Retirement planning - have you revised your figures?

Gin_and_Milk

Thanks for all your replies, and I'm glad that none of you are in a position where you're panicking.  
Keep warm everyone!

[Deleted User]

At the moment just over £1500 a month pension income after tax. Been semi-retired for 5 years. Bills come to about 650, personal spending about 200 and savings both long term and short term(for one off bills, Christmas, clothes etc... )about 650. Continuing to work part-time for next few months. Part-time work brings in about 1125 a month after tax and NI. Saving most of this although some is bring used for extra treats and planned travel. DB Pension due to go up about 10% next April so should be ok. Have to admit I am not particularly frugal and as I tend to feel the cold, will have heating on as necessary. No compromise on that one. When I finish work next August I will have pension income of about 1650 a month net until July 2024. When my state pension kicks in at age 66.(Full new pension minus a few pence) my monthly income will then 2350 net per month. I will have about Savings and investments of about 35000. My share of mortgage free house worth about 400000. So generally feeling ok about finances.

Gin_and_Milk

Thanks for that; useful to know.  I don't blame you about the heating.  If you can afford it, use it!

Albermarle

Have to admit I am not particularly frugal and as I tend to feel the cold, will have heating on as necessary. No compromise on that one. 

I think to some extent the energy issue has been overplayed by the media. Heating or eating may be an issue for a few, but for most not. The cost is capped, and we all get £400+ pensioners get up to £500+ people on benefits get £650 cost of living payments. In this case it is difficult to see why even someone at the poorer end of the scale needs to sit in a dark and cold house, and even more difficult to see why better off people are cutting back on the heating ( or talking about it a lot anyway). Next Winter might be a different story though.

Kim1965

Gin_and_Milk said:

Hi,

There was thread somewhere on this section of the forum I'm sure, which was about retirement figures.  The numbers seemed more realistic than on the main pensions board, and a lot of the posts were in relation to DB pensions.
Given the increase in the cost of living, have any of you revised your figures?  For those of you already retired, how are you managing?  I'm not due to retire yet, and my current projection is around £19k p/a, (not including salary sacrifice or wage rises).  Just wondering now if that would be anywhere near enough, so I'm curious to know how others are doing.
Thanks  

I think anyone who is accumulating and partially/wholly reliant on dc funds will have to appraise their retirement. Funds have gone down and inflation up.
I guess those accumulsting on final salary pensions who get less than inflation pay rises are down too?
 I will probably have to work one year more, if i was already retired, it might be more difficult. 

Gin_and_Milk

I'm paying into a DB pension, and yes, whilst it will have gone up, it won't be in line with inflation.  I can't remember what it's capped at, but it's definitely capped.  That's not me moaning or bragging by the way, I'm actually quite envious of anyone who has already retired and is enjoying it. Fair play to you!

Albermarle

Gin_and_Milk said:

I'm paying into a DB pension, and yes, whilst it will have gone up, it won't be in line with inflation.  I can't remember what it's capped at, but it's definitely capped.  That's not me moaning or bragging by the way, I'm actually quite envious of anyone who has already retired and is enjoying it. Fair play to you!

Normally when you are still paying into a DB pension, your accumulated pension rights are based on your years in service, and your salary. So as Kim1965 said, it will be the fact that nearly everyone's salary is not going up with inflation that will be the issue, for those still contributing.
The issue of how the pension is linked with inflation ( capped etc.), only kicks in when you stop adding to it. So when it is deferred ( means you have stopped adding to it, but not yet taking it ) or when you are actually taking it.
All DB pensions have different rules on this, so it pays to request a copy of your scheme rules, even if only for future reference.

Kim1965

Gin and Milk. 
Your figure of 19 k, does that include state pension? Ať what age do you think you will retire?

Gin_and_Milk

Kim1965 said:

Gin and Milk. 
Your figure of 19 k, does that include state pension? Ať what age do you think you will retire?

No it doesn't.  I'm hoping to retire at 60, and as things stand I'm due to receive state pension at 67.  Obviously that might go up, and as I'm 48 I may well get caught out. I think I've got about 5 years contributions left to make, but realistically I can't afford to go sooner than 60.

GunJack

Gin_and_Milk said:

 but realistically I can't afford to go sooner than 60.

This is something that people without DB pensions don't seem to get, that it is often not possible to go early as the combination of x years less of service coupled with actuarial reduction can very easily mean that the pension payable won't be enough to live on. I know it certainly affects me..... if I had the equivalent of my 2 DBs (as often quoted by people on the main pensions board) in a DC I'd be able to go now at 55, as it is I'm pretty much stuck 'till 62   


...and before anyone mentions that actuarial reduction is to compensate for taking the pension for longer so you get the same amount overall, that's a fat lot of good if the reduction  means you don't have enough to live on!!