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What are you aiming for as an annual pension for you?

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  • edited 20 May 2019 at 8:20AM
    crv1963crv1963 Forumite
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    edited 20 May 2019 at 8:20AM
    Bearing in mind no mortgage, reduced work costs- as it will be minus NI, Pension Saving and work travel costs- our targets all after tax are-

    1) 1500 pm= reasonable living retirement, includes a UK holiday.
    2) 2000 pm= pleasant retirement, includes an EU holiday.
    3) 2500 pm= pleasant retirement, includes some wider World travel.
    4) 3000 pm= very pleasant retirement, do almost everything we want.
    5) 5000 pm= luxury retirement.

    All of the above with a 20k savings pot set aside for emergencies.

    By my calculations we've reached 1, almost at 2 and 3 should be reached by retirement at us being 58 and 55. If we don't spend the whole of one of our pots down by SPA (we have designated different pots for different stages of retirement) then by age 70 and 67 we may be at 5.

    Of course life isn't that linear so it may all go pear shaped or it may all fall into line or even exceed expectations!

    It costs us more to keep our pets in food and medicines per month than it does to keep ourselves so although 1500 pm would see us managing, 2k pm would be more comfortable.

    For us planning different pots for different stages has been the way forwards, we think 3k pm or 36k pa after tax will see us enjoy ourselves and anything over will likely be saved for later old age and possible frailty and help the younger generation out a bit if we can.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
  • rnjrnj Forumite
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    lisyloo wrote: »
    I think it’s reassuring to see to know if I’m in the right ball park and in my case very reassuring to know I’m at the higher end of expectation. Yes sure it varies.

    I’m looking at £28k based on a min £700k.
    Hopefully still married so sharing the bills.

    A ballpark for what? People will have different outgoings/cost of living, it varies significantly to get even ballpark from a few forum responses. You're best off googling what is the average pension payment.
  • edited 20 May 2019 at 9:48AM
    TerronTerron Forumite
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    edited 20 May 2019 at 9:48AM
    Ideally I'd like a minimum of £18k pa (in todays money) from SRA fully indexed. Not having worked in the public sector I can't manage the second part of that, but the first bit I should . I will have my state pension (~£8k), two fixed annuities (with GARs) (~£4k from 60), a FS pension with little if any indexation (~£3k from 60k) and a hybrid indexed up to 5% (~£9k). Unless we get high inflation I should be OK with that. Then my SIPP and rental income can pay for luxuries.
  • JoeCrystalJoeCrystal Forumite
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    FIRSTTIMER wrote: »
    What is your ideal inc or ex state pension?

    I am thinking 30-35k which includes state pension in todays money?

    Considering how far away my assumed retirement date is (30 years or so), it would be quite challenging to figure out what is the ideal income. If I excluded the mortgage payment, pension contributions and other expenses relating to work, I would be happy to live on £12,000 per year.
  • crv1963crv1963 Forumite
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    JoeCrystal wrote: »
    Considering how far away my assumed retirement date is (30 years or so), it would be quite challenging to figure out what is the ideal income. If I excluded the mortgage payment, pension contributions and other expenses relating to work, I would be happy to live on £12,000 per year.

    If you work on todays figures then you will get close, or exceed that. Then you need to decide at what age you want retirement. Is it at SPA or earlier? If earlier then how much earlier, 5 years, 10 years? If it is 10 years then on current ages you have 20 years to save 120k!
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
  • JoeCrystalJoeCrystal Forumite
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    crv1963 wrote: »
    If you work on todays figures then you will get close, or exceed that. Then you need to decide at what age you want retirement. Is it at SPA or earlier? If earlier then how much earlier, 5 years, 10 years? If it is 10 years then on current ages you have 20 years to save 120k!

    Well, according to the HL pension calculator, I am already on target for a comfortable retirement by 68. If I managed to maintain the contribution of my salary, I should reach 120k pension pot in seven years. So fingers crossed. :)
  • wjr4wjr4 Forumite
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    I'd like to aim for £15k pa (today's terms) from age 60. Only 33 years to go!
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
  • Drp8713Drp8713 Forumite
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    I would like £18k p.a to cover my half of the bills. Ideally want to retire / start a small business / go part time from age 45 in 14 years time.

    I pay into the LGPS, so this should be no problem from SPA, its already £6k p.a. and increasing by over £1k p.a. I likely wont qualify for the full SP as will only have 25 years.

    I would like £450,000 to fund the period between 45 and SPA. Based on how much im saving i need a 4% net return on investment and for my job etc to remain unchanged.
  • barnstar2077barnstar2077 Forumite
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    I am based in Essex but my company also has an office up north. Both sets of workers are for the most part paid the same wage. That money goes a lot further up north believe me! Their house prices / rents are a lot cheaper than ours. A quick google says that it is £3000 a year cheaper to live in the North of England compared to the south.
    If you don't have your own strategy, then you are already following someone else's plan! Do you trust the government or your employer with your future? Think first of your goal, then make it happen!
  • JoeEnglandJoeEngland Forumite
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    Our financial plan has around 17.5k pa at today's prices, and that's tax free as it's based on using savings and DC pension drawdown within the annual tax allowance. If we both make it to SP age then we'd have nearly 23k pa from a combination of small DBs and SP, so then we wouldn't need to use savings or DC pensions except for large unexpected expenses.

    Time for me is more important than money, and we have the option of doing some PT work in the early years to reduce the hit on savings and DC pensions. Fortunately we have a separate pot of money to pay for a decent foreign holiday once a year for about 10 years.
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