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  • FIRST POST
    • FIRSTTIMER
    • By FIRSTTIMER 19th May 19, 5:03 PM
    • 555Posts
    • 107Thanks
    FIRSTTIMER
    What are you aiming for as an annual pension for you?
    • #1
    • 19th May 19, 5:03 PM
    What are you aiming for as an annual pension for you? 19th May 19 at 5:03 PM
    What is your ideal inc or ex state pension?

    I am thinking 30-35k which includes state pension in todays money?
Page 2
    • lisyloo
    • By lisyloo 20th May 19, 7:07 AM
    • 24,793 Posts
    • 13,135 Thanks
    lisyloo
    What help would this be for anyone else? Their circumstances aren't going to be identical to mine.
    Originally posted by Marcon
    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.
    • crv1963
    • By crv1963 20th May 19, 7:17 AM
    • 926 Posts
    • 2,082 Thanks
    crv1963
    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.
    Last edited by crv1963; 20-05-2019 at 7:20 AM.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • rnj
    • By rnj 20th May 19, 7:17 AM
    • 28 Posts
    • 24 Thanks
    rnj
    I think itís reassuring to see to know if Iím in the right ball park and in my case very reassuring to know Iím at the higher end of expectation. Yes sure it varies.

    Iím looking at £28k based on a min £700k.
    Hopefully still married so sharing the bills.
    Originally posted by lisyloo
    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.
    • Terron
    • By Terron 20th May 19, 8:39 AM
    • 482 Posts
    • 486 Thanks
    Terron
    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.
    Last edited by Terron; 20-05-2019 at 8:48 AM.
    • JoeCrystal
    • By JoeCrystal 20th May 19, 11:20 AM
    • 1,739 Posts
    • 1,190 Thanks
    JoeCrystal
    What is your ideal inc or ex state pension?

    I am thinking 30-35k which includes state pension in todays money?
    Originally posted by FIRSTTIMER
    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.
    • crv1963
    • By crv1963 20th May 19, 11:30 AM
    • 926 Posts
    • 2,082 Thanks
    crv1963
    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.
    Originally posted by JoeCrystal
    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!
    • JoeCrystal
    • By JoeCrystal 20th May 19, 12:24 PM
    • 1,739 Posts
    • 1,190 Thanks
    JoeCrystal
    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!
    Originally posted by crv1963
    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.
    • wjr4
    • By wjr4 20th May 19, 12:52 PM
    • 560 Posts
    • 384 Thanks
    wjr4
    I'd like to aim for £15k pa (today's terms) from age 60. Only 33 years to go!
    • Drp8713
    • By Drp8713 20th May 19, 6:04 PM
    • 866 Posts
    • 755 Thanks
    Drp8713
    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.
    • barnstar2077
    • By barnstar2077 20th May 19, 6:24 PM
    • 145 Posts
    • 246 Thanks
    barnstar2077
    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 plan, then you're following someone else's!
    • JoeEngland
    • By JoeEngland 20th May 19, 6:59 PM
    • 306 Posts
    • 628 Thanks
    JoeEngland
    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.
    • lisyloo
    • By lisyloo 21st May 19, 7:03 AM
    • 24,793 Posts
    • 13,135 Thanks
    lisyloo
    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.
    Originally posted by rnj
    I disagree with you that it varies significantly.
    Most of us don’t want to pay higher rate tax and aren’t going to be able to live lives of luxury and frankly if we were we wouldn’t be here,

    So why do you think people water, food electricity bills are going to vary dramatically.
    Yes sure they’ll be different but one person won’t be spending 10 times what another will. It’s unlikely it’ll even be double - that would be the extreme end.

    I don’t agree with your suggestion.
    The average includes people on benefits and may well be skewed by the rich.
    Here were among likely minded individuals - don’t want to hit LTA, don’t want to pay higher rate tax. Want a comfortable existence but also exercising MSE? I know fro other conversations on. Here than MSES are like minded.

    If you don’t like the thread why not stop reading it, but the rest of us are free to discuss on a discussion board.

    I think discussing with like minded individuals is better than google and no-one here will be living in a tent or a mansion so I don’t agree with either of your points.
    • Anonymous101
    • By Anonymous101 21st May 19, 7:38 AM
    • 1,348 Posts
    • 992 Thanks
    Anonymous101
    I disagree with you that it varies significantly.
    Most of us donít want to pay higher rate tax and arenít going to be able to live lives of luxury and frankly if we were we wouldnít be here,

    So why do you think people water, food electricity bills are going to vary dramatically.
    Yes sure theyíll be different but one person wonít be spending 10 times what another will. Itís unlikely itíll even be double - that would be the extreme end.

    I donít agree with your suggestion.
    The average includes people on benefits and may well be skewed by the rich.
    Here were among likely minded individuals - donít want to hit LTA, donít want to pay higher rate tax. Want a comfortable existence but also exercising MSE? I know fro other conversations on. Here than MSES are like minded.

    If you donít like the thread why not stop reading it, but the rest of us are free to discuss on a discussion board.

