Average pension pot on retirement and whats your aim ?

Mick70

Most folk aim
to retire well before state pension age IMO .  I would prob agree with the 2k/3k pm 

lisyloo

Mick70 said:

Most folk aim
to retire well before state pension age IMO .  I would prob agree with the 2k/3k pm 

Do you mean most folks on here?
i know plenty of people with very little as shown by the average “pot”, whereas there are many people on here with 6 figure sums. I don’t think it’s at all representative.

Workerdrone

lisyloo said:

Mick70 said:

Most folk aim
to retire well before state pension age IMO .  I would prob agree with the 2k/3k pm 

Do you mean most folks on here?
i know plenty of people with very little as shown by the average “pot”, whereas there are many people on here with 6 figure sums. I don’t think it’s at all representative.

But then again, as this is a forum filled with posters who do a lot of thinking and pension planning, I would expect the "average" and the "aim" on this particular thread to be fairly high. It's a bit like going to the Ferrari owners forum and asking the average price people are paying for an oil change. 

Sunnylifeover50plan

My aim was £620k by 55 though the assumptions I had made in my original planning sheets are perhaps now no longer valid, at least in the short term. I hit that target aged 52 in December 21 but value has eased since then.

Given we currently self fund spend actuals are on target but inflation is a concern along with current market volatility. 

I'm surprised by some comments about being terrified by DC pensions/ SIPPs given most in the UK, at least in the private sector, no longer have a choice. The forum could benefit from a degree of separation between DC/DB.

I'd probably be terrified at the moment if I were in the Ukraine but I lose no sleep over my pension.

Ganga

Mutton_Geoff said:

My fag packet sums would be a basic level of comfort of £2k a month single person or £3k a month per couple (net excluding any rent/mortgage).

Assuming state pension of £10k year and a drawdown of 4% to leave the pot empty means a fund of £425k to provide for the £17k top up before tax to end up with £14k net, plus state = £24k.

For a couple, two lots of state pension and two lots of tax code means not much more to provide for the pair of you.

For every year ahead of state pension age you want to retire, you'll need to add £24k/£36k to the pot, plus any income tax that may be payable if funds not from an ISA.

Very approximate figures. Your mileage may vary.

3K a month excluding rent /mortgage seems high ,we live quite comfortably on about £1600 a month ,no mortgage but look after grandchildren a lot ( think food ,clothes etc ) and still enjoy a few holidays abroad ,do not do long haul mind. 

Albermarle

I'm surprised by some comments about being terrified by DC pensions/ SIPPs given most in the UK, at least in the private sector, no longer have a choice. The forum could benefit from a degree of separation between DC/DB.

That would be difficult, as many newbie /less knowledgeable posters do not even know the difference , or at least are pretty confused.

Ibrahim5

With DC pensions you never know how much you have. The valuation changes every minute. If you look at Seashell's thread a few months ago it was all about having too much money and spending more. Now it's about inflation and energy prices and keeping warm. I can cope with the turbulence because I have over £20k in DB pension. I wouldn't like no DB pension. It was on the news that Russian share prices had dropped 90%. I am sure everyone will say that could never happen with their shares but it does show the nature of share values 

Sunnylifeover50plan

Ibrahim5 said:

With DC pensions you never know how much you have. The valuation changes every minute. If you look at Seashell's thread a few months ago it was all about having too much money and spending more. Now it's about inflation and energy prices and keeping warm. I can cope with the turbulence because I have over £20k in DB pension. I wouldn't like no DB pension. It was on the news that Russian share prices had dropped 90%. I am sure everyone will say that could never happen with their shares but it does show the nature of share values 

But harping on about DB pensions to those who they are not available to is a little like like trying to sell the virtue of alcohol or bacon to a Muslim or Jew.  

Steve182

SouthCoastBoy said:

Albermarle said:

SouthCoastBoy said:

Ibrahim5 said:

Mine is roughly 50:50. I think it's good. The thought of 100% DC terrifies me. I am sure someone will say "actually it isn't a problem". Well it won't be a problem when the stock market is doing well.

It terrifies me as well, unfortunately that is the position I'm in. DW has a 9k db pension so some hedging there.

Due to my dependence on a dc pension I will be working for a while yet. Actually not sure when I will have the confidence to retire. Currently set at 60 but don't think I will have the courage to go.

DB pension expressed in DC terms? I'd go for around 30x

If I remember correctly from previous threads you also have around half a Million in non pension investments and cash .
So between you , you have about £1.8 M but still nervous about retiring in two years time .......

Maybe time to throw caution to the wind ?

Not quite, currently got around 630k in pension and 650k outside pension. I'm expecting this to decrease in real terms over the next few years both due to inflation, as have 40% cash, and stock market performance so thinking pot of 1m in real terms in 3 years time when 60

Wow, you may be right, but are there no commodities, countries or sectors that you feel bullish about for the next 3 years? 

sallybaxtersaver

At 46 my pensions total around £360k and I have been aiming for a pension pot of at least 700k to enable me to retire from full-time corporate life around 57 when it can be accessed. Saving into ISAs and a managed fund too in case money is needed before 57 due to ill health, new roof or whatever else may be unforeseen.

With the skyrocketing energy bills I am contemplating reducing the salary sacrifice if needs must and working a few more years!