Why do posters here have disproportionately higher than average pension funds...

doris540

Two words Public Sector as Cameron said "Those that have public sector pensions are the have yachts and not the have nots and they dont realise it"  If your the average worker in the private sector your pension will be five times less than the average public sector worker who youve helped fund their gold plated pensions throu your working life........................FACT !!!!

Bravepants

antdon said:

couriervanman said:

OP I've always loved these posts as well your not the only one
Its always somebody who is mortgage free in a £500k house with £150k in isa,generous pension pot £350k increasing by £1k a month top up with a partner who has retired a few years earlier on £20k a year.+ £100k savings. And they always ask will i have enough to last for 20 years,plus they forget the £180 a week they will collect at 65. 

Lol...  I can remember a poster a couple of months ago saying  they will have £1000000 in their pension pot when they are 35.... and asking will it be enough.....lol  omg perhaps it's an age thing.......

Drawing down a £1,000,000 pot at a very safe 3% a year amounts to £30000 a year BEFORE tax, so  £26,500 per year...doesn't sound so much now huh? I could live on that though.

It also depends on what assets the pension pot is invested in. If he was invested in 100% equities, he could expect maybe a drop of 50% in a crash, being left with £15,000 a year at 3%, or £14,500 after tax...just above average UK wage level.

Retirement investments are not all about the magnitude. Having £1M in a pension sounds a lot until you start to think about how you are going to use it over a 30 or 40-year retirement.

If I was the 35-year-old, purely relying on DC pensions, I would want another million in my pot before I go, just to be safe.

Bravepants

doris540 said:

Two words Public Sector as Cameron said "Those that have public sector pensions are the have yachts and not the have nots and they dont realise it"  If your the average worker in the private sector your pension will be five times less than the average public sector worker who youve helped fund their gold plated pensions throu your working life........................FACT !!!!

Yawn!

pensionpawn

Bravepants said:

antdon said:

couriervanman said:

OP I've always loved these posts as well your not the only one
Its always somebody who is mortgage free in a £500k house with £150k in isa,generous pension pot £350k increasing by £1k a month top up with a partner who has retired a few years earlier on £20k a year.+ £100k savings. And they always ask will i have enough to last for 20 years,plus they forget the £180 a week they will collect at 65. 

Lol...  I can remember a poster a couple of months ago saying  they will have £1000000 in their pension pot when they are 35.... and asking will it be enough.....lol  omg perhaps it's an age thing.......

Drawing down a £1,000,000 pot at a very safe 3% a year amounts to £30000 a year BEFORE tax, so  £26,500 per year...doesn't sound so much now huh? I could live on that though.

It also depends on what assets the pension pot is invested in. If he was invested in 100% equities, he could expect maybe a drop of 50% in a crash, meaning £15,000 a year at 3%, or £14,500 after tax.

Retirement investments are not all about the magnitude. Having £1M in a pension sounds a lot until you start to think about how you are going to use it over a 30 or 40-year retirement.

If I was the 35-year-old, purely relying on DC pensions, I would want another million in my pot before I go, just to be safe.

Depends on your lifestyle prior to retiring and your view on conserving your pot during drawdown, or gradually eroding it throughout. Personally me and the wife don't need a huge pension pot once we're both pushing up daisies so we'll be eroding ours, gradually over the term, leaving sufficient to accommodate any unwelcome surprises. Wealth will be passed to offspring along the way, rather than at the end, which is how we prefer it. Not constrained by the 'need' to maintain our pot along the term we will able to draw down at a slightly higher rate, obviously being watchful etc etc. Finally, to maintain our standard of living (indeed after decades of bringing up children it could arguably improve lol) retiring on just two thirds of our working joint net income is enough for us. Being able to annually draw down our personal allowances should more or less do the trick for us. We like new cars, gadgets, holidays, eating out etc just like anyone else, however I believe we can do that on a lot less than an LTA sized pot on retirement.

antdon

Bravepants said:

doris540 said:

Two words Public Sector as Cameron said "Those that have public sector pensions are the have yachts and not the have nots and they dont realise it"  If your the average worker in the private sector your pension will be five times less than the average public sector worker who youve helped fund their gold plated pensions throu your working life........................FACT !!!!

Yawn!

ROFLOL..

doris540

Friend of mine who works at The Home office in London is working from home on full pay, They said their work load equates to a max of 2 hours a day and that theyve been told they wont be back in the office until at least next March. The public sector wont see massive job losses over the forthcoming months either. Many in the private sector will see their jobs go and in turn their pensions  grind to a halt along with a bleak outlook. Just remember those that are furloughed in The Public sector which in proportion to The Private sector is minimal are still getting a far higher percentage paid into their pensions by the state ie the tax payer  than we are in the Private sector Bravepants. Imagine in the government turned round and stopped the public sector taking their pensions early or massively reducing down to 5% employer contributions like we are subjected to. . Be like The Poll Tax riots in the 80s.

