How much do you think you’ll need to save up to retire on?

Money_Advice_Service

How close are you to that goal? Do you wish you started earlier?

#TalkMoney

This thread is part of a Hub post aimed at helping people new to personal finance start a conversation on it. It’s aimed at newbies, so please be patient with anyone posting on here.

We’re verified representatives of the Money Advice Service, working with MoneySavingExpert on a Hub and series of posts as part of Talk Money Week to encourage people new to personal finance to discuss money. If you have any questions please ask below or get in touch with a member of the Forum Team.

We'd love it if you got involved with our other #TalkMoney week conversations we've started. Check out our hub with all the links - https://forums.moneysavingexpert.com/showthread.php?t=5921799

davidscot

How much do you think, in general, you need to retire on then?

TcpnT

How much do you think, in general, you need to retire on then?

That question is so vague that there is no way to answer it. Depends on a multitude of factors in your own personal circumstances

bugslet

I'd have liked to put more in earlier, but the bottom line is that until my 40s I really wasn't in a position to put lots in, a combination of not great pay and getting on the housing ladder.

I'm hoping for 400k, I'll get fairly near that shortly, but I'm not planning to take any of it at 55, unless my IFA suggests otherwise.

Audaxer

bugslet wrote: »

I'm hoping for 400k, I'll get fairly near that shortly, but I'm not planning to take any of it at 55, unless my IFA suggests otherwise.

If you do not need to start drawing down from your investments at 55, I'm puzzled as to why your IFA might suggest otherwise?

davidscot

TcpnT wrote: »

That question is so vague that there is no way to answer it. Depends on a multitude of factors in your own personal circumstances

Agreed but I was just putting it out there to see what the general feeling was

robin61

You are going to get a lot of different answers.
I'd say that you need to be debt free including mortgage paid off and to have enough in pension and or savings to generate a gross income of at least half of what your gross income was when you were working.

bugslet

Audaxer wrote: »

If you do not need to start drawing down from your investments at 55, I'm puzzled as to why your IFA might suggest otherwise?

I don't think he will, but I thought I'd chuck that rider in!

lisyloo

£600 - 750K (depending on job/health factors at the time, if healthy and enjoying work might go on a bit longer out of choice for a higher sum).

5 years away
Started on day ONE so couldn't have started earlier.

lisyloo

Audaxer wrote: »

If you do not need to start drawing down from your investments at 55, I'm puzzled as to why your IFA might suggest otherwise?

Does it not make sense to make use of the annual tax free allowance?(depending on other income of course).


So if no other income, would it not make sense to withdraw the money and if not needed then move from pension to ISA (could even be the same investment but the point is it's tax free)


or am I missing something?

bugslet

lisyloo wrote: »

Does it not make sense to make use of the annual tax free allowance?(depending on other income of course).


So if no other income, would it not make sense to withdraw the money and if not needed then move from pension to ISA (could even be the same investment but the point is it's tax free)


or am I missing something?

This is why in a few months before I hit 55, I'll be asking the IFA what he thinks about a number of things as I wind my business up and reach the point at which i could potentially take 25% of the pension.

He's an expert in investments and I'm not!:)