The Double Pension Effect

bostonerimus

AnotherJoe wrote: »

I dont know what it costs in the US Boston, but over here that would pay for maybe 4 years in a home.

Yes I was budgeting on it covering 2 years by the time I need it. That's pretty good as I think the average stay in a care home is between 2 and 3 years and the 2 state pensions and DB pension could cover a lot of the cost by themselves, so I'm well covered.

System

Im sorry to say that some of the pensions i see quoted on various threads on here are talking phone numbers compared to my pension outlook after having the FS scheme well and truely ripped from under our feet in 2008 and then going into a DC pension situation witth a miserely 5% from my employer and the same from me. We certainly wont be having nice holidays and new cars like many i know of are. Ive worked for the company now in excess of 30 years and the last pension statement wasnt worth the paper is was written on to be honest. Plus of course now ive got to work till im 67.

lisyloo

p00hsticks wrote: »

And/or we make more efforts to encourage and support children in looking after their elderly parents whereever possible, as used to happen much more in the past.

I appreciate in some cases the medical needs are too severe, and in other cases where the parents aren't that elderly or had children late the children may not have reached retirement age themselves and are still holding down full time jobs, but it's something I recognise I may have to take on if and when my parents start struggling to cope.

We are doing the opposite of supporting children.
For example raising women’s state pension age from 60-67.
I don’t have an issue with that per se, the point is it prevents them caring for their elderly parents.

shinytop

Im sorry to say that some of the pensions i see quoted on various threads on here are talking phone numbers compared to my pension outlook after having the FS scheme well and truely ripped from under our feet in 2008 and then going into a DC pension situation witth a miserely 5% from my employer and the same from me. We certainly wont be having nice holidays and new cars like many i know of are. Ive worked for the company now in excess of 30 years and the last pension statement wasnt worth the paper is was written on to be honest. Plus of course now ive got to work till im 67.

In terms of the DB/DC question, me (and a lot of other people) too. If I'd stayed at the minimum contribution I'd also looking at a frugal retirement but chose to spend less while working and increased my contributions. I don't get my state pension until 67 either.

One point, make sure you know what your pension statement is really saying, some of the projections can be a bit misleading and can appear pessimistic. Mine did to me ubtil I reaslised what they were really saying.

lisyloo

Nikond4 wrote: »

Im sorry to say that some of the pensions i see quoted on various threads on here are talking phone numbers compared to my pension outlook after having the FS scheme well and truely ripped from under our feet in 2008 and then going into a DC pension situation witth a miserely 5% from my employer and the same from me. We certainly wont be having nice holidays and new cars like many i know of are. Ive worked for the company now in excess of 30 years and the last pension statement wasnt worth the paper is was written on to be honest. Plus of course now ive got to work till im 67.

A lot of us haven’t have DB pensions at all, so you situation from 2008 is what most people face.
Why are you only putting 5% in? It’s not really enough. Your previous pension might have been worth the equivalent of 30% so you either need to make up the difference or adjust your expectations.

You do t have to work until 67.
You can retire when you like but you need to make provision.

Have you been looking at statements, forecasts, working out what you want to live on and then how you want to get there?

Being handed a great DB pension is fantastic but the people who are retiring early (I’ve never had DB) are those who’ve made a plan of how they are going to acheive it.

It sounds like you’ve just put in the minimum which isn’t a great strategy.

marlot

Nikond4 wrote: »

Im sorry to say that some of the pensions i see quoted on various threads on here are talking phone numbers compared to my pension outlook after having the FS scheme well and truely ripped from under our feet in 2008 and then going into a DC pension situation witth a miserely 5% from my employer and the same from me. We certainly wont be having nice holidays and new cars like many i know of are. Ive worked for the company now in excess of 30 years and the last pension statement wasnt worth the paper is was written on to be honest. Plus of course now ive got to work till im 67.

Like you, my FS scheme was closed down. Unlike you, I increased the amount I was saving into the replacement DC scheme.

I was pretty much on track - but then I was made redundant at 49. That was a blow - emotionally and financially. My next job only paid half my previous salary - but I was glad to get it.

I don't know anything about your situation, and whether that would have been possible for you. It wasn't particularly easy for me, but it was the price I had to pay if I wanted to retire early.

I've had lots of people telling me I'm lucky to be retiring early. What they don't see is the sacrifices I've made along the way to make that happen.

Spreadsheetman

lisyloo wrote: »

A lot of us haven’t have DB pensions at all, so you situation from 2008 is what most people face.
Why are you only putting 5% in? It’s not really enough. Your previous pension might have been worth the equivalent of 30% so you either need to make up the difference or adjust your expectations.
....

That's the thing; it was possible to sleepwalk into a decent income with a DB pension, but a DC pension is going to require some thought and sacrifice to get to a similar place. It also requires that planning to be done when retirement is over the very distant horizon - there is very little support and education for that.

fred246

It's hard not to click on 'previous' posts. My pension was stolen from me. I drive a 3 litre top of the range Audi.

Pension_Geek

Nikond4 wrote: »

Im sorry to say that some of the pensions i see quoted on various threads on here are talking phone numbers compared to my pension outlook after having the FS scheme well and truely ripped from under our feet in 2008 and then going into a DC pension situation witth a miserely 5% from my employer and the same from me. We certainly wont be having nice holidays and new cars like many i know of are. Ive worked for the company now in excess of 30 years and the last pension statement wasnt worth the paper is was written on to be honest. Plus of course now ive got to work till im 67.

You cut your cloth accordingly. Nothing is stopping you putting more money into a SIPP or Stakeholder plan. At the very least will you have some guaranteed income in retirement, which will be a good bedrock of a financial plan for retirement. The rest is down to you and how much sacrifice you are willing to make. Ok, its not what you thought it would be, but I am afraid that's life. If you want to retire before 67, make a plan and stick to it!

blisteringblue

Nikond4 wrote: »

Im sorry to say that some of the pensions i see quoted on various threads on here are talking phone numbers compared to my pension outlook after having the FS scheme well and truely ripped from under our feet in 2008 and then going into a DC pension situation witth a miserely 5% from my employer and the same from me.

I was the same Nikon ours was "ripped" out even earlier in 2006 after acquisition, you have to deal with what you are dealt. I chose to take good CETV from 2 of my 3 DBs and I've been paying between 12-15% now and the company only match to 8%. I will probably rank it up to 20-25% for my final 3 years.

It certainly won't be all flash cars in retirement, but my life goal has always been to retire early and I think I've used my pensions well, even without DB for 13 years.