What % do you pay?

AlanP_2

LarryR wrote: »

I think, worryingly, my number may be about £75-80k to live on. I will still have 9yrs left on my mortgage when I'm 60 (currently costing £1700pm, 2.14% fixed), and with private healthcare (5k for me and kids, 7k for wife), groceries (6k), gas/electricity/water (3k), home/car/dog insurance, holiday, Council/road tax/petrol, clothes/eating out, etc, it quickly (scarily) adds up.

On the bright side, I just remembered I've got two other personal pensions lying dormant at the moment, one with 95k in it (looks like it is dropping 500pa in fees!) And second one with £25k. Should I look to transfer these into my current employer pension?

You need to start playing with Excel and do a cash flow to take you through your situation.

The mortgage will disappear at 69 for example so theoretically you don't need as much per year from then on, kids will start to cost zero / less as they become independent and so on.

What we have done is look at what we are spending now (with kids off our hands) and identify what is "essential" once retired (bills / groceries etc.) and what is down to choice (holidays at £10k a year or at £2k a year is a choice).

That'll start to give you a better idea of your target.

Then look at the guaranteed income side as it relates to the family unit and the dates at which they become availabe (e.g. Salaries for a few years and then State Pensions).

Subtract Income from Expenditure and yiou can see where your shortfalls are and then develop a plan to cover the gap which will give you an indication of required pot size.

Based on my experience that model will develop over time and become more reflective of reality as you look and think about things more.

Subtracting Income from Expenditure shows

Kendall80

katkatmachine wrote: »

I am so jealous. Most of you guys have very generous employers. Mine only pays the minimum which is 3% and my contribution is 5%. I have LISA though where I put £100 a month. I just turned 30 last month, I only started contributing in my pension last year (just moved here in the UK last 2017), so im in just my 2nd year putting money for my retirement. I don’t think I will be able to increase my contribution soon because we have to pay now mortgage if everything goes well with house purchase.

Indeed many on here appear very fortunate. Good for them. My workplace amounts are more in line with yours (4%:6%) although I match the employer/employee combined amount with personal SIPP contributions. My wife has a public sector final salary pension so at least that part is taken care of.