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How much to live on

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  • Frogletina
    Frogletina Posts: 3,914 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 16 June 2022 at 6:32PM
    otb666 said:
    basically i am not gonna cut myself short for parents when parents have 10 times savings to us As there is no guarantee of any inheritances in todays world
    According to your post you have 30k in savings and your parents have 100k,  which does not equate to 10 times as much.

    You have said you have income of 23k per annum including a DB. I doubt signing on in 5 to 10 years would yield any more income.

    I'm confused by your previous post too.
    Not Rachmaninov
    But Nyman
    The heart asks for pleasure first
    SPC 8 £1567.31 SPC 9 £1014.64 SPC 10 # £1164.13 SPC 11 £1598.15 SPC 12 # £994.67 SPC 13 £962.54 SPC 14 £1154.79 SPC15 £715.38 SPC16 £1071.81⭐⭐⭐⭐⭐⭐⭐⭐⭐Declutter thread - ⭐⭐🏅
  • drummersdale
    drummersdale Posts: 232 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    Have just received my pension quote from My CSP - c£26,500 per annum with a minimum £74,500 lump sum up to a max of £131,000 should I decide to commute any. Mix of Classic and Alpha.  Due to start partial retirement 2.5 days in August - which should bring in £26,500 in salary.  Hope to work for another 3-4 years until wife is ready to retire - she should get around £18k per annum plus her lump sum.  Won’t get state pension for another 6 years (in my case) wife longer than that. Alpha pension should accrue a little more over the next few years and next April’s CPI uplift should be in the region of 5-6% (10% expected rate in September 22 but pro-rated). No NI on Pension so if my numbers are right should be on the same as I am now - or perhaps even a little more - but for 2.5 days. Hopefully my calculations are correct 🤞Not sure of the impact of the McCloud judgement and won’t know anyway until October 23 onwards so will worry about it then!
  • BooBoo77
    BooBoo77 Posts: 54 Forumite
    Seventh Anniversary 10 Posts Name Dropper
    Have just received my pension quote from My CSP - c£26,500 per annum with a minimum £74,500 lump sum up to a max of £131,000 should I decide to commute any. Mix of Classic and Alpha.  Due to start partial retirement 2.5 days in August - which should bring in £26,500 in salary.  Hope to work for another 3-4 years until wife is ready to retire - she should get around £18k per annum plus her lump sum.  Won’t get state pension for another 6 years (in my case) wife longer than that. Alpha pension should accrue a little more over the next few years and next April’s CPI uplift should be in the region of 5-6% (10% expected rate in September 22 but pro-rated). No NI on Pension so if my numbers are right should be on the same as I am now - or perhaps even a little more - but for 2.5 days. Hopefully my calculations are correct 🤞Not sure of the impact of the McCloud judgement and won’t know anyway until October 23 onwards so will worry about it then!
    Great to hear you’ve got your quote now. Hope the figures are roughly what you thought.  I’m due to partially retire at the start of September and am waiting with baited breath for my quote. When I put in my figures to the Portal it says one figure and then when I click the button for actual current earnings or some such wording, it says considerably more. All for going at the same date, at 57 which is what I’ll be in September so I’m really keen to know which is the true figure. Like you I think the lack of paying out NI on the pension element should mean I have more in my pocket for working less days and the link to CPI should hopefully help. I’m a single parent with children just hitting teenage years so am hoping to have less work stress so I can deal with the teenage stress! Finding this board really helpful to work out what might be possible after partial retirement. At the moment I’m probably going to have to work on til SPA but at least it will be just 3 days a week. 
  • drummersdale
    drummersdale Posts: 232 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    BooBoo77 said:
    Have just received my pension quote from My CSP - c£26,500 per annum with a minimum £74,500 lump sum up to a max of £131,000 should I decide to commute any. Mix of Classic and Alpha.  Due to start partial retirement 2.5 days in August - which should bring in £26,500 in salary.  Hope to work for another 3-4 years until wife is ready to retire - she should get around £18k per annum plus her lump sum.  Won’t get state pension for another 6 years (in my case) wife longer than that. Alpha pension should accrue a little more over the next few years and next April’s CPI uplift should be in the region of 5-6% (10% expected rate in September 22 but pro-rated). No NI on Pension so if my numbers are right should be on the same as I am now - or perhaps even a little more - but for 2.5 days. Hopefully my calculations are correct 🤞Not sure of the impact of the McCloud judgement and won’t know anyway until October 23 onwards so will worry about it then!
