How much is needed for a pension?

jem16

dunstonh wrote: »

At 27, there is no way that £200pm results in £4 a year.

OP is not 27 but 27 years from retirement at age 65. That makes him/her age 38.

TWATTY wrote: »

I've got 27 years until I'm 65

How would the figures work for someone age 38?

dunstonh

jem16 wrote: »

OP is not 27 but 27 years from retirement at age 65. That makes him/her age 38.



How would the figures work for someone age 38?

Sunday morning grogginess for you!

Revised figures based on 1972 date of birth going to age 68 (i have not used 65 as its likely to be unrealistic for the OP on a small contribution of £200pm net at a late starter). £17,040 in future money and £8748 in todays money terms are the revised figures.

jem16

TWATTY wrote: »

I've got 27 years until I'm 65, if I pay £200 a month into a pension I get back £4+ a year.

Did you mean £4k pa as opposed to £4 pa? The HL calculator would give you just over £4000pa if you stuck with the normal assumptions of 50% spouse, index-linked, 5 years guarantee and age 65 retiral.

dunstonh wrote: »

Sunday morning grogginess for you!

Revised figures based on 1972 date of birth

Still a bit groggy?

I make the date of birth 1975 but it gives us a general idea - thanks.

TWATTY

Sorry, that was supposed to be £4k+ per year. Thanks for all this help, it's much appreciated. Jem's right, I'm 38, born in '75 and have 27 years left 'till 65. It's very possible that I've used the calculator wrong, in fact it's more than likely. My brain's melted over the last couple of days, since I found MSE.

dunstonh

Jem's right, I'm 38, born in '75 and have 27 years left 'till 65.

What is special about 65?

As it currently stands, you have no retirement provision. So, what do you have in place to fund earlier than state pension age? (which is likely to be 68 but could be closer to 70 by the time you get there). I doubt age 65 retirement is achievable for you on £200pm.

Still a bit groggy?

I make the date of birth 1975 but it gives us a general idea - thanks.

Very! Was a good night though

atush

TWATTY wrote: »

Thanks guys, I just had a play with that calculator and it's totally put me off. I think I'll stay away from a pension though. Thank you for your time.

That is like cutting your nose off just to spite your face. What are you going to do? Work until you drop? Be poor in retirement?

Just start. Just do itEven if you start with 80 per month, it is a start.

Does your employer have a scheme? Have you just not joined? Have you been throwing away Free Money?

grey_gym_sock

if you start late and don't contribute a lot, then you probably won't be able to retire until you reach state pension age. but when you do, even a small private pension will be worthwhile as an extra on top of the state pension (even if it wouldn't be much to live off on its own).

TWATTY

dunstonh wrote: »

What is special about 65?

As it currently stands, you have no retirement provision. So, what do you have in place to fund earlier than state pension age? (which is likely to be 68 but could be closer to 70 by the time you get there). I doubt age 65 retirement is achievable for you on £200pm.

£200 was just what I put in the calculator, I wouldn't feel comfortable putting much more than that into something I might never see. In my job now as a seafarer I can't spend money for 9 months of the year and have no living costs. I started a post in the savings section in more detail of my situation and people mentioned pensions, so this was just a question on my mind. Thanks for all your answers and feel free to pass your views on my other thread. All is very much appreciated.

Southend1

grey_gym_sock wrote: »

if you start late and don't contribute a lot, then you probably won't be able to retire until you reach state pension age. but when you do, even a small private pension will be worthwhile as an extra on top of the state pension (even if it wouldn't be much to live off on its own).

Unless you lose a load of means tested benefit because you have a small private income, in which case every penny paid into the pension is wasted.

dunstonh

Southend1 wrote: »

Unless you lose a load of means tested benefit because you have a small private income, in which case every penny paid into the pension is wasted.

Pension credit is being abolished with the new state pension (for those that retire after the changeover).