Is my pot looking ok?

Albermarle

Alexland said:

Anonymous101 said:

It's something that I've only just started doing myself but I'm aware others have been doing this for some time. Obviously you need to have the funds or headroom to cashflow the higher contribution months.
At the extreme there are some which contribute their full pension in as few a months as possible. Taking their salary right down to the minimum thresholds (minimum wage for most rather than the lower NI threshold) and therefore they are getting all of their pension contribution at the 12% NI level. I'm intending on modelling this for myself shortly so will work out exactly what I'd save as I move towards something like that over the next couple of years.

Thanks I just did a spreadsheet and it will save me around £500 pa. The cashflow impact isn't too bad as you get the benefit of less Tax/NI in months where you contribute extra and more tax (and a tiny bit more NI) in months where you don't which smooths it a bit. A lot of our take home pay goes into ISAs so it just means their contribution rate will be in reverse correlation.

The other nice thing about this trick is the NI saving is cash in your pocket (to be invested in an ISA...) rather than tied up into the pension with resulting access, LTA, etc implications.

Not sure all these little 'tricks' will survive the future government debt mountain crisis . Although it has been predicted before, the odds on salsac /NI avoidance & HRT pension tax relief being abolished/amended must have shortened a lot in the last two months. Even with a Tory Govt. they could get it through easily and it would even look good for them as they redirect their support from the well heeled Southern middle classes ( like me ) to essential workers/NHS/The North. 
Change is coming methinks. 

Anonymous101

Albermarle said:

Alexland said:

Anonymous101 said:

It's something that I've only just started doing myself but I'm aware others have been doing this for some time. Obviously you need to have the funds or headroom to cashflow the higher contribution months.
At the extreme there are some which contribute their full pension in as few a months as possible. Taking their salary right down to the minimum thresholds (minimum wage for most rather than the lower NI threshold) and therefore they are getting all of their pension contribution at the 12% NI level. I'm intending on modelling this for myself shortly so will work out exactly what I'd save as I move towards something like that over the next couple of years.

Thanks I just did a spreadsheet and it will save me around £500 pa. The cashflow impact isn't too bad as you get the benefit of less Tax/NI in months where you contribute extra and more tax (and a tiny bit more NI) in months where you don't which smooths it a bit. A lot of our take home pay goes into ISAs so it just means their contribution rate will be in reverse correlation.

The other nice thing about this trick is the NI saving is cash in your pocket (to be invested in an ISA...) rather than tied up into the pension with resulting access, LTA, etc implications.

Not sure all these little 'tricks' will survive the future government debt mountain crisis . Although it has been predicted before, the odds on salsac /NI avoidance & HRT pension tax relief being abolished/amended must have shortened a lot in the last two months. Even with a Tory Govt. they could get it through easily and it would even look good for them as they redirect their support from the well heeled Southern middle classes ( like me ) to essential workers/NHS/The North. 
Change is coming methinks. 

Even more reason to use them whilst they're still here IMO

graham131

Dalfman said:

mcooke999 said:

cfw1994 said:

I would agree, the numbers for someone 35 are very good indeed.....I hadn’t reached those sort of numbers until probably late 40’s, although lucky (shrewd?!) fund choices have seen me okay, I feel!

I’d be interested in the source for that pdf, don’t recognise it as cfiresim: mind sharing it so I can have a play please?

It's just taken from an Excel spreadsheet that I built myself a year or so ago. I wanted to try to answer the question 'how much do I need to save for retirement' and all the online tools you find on various platform websites weren’t really giving me enough information or scope to play around with the variables...

You're welcome to the file (see attached) so you can have a play around with it yourself. I can't guarantee it's accurate as it's a work in progress but it would be good if someone could independently check it to be honest.

I want to expand on it so you can enter real-life figures each year to track progress etc. I'd also want to add a more detailed drawdown facility so you can account for one off purchases in the drawdown phase etc.

This is excellent! Thank you for sharing

Hi there - would love to see this excel spreadsheet to have a play too if possible.  It seems to have disappeared.  Thanks in advance