The Double Pension Effect

Nasqueron

lisyloo wrote: »

What’s wrong with 67?
My current relative are iving until 90 and some older.
Having 23 years retired means spending half of your life not working.

Obviously we’d all like more time off, but stop looking at yourself as hard done by.
You really aren’t.
It’s just there’s a tiny number of people better off, And even in this country it’s a small number let alone globally.

Your salary is low and most people retiring early will be on higher salaries, at least £40k+ to put decent amounts in their pension.

You say you could live until 100, so you expect 45 years in retirement for someone on a low income??
I think your expectations are flawed or it’s just pure jealousy?

I think you ought to re-read the whole post and work out what I was replying to. I was simply pointing out retiring early is not as easily achievable as is made out. 67 is 67, it's still paying and working for longer to fund the gold plated pensions of the generation before me, while no doubt the generation after me will begrudge working to 70 or whatever to keep me going. Is my job realistic at 67 - maybe, maybe not.



I'd expect the 45 years or so of NI contributions to mean I get a pension for as long as I can claim it, yes. Plenty of people (e.g. WASPI, those who don't work etc) are supported by taxes without contributing / contributing small amounts

Nasqueron

It's £23,000 by the way. It's helped by the fact that my partner earns somewhere around 4x mine so while we are independent financially, she does pay the majority of the bills e.g. her own mortgage and I pay a rent to her. I don't mean to sound naive, I am aware there are people with no pensions but I think I probably didn't put in enough of a boost early on when I first had a proper work pension scheme and my stakeholder wasn't exactly the best value - in hindsight I would have got an IFA to do it early with a high risk (I think I'm on profile 6 now).


I am half tempted to go to 7% on the salary and just cut back a bit but I noticed today my requested 6% has been ignored and I've been on 5% for the last year so I'll keep plugging away and see how it goes

JillyC8

What about semi retirement? I for one would like to keep my hand in as long as I can and hopefully work a couple of days a week after 67, which means there will be a small salary on top of my pension payout.
Maybe those with only small pensions could think along these lines, after all this could be a good life balance than total retirement.

ratechaser

Nasqueron wrote: »

It's £23,000 by the way. It's helped by the fact that my partner earns somewhere around 4x mine so while we are independent financially, she does pay the majority of the bills e.g. her own mortgage and I pay a rent to her. I don't mean to sound naive, I am aware there are people with no pensions but I think I probably didn't put in enough of a boost early on when I first had a proper work pension scheme and my stakeholder wasn't exactly the best value - in hindsight I would have got an IFA to do it early with a high risk (I think I'm on profile 6 now).


I am half tempted to go to 7% on the salary and just cut back a bit but I noticed today my requested 6% has been ignored and I've been on 5% for the last year so I'll keep plugging away and see how it goes

I suppose the obvious thing to point out is that if you've got a partner well into the 40% tax band, whereas you are firmly in 20% territory, is she maximising her own pension contributions - if not then that £350 you're paying into a separate pension could be better off going into her pension - that's £87.50/month additional tax relief you'd gain.

Of course it then comes down to your own perspective on how financially independent you want to be as an individual rather than within your partnership...

Thrugelmir

blisteringblue wrote: »

I'm not planning on taking much more than safe drawdown anyway, .

A figure that may only be determined eventually by hindsight.

Terron

thickasabrick wrote: »

Based on
Target income in retirement: £17420 (67% of annual salary of £26000)
gross contributions £5,760 per year (22%)
employers contributions £780 per year (3%)
Retirement Age: 55 years
.

I found the assumption of annual pay rises annoying. I got one rise in the last 10 years I worked.

pensionpawn

There are also those who lost out through Equitable Life, which is where my pension contributions were paid from my first well paid job.

System

Not to mention that those in the nice gold plate public sector pension scenerios have had in excess of 12% to 15% plus paid into their "pots" by the employer ...............the tax payer including the private sector having a miserly 5% if that paid by our employers . Which is why many take the pensions early as it doesnt pay them to keep working with some having more income from their pensions than if they worked. And as soon as the government wanted to change it they all throu the toys out the pram. If i want to take my pension early it gets slaughtered so i have no option but to carry on doing 12 hour days till im 67 if i stay in same job.sometimes i feel like giving up ill be totally honest here we are getting a bit fed up of a few of our friends bragging how great they are finding retirement and cant wait to book the next holiday in the sun etc we last went on holiday 7 years ago.

fred246

When I wrote this thread I was imagining a teacher or a nurse asking for pension forecasts for retirement at say age 60. Occupational pension £16k. State pension from 66 is £8k a year. Forget it I can't live on £16k a year. I can live on £24k a year though. Savings of 6 X 8 =£48k would make it possible. Is there nobody in that sort of position?

Pension_Geek

Nikond4 wrote: »

Not to mention that those in the nice gold plate public sector pension scenerios have had in excess of 12% to 15% plus paid into their "pots" by the employer ...............the tax payer including the private sector having a miserly 5% if that paid by our employers . Which is why many take the pensions early as it doesnt pay them to keep working with some having more income from their pensions than if they worked. And as soon as the government wanted to change it they all throu the toys out the pram. If i want to take my pension early it gets slaughtered so i have no option but to carry on doing 12 hour days till im 67 if i stay in same job.sometimes i feel like giving up ill be totally honest here we are getting a bit fed up of a few of our friends bragging how great they are finding retirement and cant wait to book the next holiday in the sun etc we last went on holiday 7 years ago.

You obviously don't understand how DB schemes work, as it's not possible to retire on higher income than you earned. The majority of public sector schemes have changed the accrual method and it isn't as generous as it was. Granted, these are still very good pensions.

I have 12% paid by my employer for my 6%, and I'm happy enough with that. I still put some into my own SIPP though. I could easily look at my parents pensions and be jealous, but what good will that do me? If I want what they have, I will need to work for it and plan for it. Which is what I am doing.