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

doris540

what i will say is thou those in the NHS on the front line especially deserve everything and more 

TBC15

Pile_o_stone said:

Albermarle said:

vulcanrtb said:

Albermarle said:

A couple on £30k each contributing 10% for 35 years should do it. I know plenty of couples both in the 50-100k region though it probably took a few years to get to that point. On salaries like that you are possibly looking at a pot £3m+

I know a couple where they are both somewhere in the £65K region . He has just retired at 66 , she is younger ( senior teacher)

Apart from her teachers pension, they have max £500K in DC pensions, savings etc and a two bedroomed semi in a so so area .

All down to very poor expenditure control and lack of interest in financial matters . Both income and expenditure are as important when it comes to saving

And this is an example of a not well off couple in retirement?

No, they are significantly better off than average and have no pressing money worries. However it is an example of how amassing wealth is not just about the income size but expenditure. Their assets are low relative to their dual income , especially their property size/value.

SO they have enjoyed spending some of the money they earned and yet still have a comfortable retirement? Sounds like the ideal scenario. I for one would not want to spend my youth watching the pennies and missing out on life so that I can spend my dotage sitting in my counting house, counting all my money and wondering which one of my nieces or nephews would get to spend it all when I die (in this scenario I don't have my own kids because having children is a poor investment).

The slightly worse alternative scenario is that I scrimp and save in youth and then die the day before I retire and I don;t even get the pleasure of sitting in the counting house, throwing my gold coins up in the air and shouting (with a giggle in my voice) "I'm Rich! Rich, I tells ya!"

I’m sure if you look on line there must be some drops for chronic green eye syndrome.

jamjar92

doris540 said:

 Agreed people could put more into their pensions in the private sector but very few if any companies will match an AVC by the employee.

You could always apply for a job in the public sector.  

AVC's are tied to the main scheme yes, that can be taken at the same time.  No local goverment employer pays anything into an AVC, never as, never will. The AVC's funds are not protected in anyway and are subject to market conditions, Capitial is at risk, whatever the value is at the time you take your main benefits could be used as part of the 25% lump sum. You can choose from a small list of funds by the Pru (in my case), from low risk to high risk.

Tassie_Devil

Bravepants said:

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.

 That's assuming that the market never recovers from the 50% crash. That seems unlikely.

savingmore

doris540 said:

What people are so thick to realise is The Public sector moan about been on lower salaries and their enhanced pensions are as some see compensation, But whilst they are working they are receiving from their employers The State greatly enhanced pension contributions. which us in The Private sector are helping to pay whilst we only get 5% paid by our employer or less. So the public sector are in effect far better off they just dont see the money till they retire. Agreed people could put more into their pensions in the private sector but very few if any companies will match an AVC by the employee. Plus of course we all in the private sector have seen significant losses to our pension pots due to the virus and the movements in the stock market which The Public Sector are totally hidden from. These losses have clawed back abit but with my company pension and my own one with the Pru has seen £7k loss combined. With Public sector pensions totally protected and with the government today saying it will take years for the economy to recover the public sector pensions will still need to be paid however with mass unemployment and people not paying taxes etc where will the money come from to cover the pensions in the public sector.

Do the public sector not pay tax ?

Pile_o_stone

TBC15 said:

Pile_o_stone said:

Albermarle said:

vulcanrtb said:

Albermarle said:

A couple on £30k each contributing 10% for 35 years should do it. I know plenty of couples both in the 50-100k region though it probably took a few years to get to that point. On salaries like that you are possibly looking at a pot £3m+

I know a couple where they are both somewhere in the £65K region . He has just retired at 66 , she is younger ( senior teacher)

Apart from her teachers pension, they have max £500K in DC pensions, savings etc and a two bedroomed semi in a so so area .

All down to very poor expenditure control and lack of interest in financial matters . Both income and expenditure are as important when it comes to saving

And this is an example of a not well off couple in retirement?

No, they are significantly better off than average and have no pressing money worries. However it is an example of how amassing wealth is not just about the income size but expenditure. Their assets are low relative to their dual income , especially their property size/value.

