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

Thrugelmir

frugal90 wrote: »

Some massive numbers on here!

Thanks to loose fiscal policies by the Central Banks we've seen above average growth in the markets for some years. The unknown quantity is when reversal of policy final kicks in. Is how the markets will react. At best are we in for a period of stagnation?

westv

Thrugelmir wrote: »

Thanks to loose fiscal policies by the Central Banks we've seen above average growth in the markets for some years. The unknown quantity is when reversal of policy final kicks in. Is how the markets will react. At best are we in for a period of stagnation?

Markets fell quite a way a decade ago so it's no surprise they bounced back. Even so there have been corrections in between so the ride has been quite bumpy.

MK62

Thrugelmir wrote: »

Thanks to loose fiscal policies by the Central Banks we've seen above average growth in the markets for some years. The unknown quantity is when reversal of policy final kicks in. Is how the markets will react. At best are we in for a period of stagnation?

Loose monetary policy.....fiscal policy has been fairly tight......

indiasign

"So, plenty for us to live on, just have to hope we get to see it! ��
Originally posted by indiasign

”So would not reasonable course of action be to identify a point a year or 2 or 5 or whatever number if years earlier when it is enough rather than plenty"

Well, about £17k of the overall figure I was looking at is GSP - is it possible to take that any earlier than 67?

Another £20 -£24k is our DC Civil Service Pensions - I haven't looked at the modeller to see how much they would be reduced if we take them before 65, but given the £2k-ish difference between 65 and 67, I'm guessing it would be around £7.5k at say 62-63, which would give us about 30k, so it may be possible.

Sorry, don't know how to quote previous posts properly! ��

Sea_Shell

How do all these figures posted compare your "final" salaries as a %.

We keep hearing that you should aim for XX% of your earnings in retirement. Is that what you're all aiming for, or are you settling for a lot less, or actually planning on having more!!?

For us, we're looking to, on the whole, maintain our current spending levels, with maybe 20% uplift for those little extras.

So we're actually looking at a "pension" of 125% of our current annual earnings!! (We've basically been living on my PT salary for the last 3 years)

Mothman

Wow! in awe of some of the numbers here. I hope to take early retirement next year aged 59 and estimate DC pension and savings pot will total £440k by then. I plan taking 11k a year from DC pension and will hold £50k in cash to use when markets are down. My wife is 10yrs older than me and is already in receipt of her deferred SP of £11k but has no other pensions.

We have reconciled ourselves to the fact that we can have either have the time or the money but probably not both.

crv1963

Mothman wrote: »

Wow! in awe of some of the numbers here. I hope to take early retirement next year aged 59 and estimate DC pension and savings pot will total £440k by then. I plan taking 11k a year from DC pension and will hold £50k in cash to use when markets are down. My wife is 10yrs older than me and is already in receipt of her deferred SP of £11k but has no other pensions.

We have reconciled ourselves to the fact that we can have either have the time or the money but probably not both.

I don't think you are far from what I would call a comfortable retirement with 22k pa after tax, plus an extra 8k pa when your SP starts so 30k pa with a bit of tax to pay.

There are so large figures, but I think you will have the time and the money, like us it is finding what you enjoy within the means available.

dwsjarcmcd

Sea_Shell wrote: »

How do all these figures posted compare your "final" salaries as a %.

We keep hearing that you should aim for XX% of your earnings in retirement. Is that what you're all aiming for, or are you settling for a lot less, or actually planning on having more!!?

For us, we're looking to, on the whole, maintain our current spending levels, with maybe 20% uplift for those little extras.

So we're actually looking at a "pension" of 125% of our current annual earnings!! (We've basically been living on my PT salary for the last 3 years)

For me, you need to look at net income, not just of tax but other things such as monthly savings
and investments, pensions, loans etc. which may not apply after stopping work. Our figure is about 100% of that but less than 50% of our combined gross salaries when we worked.

k6chris

Sea_Shell wrote: »

How do all these figures posted compare your "final" salaries as a %.

We keep hearing that you should aim for XX% of your earnings in retirement. Is that what you're all aiming for, or are you settling for a lot less, or actually planning on having more!!?

For us, we're looking to, on the whole, maintain our current spending levels, with maybe 20% uplift for those little extras.

So we're actually looking at a "pension" of 125% of our current annual earnings!! (We've basically been living on my PT salary for the last 3 years)

Difficuilt to answer as it depends how you meausre the question. In terms of absolute net pay, probably about 25% of peak income, 50% of final salary (as I moved to a lower paying, less stressful role). Strip out mortgage payments, retirement saving, kids at university etc, and you can get to 80%. However for the last year or so we had a trial run at living off our pension income, which we had slightly underestimated, so now on about 105% of that number.


So to answer your question, anywhere between 25% and 105%. Not very helpful, but a LOT more useful than the 'two thirds' meaningless guff that gets trotted out!

billy2shots

I sincerely hope that earlier posters on circa £100k a year don’t regret their choice.

We are all in different positions but I would choose the years over the amount (after a certain financial point).

I struggle to see how retiring 5 or more years earlier with £60k a year wouldn’t be a better life decision.