Bravepants

doris540 said:

Friend of mine who works at The Home office in London is working from home on full pay, They said their work load equates to a max of 2 hours a day and that theyve been told they wont be back in the office until at least next March. The public sector wont see massive job losses over the forthcoming months either. Many in the private sector will see their jobs go and in turn their pensions  grind to a halt along with a bleak outlook. Just remember those that are furloughed in The Public sector which in proportion to The Private sector is minimal are still getting a far higher percentage paid into their pensions by the state ie the tax payer  than we are in the Private sector Bravepants. Imagine in the government turned round and stopped the public sector taking their pensions early or massively reducing down to 5% employer contributions like we are subjected to. . Be like The Poll Tax riots in the 80s.

Oh, boo hoo! I'm literally crying into my gold plated glass of champagne, while resting with my feet up on the back of a downtrodden private-sector worker.

Prism

doris540 said:

Friend of mine who works at The Home office in London is working from home on full pay, They said their work load equates to a max of 2 hours a day and that theyve been told they wont be back in the office until at least next March. The public sector wont see massive job losses over the forthcoming months either. Many in the private sector will see their jobs go and in turn their pensions  grind to a halt along with a bleak outlook. Just remember those that are furloughed in The Public sector which in proportion to The Private sector is minimal are still getting a far higher percentage paid into their pensions by the state ie the tax payer  than we are in the Private sector Bravepants. Imagine in the government turned round and stopped the public sector taking their pensions early or massively reducing down to 5% employer contributions like we are subjected to. . Be like The Poll Tax riots in the 80s.

I get a 0% employer contribution and have never received one in my working life - yet I still manage to contribute enough to a pension. Stop worrying about what others get or don't get and focus on yourself - you'll be much happier.

Pile_o_stone

couriervanman said:

OP I've always loved these posts as well your not the only one
Its always somebody who is mortgage free in a £500k house with £150k in isa,generous pension pot £350k increasing by £1k a month top up with a partner who has retired a few years earlier on £20k a year.+ £100k savings. And they always ask will i have enough to last for 20 years,plus they forget the £180 a week they will collect at 65. 

They also seem to have 8% growth year on year on year, and do not get hit with the Global financial crisis crash, the Corona virus crash or other corrections in the market. I also would take issue with the idea that if you are interested in pensions and save early then you will automatically get a £1m pot. As someone who has been a high rate taxpayer for over 20 years and who has been VERY interested in pensions over that time, who has consistently saved double digit percentages (I saved 15% when that used to be the maximum and I have been saving 20% over the last 7 years). I have always had DC pensions and when I move companies I have consolidated my pensions into a HL SIPP which gives me access to a large range of funds. I have no where near £1m saved in a pension plan. I'm currently 15% down on my pre-corona share values.

I'd take these DC £1m pots with a pinch of salt as people would either have to be on very high salaries (+£100k) and you have to wonder why they would be on a moneysaving website, or they are on a reasonable salary and they are living a sparse life and are scrimping and saving every spare penny which makes you wonder just what they will do with this large pension income as they didn't spend money when they were young, fit, confident and adventurous and probably won't when they are old, perhaps infirm and have had a lifetime of scrimping. Usually people who are careful with money don't suddenly blow it in old age - except Ebeneezer Scrooge, but then he was suffering from the onset of alzheimer's (and having hallucinations) and was taken advantage of by his Nephew, his workers and the townsfolk.

Pile_o_stone

Prism said:

doris540 said:

Friend of mine who works at The Home office in London is working from home on full pay, They said their work load equates to a max of 2 hours a day and that theyve been told they wont be back in the office until at least next March. The public sector wont see massive job losses over the forthcoming months either. Many in the private sector will see their jobs go and in turn their pensions  grind to a halt along with a bleak outlook. Just remember those that are furloughed in The Public sector which in proportion to The Private sector is minimal are still getting a far higher percentage paid into their pensions by the state ie the tax payer  than we are in the Private sector Bravepants. Imagine in the government turned round and stopped the public sector taking their pensions early or massively reducing down to 5% employer contributions like we are subjected to. . Be like The Poll Tax riots in the 80s.

I get a 0% employer contribution and have never received one in my working life - yet I still manage to contribute enough to a pension. Stop worrying about what others get or don't get and focus on yourself - you'll be much happier.

How does you employer get around the Workplace Pension regulations? The table below show the rates an employer has to contribute:

Up until 5 April 2018	1%	2% (including 1% staff contribution)
6 April 2018 to 5 April 2019	2%	5% (including 3% staff contribution)
Current rates - 6 April 2019 onwards	3%	8% (including 5% staff contribution)

https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment/how-much-do-i-and-my-employer-have-to-pay