SO they have enjoyed spending some of the money they earned and yet still have a comfortable retirement? Sounds like the ideal scenario. I for one would not want to spend my youth watching the pennies and missing out on life so that I can spend my dotage sitting in my counting house, counting all my money and wondering which one of my nieces or nephews would get to spend it all when I die (in this scenario I don't have my own kids because having children is a poor investment).

The slightly worse alternative scenario is that I scrimp and save in youth and then die the day before I retire and I don;t even get the pleasure of sitting in the counting house, throwing my gold coins up in the air and shouting (with a giggle in my voice) "I'm Rich! Rich, I tells ya!"

I’m sure if you look on line there must be some drops for chronic green eye syndrome.

Well I guess the bloke was a little too interested in the spending habits of his mates, who seem to have a good balance between enjoying their money and yet still funding a comfortable retirement lifestyle. Perhaps you're right and he's a little jealous of their lifestyle? Personally, I don't think we know enough about his own lifestyle to judge. 

cfw1994

Pile_o_stone 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. 

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.

15% down?

Really?   Are you investing in super safe funds?
I took an overkeen interest this year in my main DC pot.  +4% since the Feb, +23% since the trough in March, and  +10% on start of year.    

I agree, 8% year after year gains would be unrealistic....but markets have broadly (& curiously, perhaps!) bounced back apace.

MallyGirl said:

Pile_o_stone said:

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

Why shouldn't someone on a higher salary be on a moneysaving website? Not wasting money is relevant whatever your income.

Have to say I agree with this.   Different people have different goals, but even some “wealthy” people will want to be “frugal” (maybe that’s how they became wealthy!).    

Not wasting money and giving a decent financial education to our offspring is a very firm goal of mine: schooling teaches them nothing about not wasting their income on endless lunches, coffees, bars, yet another new phone on expensive contracts, etc etc!
MSE, MrMoneyMustache and other places are all good sources of information, and indeed good places to share knowledge!

doris540 said:

what i will say is thou those in the NHS on the front line especially deserve everything and more 

I absolutely agree with this, & hope in some small way that our Country rebalances things.  The NHS is a real crown jewel in the UK.

Back to the OP on one last point:

antdon said:

Oh! And surely if your pot is so large you should be speaking to an IFA?

Well, some will certainly benefit from using an IFA....but in many cases, people CAN manage their money IF they have/take an interest - often those people on here who perhaps have what sounds like a large pot.  

If you can manage your funds well enough, you can save a chunk of money, which over 20/30/40 years can add up to a huge sum!

Silvertabby

savingmore said:

doris540 said:

What people are so thick to realise is The Public sector moan about been on lower salaries and their enhanced pensions are as some see compensation, But whilst they are working they are receiving from their employers The State greatly enhanced pension contributions. which us in The Private sector are helping to pay whilst we only get 5% paid by our employer or less. So the public sector are in effect far better off they just dont see the money till they retire. Agreed people could put more into their pensions in the private sector but very few if any companies will match an AVC by the employee. Plus of course we all in the private sector have seen significant losses to our pension pots due to the virus and the movements in the stock market which The Public Sector are totally hidden from. These losses have clawed back abit but with my company pension and my own one with the Pru has seen £7k loss combined. With Public sector pensions totally protected and with the government today saying it will take years for the economy to recover the public sector pensions will still need to be paid however with mass unemployment and people not paying taxes etc where will the money come from to cover the pensions in the public sector.

Do the public sector not pay tax ?

When I was in the RAF I was 'told' on many occasions  ' how lucky I was, not having to pay tax, NI, food and accommodation charges, married quarter rent' etc.  All quite wrong.  

doris540

Yes of course The Public sector pay taxes however with their so called lower salaries etc they will pay less tax whilst us with our supposed bigger salaries will pay more helping boost their pension employer contributions..What many fail to appreciate is we had our Final salary schemes pulled from under our feet years ago throu no fault of our own. The Public sector ones were reformed yet they are still far ahead in relation to the private sector and yet still The Public sector kicked off big time..

vulcanrtb

Silvertabby said:

When I was in the RAF I was 'told' on many occasions  ' how lucky I was, not having to pay tax, NI, food and accommodation charges, married quarter rent' etc.  All quite wrong.  

You too? We used to get that all the bloody time