What's the minimum pension pot

Stirfry

We have 600k in savings and combined pensions of 7.5k per annum. Aged 59 and 61. 1 full state pension and 1 a couple of years short (plan to buy at right time) due at 66. OH plans to retire soon, so we will have to have enough money. 30k net per annum required and we need to find a way to make it last.

Johnny_Doe

Without being too greedy and desperately wanting out of the rat race as soon as is humanly possible (i've had enough of the BS and politics) my scenario is as follows...

Currently 44, roughly a 10 yr plan - I'd like £20k yr at 55 (could maybe go down to £17-£18k, nothing too extravagant.. frugal living - couple of hols a yr etc.. no mortgage..

It will be a mixture of pension (workplace and SIPP drawdown) and savings to reduce the tax bill and make most of personal allowance.. So £20k net (not £18k)..

So (ignoring inflation and assuming growth on SIPP/Savings) SP will be around £8k at 67 so only need another £12k per annum after 67.. Assuming 30 yrs of good health, and assuming I last that long (who knows?), and lets be honest, after 85, travel Insurance becomes prohibitive and you start to have health issues so money is less important.. figuring on a good 30 years to "live", will still have the state pension to fall back on after 85, could add a few thousand on to be safe I guess?

from 55-67 £20k yr = £240000
67-85 = £216000
85-95? = £30000 (£3000x10) to get £12k yr pension

Total

£486000 round up to £500000?

Also I plan on selling my house in the UK (mortgage paid) and moving abroad to somewhere cheaper (ie Normandy/Brittany) so will have another £150000 equity release..

This is a very rough estimate...but not far off the 25xpensionx1.2.. which I think would be a safer number to go with... £600000

Also stock markets will go up and down and income drawdown timing could add in some variation in some years. And the inflation/savings growth balance could fluctuate somewhat.

Triumph13

The how big a pot question is really just a combination of 'the number' and your withdrawal rate assumptions, both of which already have long-running threads.
For those who have saved enough to retire at 55, a more interesting question might be how big a percentage increase in your retirement income would be worth working another year?

atush

Johnny_Doe wrote: »

Without being too greedy and desperately wanting out of the rat race as soon as is humanly possible (i've had enough of the BS and politics) my scenario is as follows...

Currently 44, roughly a 10 yr plan - I'd like £20k yr at 55 (could maybe go down to £17-£18k, nothing too extravagant.. frugal living - couple of hols a yr etc.. no mortgage..

It will be a mixture of pension (workplace and SIPP drawdown) and savings to reduce the tax bill and make most of personal allowance.. So £20k net (not £18k)..

So (ignoring inflation and assuming growth on SIPP/Savings) SP will be around £8k at 67 so only need another £12k per annum after 67.. Assuming 30 yrs of good health, and assuming I last that long (who knows?), and lets be honest, after 85, travel Insurance becomes prohibitive and you start to have health issues so money is less important.. figuring on a good 30 years to "live", will still have the state pension to fall back on after 85, could add a few thousand on to be safe I guess?

from 55-67 £20k yr = £240000
67-85 = £216000
85-95? = £30000 (£3000x10) to get £12k yr pension

Total

£486000 round up to £500000?

Also I plan on selling my house in the UK (mortgage paid) and moving abroad to somewhere cheaper (ie Normandy/Brittany) so will have another £150000 equity release..

This is a very rough estimate...but not far off the 25xpensionx1.2.. which I think would be a safer number to go with... £600000

Also stock markets will go up and down and income drawdown timing could add in some variation in some years. And the inflation/savings growth balance could fluctuate somewhat.

Cant take pensions at 54.

What are you going to do in France for health care? Wont be covered post Brexit?

Marine_life

ajbell wrote: »

That you would consider retiring on at 55.
No debts, house paid for.

Very much depends on your annual spending but I would say somewhere between 500k and 2.5 million.

Well you did ask.....

Ray_Singh-Blue

To feel so financially secure that I could forgo any more paychecks, I'd want:

- One house
- £500K in investments.
- Another £50K in the bank for every year until my pensions kick in.
- Then I'd want £50K index linked each year until they carry me out in a box.

bigadaj

Ray_Singh-Blue wrote: »

To feel so financially secure that I could forgo any more paychecks, I'd want:

- One house
- £500K in investments.
- Another £50K in the bank for every year until my pensions kick in.
- Then I'd want £50K index linked each year until they carry me out in a box.

So £3 million quid plus?

It's more probable that you'll be working until you die than retiring comfortably given those criteria unless you form a tiny minority of the uk population.

Triumph13

bigadaj wrote: »

So £3 million quid plus?

It's more probable that you'll be working until you die than retiring comfortably given those criteria unless you form a tiny minority of the uk population.

I think we can be pretty confident that Ray is a tiny minority of the population. About 0.0000016%. Unless he's really overweight of course.

Ray_Singh-Blue

bigadaj wrote: »

So £3 million quid plus?

It's more probable that you'll be working until you die than retiring comfortably given those criteria unless you form a tiny minority of the uk population.

My wife and I do indeed form a tiny minority of the UK population. As we are 2 people and the UK population is around 64 million. Adding my mistress would swell the figure by 50% though, at least until the wife finds out.

I interpreted this question as a very personal one. What figures would each of us choose as individuals? It depends upon our own circumstances and preferences, and perhaps our neuroses about money and security.

So you say £3 million. Well yes maybe it could be framed like that. I am thinking about two full time professionals in mid-career. Their pension income in mid and late retirement will come mainly from defined benefit schemes, and if they aim for a joint £50K per year that might account for about £1.5 million of your £3 million figure.

Then there is the house which might be worth about £1 million, those things cost £££ in the South East. And a cushion of investments, say £500K, so I can see how you could say that adds up to £3 million. And how that might be the minimum figure they would wish to retire on at 55, to maintain the lifestyle they want.

jerrysimon

The best thing any one could want would be their health and knowing exactly when they will die

Jerry