New Thread: Pension question and wage deduction

TyreLever

Lets say when I retire, I want my pension to be the same as my wage is. How much of my wage would I need to sacrifice to meet that? 15%? 20%

ACG

It will depend on so many different things:
- How old you were when you started your pension,
- How old you are now,
- How much is in your current pension,
- How much your income will be when you retire (presumably you mean your wage at retirement),
- Annuity rates at the time,
- How your pension is invested and how it performs.
- Will you be taking a cash lump sum?
- Will you want your income from your pension index linked?
- Will you want your pension to pay out until you and your partner passes away or just you?
- Age you retire,
- Any health issues (the worse your health, the more you will get).

Plus any other number of things.

It might be easier to work on how much you want, and how big your pension pot needs to be. The way it works is that when you retire you have a pot of money. That pot is then used to buy an income for the rest of your life (an annuity). This will only be ball park but it might get you in the right direction.

If your current pot is £0 and you need a pot of £300,000 and you have 20 years of working then you need to be putting £1250 away each month.

http://www.thisismoney.co.uk/money/pensions/article-1633402/Pension-pot-calculator-need-save-retirement.html

I might not be 100% on everything above as I am not qualified to give pension advice, but it should give you some things to think about. Have you thought about speaking to a financial advisor?