    Great to hear you’ve got your quote now. Hope the figures are roughly what you thought.  I’m due to partially retire at the start of September and am waiting with baited breath for my quote. When I put in my figures to the Portal it says one figure and then when I click the button for actual current earnings or some such wording, it says considerably more. All for going at the same date, at 57 which is what I’ll be in September so I’m really keen to know which is the true figure. Like you I think the lack of paying out NI on the pension element should mean I have more in my pocket for working less days and the link to CPI should hopefully help. I’m a single parent with children just hitting teenage years so am hoping to have less work stress so I can deal with the teenage stress! Finding this board really helpful to work out what might be possible after partial retirement. At the moment I’m probably going to have to work on til SPA but at least it will be just 3 days a week. 
    Hi @BooBoo77 I had the same issue with the online calculator so I downloaded an excel one as it seemed easier to tweak and the figures were more what I expected.  Im
    going to spend a week or two crunching the numbers to get the right permutation before I sign and then it’s no looking back! But yes the thought of working less time for more or less the same money is a big attraction! Hope yours goes through without any issues and you get what you’re expecting! 
  • Kim1965
    Kim1965 Posts: 550 Forumite
    500 Posts Second Anniversary Name Dropper
    I have some public sector db pension so please do not think im getting at any posters.
     The governments liabity to public sector(unfunded) pensions is 2 trillion pounds, roughly the same as the national debt.
     Are the current final salary and now career average pensions going to be replaced by dc pensions
  • hugheskevi
    hugheskevi Posts: 4,493 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 18 June 2022 at 11:08AM
    Kim1965 said:
    I have some public sector db pension so please do not think im getting at any posters.
     The governments liabity to public sector(unfunded) pensions is 2 trillion pounds, roughly the same as the national debt.
     Are the current final salary and now career average pensions going to be replaced by dc pensions
    The annual cost of paying unfunded public service pensions is about £50 billion.
    Annual income from member and employer pension contributions is £48 billion. Although employer contributions are just money moving around the public sector.
    If you change pensions over to DC the Exchequer still has to meet the £50 billion, but loses all the contribution income which now leaves the Exchequer and goes to a private pension provider.
    So any change to DC would be a long-term project which would create a short and medium term funding pressure. Governments tend not to do very unpopular things which would only have a benefit in the very long run and costs money for many years to come. Although if a Government were to view it as a populist project stoking divisions from which it thinks it may strengthen its core support that may change things in favour of reform.
  • Kim1965
    Kim1965 Posts: 550 Forumite
    500 Posts Second Anniversary Name Dropper
    Kim1965 said:
    I have some public sector db pension so please do not think im getting at any posters.
     The governments liabity to public sector(unfunded) pensions is 2 trillion pounds, roughly the same as the national debt.
     Are the current final salary and now career average pensions going to be replaced by dc pensions
    The annual cost of paying unfunded public service pensions is about £50 billion.
    Annual income from member and employer pension contributions is £48 billion. Although employer contributions are just money moving around the public sector.
    If you change pensions over to DC the Exchequer still has to meet the £50 billion, but loses all the contribution income which now leaves the Exchequer and goes to a private pension provider.
    So any change to DC would be a long-term project which would create a short and medium term funding pressure. Governments tend not to do very unpopular things which would only have a benefit in the very long run and costs money for many years to come. Although if a Government were to view it as a populist project stoking divisions from which it thinks it may strengthen its core support that may change things in favour of reform.
    Seems odd that almost all private db schemes are deemed unaffordable and yet government db schemes are still open to new members. 
  • QrizB
    QrizB Posts: 18,218 Forumite
    10,000 Posts Fourth Anniversary Photogenic Name Dropper
    Kim1965 said:
    Seems odd that almost all private db schemes are deemed unaffordable and yet government db schemes are still open to new members. 
    Private DB schemes need to have enough assets today to fund their liabilities.
    Public DC schemes don't.
    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.
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  • GunJack
    GunJack Posts: 11,840 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The way a DB pension is treated in the company accounts can be a major driver for private sector companies to move away from DB to DC. It's happening with ours at the moment - even though the DB is well funded and in surplus, they are closing it from next April and moving to a DC going forward because the DB "costs" 3 times the DC as far as the accounts are concerned, which makes the company look worse in it's overall financial outlook.

    A very poor reason as far as the workforce is concerned, but the board and management are looking up & outwards rather than inwards. At least the deferred DB will continue to revalue at CPI+1.5% in deferment...
    ......Gettin' There, Wherever There is......

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