What is a GOOD pension Pot to retire on??

Pennysmakepounds

ajbell wrote: »

I'm confused.Where are you getting the £2k a month from if you have nothing at 42?.

I have a few investments . But no pension.

That could provide that if i'm smart with my money over the next 15/20 years.

westv

jamesd wrote: »

Can be really cheap say in northern England or the Welsh valleys where property can be very inexpensive compared to say the SE of England.

You would like to think that most people who retire will own their own property so leaving that out of the figures, is there really much difference in living costs around the country?

Pennysmakepounds

westv wrote: »

You would like to think that most people who retire will own their own property so leaving that out of the figures, is there really much difference in living costs around the country?

That's not always the case, especially in the south.

But for those that do, i do take your point.

However, depending on where you live the Council Tax/Utilities etc could be higher.

marathonic

Pennysmakepounds wrote: »

I think i just nee to send a begging letter to the 61 million Euro's winners and see if they can spare a million for a poor working man.

At 42 with NO private pension, I think that's my only hope for a decent retirement.

In fairness, my assumption of no state pension is a rather pessimistic one. If you assume an £8,000 p/a state pension, the contributions I refer to for a £20,000 income can be reduced by 40%.

chiefie

Everyone is different, but what is clear is that if you don't save you won't get. The thought of just the state pension is terrifying in my view. It was easier for me, I just joined the works pension. No thinking needed and at the time 3% for a DB scheme. Today's kids if auto enrolled won't save enough. The only way to resolve this is to try and pass money down the chain from older to younger before the state takes it for nursing care ��

But getting back to the question, even in your own home you will need some capital for big ticket items. House updates, windows, car, things that break and need replacing.

Not too sure you need 2/3 pre-retirement though. I'm aiming for 40% that will do in exchange for an early retirement.

Nationwide8

I know this is n' t the answer you are looking for but only YOU can say.
Some people can survive on a lot less that others,some want a "luxury" retirement,some want just to "survive" and consider getting out of the rat race compensation enough for that.

But you HAVE to have a nest egg for emergencies...

Work it out what you can live on,what you need or don't need,BE HONEST about what you want to buy and what you can give up.

What do you need for emergencies not covered by pension income...

How many years is your planned early retirement before ( supposed ) state pension age ?

Only you can work out £££ needed..

jamesd

westv wrote: »

You would like to think that most people who retire will own their own property so leaving that out of the figures, is there really much difference in living costs around the country?

Yes, there is. See Table A35 Detailed household expenditure by UK countries and regions, 2012 to 2014 (104 Kb Excel sheet) which is one of the tables linked from Appendix A from Family Spending: 2015 A report on the Living Costs and Food Survey 2014, the latest in a routine series of survey results from the ONS that feed into things like the CPI calculation. A couple of weekly expenditure totals from the spreadsheet:

North	North	Yorks	East	West	East	London	South	South	England	Wales	Scotland Northern United
East	West	and The	Midlands	Midlands	East	West				 Ireland  Kingdom
		Humber											

427.40	467.10	450.60	494.70	454.50	540.60	616.30	594.80	533.00	521.40	444.50	474.40	484.10	512.60
49.80	53.60	51.30	56.80	55.50	61.30	63.20	63.80	61.00	58.30	54.10	56.90	64.00	58.10
20.90	22.40	21.20	20.60	19.60	22.10	27.40	25.20	22.40	22.90	22.80	23.10	35.90	23.20
32.70	33.70	28.50	33.60	28.60	31.20	34.90	37.40	34.20	33.10	29.40	27.90	30.10	32.40
50.90	59.10	61.80	69.50	63.50	78.90	67.30	88.00	76.80	70.20	60.60	73.30	64.40	69.80
12.80	13.80	13.10	14.90	14.00	14.80	16.70	15.30	14.70	14.70	13.50	13.70	16.10	14.60
57.70	64.10	59.80	66.80	56.70	68.90	65.20	76.30	68.40	65.90	58.00	60.40	56.50	64.80

So variation from a low of 427.40 in the NE of England to 616.30 in London or 594.80 in the SE. Later rows are food and non-alcoholic drinks; clothing; household goods and services; transport; communication; recreation.

JoeCrystal

A good retirement ]income in my case would be £1,200 net per month in today money would be ideal. But then, I will still be saving a portion for a rainy day fund and maintaining an emergency fund.

Of course, that is entirely depending on what I want to do in retirement, should I even want to retire.

edinburgher

It might sound silly, but I'd never really considered capital requirements in retirement, only income. I've always budgeted for repairs etc. under a category loosely titled 'home improvements'. This is currently set at 2% of the house value per annum. I suppose in retirement I'd just increase the amount slightly.

ischofie1

As has been said earlier...This is all very subjective because everyone's different but from my point of view:-


I'm looking for £25K net P/A but I will pay for lifetime capital expenditures out of this, rather that having some massive slush fund.


Whilst this represents approx 55% of my earnings in employment, I will have much more money available for personnel spending in retirement than I had when working.
All down to the massive "big ticket" items dropping off.


No N/I.
Higher tax free allowance by virtue of annually drawing on tax free element of pot.
No Mortgage.
Kids left the roost & self sufficient.....Ish!!!
No work travel expenses - 60 mile round trip per day.
No pension payments.