how much is enough??

virrvix

Hi,
I am 30 years old and have been paying only £50 into my legal & General stakeholder pension since I was about 24 years old.
How much roughly should I be paying into a pension fund if I HOPE to retire at 58 say??

Thanks in advance

jonathon_hart

That depends on what level of income you want when you retire. A rough rule of thumb is to half your age and pay that in as a percentage of your salary. If you want a spreadsheet that can roughly model pensions pm me with your e-mail address.

Jonathon

EdInvestor

You might like to seek (after October) a forecast for your 2 state pensions, as being guaranteed index -linked payements they will form the basis of your retirement income.

Fill in the form at

https://www.thepensionservice.gov.uk


Bear in mind that you should aim for a total of 10k in pension income (incl state pensions) as this will be tax free.

Anything above that will be taxed, and thus the pension tax relief you get upfront doesn't work out as quite so special as it only applies to the 25% tax free cash.

Pensions are a much better deal if you have an employer contribution and pay higher rate tax.

dunstonh

As mentioned above by jonathon, it is dependent on how much you want to live on. Your state retirement age is 68. So, by retiring at 58 you have to fund 10 years of not getting state pension as well as being able to get enough to live on.

I am 30 years old and have been paying only £50 into my legal & General stakeholder pension since I was about 24 years old.

We can only make assumptions as to what you want to earn in todays terms but ideally to retire at 58 and be comfortable you should be looking on have around £50,000 in ordinary rights at this point. If you are contracted out (which could well be the right thing to you then that could help.

CLAPTON

I am curious as your other post says your are 33 years old and a member of the teacher pension fund......

virrvix

The other post was for my husband, who id the teacher. Sorry for the confusion.