What are you aiming for as an annual pension for you?

cfw1994

Not sure if mentioned elsewhere, but a lengthy thread on "The Number" is available at https://forums.moneysavingexpert.com/discussion/2146737/pensions-planning-the-number#latest

drummersdale

I have a DB pension too and although not as magnificent as some of the numbers you hear on the forum I agree the security of it is of some reassurance.  I reckon mine would be in the region of £24k plus there would be a lump sum which can be put to good use.  Wife is 5 years younger but also in DB scheme so we will have hers to add into the pot when she decides to throw in the towel.  

[Deleted User]

Gin_and_Milk said:

There are definitely some jaw dropping amounts of pension which I read about on these forums, and sometimes I do feel a little despondent. So far, £18k at 60 is a rough figure for me at the moment - far from a luxurious retirement, but should be enough, and I'm planning to walk away with more.  I read about people having pots worth a fortune, but then I remind myself that mine is a DB pension, and you can't put a price on the security that provides IMO.

Totally agree with your last sentence Gin and Milk.

strawb_shortcake

I will hopefully be retiring in 31 years. If I wasn't to get another pay rise until I retire I would have a pension of around £32k plus SP. I'm hoping that with a couple of promotions and pay rises that I will keep track roughly with the average salary. 
I have been considering opening a LISA to bridge the gap of retiring a couple of years early without detriment to my pension, but not sure how likely I am to get £4k a year in for the next 12/13 years. 
My Husband is on track for full state pension and he'll be returning to work in 4 years after uni so he should also be able to get around 20 years into a work pension all being well.

We should also be mortgage free in 13 years so we should have potential to make some good savings and investments between then and retirement 

Silvertabby

When calculating your pensions, please do consider how much the survivor will have to live on when the inevitable happens.

Not so much nowadays ( I hope) but I've heard of far too many cases whereby the husband's single life annuity (taken out because it gave the highest monthly pension on retirement) ceased on his death, leaving the widow on nothing but means tested State benefits.

ratechaser

Silvertabby said:

When calculating your pensions, please do consider how much the survivor will have to live on when the inevitable happens.

Not so much nowadays ( I hope) but I've heard of far too many cases whereby the husband's single life annuity (taken out because it gave the highest monthly pension on retirement) ceased on his death, leaving the widow on nothing but means tested State benefits.

Very valid point of course, but that said, how many people actually buy an annuity these days? I can understand the attraction of knowing you have a guaranteed income for life, but the rates are hardly attractive...

I'd much rather take on a degree of investment risk and go the drawdown route.

Paul_Herring

 I can understand the attraction of knowing you have a guaranteed income for life, but the rates are hardly attractive...

You don't have to spend the whole pot on an annuity these days; could just get one with part of it to cover the essentials, then play day-trader with what's left

davidr1964

For me, it looks like I'll have a DB pension of £17k at 60. I'm saving into a stakeholder pension as well to bridge the gap between retirement and state pension.

hugheskevi

This table from the Pensioner Income Series is interesting to see the typical income of those who are just above State Pension age. Note AHC=After Housing Costs.

JoeCrystal

Very interesting. Housing Costs in this context is the following.

Rent (gross of housing benefits);
Water rates, community water charges and council water charges;
Structural insurance premiums (for owner-occupiers);
Mortgage interest payments (net of any tax relief) [But not Mortgage capital repayment], and;
Ground rent and service charges

In my case, my annual comfortable pension goal by 68 is to have £25k gross. Still, I should have a full state pension of £9k by 68, so that leaves me 34 years to contribute enough funds to pay out an annuity of £16k per year somehow from 68 ideally or opt for a drawdown if it is insufficient for an annuity.