Just turned 40 - want to retire at 58 - sense check

atush

rawhammered wrote: »

Hey OP here again.

Just to update, managed to get access to OH's TPS online login which shows following:

Service History: 12 years 241 days

Benefits Statement as at 09th Oct 2019:
Total Annual Pension Amount £7,413.38

Arrangement / Normal Pension Age / Normal Pension Date / Annual Pension Amount
80th Final Salary / 60 years / 13/04/2039 / £5,389.73
Career Average / 68 years / 13/04/2047 / £2,023.65

Tax Free lump sum £16,169.19
(80th Scheme arrangements only)


Projection at retirement (60 ish) having service 22 years gives £11k annual pension and £33k lump sum. Not so bad. Still need to work out best way to increase her pot to cover her PA now.

Great news. What age will she actually retire? Might help with that decision?

I told you it wouldnt be the tiny amount you were expecting.

Anonymous101

Thrugelmir wrote: »

Better to worry about such things when one actually gets there. If one is fortunate enough to have timed the market to perfection. Then suffering a tax liability shouldn't be an issue. Assumptions are normally wrong when forecasting that far into the future.

This is how I'm looking at it. I'm "front loading" my pension while I can afford it as we're currently DINCs. Putting as much as possible in now while attempting to forecast the growth for the next 30 years. I'll be in a position to stop paying in within 5 years or so hopefully.


If that then goes onto exceed the LTA it'll be entirely as a result of good performance so not a problem to then pay the associated tax.

Thrugelmir

Anonymous101 wrote: »

Putting as much as possible in now while attempting to forecast the growth for the next 30 years.

Don't bother. Forward IMF global growth forecasts have been downgraded for the past 3 years. What chance does the man in the street have of guessing what growth rates might be. Better to focus on what can be controlled, i.e. level of contributions. Easier to turn the tap off. Having allowed compounding to do it's work over many years. Than rely on a late growth surge when time is tight.