Will my pension be enough???

molerat

AnotherJoe wrote: »

Malthusian, you are making the assumption that salary determines lifestyle. It needn’t,

But with the majority it does. Nip across to the DFW board for some eye openers !

Malthusian

molerat wrote: »

But with the majority it does. Nip across to the DFW board for some eye openers !

Wouldn't the DFW board provide evidence against the assertion that salary determines lifestyle? Presumably it's mainly people who used to live a big lifestyle on a modest salary, and now accept they have to live a very modest lifestyle on a modest salary while they attempt to undo the damage.

Anyway, I didn't say that salary determines lifestyle. It is however indisputably a pretty big influence. If your salary increases significantly then of course there are going to be some changes to your lifestyle, otherwise what's the point? And most people base their expectations in retirement on their lifestyle immediately before it.

Malthusian

Play wrote: »

Would any additional 'pension' product be a good investment for me the fact I already got a FS/CARE pension?

Depends on your income needs in retirement, your tax status and when you want to spend the money.

If so, Wouldn't the money be tied in till I'm retire? (I am only 30)

No, it can be accessed from State Pension Age minus ten years (i.e. 58 in your case), whether or not you retire at that point.

I already open LISA (for my first property) and for my retirement (is this a good option) to go along with my FS????

Assuming you're already maxing out your employer's pension scheme, then probably yes.

I think what my question is is my 'pension' good enough so I can say 'yep it's the best out there in the market' and move on to the next portfolio - housing, share, saving etc

Your CARE defined benefits pension is way better than anything available in the market.

enthusiasticsaver

Is that a LGPS? It is the same terms as me a 1/49 FS/CARE scheme and is a very good scheme. If you are planning on retiring earlier than the age 66 or 67 or whatever age you can retire at you will need other pension provision in place unless your outgoings are minimal. Bear in mind your circumstances may change so ideally you would have no housing costs in retirement so a paid off mortgage and maybe you might or might not have dependants. You can do a combination of additional provision like over paying to buy added years or AVCs/SIPP which are extra pension savings or stocks and shares ISA.

marlot

Malthusian wrote: »

...Your pension will be based on the average salary over your career, which is now half of 20k + half of 30k = £25k. However, your lifestyle is based on what your income is now, i.e. £30k.

Only if you spend every penny you earn.

As my salary rose, I put more and more into my pension. Ended up at 68% of my gross salary.

When I got made redundant at in my late 40s, I was able to move to a much lower paying job without compromising our lifestyle - and still aiming to retire before 55.

AnotherJoe

Malthusian wrote: »

Wouldn't the DFW board provide evidence against the assertion that salary determines lifestyle? Presumably it's mainly people who used to live a big lifestyle on a modest salary, and now accept they have to live a very modest lifestyle on a modest salary while they attempt to undo the damage.

Anyway, I didn't say that salary determines lifestyle. It is however indisputably a pretty big influence. If your salary increases significantly then of course there are going to be some changes to your lifestyle, otherwise what's the point? And most people base their expectations in retirement on their lifestyle immediately before it.

The point would be, if instead of increasing "lifestyle" (aka spending) to match rising salary, you begin to invest that differential, or a goodly portion of it, then you can retire far earlier.

In essence, once you are at a lifestyle level you like and are happy with for the long term, additional income can be saved to finance that lifestyle when you retire and bring forward retirement / financial independence, potentially by many many years.

This article " The Shockingly Simple Math Behind Early Retirement" should be a revelation for most.

Mustbeananswer??

I had a beer with a mate of mine who has recently retired...


He said he spends more as hes bored without his job.....look out??

OldMusicGuy

It depends what you spend your money on when retired, and what you plan to do when retired. If you spend your money on eating out, drinking and holidays you will probably spend more on that because you have more time. If you spend your time doing things that don't involve much expenditure (like walking, reading, hobbies) you could spend less.

I will be retiring in 15 weeks and will be cutting my expenditure at least in half, probably more. But I am planning it that way so I can retire early.

If someone is bored without a job, I would be questioning why they retired. If you do not have anything to fill your free time, why not stay in work or do a different job that might pay less but at least you find interesting?

Malthusian

Mustbeananswer?? wrote: »

He said he spends more as hes bored without his job.....look out??

I honestly don't understand why you would want to retire if you're going to be bored. If I'm going to be bored then I may as well get paid for it.

When I retire I will be retiring to, not retiring from.

As in "...to spend more time with grandchildren" or "... to write a novel" or "...to travel the world and join the 100 Marathon Club", not just "...from working".

OldMusicGuy

I just read in The Week that apparently 1 in 4 people in the UK who retire then "unretire" within 5 years due to boredom, loneliness and/or money issues.