A Paupers Pension Tale (Not many nuts to dig up)

Albermarle

Stubod said:

....£11k from £170k would seem a tad optimistic to me.

Last time I checked for an annuity it was about £2k / £100k for index linked and spouse benefit?

For an annuity of £11K they quote about £270K , so about half of what you would need.
Even taking account annuity rates may rise at some point and maybe only CPI linked , it is still misleading.

Terron

Stubod said:

....£11k from £170k would seem a tad optimistic to me.

Last time I checked for an annuity it was about £2k / £100k for index linked and spouse benefit?

The annuity figure they give is £262,500 for £25kpa, but it is clear from the text that state pension should be deducted. They give 2 figues for the state pension for a couple, 16kpa and 14kpa. 25k-14k is where the 11k comes from. Maybe 9k applies there. It looks like some one who didn't really know what they were doing tried to update the article for their latest survey results and did a bad job. They have also forgotten to take into account tax when going from the spending measured by their survey to the income needed to support that spending.

[Deleted User]

A most refreshing thread. Great to hear the plans of a more typical member of the population. In the Over 50s Forum there is this thread which several of us have contributed too that you may find helpful.
https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on#latest

Most of us that contribute there are, in my opinion, more representative of the U.K. population. 

As for the ‘Which’ the amounts needed for various types of retirement will depend on your own spending patterns. As a single person my spending patterns would allow me a very  comfortable retirement on about £25000 a year rather than the nearly £30000 suggested. For example, I don’t need to budget several hundred a year for tobacco and alcohol nor do I spend as much on housing and insurances as they suggest. Definitely a case of each to his/her own.

I also agree they need to check their drawdown annuity figures. unless they are assuming both members of the couple have pension pots. 

I shall follow your thread with interest. Thanks again for providing some balance as well as hope for the majority!

Best wishes.

gambleruk

[Deleted User] said:

A most refreshing thread. Great to hear the plans of a more typical member of the population. In the Over 50s Forum there is this thread which several of us have contributed too that you may find helpful.
https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on#latest

Most of us that contribute there are, in my opinion, more representative of the U.K. population. 

As for the ‘Which’ the amounts needed for various types of retirement will depend on your own spending patterns. As a single person my spending patterns would allow me a very  comfortable retirement on about £25000 a year rather than the nearly £30000 suggested. For example, I don’t need to budget several hundred a year for tobacco and alcohol not do I spend as much on housing and insurances as they suggest. Definitely a case of each to his/her own.

I also agree they need to check their drawdown annuity figures. unless they are assuming both members of the couple have pension pots. 

I shall follow your thread with interest. Thanks again for providing some balance as well as hope for the majority!

Best wishes.

Thanks for the link, that will be tomorrow's reading taken care of  

[Deleted User]

Updated link to make sure you start reading at page 1 of the thread.
https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on/p1

[Deleted User]

Here is the link to the ‘Which’ article. I like the fact that it caters for singles and couples. 

https://www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-atu0z9k0lw3p

As I said above your number will depend on your spending patterns. Lots of people have enjoyable and worthwhile retirements on less than the figures suggested.

TVAS

Cars break down and dogs get ill. Why not get a stress free part time job 1-2 days a week. That would be the car/dog/gig and pub money. We humans tend to spend more money in the summer. I wouldn't bother with holidays in the UK or abroad this year a) expensive due to demand (UK and Europe) b) Covid (Europe). Or go in the autumn when the hoards have returned to work.

Albermarle

Most of us that contribute there are, in my opinion, more representative of the U.K. population. 

I  think most regular contributors to this forum are fully aware it is not representative of the average UK person .
As it is a forum about pensions and retirement planning, it will inevitably draw in a certain type of contributor.

However away from discussions about size of pensions, retirement incomes  etc it does offer good technical guidance/pointers  to many people , some who are starting out adding a few hundred pounds a year to their pensions/investments/savings ( or panicking as they reach 50 )  It is an area that is very confusing for many people and hopefully we can shed a bit of light , even as we sit on our Million pound pension pots 

[Deleted User]

Albermarle, I did not intend to be critical of posters, just offering my opinion. Agree completely about the great usefulness of the advice offered here.

Dazza1902

A very refreshing post.
 I too read many posts about  retirement plans involving massive ISA accounts, huge DC pots, 20k pa dB  pensions and buy to let's, and the poster spends nowt and plans to take it into the afterlife with them lol.
If my maths serve me right you've got circa 160 k, wife has little pension provision and 17 years to spa.
I guess if you can live off your wife's wages, work part time , add a bit to it your plan will work. I wish you all the best and await your updates.