What number are you aiming for - solely DC pot

Cus

I am aiming for £2.2mn. Stuff the LTA.

barnstar2077

Zorillo said:

If I had 120k in my pot at 40, and contributed £12k a year (increasing with inflation each year), invested in 100% global equities for the majority of the intervening period and then tapered to 60% in the last five years, what sort of ballpark could I hope to arrive at aged 65?

You may want to start your own thread, with a suitable title, to get more feedback.

Mistermeaner

Cus said:

I am aiming for £2.2mn. Stuff the LTA.

An interesting approach !
might be better to keep 1.1mil of that somewhere else though - eg isa.... you’re not getting the tax benefit so may as well keep the flexibility 

TimSynths

I'm aiming for £500k, @ £161k now @ 46, now saving 21%. Now also have (for the first time in my life) zero debt ex 8yrs of mortgage to pay and over the last month have put £1k into 100% worldwide equities via Vanguard and will add £100pm by DD and also additional payments when I can. Have about £12k tied up in various employee share save schemes too which now mature every year. I feel given my circumstances I am in a good place and am happy and would advise anyone to start pension saving as soon as you can to reap the benefits of tax relief and the miracle of compound interest and time.

Albermarle

Cus said:

I am aiming for £2.2mn. Stuff the LTA.

Sounds like you have been getting bad advice !

[Deleted User]

Alright, let’s play. This time next year I’ll be a millionaire.  

Any bets? 

Cus

Mistermeaner said: An interesting approach !

might be better to keep 1.1mil of that somewhere else though - eg isa.... you’re not getting the tax benefit so may as well keep the flexibility 

I don't have a choice tbh. A combo of a DB transfer a few years ago ( the numbers were a no brainer at the time) plus lucky growth and an employer match going forward means I might as well just get the DC as big as possible.
Would love to have it in ISA's but can't get at the DC for another 11 years.

JoeCrystal

Mistermeaner said:
I'm interested in where people who are solely reliant on dc pot(s) (+ state pension) are aiming in terms of pot size for retirement and their reasoning.

I am one of these who is solely reliant on dc pots for his retirement provision (unless something changes in the next three decades of work!). Unfortunately, I do not have a clue as to how large the pot needs to be so no aim apart from contributing much as possible and hope for the best.

My dream (which is a pure luxury) is to retire on the same take-home income at 68 as I am currently earning so taking into account current tax laws (which mean I do not pay NI after SPA), I am aiming for £25k which give me the same after-tax income I got at the moment. I will be expecting a full state pension at 68, so that reduces the requirement down to £16k per year demand.

At the moment, I got combined pension pots of 78k, so I got 34 years left to my SPA to keep contributing so. Ideally, I can get an index-linked annuity at 68 which makes up £16k a year which requires a pension pot of £517,000 in today's money (according to HL calculator) which also requires me to contribute 20% of my salary at the moment (including my employer's contribution). It is something I am committed to doing as long as I got an income to sustain that kind of contributions. So it is to make hay while the sun shines.

What is more likely to happen is to take stock at 55 or 58 depending on the legislation later in life, and decide if I can retire on the spot if there is enough money to draw down on sufficient to cover the expenses and a buffer on top.

MrJamez

JoeCrystal said:

Mistermeaner said:
I'm interested in where people who are solely reliant on dc pot(s) (+ state pension) are aiming in terms of pot size for retirement and their reasoning.

I am one of these who is solely reliant on dc pots for his retirement provision (unless something changes in the next three decades of work!). Unfortunately, I do not have a clue as to how large the pot needs to be so no aim apart from contributing much as possible and hope for the best.

My dream (which is a pure luxury) is to retire on the same take-home income at 68 as I am currently earning so taking into account current tax laws (which mean I do not pay NI after SPA), I am aiming for £25k which give me the same after-tax income I got at the moment. I will be expecting a full state pension at 68, so that reduces the requirement down to £16k per year demand.

At the moment, I got combined pension pots of 78k, so I got 34 years left to my SPA to keep contributing so. Ideally, I can get an index-linked annuity at 68 which makes up £16k a year which requires a pension pot of £517,000 in today's money (according to HL calculator) which also requires me to contribute 20% of my salary at the moment (including my employer's contribution). It is something I am committed to doing as long as I got an income to sustain that kind of contributions. So it is to make hay while the sun shines.

What is more likely to happen is to take stock at 55 or 58 depending on the legislation later in life, and decide if I can retire on the spot if there is enough money to draw down on sufficient to cover the expenses and a buffer on top.

Do you mind me asking how old you are? Trying to get a rough estimate whether I’m on the right path at 24 years old.

JoeCrystal

MrJamez said:

Do you mind me asking how old you are? Trying to get a rough estimate whether I’m on the right path at 24 years old.

I got 34 years left to the SPA of 68 so it is 34.