Retire at 60, how?

NewLlrd

Short of changing my job (which I'm reluctant to do because the pension and other benefits outweigh any minimal increase in salary) I have been there for a long time and I LOVE my job - it has taken many years to get to this point and would take a lot to leave.

I'm currently putting in 12% of my salary according to the figure on aegons user area my employer 7%.

I will have a look to see if I can increase my contribution any further - currently the house I have on BTL is taking all of my spare cash as the previous tenant left with 4 months arrears and the house in a poor state. Once the house has been rented out again my finances should improve.

chiefie

Does your BTL form part of your pension planning ? I've considered this before but prefer to invest in pensions due to the risk exposure to your investment BTL gives you. Having a job you love be is fabulous by the way. Can you create other sources of income or just spend less ?

NewLlrd

chiefie wrote: »

Does your BTL form part of your pension planning ? I've considered this before but prefer to invest in pensions due to the risk exposure to your investment BTL gives you. Having a job you love be is fabulous by the way. Can you create other sources of income or just spend less ?

It doesn't - it's a short term thing and I'm planning on moving in there in 5 years (it was rented out before I spoke to a mortgage advisor who said actually yes we would have given you a residential mortgage on your salary for the amount I needed to buy siblings/parents out). I've just finished my initial 2 year deal and have fixed for the next five years as we don't know what the future holds economy/job wise.

No other source of income currently (apart from slight profit on BTL rental income - I'm not in it to make a profit I want someone to look after a family home). Although will look at additional income/job again in a couple of months when house is sorted will have more free time to commit to additional hours however overtime is pretty much always available at time and a third so try to get as many hours as possible in a month. :beer:

Thank you again for your help

NewLlrd

Archi_Bald wrote: »

That is a very sound planning assumption, particularly since it is extremely unlikely you'd ever get it at age 60. If state pension is still around when you get older, you are not likely to get it before you are at least 68. Your focus should definitely be where it is now - on your own and your employer's contribution. Perhaps try to spend most of any future salary increases on your pension? Don't forget to live well though.

I'm a pessimist, but it's a good thing sometimes! Increasing my contribution on salary increase is what I've done (on the advice of my dad) and will continue to do so however before last it was 6 years between my last pay rise so I'm not expecting regular pay rises in the future and will just up it as and when I can afford to

It's trying to get that balance between 'living well' and planning for the future. I have in the past spent 18 months not spending anything except the essentials (rent,train,bills,food) in order to save for a holiday for myself and my siblings - it was worth it, but I couldn't do it all the time and that was when I was on a salary of £14k!

thank you for your help!

BLB53

My question is how much do I need to put away each month to end up with a roughly £14k a year pension (or is that an unrealistic dream?)

As a rule of thumb, multiply by 25 to give you the amount required - in your case £14K x 25 = £350K. So you need to accumulate a further £325K over the next 30 yrs.

You probably need to be saving roughly double your current rate. You may want to work through the calculations in more detail - there's a useful article on diy invesor to help calculate your retirement figure
http://diyinvestoruk.blogspot.co.uk/2017/02/work-out-your-retirement-figure.html

If you can put some of your BTL income to work then it may well be achievable depending on your investment returns. Good luck!

chiefie

This thread had cemented in my mind how hard things at becoming. We as a country, as an electorate need to tell our MPs our masters our elected thatbthis is just not good enough. They need to get the big corporations to be socially responsible and start to contribute far more. It's up to us isn't it to do this. Good luck and heaven help our children if we dont

atush

currently the house I have on BTL is taking all of my spare cash as the previous tenant left with 4 months arrears and the house in a poor state. Once the house has been rented out again my finances should improve.

Do you own the property where you live now?

Bazofts_Revenge

You must really love your job if you are still there and haven't had a pay rise in 6 years. Not even rises to combat inflation. That means you are getting paid less each year. Overtime at time and a 1/3 isn't that great either.

NewLlrd

atush wrote: »

Do you own the property where you live now?

No I live with my parents.

NewLlrd

Bazofts_Revenge wrote: »

You must really love your job if you are still there and haven't had a pay rise in 6 years. Not even rises to combat inflation. That means you are getting paid less each year. Overtime at time and a 1/3 isn't that great either.

I do now...like I said it's take a long time to get to this stage (and don't get me wrong it was frustrating having no payrise). Whilst there was so much uncertainty in jobs etc I didn't want to move and then my job changed to what I do now.