Pension forecasts

Stevensuperbike

Hi everyone, 

I’m currently paying £545 a month into a workplace pension (legal and general). The tax relief is ‘relief at source’ so I’m having it that £681 ish will be going into it every month plus my employers contribution of 5% (£my salary is 31000). I know this is a lot to put in based on my salary % wise but I’m 39 this year and only have 16k saved up in there.

Would anyone be so kind to see what this trajectory of pension contributions looks like in the future? Ie what it would do me for when I reach 57 years old. I’d take the 25% tax free when I can so I’m hopeful at 57 it would grant me around £800 a month if I wish to retire. (Based on inflation, salary increase, growth etc). 

I hope putting that much money away every month will help me out in later life. Many thanks 

Marcon

Stevensuperbike said:

Hi everyone, 

I’m currently paying £545 a month into a workplace pension (legal and general). The tax relief is ‘relief at source’ so I’m having it that £681 ish will be going into it every month plus my employers contribution of 5% (£my salary is 31000). I know this is a lot to put in based on my salary % wise but I’m 39 this year and only have 16k saved up in there.

Would anyone be so kind to see what this trajectory of pension contributions looks like in the future? Ie what it would do me for when I reach 57 years old. I’d take the 25% tax free when I can so I’m hopeful at 57 it would grant me around £800 a month if I wish to retire. (Based on inflation, salary increase, growth etc). 

I hope putting that much money away every month will help me out in later life. Many thanks 

Have a look at L&G's website and there are lots of planners/calculators there designed to be used by members: https://www.legalandgeneral.com/retirement/pensions/workplace-pensions/calculators-and-tools/

Phossy

See if this helps. Don't know how it compares to your work pension, but I expect it will be fair comparison

How much pension will I have: calculator - Which?

dunstonh

Would anyone be so kind to see what this trajectory of pension contributions looks like in the future? Ie what it would do me for when I reach 57 years old. I’d take the 25% tax free when I can so I’m hopeful at 57 it would grant me around £800 a month if I wish to retire. (Based on inflation, salary increase, growth etc). 

The pension provider will give you a projection each year (not a forecast).  It will be a crude projection based on synthetic assumptions.  Typically understating the likely end outcome (sometimes by some way).

There are some modellers on the internet but you must be aware of their limitations and assumptions otherwise you can get totally meaningless outcomes (garbage in/garbage out)

Albermarle

Stevensuperbike said:

Hi everyone, 

I’m currently paying £545 a month into a workplace pension (legal and general). The tax relief is ‘relief at source’ so I’m having it that £681 ish will be going into it every month plus my employers contribution of 5% (£my salary is 31000). I know this is a lot to put in based on my salary % wise but I’m 39 this year and only have 16k saved up in there.

Would anyone be so kind to see what this trajectory of pension contributions looks like in the future? Ie what it would do me for when I reach 57 years old. I’d take the 25% tax free when I can so I’m hopeful at 57 it would grant me around £800 a month if I wish to retire. (Based on inflation, salary increase, growth etc). 

I hope putting that much money away every month will help me out in later life. Many thanks 

A number of points;
For your salary level you are adding quite a lot each month ( which is good. although it must mean you have not much left to spend)
If you retired at 57 you would have 10 years before the state pension arrives. Living on £800 per month is going to be a bit of a frugal existence?
A back of a fag packet calculation would indicate that you might just get away with taking the tax free at 57 and £800 per month ( in todays money), but you would have to reduce what you take from the pension significantly when the state pension arrives, or it will probably run out at some point.

Any possibility of getting a better paid job/career?

Stevensuperbike

Albermarle said:

Stevensuperbike said:

Hi everyone, 

I’m currently paying £545 a month into a workplace pension (legal and general). The tax relief is ‘relief at source’ so I’m having it that £681 ish will be going into it every month plus my employers contribution of 5% (£my salary is 31000). I know this is a lot to put in based on my salary % wise but I’m 39 this year and only have 16k saved up in there.

Would anyone be so kind to see what this trajectory of pension contributions looks like in the future? Ie what it would do me for when I reach 57 years old. I’d take the 25% tax free when I can so I’m hopeful at 57 it would grant me around £800 a month if I wish to retire. (Based on inflation, salary increase, growth etc). 

I hope putting that much money away every month will help me out in later life. Many thanks 

A number of points;
For your salary level you are adding quite a lot each month ( which is good. although it must mean you have not much left to spend)
If you retired at 57 you would have 10 years before the state pension arrives. Living on £800 per month is going to be a bit of a frugal existence?
A back of a fag packet calculation would indicate that you might just get away with taking the tax free at 57 and £800 per month ( in todays money), but you would have to reduce what you take from the pension significantly when the state pension arrives, or it will probably run out at some point.

Any possibility of getting a better paid job/career?

Hi there, I’ve tried higher paid jobs and I was a manager a year back at a builders merchant on £45k+ bonus, company car etc but it was too stressful and started effecting my home life so my work/life balance was way out of whack. Decided to recover my mental health and stick at a sales job on less money but zero stress. 

Pressure from below and above is not a great sandwich to be in mentally. Much happier now so £31k plus annual increases would be my max probably.