Pension Provision - Is £220 a month enough?

atush

She has more than 10 years, so that is something?

Towser

It is always good to hear from people and not the company selling the annuity it seems more real then.

yes I have done as advised and looked up "The Number" and then played around with some pension calculators and it doesn't look that bleak after all. I could easily put another £100 per month away and remain living at 80% of current income. I think I will put away any spare cash.

I realize I haven't got a massive amount of time for any extra contributions to grow.

I will be 67 unless the government changes it again so do have some time to turnaround my situation.

Towser

People would empty their pension pots in just five years if they spent the £23,457 annual income they reckon is needed for a comfortable retirement, new research reveals.
A vast gap between retirement aspiration and reality is evident in a survey of 8,000 adults, which shows that, on average, they are only saving enough for a pension pot paying out £6,011 a year.
The basic state pension is currently worth around £5,900 a year - assuming people have made enough national insurance contributions to qualify for the full amount.

atush

Whch is why some sort of mandatory advice is needed?

I mean look at you? who came here (actually saving and wanting to save more which is great) not knowing what you would get.

Too many will keep saving the 25 quid, or nothing and think Oh I am 50 I should start saving and thinking oh- I want to retire and then realize say you could get x per year and they hopefully think- oh I haven't saved enough and so work longer?

Well, we can hope so anyway.

PollySouthend

Bootsox wrote: »

To OP, just to help you on your way with the calcs, unless you have a drugs/drink/gambling habit suggest the following:

£10/12k (net*, per annum, per person) in a mortgage free property, with no dependents, would provide a basic standard of living with occasional holiday treat.

Circa £24k (net*, per annum, per person) would provide a comfortable living, e.g. run a small car plus a 2/3 foreign holidays plus occasional weekend treats.

add 50% to above for a couple in same circumstances.

....and all shades of grey in between.

*means free from deductions, i.e. after tax

You've somehow doubled the figures. 6k a year for basic, 12k for comfortable .

I plan to live off 12k a year.

PollySouthend

Towser wrote: »

People would empty their pension pots in just five years if they spent the £23,457 annual income they reckon is needed for a comfortable retirement, new research reveals.
A vast gap between retirement aspiration and reality is evident in a survey of 8,000 adults, which shows that, on average, they are only saving enough for a pension pot paying out £6,011 a year.
The basic state pension is currently worth around £5,900 a year - assuming people have made enough national insurance contributions to qualify for the full amount.

12k a year with mortgage paid off sounds like a good life IMO.

Towser

HOW MUCH IS THE STATE PENSION?
The current basic state pension is £113.10 a week, but it is topped up by additional state pension entitlements - S2P and Serps - accrued during working years.
This two-tier system will start to be phased out in 2016 and be entirely replaced for those retiring after April 2021 by a 'flat rate' pension of between £144 and £155 a week. The official guidance says that it will be no less than £148.40.
At £113.10 a week, the current state pension is worth around £5,900 a year. If it goes up to £148.40 a week, that will make it around £7,700 a year. At £155 a week, you're looking at around £8,000 a year.
Workers need to have 30 years of qualifying National Insurance contributions to get the current full state pension, but will need 35 years of contributions to get the full flat rate state pension in future.
Rises in the state pension are presently calculated on the basis of something called the Triple Lock. This means that payouts always increase by whatever is the the highest of inflation, average earnings or 2.5 per cent.
Critics have pointed out that the Triple Lock could prove an unsustainable financial commitment for governments in the longer term, but all three main political parties are pledged to maintaining it.

atush

Basically, you need to get a SP statement to know how many years you have, and your serps/s2p contributions to date.

People will get a foundation amt before the new pension comes in, and you will get the higher of what you have todate, or the new pension whichever is higher. and you might not get the full new flate rate, if you spent most of your working life contracted out.

Towser

The new options for people retiring
What is certain is that from the moment they take their pension, savers will have a whole raft of new options.
Keep your pension and dip in
The most fundamental is that they will be able to use their existing pension as a bank account — and make withdrawals whenever they want. If you do this,every sum that you take qualifies for 25 per cent tax-free. Untouched pensions can be kept in the stock market.
This is an amazing benefit, because if the rest of the saver’s cash is invested, then a couple of years of good growth can cancel out the amount withdrawn.
Buy an annuity and take a lump sum
You can also do as today and take 25 per cent tax-free and convert the remainder into an annuity to provide a guaranteed income for life.
Stay invested and take a lump sum
However, if you do take the 25 per cent lump sum in full and want to keep any of the pension invested, then you will have to move the money into a so-called drawdown account.
This is because you won’t be allowed to take any more tax-free and it ensures every further withdrawal is taxed at your marginal rate.
Mix the three together
You could also do a mixture of these things, taking some of your money as an annuity to give you a guaranteed income and leaving some cash invested.

DevilsAdvocate1

Bootsox wrote: »

To OP, just to help you on your way with the calcs, unless you have a drugs/drink/gambling habit suggest the following:

£10/12k (net*, per annum, per person) in a mortgage free property, with no dependents, would provide a basic standard of living with occasional holiday treat.

Circa £24k (net*, per annum, per person) would provide a comfortable living, e.g. run a small car plus a 2/3 foreign holidays plus occasional weekend treats.

add 50% to above for a couple in same circumstances.

....and all shades of grey in between.

*means free from deductions, i.e. after tax

Wow, that's much more than we currently earn and we have 3 children and a large mortgage. I feel like we live well now. Think we'd be able to live well on a lot less in retirement as the children will hopefully be independent and the mortgage which is nearly £1000 a month will be paid off.