    I think discussing with like minded individuals is better than google and no-one here will be living in a tent or a mansion so I donít agree with either of your points.
    Originally posted by lisyloo


    I agree, most folk on here seem to be aiming for a similar standard of living.
    As a very broad range that generally puts us £17.5k-£30k pa. There's the odd person that falls outside of that range but that's not very common. That's still quite a large variance though really. Certainly as s far as savings are concerned that does create a fairly varied pot size. Factoring in drawdown rates etc that could be anywhere between £400k - £1m.
    • agent69
    • By agent69 21st May 19, 8:31 AM
    • 241 Posts
    • 205 Thanks
    agent69
    3) 2500 pm= pleasant retirement, includes some wider World travel.
    Originally posted by crv1963

    I have about £23k / year entitlement from state + DB pension when I reach state retirement age. I also anticipate about £15k / year from SIPP, ISA etc. This is loads more than I need.



    If you book your world travel wisely it doesn't need to be expensive. Last year I had 4 weeks in New Zealand and 3 weeks in SE Asia (both business class flights) and all up for the year spent £24,669.


    Long live ex EU flights
    • BLB53
    • By BLB53 21st May 19, 8:46 AM
    • 1,537 Posts
    • 1,395 Thanks
    BLB53
    We are all going to have to make big adjustments to lifestyle to avoid climate crisis.

    So, no big cruises or Winter skiing trips, no hopping on a plane at the drop of a hat, maybe a modest electric car, low carbon activities such as walking and holidays closer to home.

    It will be a virtue to live simply so, for me, I would suggest £12K incl state pension should cover it. Maybe a bit more in London...
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • Paul_Herring
    • By Paul_Herring 21st May 19, 8:57 AM
    • 6,873 Posts
    • 3,553 Thanks
    Paul_Herring
    We are all going to have to make big adjustments to lifestyle to avoid climate crisis.
    We already are, and have.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
    • lisyloo
    • By lisyloo 21st May 19, 9:03 AM
    • 24,793 Posts
    • 13,135 Thanks
    lisyloo
    I agree, most folk on here seem to be aiming for a similar standard of living.
    As a very broad range that generally puts us £17.5k-£30k pa. There's the odd person that falls outside of that range but that's not very common. That's still quite a large variance though really. Certainly as s far as savings are concerned that does create a fairly varied pot size. Factoring in drawdown rates etc that could be anywhere between £400k - £1m.
    Originally posted by Anonymous101
    Yes it is a big range, but I find it comforting to know that at 50 Iím already above the lower end (so if the worst happens Iíll be ok) and reassuring to know We plan to be at the higher end.

    We (I mean us personally) have a great deal of uncertainty in our lives at the moment.
    One element is investment uncertainty whilst brexit is going on (I know weíll continue to invest for 35 years post drawdown and therefore retirment or drawdown day is kinda arbitrary but psycologically no one would want to start from a bad position on day 1).
    The other uncertainty we have is IR35 which could dramatically change our lives i.e. Having to give up a job because it will be back dated 5 years and bankrupt the company and hence have to move.

    This is a million miles from smugness I think, but just taking some reassurance that weíre on the right track given everything in our lives - health, job, home is uncertain (in our case anyway).
    • rnj
    • By rnj 21st May 19, 9:22 AM
    • 28 Posts
    • 24 Thanks
    rnj
    wow, a lot was inferred from my post, that I seemingly don't like the thread (I have no opinion) and should stop reading also that I was only talking about food and utility - which I still stand by varies significantly to household. As proven by the responses here, peoples desired incomes are varying considerably.
    • lisyloo
    • By lisyloo 21st May 19, 9:30 AM
    • 24,793 Posts
    • 13,135 Thanks
    lisyloo
    wow, a lot was inferred from my post, that I seemingly don't like the thread (I have no opinion) and should stop reading also that I was only talking about food and utility - which I still stand by varies significantly to household. As proven by the responses here, peoples desired incomes are varying considerably.
    Originally posted by rnj
    But I’d still like to know what the range is, thanks.
    I feel there is some value and reassurance in knowing I’m within the right range even if it is big.
    Yes I can work on my own figures for my own situation and will do that also (I haven’t done that yet as I’m working in a very different location/lifestyle).

    I’d rather discuss with like minded people than look on google which includes the rich.

    Let’s agree to disagree, but if people feel they are getting benefit even if it’s just reassurance then they should be allowed to do that without meeting criticism in a free forum.

    I am not basing my retiriment on what strangers say ( it will be a lot more calculated than that and my IFA has some tools and will do a thorough analysis) just getting reassurance that I’m on the right track.
    Last edited by lisyloo; 21-05-2019 at 9:33 AM.
    • Anonymous101
    • By Anonymous101 21st May 19, 9:53 AM
    • 1,348 Posts
    • 992 Thanks
    Anonymous101
    Yes it is a big range, but I find it comforting to know that at 50 Iím already above the lower end (so if the worst happens Iíll be ok) and reassuring to know We plan to be at the higher end.

    We (I mean us personally) have a great deal of uncertainty in our lives at the moment.
    One element is investment uncertainty whilst brexit is going on (I know weíll continue to invest for 35 years post drawdown and therefore retirment or drawdown day is kinda arbitrary but psycologically no one would want to start from a bad position on day 1).
    The other uncertainty we have is IR35 which could dramatically change our lives i.e. Having to give up a job because it will be back dated 5 years and bankrupt the company and hence have to move.

    This is a million miles from smugness I think, but just taking some reassurance that weíre on the right track given everything in our lives - health, job, home is uncertain (in our case anyway).
    Originally posted by lisyloo


    Given the uncertainty its very wise to build up a large safety net as quickly as possible. I think its the case for most people but definitely someone that's aware they are in a particularly uncertain situation.


    Having reached the lower level of the range do you find you've taken your foot off the gas or have you just continued your saving as previous?
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