How to calculate what to contribute in to a pension?

JustAnotherSaver

captainreckless wrote: »

If you're dead you won't be sitting around worrying about all the things you missed out on. If you live to be ninety then there'll be plenty of time to consider your pension (or lack of it). The risk of not having enough money in retirement is real whereas how you're going to feel after you've died is somewhat irrelevant.

You are right about finding a balance. You just have to decide whether having a larger pension pot will make you happier than the other stuff you could spend it on now.

Yes this is true. It's one of them things that can be discussed this way & that way, points on both sides with no real outcome other than points on both sides are valid & simply - there just needs to be a decision made which wont be the right or wrong decision, it'll just be the decision.

You're right in that once you're dead you wont worry about it. If you get hit by a bus & die instantly then you'll know no different.
Though if you get one of those horrible lingering deaths then depending on your personality (and mine is one) then you could spend time regretting putting all that money aside, missing out on this that & the other when you were younger & could've enjoyed it. Flipside is if you live to 90 you'll sit back & think - i made a good decision by putting that money aside.

Like i said, there is no right & wrong decision, just a decision & a consequence.

Personally i'm the type of 'just in case' person - so i'd rather put money aside 'just in case' i live to enjoy it. I've never been a live for the moment person.

JustAnotherSaver

Malthusian wrote: »

or even retire early..

I'll be honest here - work is not for me.

I know many people will turn their nose up at such a statement & think - how dare you say you don't want to work, but that's how i think. I've always felt that way. Going to work, 60 hours per week to make The Man rich while you earn a bit. So much that it'd be nice to do in life, but you've got to go to work to make The Man rich so you can do a few of the things you like.

Now i know i know - go & get a job that pays £50k per year so that you can be rich. Go get a job that you live to do. It's easy to say these things.

But the fact is - my goal is to retire as soon as i can afford to do so. If that's 65 then it's 65, if it's 70 then unfortunately it's 70, if it's 55 then lucky me but i doubt it.

Just saying - that is my aim, to retire as soon as i possibly can, whenever that may be.

Linton wrote: »

If you live until retirement, say 65, the Office of National Statistics data suggests that the chances of you dying by 66 are about 1/10th the chances of you living to 100. It would therefore make sense to devote much more thought to the latter possibility than the former.

I know it's all probability and the unknown but having done quite a bit of my family tree i've found that on my dad's side at least, people don't live too long. My dad died at 68 & there weren't many on his side who've lived longer than that. Very few. Many went in their 40s & 50s. Almost all were issues with the chest/heart.

Of course this isn't to say i'll be the same. I could live until 100 & have the chest/heart of a 20 year old professional sportsman. I'm just simply saying.

kidmugsy

JustAnotherSaver wrote: »

Well i'm 34.

Then consider a LISA: £4k p.a. made up to £5k by the taxpayer, continue to age 50, and then it can all come out tax-free at 60. You can get access in the meantime at the cost of a penalty that's not too bad.

kidmugsy

JustAnotherSaver wrote: »

My dad died at 68 & there weren't many on his side who've lived longer than that. Very few. Many went in their 40s & 50s. Almost all were issues with the chest/heart.

Cheer up. The epidemic of heart disease that used to kill so many men in middle age and early old age is virtually over. Nowadays heart attacks mainly kill people who are far into old age.

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