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

JoeEngland

agent69 wrote: »

£25k was my total spend for the year. About £9k was holidays.

In that case 9k for those hols is good, I thought 25k was just the hols!

Thrugelmir

Still working although on reduced hours. Which brings us in a good sum every month and accrues us yet more DB. Not focussing too much on eventual retirement income. As matters stand today already on target for £57k gross pension. We'll be more comfortable that's all matters to us. More obessed with remaining healthy. As money will be useless without the time.

agent69

JoeEngland wrote: »

I thought 25k was just the hols!

Now that would be a holiday of a lifetime

ratechaser

agent69 wrote: »

Now that would be a holiday of a lifetime

TBH, really not that difficult to spend that in a year on a handful of family holidays in peak time. Not even flying business. And believe me, I haggle!

Travel is my one real indulgence

michaels

A few people say 'We will be on £x until SP age then 8.5k / 17k more once we have our state pensions.'

This makes no sense to me - surely it is better to use TFLS, flexi drawdown etc to even out the pension over the whole of retirement rather than have a large jump up just when you will probably start wanting to do a bit less?

Thrugelmir

michaels wrote: »

rather than have a large jump up just when you will probably start wanting to do a bit less?

Want to a bit less? If you want to stay young stay active.

If Jagger can prance around a stage at 75 for two and half hours after the abuse he's given his body over the years. Then there's hope for anyone. Saw Leo Sayer in concert a couple of weeks back. 71 today. Somebody else who'll perform until they drop.

DT2001

Looking at £31k at SPA + whatever the residual pot produces as expect capital to reduce between retirement and SPA. Basic requirement in region of £20k (still funding children at moment but who knows how much longer they’ll need us). So, even being regular travels, we’ll be well placed especially as OH seems to work like agent69 in finding deals.

hugheskevi

As of today, we (wife and I combined) have Defined Benefit pension of £53,447 payable at normal pension age, State Pension of £9,530 and Defined Contribution pension of £212,950.

We will both have a full State Pension by retirement through use of voluntary class 3 National Insurance, giving a further £8,065.

We are currently aged 41, and will work for up to a further 4 years, during which time we will accrue more Defined Benefit pension but probably not any more Defined Contribution pension.

Taking the Defined Benefit pensions with protected minimum pension ages of 50 at age 50 will reduce the Defined Benefit pension income to £39,611.

So taking into account taking some pension very early at age 50, further State Pension accrual and further Defined Benefit accrual, our likely combined Defined Benefit and State Pension income will be around £60,000 - £65,000 depending on when we retire, along with Defined Contribution pension of around £225,000 - £250,000 depending on returns to smooth over the period between age 58 (assumed minimum pension age for Defined Contribution pension) and State Pension age (assumed to be 68).

Savings will be used exclusively for period up to age 50, and to supplement income for the period between age 50 to 58. Defined Contribution pension will supplement income between age 58 and 68.

It is likely at some point that a few inheritances will bolster savings, but I don't rely on that and it is likely to be post retirement anyhow.

cfw1994

JoeEngland wrote: »

In that case 9k for those hols is good, I thought 25k was just the hols!

I spotted an Antarctic eclipse cruise the other day.....it would have swallowed that £25k in one big gulp! I’d love that sort of trip, but pretty sure I’d struggle to blow that on one holiday: not much less than my first house!!:rotfl:

Paul_Herring

michaels wrote: »

A few people say 'We will be on £x until SP age then 8.5k / 17k more once we have our state pensions.'

This makes no sense to me - surely it is better to use TFLS, flexi drawdown etc to even out the pension over the whole of retirement rather than have a large jump up just when you will probably start wanting to do a bit less?

Don't people complain about this sort of smoothing being forced upon them? The emotive term 'clawback' tends to be used...

https://www.bbc.co.uk/news/business-47894220
https://www.pensionsage.com/pa/Govt-responds-to-controversial-clawback-consultation.php
https://www.independent.co.uk/money/spend-save/consumer-rights-my-old-employer-cut-my-pension-can-they-do-that-8165614.html
https://www.lovemoney.com/news/74178/pension-clawback-state-deduction-hsbc-midland-retirement-payment-uk

No pleasing some people...