OldMusicGuy wrote: »
This one is slightly different, and now the other one is getting a bit confused. The "Number" thread was about annual income needed to live "comfortably" in retirement, whereas this one asked what is the total level of wealth people feel comfortable with before they can retire.
232607 wrote: »
Any default fund is likely to be very causious for your age & probably won't produce the best result. May be have a read of a book...Tim Hale, Smarter Investing. It's the principles of the books that you need to understand not the techy stuff. It is written in simple terms.
It will probably give you the confidence to do something different, if not nothing lost (other than the cost of the book).
cns06 wrote: »
When talking about SIPPs in many cases compounding plays a massive part. Then what funds etc that SIPP is in can also play a part. Lastly fees, again they can vary a LOT.
Add all that up, over 30+ years and you can get to quite serious sums of money. For every 100 paid in per month over 35 years you should in theory end up with, very roughly £100,000. So invest £300 a month and after 35 years it should be at least £300,000.
If you did pay in £300 a month you will have paid around £130k. The rest of the pot is growth!
The reality is as people age their contributions go up. Kids move out, they downsize or pay off the mortgage, they don't need as much money so they invest. I remember being 18 and my boss paying 100% of his income into his pension the year before he retired. I just found it totally weird and did not understand how he was even doing that or what the advantage was. 20 years later I get it!!!
Doshwaster wrote: »
Don't forget that your pension pot isn't the only source of money to fund retirement. For example there will also be savings and any equity built up in property. If you take a combination of these then a figure of £750,000 is more realistic.
I'm 45 and was my pot is currently only about £125,000 (I didn't start doing pensions properly until my early 30s) so the predictions I see in my annual statement are very depressing but I also have about £150,000 in property equity and £50,000 in cash/shares. That's total assets of £325,000 which makes £750,000 within the next 20-odd years achievable.
OldMusicGuy wrote: »
I hadn't considered my "magic number" until a couple of years ago. Up to that point, I just assumed I would keep working until about 63/64, a couple of years before SP age, and then call it quits. I didn't give much thought to what I needed, I just kept saving.
However, a couple of things changed my attitude completely. The first, and most important, was work. It got increasingly stressful and I realised that at 58, I could not last until 63/64, as it was starting to damage my health. The second was the change in the tax regime that meant as someone affected by tapering, I could only save £10K per year into a pension.
These reasons combined made me look at what I had in the DC pot (and other savings) and if retirement before 63/64 was practical. I decided it was, based on what I had 2 years ago, and where it would be in 2 years time (ie now). I retired 6 months ago and so far all is going well, despite several unexpected expenditures.
fraserkerr wrote: »
I would like to reach a fund of approximately £750k. I'm 34 and only have an existing DC value of £110k so still a long way to go. Not sure if £750k is an unrealistic expectation though.
JimmyTheWig wrote: »
With no dependents, will these friends inherit the cash if you die before them??
NoMore wrote: »
That's essentially the same thing tho, just a different expression of it.
atush wrote: »
kev2009 wrote: »
hi, wow interesting read, makes my pension look insignificant/not enough... I'm 41, single, paing into a works pension and there online portal predicts I would have approx £450k pension pot at 68 and then goes on to prodict what I would get as 25% tax free and as a income.
I'm wondering how people get to 750k etc... is it simply you have very well paid jobs, high tax bracket and can afford to put more in to prevent you paying higher rate tax? but then surely not everyone is higher rate tax payers? or perhaps these figures are combination of husband and wife's total pension pot?
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