What number are you aiming for - solely DC pot

Clive_Woody

Deleted_User said:

This is a thread for boasting.  Cool

No, it's more for discussing people's plans.

I earn a decent salary, I know people who earn a lot more and people who earn a lot less. I don't get jealous of those who earn more than me, that would not be healthy and would change nothing.

The thread title was "What number are you aiming for" - some people are happy to answer that. If you're not then no worries, it's not obligatory.

Imelda

I disagree that it is boasting, sure some will have more than others but surely those with DB pensions paying £30k or more guaranteed a year are in a far better position than someone with £1 million in a D.C. pot?

I am jealous of them anyway!

I am 40 and have £150k plus £22k in a LISA. My aim is to have at least £600k by the time I retire (hopefully at 58).

barnstar2077

I am at the lower end of the scale, so I am definitely not boasting.  My overall target pot is 200k+, made up of an ISA and a DC pension.  I am living quite comfortably on £700 a month at the moment(half my salary), which includes a couple of hundred pounds spending money.  I am aiming for £800+ a month in ten to twelve years time when I reach 53/55, which will increase to £1000+ a month when I reach State Pension age.  My time is more important to me than anything else.  I want to spend it seeing friends and family and going for walks etc.  So just not having to work is really my main focus.

Anonymous101

I think everyone's answer should be "as much as possible without working longer than required or going over the LTA"
Pensions are by far the best vehicle for investing when it comes to tax efficiency so its really about maximising that.

I'm hoping to retire a few years prior to having access to my pension so its about forecasting the growth over those gap years. I'm using a 4.5% inflation adjusted returns rate and aim to reduce pension contributions once I forecast getting near to the LTA. I can always put a bit more in later down the line should the rules change or growth not be as forecast.

[Deleted User]

Apart from everything else, “aiming” for a specific size of pension pot by a certain date isn’t all that helpful.  What we are really talking about is “hope”.  There is no meaningful way of predicting what the stockmarket will do over the next 5 years or in 17 years or by 55.
Evaluating how much you need is helpful. Long term growth of your pot is likely.  How long will it take? As long as it takes. Or adjust your needs. 

MrJamez

I’m 24 and all I’ve ever known is a DC pension.

Total value of all my pensions combined is £8k. Long way to go!

Mistermeaner

No boasting intended here ; it’s good to get understanding of what others are doing and difficult to discuss specifics with people in the real world 

appreciate the comments that it’s ultimately about income derived from the pot which is why it’s good to understand people’s reasoning behind the pot value they are aiming for 

Anonymous101

MrJamez said:

I’m 24 and all I’ve ever known is a DC pension.

Total value of all my pensions combined is £8k. Long way to go!

£8k at 24 is a good start. Money invested earlier is so much more powerful than that invested later. Compounding is the 8th wonder of the world as Einstein said! 

This article is a good read if you've not seen it already.
https://theescapeartist.me/2019/11/09/how-to-build-a-compounding-machine/

MrJamez

Anonymous101 said:

MrJamez said:

I’m 24 and all I’ve ever known is a DC pension.

Total value of all my pensions combined is £8k. Long way to go!

£8k at 24 is a good start. Money invested earlier is so much more powerful than that invested later. Compounding is the 8th wonder of the world as Einstein said! 

This article is a good read if you've not seen it already.
https://theescapeartist.me/2019/11/09/how-to-build-a-compounding-machine/

Thank you, will give this a read this evening.

ratechaser

My number... let me think...