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

michaels

https://forums.moneysavingexpert.com/discussion/2146737/pensions-planning-the-number

The NUMBER

Paul_Herring

https://forums.moneysavingexpert.com/discussion/2146737/pensions-planning-the-number

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I think little side threads are justified sometimes...

Marcon

What help would this be for anyone else? Their circumstances aren't going to be identical to mine.

Paul_Herring

What help would this be for anyone else

they shouldn't be allowed to at least ask the question, which, by the way, has generate some reasonable answers?

pensionpawn

ratechaser wrote: »

Assuming both my wife and I achieve pension pots of ~£1m in today's money by the time I hit 55 (not unrealistic), then between that, another DB pension I have plus state benefit, then I think £100k joint pension is realistic from 55.

Not yet sure I'll need that much, but thinking that we want to travel a lot before I get too decrepit. And not in economy :cool:

A £1m pension pot is quite a target! Assuming (possibly incorrectly) that to achieve such a goal you would have to be a graduate and hence don't really start to earn until you're 21, that gives you 34 years. Now some 'back of a fag packet' sums suggests a flat £325 a month, without breaks, at 10% growth each year would bag you £1m at 55. At current auto enrolment rates a salary of £48750! I appreciate that a linear model isn't realistic however it does illustrate in simple terms the magnitude of the task.

A pension (just) at my current net pay would effectively be a 'playboy' lifestyle after all the usual costs associated with 'running a family' have gone away. Aiming for higher than that by sacrificing well needed cash in the 'here and now' would, for me, have caused serious financial hardship in the present for too much (heavily taxed) money in the future, assuming you're still around to enjoy it.

ratechaser

pensionpawn wrote: »

A £1m pension pot is quite a target! Assuming (possibly incorrectly) that to achieve such a goal you would have to be a graduate and hence don't really start to earn until you're 21, that gives you 34 years. Now some 'back of a fag packet' sums suggests a flat £325 a month, without breaks, at 10% growth each year would bag you £1m at 55. At current auto enrolment rates a salary of £48750! I appreciate that a linear model isn't realistic however it does illustrate in simple terms the magnitude of the task.

A pension (just) at my current net pay would effectively be a 'playboy' lifestyle after all the usual costs associated with 'running a family' have gone away. Aiming for higher than that by sacrificing well needed cash in the 'here and now' would, for me, have caused serious financial hardship in the present for too much (heavily taxed) money in the future, assuming you're still around to enjoy it.

Well to be fair, £100k in pension would be a very substantial reduction to our current combined income, but frankly when you no longer need to be in the city any more, I'm thinking it would be more than adequate. I'm not quite sure what a playboy lifestyle really means, but I certainly know that we are in the 'relatively frugal' camp compared to many of my colleagues in the industry - that's why we've been able to build up substantial pension pots, not to mention clear the mortgage 15 years early.

The only fly in the ointment is the contributions taper that's now in place, but even then, and without any further growth, my current pot plus maximum tax-efficient future contributions will be at about £800k by the time I'm 55.

tony4147

enthusiasticsaver wrote: »

Depends on circumstances, couple, single person, lifestyle etc. We have aimed and have achieved £36k net (£3k per month) for a couple. No mortgage. Two cars. Two to three holidays a year and active lifestyle with money for hobbies, meals out etc.

£3K a month is what we having being think of.


I'm hoping for £18-20K, my wife is hoping for £18-20K both at 60 y/o, and then the SP on top at 67.


My wife will achieve hers £18-20K as they are DB pensions, but mine are DC and unfortunately have been up / down the last 12 months, with 4 years to go I'm starting to think it isn't going to happen with mine, if mine do fall short it might mean that I have to work a year or two longer.

fred246

The only way really is to work out your own spending. I work on roughly spending £500 a month on direct debits and £2k on the credit card. So £30k a year. I think this article is one of the best
https://www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-atu0z9k0lw3p

Happier_Me

Another couple aiming for the £35k net mark from 55. We have 11/12 years to go and have achieved £30k net from 60 so far with our pension being guaranteed (DB plus state) from 67ish.

Some gaps to address but we're on track to achieve this figure, which is similar to what we spend now as a family of 4.

lisyloo

Marcon wrote: »

What help would this be for anyone else? Their circumstances aren't going to be identical to mine.

I think it’s reassuring to see to know if I’m in the right ball park and in my case very reassuring to know I’m at the higher end of expectation. Yes sure it varies.

I’m looking at £28k based on a min £700k.
Hopefully still married so sharing the bills.