What's the minimum pension pot

ThinkingOutLoud_2

atush wrote: »

Cant take pensions at 54.

He clearly knows that as he says it is a "rough 10 year plan and his figures repeatedly use 55 for the starting age.

atush wrote: »

What are you going to do in France for health care? Won't be covered post Brexit?

Agreed, the rules on moving to France (truly permanently), healthcare and pensions may be quite different. Who knows how different?

edinburgher

In the vein of Atush's response, we would need in the region of £800k (all assets) to retire as a couple at 50/55, probably £550k or so in pensions/ISAs).

That doesn't account for state pension.

Malthusian

Martinslovechild wrote: »

Didn't I read somewhere that the average pension pot (i.e. full pension pot - not the annual amount withdrawn) is something like £40,000 ??

A lot of people in this country are unskilled labourers on minimum wage and the State Pension will be adequate for them. ("Adequate" based purely on the assumption that adequate retirement income = n * working income, I'm not saying they'll have a particularly comfortable life.)

Also, despite attempts to reform us, people stubbornly persist in unprogressive domestic arrangements where one partner is the main breadwinner - consequently the other partner will have little or no pension fund, even though their retirement position is very comfortable.

So I don't see anything to be concerned about in that statistic.

If an individual told me that they were an average person earning an average £27,000 salary, wanted to retire on 66% of their salary and they had a £40,000 pension pot and no other retirement fund, then I would be very concerned for them. Find me one and I'll put on a concerned face. But there aren't that many.

JoeCrystal

That is worrying. But surely, your level of concern should be moderated by how old an individual is and how much this individual is paying into? Suppose it was a thirty years old individual then you would not be concerned at all?

As for average pot of £40,000, it sound like the median amount for pension pot is likely to be much worse.

ThinkingOutLoud_2

JoeCrystal wrote: »

That is worrying. But surely, your level of concern should be moderated by how old an individual is and how much this individual is paying into? Suppose it was a thirty years old individual then you would not be concerned at all?

As for average pot of £40,000, it sound like the median amount for pension pot is likely to be much worse.

But if you note the desired income - the point is that a £40k pot won't provide for that at all (unless you are 99 with a few years to go). If you were hoping for £1-2k a year, you might be more in luck.

If they were 30 and managed to save 5 times that in the remaining years - that would still not deliver the desired income.

ajbell

So what is the average pension pot amount per person?, including multiple pots.

JoeCrystal

That's true indeed. I thought I will play around with the HL calculator and see how much one need to put aside at different ages assuming that the default is used and that the 2/3 of retirement wishes include the state pension amount (£8000) per year and retiring at their current state pension age. Assuming they want £18,000 per year so that leave £10,000 shortfall to be made from other pension provision and no lump sum and starting with £40,000 pot.

20 years old, retiring at 68:Need to contribute £202.50 per month (9% of salary)
30 years old, retiring at 68:Need to contribute £270.00 per month (12% of salary)
40 years old, retiring at 67:Need to contribute £405.00 per month (18% of salary)
50 years old, retiring at 67:Need to contribute £675.00 per month (30% of salary)
60 years old, retiring at 66:Need to contribute £2002.50 per month (89% of salary)

Rather depressing then.