Help with knowing how much is 'needed' to retire?

silverwhistle

Or an attempt to lift the state penson up to something comparable to other similar countries in Europe?

I lived in Italy for a number of years, and as I was already in early receipt of a small pension from a public utility I didn't pay into their pension scheme although did pay other social dues. The additional pension percentage was 17% on top, so for all the talk of higher pensions in Europe they do come at a cost…

MarlowMallard

https://forums.moneysavingexpert.com/discussion/comment/81856039#Comment_81856039

Europe is not a good comparison - in most of Europe there's very little personal pension provision, but the state pension is salary-linked which pulls the average state pension well above ours. If you look at total of state+personal pensions, the UK is pretty average.

Cus

From what I understand, the more you earn today, the more you pay in NI towards the promise of a future state pension. So when one reaches pension age, some have paid a lot more than others. Isn't that pre-emtive means testing?

af1963

https://forums.moneysavingexpert.com/discussion/comment/81858748#Comment_81858748

In a very rough fashion, and viewed over your whole life, you could think of it like that.

Above £50k-ish, the extra NI paid per £ of salary is fairly minimal. And there are ways (salary sacrifice) that the amount of NI paid by higher and middle earners can be reduced.

You can also look at the tax system as a whole taking back more from people who end up with larger pensions. For someone on higher rate tax in retirement, each extra £100 in triple locked state pension gives them an extra £60 in their bank.

openside50

Regarding the original question - how much income is needed to retire

I'd say a lot lot less than some of the mad figures being banded about, I've seen various financial institutions producing figures that state £40-60k for a 'reasonable' lifestyle (mostly pension/savings/investments companies of course)

I've recently bitten the bullet and retired having been in receipt of the state pension (as has my wife) for two years now

I would say that it is perfectly possible to live on just the £25k income the state pension provides us as a couple

A caveat being, we own our home outright, we have a good amount in savings, but will keep that as a backup

I can in fact see us living a content but frugal retirement and leaving the kids a whole heap of dosh that we really should have spent on ourselves

katejo

https://forums.moneysavingexpert.com/discussion/comment/81905060#Comment_81905060

I am just about to retire. I will have a DB pension and later the state pension. My income from my DB pension will be nowhere near the 40 to 60K figure but will be ample, even allowing for foreign travel. I paid my mortgage off 4 to 5 years ago.

BlackKnightMonty

https://forums.moneysavingexpert.com/discussion/comment/81851606#Comment_81851606

the gov is borrowing around £150bn a year to keep the status quo. No chance the SP survives unchallenged.

BikingBud

I'll give up my state pension if they do not tax my DB pension.

Yorkie1

https://forums.moneysavingexpert.com/discussion/comment/81905060#Comment_81905060

It is always worth doing the sums for what happens when one person pre-deceases the other. Pension credit or other benefits may fill the gap, but best to be informed.

Storcko14

https://forums.moneysavingexpert.com/discussion/comment/81905677#Comment_81905677

The one thing no government or prospective government wants to discuss is the impact of an ageing population on the SP and NHS & social care. It would be prudent to have at least considered a financial scenario for that in retirement planning.