A reasonable chance of getting a good pension in three decades?

JoeCrystal

Thank you all for your thoughts. It was beneficial as I hoped for. Sorry about the delays in getting back to you regarding this. The general view seems to be that I got a pretty good chance of getting a reasonable pension providing I keep paying into my pension pots.

hugheskevi said: With 4% annual growth after inflation and charges you would end up with around £600K so meeting target level.
However, you would expect your salary to increase by more than inflation over a period of 30+ years, so the target in Plan 2 will almost certainly end up being higher.For Plan 1, the State Pension is almost certain to increase by more than prices too, so that target will increase, although you appear to have plenty enough to meet that basic target already. Fortunately, the increase to State Pension will reduce the target pot in Plan 2.
Any plans to use a Lifetime ISA? A LISA might be better value than DC contributions?
I am not entirely sure that my salary will be increasing by more than inflation. Still, I am perhaps a tad pessimistic about my future salary as I am not that hopeful about the current pay freeze at work.

As for LISA, ideally, I do not want to access any investments since I got an awful habit of using the available funds in an emergency (indeed, the only savings I got right now are all fixed-term bonds which I cannot access). I used to have HL S&S ISA about ten years ago, but that is long gone, and I am still in a position slowly rebuilding my emergency funds, but I will look at it once I am more comfortable.

MX5huggy said: Plan1 is already achieved, just keep paying in and hold your nerve through the stock markets ups and downs.

Plan 2 is basically on target using https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/pension-calculator shows you’re a little short using medium (5%) expected returns but doesn’t include the £97k tax fee pot so that takes you over the line.

But the question is should I pay off debt by reducing pension payments. That depends on the interest on the debt. I think if it’s under 3% then no and over 5% then yes between 3 & 5 % is grey zone depends on your view. Also consider the tax saving on the contributions which is minimum 20% or 32% is Salary Sacrifice is an option. 
So if the debt is a mortgage at 2% leave it. If it’s a credit card at 29% pay it off (or find another 0% deal), car loan at 5% difficult. Student Loan, really difficult to work out leans towards not paying it off but does depend, put the details up. 
Once the debt is paid off return to the previous pension contributions plus the loan repayment you are now not having to pay. 
Take all the free cash your employer offers as matched pension payments before paying off any debt unless you’re really sinking (sounds like you’re not).  That is a good point about the tax-free pot. I never really thought about that at all since I was fully expecting for tax-free pot element to be withdrawn by the government and the fact I am hoping to use the entirety of the pension funds to drawdown on in order to maintain the index-linked income  Thanks to various situations over last few years I am in quite a debt at the moment. The only saving grace recently was remortgaging to extend the term much longer. It is roughly £99 per month for the mortgage at 1.79% APR until the end of 2024 reverting to SVR until I am 68,  £318 per month at 3.1% APR for six more years and £89 per month for a personal loan at 6.9% APR for five more years. I am currently paying down £89 per month loan quickly as I can.

HardCoreProgrammer2 said:
I think it may be a tad optimistic to expect that in 33 years, the state pension will still exist in its current format (e.g. universal based on national insurance contributions, same level allowing for inflation, etc.).
Also, bear in mind that tax treatment of pension contributions and withdrawals may change (e.g. national insurance contributions may become due on withdrawals, less tax deduction on contributions, etc.).
Suggest keeping an eye on news, and be prepared to save more if needed. It might be a tad optimistic but it is better than not planning ahead! I do keep my eyes on the best source of pension news, this forum!