📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

FIREside Chats

1505153555683

Comments

  • hugheskevi
    hugheskevi Posts: 4,517 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 29 December 2021 at 11:57AM
    I was shocked at the difference between the db and dc pensions and hadn’t realised how low auto enroll is! There will be a lot of people on low incomes who feel they are doing the right thing (often struggling to do so) who will be disappointed when their pot is next to nothing. 
    Just a point of terminology, but you mean you are shocked at how low statutory minimum pension contributions are. Automatic enrolment is used by all schemes, including Defined Benefit schemes, and can have whatever contributions an employer wishes, subject to statutory minimum levels being provided.
    It is concerning how many people you come across who will say something like "I didn't start to save into a pension until I was 30, but I save through my employer now so that is all fine" - without any consideration of the consequences of starting to save late, whether they are saving enough, what their contribution levels are, or even what type of pension they have.
  • savingholmes
    savingholmes Posts: 28,986 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Well done on helping your mum. I agree about many people being disappointed at retirement. I have a DB pension - but it still costs me 8.5% a month. A lot more than most people pay on auto enrol who think they are covered
    Achieve FIRE/Mortgage Neutrality in 2030
    1) MFW Nov 21 £202K now £174.8K Equity 32.77%
    2) £1.6K Net savings after CCs 14/8/25
    3) Mortgage neutral by 06/30 (AVC £25.3K + Lump Sums DB £4.6K + (25% of SIPP 1.2K) = 31.1/£127.5K target 24.4% 15/8/25
    4) FI Age 60 income target £16.5/30K 55.1%
    5) SIPP £4.8K updated 29/7/25
  • Thanks for sharing Gallygirl! I was an au pair in Madrid, didn’t learn any Spanish either! 
    MFW 2021 #76 £5,145
    MFW 2022 #27 £5,300 
    MFW 2023 #27 £2,000
    MFW 2024 #27 £6,055
    MFW 2025 #27 £2,600/£5,000


  • edinburgher
    edinburgher Posts: 13,910 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    @gallygirl - gym 6 times a week? Wow! :)
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.3K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.8K Spending & Discounts
  • 244.3K Work, Benefits & Business
  • 599.5K Mortgages, Homes & Bills
  • 177.1K Life & Family
  • 257.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.