Retirement Plan - currently aged 31 years old - Thoughts?

cfw1994

You are streets ahead of most of your “peers” with all that thinking....certainly savings now give you compounding benefits in years ahead.  

Offspring can sap spare cash brutally...l got ours to enjoy hiking, camping (in our case, we helped with scouts through explorers & DofE) - fun and relatively cheap holidays or weekends that were fun!
Well done!

Dh6

I’m in a similar position the the OP, although self employed. I’m using a combination of SIPP’s for my wife and I. Lisa’s and S+S ISA to hopefully achieve our financial and early retirement goals. 

I posted a spreadsheet up a couple of weeks ago and I’m working on a 2% above inflation return for my 100%   (Currently ) global equities portfolio. 

We can achieve our goals with 2% above inflation returns so anything over and above that figure will bring us more financial freedom in retirement and push our retirement closer towards 50 years of age.

Interesting thread, we’ll done for having all of your financial affairs in order at 31 by the way.

kind regards

ian1246

Thanks for the reply guys.

I've had a further play around with the figures - mainly reducing them to assume an average of 2% yearly inflation and a luck-lustre 5% investment growth (3% after inflation).

Assuming those figures - I think a good "starting figure" for investment into my Wife's pension will be £250 per month. This would then be increased by 2% every April to off-set Inflation (When her yearly pay-rise will be). Assuming 5% average growth (3% Post-inflation) - by January 2060 - when Wife Turns 68 - she would have a £482,278 Pot - worth £212,936 in 2020 Value (Assuming 2% average inflation per year) - drawing the equivalent to £9000 per year in 2020 Value (& increasing for inflation), it would be depleted just after turning 92 years old - assuming 2% inflation & 2% investment growth (so 0% growth after inflation) from the point of drawing the pension at 68 years old. This also assumes 10 years before drawing the pension, we move the money to a more secure investment which only generates 3% return (1% growth after inflation)

I m hoping these are overly pessimistic figures - both in terms of the investment performance and my still being around when Wife turns 68 (meaning the pension would be left alone for longer!). 

For my & Wife's LISA - we are going to throw whatever we can spare into them until we have children, keeping in mind the £4000 annual limit - after which, hopefully we ll be able to afford to put £75 a month into mine and £175 into Wife's, increasing the amount each April to match inflation - if we do that, assuming 5% Investment Growth (3% Post Inflation) & then 3% Investment Growth (1% After Inflation) from 10 years before drawing the LISA due to moving to a more secure investment & only 2% Investment Growth (0% After Inflation) whilst actively drawing it, then we would hopefully have enough in each of the LISA's to fund their section of the plan.

So.... basically £500 a month into Wife's Pension & our 2 LISA's (More initially until we have kids). Are the above assumptions reasonable - I'd rather air on the side of pessimism than have unrealistic hopes!

Obviously... the above would be reviewed regularly - its just a starting plan to try and figure out what a reasonable investment into our future will be (Plus my Police Pension contributions).