What is a GOOD pension Pot to retire on??

atush

MEM62 wrote: »

It may put some off but not those in my position. I didn't BTL but lived in my own property in the West London / Surrey area. When my girlfriend and I decided to buy a house together I kept it. The mortgage is small enough that the rent covers the cost and it is now a retirement investment rather than a home. (I am 54 and hope that retirement for me will be circa 10 years or so away - sooner if I can pick the right 6 numbers!)

Well at least you didnt have to pay higher stamp duty on it- but it is taxed on both income and gains. So I suggest you put more into pensions to offset this, and if you get married put it in both names and get 2x TG relief to help offset any gains.

BTL is very tax inefficient.

Linton

Is a national average particularly relevent when deciding how much income you will need in retirement? In the years leading up to the end of work you will be used to a particular standard of living. In my view it is best to assume you will want to continue with this and may even have increased expenditure because of the extra free time. So keep actual spending data and use that as the basis. Dont forget to add on capital expenditure requirements.

Personally I wouldnt consider BTLs, retirement is busy enough without running a business on the side. A sensible portfolio of share investments can bring in the money with minimal effort and zero tax.

Pennysmakepounds

Linton wrote: »

Is a national average particularly relevent when deciding how much income you will need in retirement? In the years leading up to the end of work you will be used to a particular standard of living. In my view it is best to assume you will want to continue with this and may even have increased expenditure because of the extra free time. So keep actual spending data and use that as the basis. Dont forget to add on capital expenditure requirements.

Personally I wouldnt consider BTLs, retirement is busy enough without running a business on the side. A sensible portfolio of share investments can bring in the money with minimal effort and zero tax.

Making money is not easy, that's a simple fact of life.

a BLT when it runs smoothly is fine, but like any business you will get issues.

My plan is build a portfolio and then hand the properties over to my children at some point and let them manage them and give me enough to live on until i kick the bucket.

That way, in later years the properties will be managed by them.

mgdavid

Pennysmakepounds wrote: »

.........

That way, in later years the properties will be managed by them.

or not, as the case may be. Fair bet that they won't want the hassle on top of their own lives, families and careers.

bigfreddiel

Pennysmakepounds wrote: »

Making money is not easy, that's a simple fact of life.

a BLT when it runs smoothly is fine, but like any business you will get issues.

My plan is build a portfolio and then hand the properties over to my children at some point and let them manage them and give me enough to live on until i kick the bucket.

That way, in later years the properties will be managed by them.

I would bet that as soon as you hand over the properties, your kids will be selling them. Good luck with that one fj

Pennysmakepounds

bigfreddiel wrote: »

I would bet that as soon as you hand over the properties, your kids will be selling them. Good luck with that one fj

:rotfl::rotfl::rotfl:

Maybe, but the apple doesn’t fall far from the tree and I’m judging them by my own standards.

Not all families are the same, I expect better from mine.

Only time will tell.

Pennysmakepounds

mgdavid wrote: »

or not, as the case may be. Fair bet that they won't want the hassle on top of their own lives, families and careers.

Why not, they get a nice nest egg out of it.

westv

Well my current projections give me a pot + savings of

£350k at 57 - my ideal retirement age
£393k at 58 - my likely retirement age
£440k at 59 - my "am I still here?" retirement age.

plus a DB pension around £5k starting at 60

No mortage or rent.

mgdavid

Pennysmakepounds wrote: »

Why not, they get a nice nest egg out of it.

Inheritances that carry the onus of ongoing work can be seen as an encumbrance and unwanted commitment, not a benefit.

Worried_of_wakefield

On the same subject, for the purpose of my spreadsheet what age would you feel is aceptable to assume our spending requirements will start reducing?. I've plucked age 75 and simply stopped factoring in inflation.

In response to the OP, I retired in December allowing myself £25k/annum( nett), 8 months in I suspect I shall fail miserably! - I guess the response to your original question would be 'accrue as much as possible'