Pension recommendations please - with only £50 a month to put away!!

jimbo_the_jetset

dunstonh wrote: »

= £78,780. That would give a retirement income of around £4500 a year with no lump sum.

I'm looking at going down the ISA to NPSS 2012 scheme to keep options open for the time being whilst trying to build up £7k in the intervening time to add as the lump sump at the start of the NPSS as I believe will be allowed.

Quick question, in relation to working out the per annum retirement income. What number of years do you use, typically? Age of death say 90 minus retirement age say 70 = say 20 years?

dunstonh

Quick question, in relation to working out the per annum retirement income. What number of years do you use, typically? Age of death say 90 minus retirement age say 70 = say 20 years?

I just use a straight 5%.

Remember that pensions will mean you never see the capital (or least not 75% of it). So you are either looking at drawdown or annuity purchase. Drawdown isnt an option with the NPSS as it is annuity purchase only and last guide I read said you could not transfer from the NPSS into personal pensions. So, you are looking at annuity purchase. So 5% is a good guide figure.

The NPSS is going to be great to get the employer contribution but you shouldnt aim to go above that. Any more you want to pay above that should stick with stocks and shares ISA.