How Am I Doing?

1813

Hi

i just wanted sone insight into how I am doing with my pension savings so far. 

Pension annual payout requirement (at 68) : £47135

Civil Service Pension Per Annum : £8240 (index linked)
NHS Pension Per Annum £2067 (index linked)
State Pension Per Annum £7834 (yearly increases)

Any advice would be much appreciated. 

Thanks

julicorn

I don't think it's really possible to answer that question without knowing how old you are and if you're still contributing to any of these schemes (or other pension savings). 

Marcon

1813 said:

Hi

i just wanted sone insight into how I am doing with my pension savings so far. 

Pension annual payout requirement (at 68) : £47135

Civil Service Pension Per Annum : £8240 (index linked)
NHS Pension Per Annum £2067 (index linked)
State Pension Per Annum £7834 (yearly increases)

Any advice would be much appreciated. 

Thanks

Without knowing your age, and whether you are currently building up benefits in either the Civil Service or NHS scheme, it's impossible to comment helpfully. Are the figures shown projected benefits at Normal Retirement Age, or the benefits built up to date (or time of leaving active membership of the scheme, as appropriate)?

If you 'require' £47,135 (the precision is wonderful - why the extra £135?), you're nothing like there if you are already in your 60s - but as your SPA appears to be 68 (?is it), it sounds as if you are very much younger, with plenty of time on your side.

Why is your projected state pension only £7,834?

RetiredTaz

You will need to add some more info to get some useful replies.

Current age, are you still contributing to any of these pensions, what age would you like to retire at.

Any bridging savings such as ISA's if you plan on retiring early. 

I'm sure someone more knowledgeable will be along soon.

Aylesbury_Duck

You're miles away from doing enough if you're 67.
You could be doing really well if you're relatively young.

I'm not sure that's helpful, though. 

1813

Hi 
I’m currently 43 and I am between jobs. 

These figures are what I’ve built up so far
my state is £7834 as this is what I’ve built up so far. 

Marcon

1813 said:

Hi 
I’m currently 43 and I am between jobs. 

These figures are what I’ve built up so far
my state is £7834 as this is what I’ve built up so far. 

You've asked for advice. Get another job and start saving into a workplace pension asap - especially if you will be in a DC scheme.

Dazza1902

So you have secured approx 18k pa pension at 43 and need another 29 k pa at 68.So you have 25 years of working to accumulate 750 k pension pot, rule of thumb in the private sector, or get a moderately well paid public sector job with a dB pension.

fcjf

If you're planning on working until 68 and are going to join an employer with a DC pension scheme you should be looking at contributing in the region of a net £16k / £20k gross per year for the next 25 years. Do you currently have a net income of £47135 and that this is what you want to maintain when you retire? If yes, consider what costs you won't have when you retire e.g. mortgage,  work related costs, childcare etc. There's a good chance you won't need the same level of income at 68 than you need now but of course you may have worked this out to the £, just not how you're going to get there.

1813

At the moment what I am doing is seeing how much the cost of living is where I live, which is £22512 per annum. At the moment I have around £18k built up in pensions that are index linked. I am building up my retirement plans based on future predictions but I know this is iffy as the future may not be as it is now, such as pensions still being index linked etc, will the lump sum still be here, for example. Thank you for all the advice. If I am being honest, I may need to consult an adviser but I think they will just say the outset isn’t great but we will see. I certainly wouldn’t be able to afford putting away massive amounts of money per month given what other outgoings will be. All my life I’ve done DB pensions. It’s just like many I don’t trust the government or systems to stay the same, such as index linking, for example, but that’s what we all paid into the DB pensions for in the first place.

Aylesbury_Duck

1813 said:

At the moment what I am doing is seeing how much the cost of living is where I live, which is £22512 per annum. At the moment I have around £18k built up in pensions that are index linked. I am building up my retirement plans based on future predictions but I know this is iffy as the future may not be as it is now, such as pensions still being index linked etc, will the lump sum still be here, for example. Thank you for all the advice. If I am being honest, I may need to consult an adviser but I think they will just say the outset isn’t great but we will see. I certainly wouldn’t be able to afford putting away massive amounts of money per month given what other outgoings will be. All my life I’ve done DB pensions. It’s just like many I don’t trust the government or systems to stay the same, such as index linking, for example, but that’s what we all paid into the DB pensions for in the first place.

Don't do that.  Your pension affairs are relatively straightforward and not yet sizeable.  You'll learn plenty from browsing here without the need to pay someone.  The trick with advisers of any sort is to know enough to know what to ask them, so learn as much as you can and if you still think you're lacking crucial knowledge or advice, consider paid advice.

As for not trusting the future, the same is true of DC pensions, investments and savings.  All you can do is work with the rules as they are and then deal with any changes that come along.  There's no point deliberately putting yourself into a weakened situation to insure against things that might never happen.  Are you confident that investments in a DC pension with inexorably rise over the next 25 years like many have in the last five?  I'm not!