A naive pension question

johng_uk

Quintain sorry to hijack your thread - All this talk of pensions has me worried lol!!

dunstonh,

In your opinion, how should would a basic rate taxpayer aged 30 be saving in order to secure a decent retirement pension? I think retirement age is going up to 65, so it gives a 35 year period.

dunstonh

In your opinion, how should would a basic rate taxpayer aged 30 be saving in order to secure a decent retirement pension? I think retirement age is going up to 65, so it gives a 35 year period.

Part stocks and shares ISA and part pension is the ideal mix. Pension to a level that uses up you retirement age allowance and ISAs above. However, the accessibility of ISAs is not good for some people who may need the tie in of the pension. Sometimes what is best financially isnt best for the individual.

Retirement age is going up to 68 (2024 = 66, 2034 = 67 and 2044 = 68). So it will be more than 35 years.

nw_man

johng_uk wrote: »

dunstonh/All,

In a private pension, what is the maximum contribution an individual can make annually? Is it based on actual earnings or based on which pension band you are in?

Sorry to be slightly picky here, and Dunstonh is almost correct ( as usual :rotfl:)..... but the maximum contribution an individual can make annually is 100% of earned income up to the annual allowance , currently £235000.

Contributions can be made in excess of earnings, but there will be no tax relief.

CLAPTON

johng_uk wrote: »

Quintain sorry to hijack your thread - All this talk of pensions has me worried lol!!

dunstonh,

In your opinion, how should would a basic rate taxpayer aged 30 be saving in order to secure a decent retirement pension? I think retirement age is going up to 65, so it gives a 35 year period.

what would you consider to be a decent income in retirement (in todays prices)

Retired_I.F.A.

CLAPTON wrote: »

what would you consider to be a decent income in retirement (in todays prices)

The same as a decent income whilst not in retirement obviously.

Dick_here

Retired_I.F.A. wrote: »

The same as a decent income whilst not in retirement obviously.

Twice as much preferably as you'll have all those extra hours to spend it in.

CLAPTON

Retired_I.F.A. wrote: »

The same as a decent income whilst not in retirement obviously.

often, in retirement people have paid off their mortgage, their children have left home and are self supporting etc and so have a different requirement in retirement than at other times of their live... seems a sensible question to me and the answer varies from person to person and is not obvious.

johng_uk

Sorry to be slightly picky here, and Dunstonh is almost correct ( as usual :rotfl:)..... but the maximum contribution an individual can make annually is 100% of earned income up to the annual allowance , currently £235000.

Lol - I don't quite earn over that threshold!!!

what would you consider to be a decent income in retirement (in todays prices)

Good question and I'm not sure of the answer. What would constitute a good retirement income? Open floor please...Lol

Retired_I.F.A.

What most people planning for retirement do is think they are going to be fit and able to continue their lifestyle and without a mortgage and children they are quite content with the goal of 2/3rds of their last years income even though most will not achieve that much.

As an IFA I always said retirement is the biggest holiday of your life and who spends less per week on holiday than at home, no one ! so save as much as you can and if the investments yield better than expected look to early retirement.

Now however I look at it quite different by backward planning not forward.
Irrespective of my own life expectancy I feel somewhere from 70 to 75 I'll be content with a simple life as most pensioners are and frankly the state pension will suffice. From retirement to then is the time to be on "holiday" and though i'm only 50 I couldnt care less about holidaying abroard flash cars or a big house so the aims I had 20 years ago are far away from today.