How much to live on

QrizB

jevbanx1 said:

there's a (very) big thread over on the pensions board about it..go have a read 

Is there a link please as I'm in the same situation. Thank you 

This thread - you probably don't need to read all 1300 replies!:

https://forums.moneysavingexpert.com/discussion/5580163/paying-2880-into-pension-when-retired

jevbanx1

Thank you. I've put every permutation I could think of word wise and could not get it to show anything. Appreciate this. Jan 

jevbanx1

I've saved the posts and will read it through tomorrow. Thank you 

Albermarle

Kim1965 said:

My sp age is 67 (9 yrs away) any alteration upwards of that would be a body blow.
 Inflation is tipped to drop rapidly. I am fortunate to have 8k db at 60, half fully inflation oroof half up to a max of 7%rpi above which is discretionary. This is better than normal.
 Some private db pensions have little inflation proofing most do have some inflation linking but with a capof 3 to 5% and i think most annuities are level, probably you are right but that is only because people choose this cheaper option,  so lets hope for most peoples sake inflation gets back on track. 
 As i am still trxing to accumulate, the current bear market is soul destroying. Both sipps are down a bit ytd. Having said that, i am currently saving approx £1400 pm, so to see it go down in spite of healthy contributions is a total bummer. Hence why im still working. 

 As i am still trxing to accumulate, the current bear market is soul destroying.
During accumulation and drawdown ( could be 50 years or more) you will see many bear markets, the current one being one of the milder ones so far, so you should not let it affect you too much, certainly not a soul destroying situation in financial terms. As  you say yourself. Both sipps are down a bit ytd. which is not exactly indicative of financial armageddon !
Markets go up and down, which is normal. Inflation would be more of a worry if it gets embedded.

Albermarle

jevbanx1 said:

Thank you. I've put every permutation I could think of word wise and could not get it to show anything. Appreciate this. Jan 

The search facility is not very good.

One point to be aware of is that the add £2880 and get £720 tax relief, is only for non earners. If you have higher earnings than £3,600 , you can add more, regardless of whether you actually pay any tax or not. For example if you earn £5000 and pay no tax you can still add £4000 to a pension and get £1000 in tax relief. A point often misunderstood, partly because HMRC's own website is less than clear on this point.

Kim1965

Any thoughts regarding the mini budget? The markets seemingly dont like it, im guessing its inflationary. Will the trickle down spending from the most wealthy deliver growth? 

otb666

@Albermarle by earners you mean people that work Me amd Hubby dont work now Hubby pays tax on his drawdown 18k pa and me a DB Pension 5500pa so we will be limited to £2880 and get £720 tax relief,  Told you i am a dummy lol

Farway

Kim1965 said:

Any thoughts regarding the mini budget? The markets seemingly dont like it, im guessing its inflationary. Will the trickle down spending from the most wealthy deliver growth? 

Worldwide markets are in turmoil, US rate rise, Ukraine etc, so I don't think that is unique to the mini budget.

Trickle down? Pays your money & takes your choice, never worked before but who knows this time round? Worth a try because what they were doing wasn't working anyway

Albermarle

Kim1965 said:

Any thoughts regarding the mini budget? The markets seemingly dont like it, im guessing its inflationary. Will the trickle down spending from the most wealthy deliver growth? 

 Truss and Kwarteng, ideologically believe in low tax, trickle down etc . Unfortunately for them, now finally they have the chance to do what they want, the country's debt was already higher than it has been for many decades. So the timing for loading on more debt is not great, but they just went ahead anyway, which is what has upset the markets and the Bof E I think.
Personally I think there maybe some stimulus to growth, but not as much as is hoped, and there will be a price to pay in future with big interest payments on the debt. 

jevbanx1

@Albermarle
I retired aged 64 in July. I had a months leave to take, taking me to end of August. I will have for the next two years, my work pension of 12 k per annum and my savings will supplement that until I receive my State pension. I'm trying to get my head around your comments and will re read all later. Thank you. 
Jan