looking bleak......worried

Muscle750

Having just recieved my company pension statement im seriously concerned on the future. Firstly we had the FS ripped from under our feet in 2006 and were transfered into a DC scheme which im still in and employed by the same company. As it stands in the DC pot there is a total of £42,492 giving me a forcast if i continue paying into it at present rate of 5% matched by the company a whole £1860 per year with a forecast of the pot been £101 462.
The FS scheme will as it stands today will give me a whole £3276 per year this has increased from £2543 a year when it was stopped we obviously werent in it that long. prob 5 years max. This figure will increase each year however as its only increased by 733 in 12 years not exactly tax exile material. Ive asked the company if i contribute more will they match it which they wont. Ive also got my own Pru pension which has approx £55k sat in it which im not touching or as it stands adding any AVC. As it stands if i drop before my retirement my wife will get £126k which is 4x death benefit and the £42k back from the DC pension and a pension of £1638 a year.
Present salary is £31k a year. Ive also got my predicted state pension a few months ago of £155 per week.
One thing i need explaining in plain english is that they have stated that the figures stated have NOT been adjusted into todays prices
My wife works PT and has a LGPS with 21 years . Im just concerned that the future when i retire as it stands we wont be able to do the things we want to and planned. I know quite a few of have retired recently and are reaping the rewards especially from the public sector. I will be 56 and xmas

AnotherJoe

Muscle750 wrote: »

Having just recieved my company pension statement im seriously concerned on the future. Firstly we had the FS ripped from under our feet in 2006 and were transfered into a DC scheme which im still in and employed by the same company. As it stands in the DC pot there is a total of £42,492 giving me a forcast if i continue paying into it at present rate of 5% matched by the company a whole £1860 per year with a forecast of the pot been £101 462.


.

That figure is based on an annuity. Which you wouldnt take. You could get about double that just by living on the incomefrom £100k.

Muscle750 wrote: »

Present salary is £31k a year. Ive also got my predicted state pension a few months ago of £155 per week. Im just concerned that the future when i retire as it stands we wont be able to do the things we want to and planned.

At age 67 or so you would be getting
2x SP ? £16k?
FS £3k
DC £4k
Wife LGPS ? £2k?


So thats about £25-£26k a year. Not too bad but not luxury.
Sorry answer is simple but hard.


To increase, you need to do as many of these as you can.
-Contribute more.
-Earn more.
-Spend less

JoeCrystal

First of all, the best thing to do is to look exactly at how much income both of you to retire upon and work backward from it? You know that both of you will get combined state pension of £16k at 67 (assuming both of you are the same age for simplicity's sake). You could use your DC pot to draw-down the income before your state pension kicks in. You got few years worth of your state pension in your DC pot. You didn't mention the NRA of your scheme but if it is earlier than your state pension age then if you need £8k per year to make up your share of the combined income, then you could probably do it earlier with FS scheme making up the foundation and topping it up by drawing down on your DC pension. But most importantly of all, you still are still in a job earning a good salary so you can plan ahead more by saving up more one way or another so that give you some flexibility.

Mnd

We are planning on 2k nett a month, this appears to be about what you are on course for.
Is this goingbto be enough for you?

If not, you can build up your pension pots to make up the difference

dunstonh

with a forecast of the pot been £101 462.

It is not a forecast. It is a projection. Forecasts are something that is likely to happen. A projection is a synthetic example using a range of assumptions. Those assumptions may or may not be reasonable.

One of those assumptions is factoring in a deduction of 2.5% p.a. for inflation. So, that figure is not future money terms but adjusted to todays money.

They also assume an annuity purchase at very low rates (often 100% spouse with indexation and not using market rates but lower). A method that barely anyone uses.

Look at the assumptions used and understand them.