What is a GOOD pension Pot to retire on??

jerrysimon

Haven't started drawing it yet, but there will only be around 11K in it when I was planning to start drawing it. She is 55 in october and has a DB pension of 2K drawing early so may leave that a little, as it goes up to 3K if she waits till 60. That said, 5 years at 2K will take her 10 years of 3K to catch up if we leave it till then.

As I said checked both of our SP which wont kick in till 66.5 for me and 67 for her so again 10-12 years or so. Mine is worth 119/week (40 years of NI) and hers £145/week (38 years of NI) as it seems although we were both opted out I was opted out "more" than her ?

Jerry

atush

That said, 5 years at 2K will take her 10 years of 3K to catch up if we leave it till then.

No it probably wont take as long due to indexing? anyway, unless she is ill and not going to make old bones, she'll get more by waiting int he end.

jerrysimon

Ineed likely to live longer than me as I am a type 1 diabetic.

Jerry

brewerdave

Ray_Singh-Blue wrote: »

I'm looking for £40K per year index-linked, plus £1M in capital to fritter over time. My retirement plans involve a bit of sailing, an annual pilgramage to Hawaii & several weeks in the mountains in the WInter.

....I'm looking for £100k pa index linked, plus £5M to pay for little luxuries like holidays to the Maldives, a new Ferrari every year and a trophy wife..............................then she wakes me up with a cup of tea!!:rotfl:

jerrysimon

I refrained from replying

AnotherJoe

gadgetmind wrote: »

True enough, but when you've built at team/company from scratch, steered it/them through two acquisitions, seen people come/go/flourish/fail, and generally held it together and earned respect from far and wide, then you have a lot of this thing called "pride" and a fair bit of something else called "responsibility".

That would have been my position a year ago, in terms of pride of contribution, knowing I made a difference, and caring about my peers, and then the company pretty much almost randomly made a lot of people redundant, some of them who had made and were making fantastic contributions. I was too dim to see that there is no loyalty that way so why the !!!! should I have any to them. Too dim because I've been in that position before, I've been almost literally last man standing after several rounds of redundancies/shakeups at a couple of companies and should have realised this years ago.

No disrespect but I think you are worrying too much about the company and the people there and not enough about yourself. In todays environment even the most indispensible person can come in one morning and find out of the blue they've been told to have a "chat" with the boss that morning. (and then the boss gets the chat ten minutes later). Those who have gone from my current company are doing well outside the company now, I'd say better than they were before.

I'm sure your team will do well, in or outside the company, after you've gone. 5 minutes after you've left the new person/people who take over will change things anyway, you cant set the ship on a course before you leave and expect it to just carry on that way.

DevilsAdvocate1

Rosemary7391 wrote: »

Yes, but any more is likely to leave me short for things I'll need in the next few years. In, say, 15-20 years time I'll likely be able to put in more than £500 a month; I'd like to be able to calculate something along the lines of £50 a month for X years, £200 for Y years... etc. That seems much more realistic. I should probably just set up a spreadsheet and play with the figures myself, but I'm not surprised younger people don't bother with it if they have to do that to get a sensible answer; or they do a calculation like mine and get a patently unrealistic answer so give up.

Its funny but I've just been having this conversation with my dad and 18 year old son. My dad was telling him to put as much into a pension as he could when he started work. I remember dad giving me the same advice and I followed it initially.

But then life gets in the way. I got married, had 3 children, gave up work and then became self employed. We had a big mortgage and for around 8 years neither me or my husband paid into a pension. As it was, we struggled to pay for food some months.

The children are older now though they cost more with all the activities they want to do. But the mortgage is coming down nicely and will be paid off in the next couple of years.

Around 10 years ago, when my husband would get a payrise we would put that amount into a pension. Currently 18% gets paid into his pension each month. Six of this is from my husband and the other 12 is paid by the company he works for.

We had a pension review recently and we are on track to retire at 65 or earlier. When the mortgage is cleared we will be able to save more, so it is likely that we could retire earlier than this. Plus I would continue working a small amount as the job I do is also a hobby.

I think life changes and at different times you have more money to save. I know my dad thought we did the wrong thing in getting a big mortgage and stopping the pensions. But it all seems to be working out.

Also, if you progress in your career and earn more, the percentage you need to save out of your pay could be less than now while the physical amount you are actually saving is more.

DevilsAdvocate1

jerrysimon wrote: »

In all honesty 3K/month ?

So £43,200/ per year in tax ? so a pot size of £864000!

For most that would be completly unattainable without making huge sacrifices in existing living standards whilst in work.

As you state the biggest challange is when to retire knowing a few more years will always increase overall pension. As I said before I think few work out how long it would take to "catch up" if pension is taken two or three years earlier at a reduced rate. I often tell people at work who have reached retired age at work enough to get half salary, that they are working for half pay!

I guess at that stage they are working for different reasons.

Jerry

Also you don't know what is going to happen with the markets etc. My dad was very lucky as he managed to retire at age 57 while the annuity rates were still high. He'd only been retired a few months when they started to come down. A colleague retired 3 years after him and ended up receiving much less than my dad despite similar salaries. This was due to how the annuity rates had dropped.

There might be another blip when Brexit actually happens. So it some ways it might be wise to retire now incase the expected increase in pension doesn't actually happen.

gadgetmind

AnotherJoe wrote: »

then the company pretty much almost randomly made a lot of people redundant, some of them who had made and were making fantastic contributions.

I've just been through that, but it wasn't random. I was given a dollar budget to hit and tasked with working out how to hit it with the minimum impact on the business. Not easy, and not pleasant, but I won't pretend it's as bad as being on the receiving end.

No disrespect but I think you are worrying too much about the company and the people there and not enough about yourself.

I tend to agree but this is the only way I know how to think.

In todays environment even the most indispensible person can come in one morning and find out of the blue they've been told to have a "chat" with the boss that morning.

That would trigger my golden handcuffs and remove the worry that I was letting the team down!

5 minutes after you've left the new person/people who take over

If I could find said person or persons, then we wouldn't be having this conversation.

chucknorris

Ray_Singh-Blue wrote: »

I'm looking for £40K per year index-linked, plus £1M in capital to fritter over time. My retirement plans involve a bit of sailing, an annual pilgramage to Hawaii & several weeks in the mountains in the WInter.

We won't quite make £40k, but we'll have just over £30k of index linked pension plus plenty non index linked dividend income, but much more than £1m in assets (that we can drawdown). We don't do sailing or flying to distant destinations, because we consider our dog as family, and would never leave him behind. But we will be spending significant parts of the winter in Spain/the Algarve and obviously taking our dog with us.