This did make me chuckle

BlackKnightMonty

Ha ha - this did remind me of one or two of the threads I have seen on here…

Daily Mash - I'm 45 with £900,000 in my pension…

leosayer

Funny because it's true - even objectively wealthy people have concerns that seem ridiculous to those who can only dream of having such a problem.

MeteredOut

I wonder if a 45 year old could retire with anything other than a fairly modest lifestyle with a £900K pot ( assuming they live to, eg, 85). I'm sure someone is doing the maths at this very moment.

I suspect not to the extent the piece suggests (though it would hardly be living on the breadline, it talks of holidays to the Maldives, and dining at The Ivy) and does suggests the writer thinks it is an excessive pot and might be indicative of the gap between what people think they need to get a really good income in retirement, and the reality.

poseidon1

https://forums.moneysavingexpert.com/discussion/6686753/this-did-make-me-chuckle

Made me smile as well, but objectively £900k at age 45 ( even assuming it could be accessed so young) is no where near enough for the jet set lifestyle envisaged.

Frankly £1 million does not have the allure or buying power it used to, especially when tied up in a restrictive Sipp.

£1 million in an ISA on the other hand, becomes far more appealing.

SouthCoastBoy

People see big numbers and imagine they've won the lottery when in reality it could be a lot different.

barnstar2077

I think he should go back to the drawing board as he can't access his pension at 45! : )

Baldytyke88

It would seem to me that aims for pension provision should be based on earnings whilst working. So my earnings are around £20k so that should be my minimum pension income.

OldScientist

Very amusing!

Just for interest, a 50 year ILG ladder (taking our 45yo to 95yo) currently has a payout rate of 3.14%, so could be used to provide an index-linked income of 28k per year - probably well below that needed to support their expected lifestyle.

Universidad

People do seem to see a big number, and lose their heads. I suspect it's the same instinct that leads so many people to take a large lump sum at a poor commutation rate.

I remember one time in the office someone talking about how someone else apparently had nearly a million pounds in their pension pot and was therefore "disgustingly rich".

I said, "you know, that might have to last for thirty years" to no effect: still disgustingly rich.

But when I pointed out that my colleague would take home considerably more than a million pounds in salary over that 30 years there was a momentary pause of recognition... before they said "yeah, but I have to work for that money!"

ali_bear

I think there are probably some folk out there who manage to spend that much over a lifetime on credit interest, late payment charges and fees.

Silvertabby

https://forums.moneysavingexpert.com/discussion/comment/82169590#Comment_82169590

Some years ago, when the returns from cash back credit cards was more generous than now, we showed my sis-in-law the goodies we had bought with our M&S reward vouchers. She couldn't get her head round how we had managed to qualify for such largesse, and kept saying that SOMEONE would have had to have paid for them. I said "yes - the muppets who don't pay off their credit cards in full every month, and so pay shedloads of stupid% interest". She went very quiet, and my husband nudged me to stop me from saying anything else….