Quick calculation

murphydog999

What size would my pension pot need to be if I retired next year (age 55) with £16500 p.a.? Hopefully that’s a quick calculation? Thank you very much if you can answer.

Dox

Spouse's pension? Inflation linked? Any health conditions? Are you taking any tax free cash? More info needed please!

Of you can do it yourself - try http://www.sharingpensions.co.uk/annuity_rates.htm

murphydog999

Sorry thought it might be a simple sum! no spouse, index linked, no health issues -

Dox

Try the link I've added above since you kindly replied - that should help.

murphydog999

Just thought it might not be clear, the £16500 is the pension payment not salary earnings

murphydog999

Thanks but they give quotes, its just the sum/figure I need.

zagfles

Index linked annuity rates at 55 are around 2%. So you'd need a pot of about £825,000 for an income of £16,500.

Dox

murphydog999 wrote: »

Thanks but they give quotes, its just the sum/figure I need.

Yes, but you can easily work it out from the quotes, which are based on pension per £100,000.

tacpot12

Do you have any entitlement to state pension, and are you prepared to take more of your pot out before the state pension kicks in?

murphydog999

Yes and no, it is purely that calculation I needed, thanks.

Paul_Herring

murphydog999 wrote: »

Sorry thought it might be a simple sum! no spouse, index linked, no health issues -

If you're after a ballpark figure:

• Age 55
• No spouse
• Inflation linked (well - sorta; 3% escalation)

Then the annuity you'd need would (from the above link) gives 2.617%:



Dividing £16,500 (presuming gross) by that gives a fund of £630k required.