your contributions ALWAYS matters.

agreed. the illustrations change and it gives you a very different impression of what you will receive.

atush

They made the pension companies make these more conservative growth projections after the credit crunch.

This is when, after the crunch, there have been a number of years that have been spectacularly good and our pensions have soared.

But if your expectations are set low, you are more likely to be happy when you outperform.

planteria

agreed atush.

i am making some changes in the new year, and a clear Pension Pot Plan is my new year's resolution.

atush

Spam bot gobbledygook

planteria

planteria wrote: »

i intend to have above £100k invested [in Pensions and ISA) by the time i am 40...i am planning to invest (on current plans) £20k/yr for the 20 years following 40..so, if i said i was to retire at 60, would a £100k pot compounding for 20 years, with a further £400k thrown at it during that period be likely to roll into a £1m pension pot:question:

to answer my own (slightly rehashed) question, it would appear that it would.

as it stands, i have a £40k 'package':
£10k salary
£20k dividend (covering ISA contribution)
£10k pension contribution

planteria

but, i am looking at some big changes.
looking at changing my company...some changes in our industry which are not at all helpful.
also have my home on the market.
unsure whether to look to buy the best place my girlfriend & i can afford.
or, potentially, move in with my girlfriend and use the money in my company and the equity in my own home to buy some houses to rent out.....making my 'business' property investment, and accepting a job that a customer of mine has offered me.

Cherokeebluesome

A £1m pension pot would give you a pension of £50,180 p.a. assuming you are married at the time you take it.This would NOT buy the same as what £50,180 would buy today. But, hey you're in the money, or so you think, BUT the pension provider is EVEN MORE in the money. Do the maths!

dunstonh

Cherokeebluesome wrote: »

A £1m pension pot would give you a pension of £50,180 p.a. assuming you are married at the time you take it.This would NOT buy the same as what £50,180 would buy today. But, hey you're in the money, or so you think, BUT the pension provider is EVEN MORE in the money. Do the maths!

Please explain how the pension provider is even more in the money?