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  • FIRST POST
    • FIRSTTIMER
    • By FIRSTTIMER 19th May 19, 5:03 PM
    • 541Posts
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    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 1
    • enthusiasticsaver
    • By enthusiasticsaver 19th May 19, 5:22 PM
    • 8,548 Posts
    • 19,845 Thanks
    enthusiasticsaver
    • #2
    • 19th May 19, 5:22 PM
    • #2
    • 19th May 19, 5:22 PM
    Depends on circumstances, couple, single person, lifestyle etc. We have aimed and have achieved 36k net (3k per month) for a couple. No mortgage. Two cars. Two to three holidays a year and active lifestyle with money for hobbies, meals out etc.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • tacpot12
    • By tacpot12 19th May 19, 5:52 PM
    • 2,469 Posts
    • 2,228 Thanks
    tacpot12
    • #3
    • 19th May 19, 5:52 PM
    • #3
    • 19th May 19, 5:52 PM
    We have aimed for 36K for two of us, after tax. No mortgage, one car, and one child who needs a bit of financial support for another year before leaving university.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
    • Prism
    • By Prism 19th May 19, 6:23 PM
    • 871 Posts
    • 669 Thanks
    Prism
    • #4
    • 19th May 19, 6:23 PM
    • #4
    • 19th May 19, 6:23 PM
    Its looking like we will probably have about 100k for the two of us. Assuming things look as good closer to the time its likely we will retire early instead
    • Sharktail
    • By Sharktail 19th May 19, 6:33 PM
    • 1 Posts
    • 1 Thanks
    Sharktail
    • #5
    • 19th May 19, 6:33 PM
    • #5
    • 19th May 19, 6:33 PM
    24k pre & ex state pension as a couple in today’s money
    • ewaste
    • By ewaste 19th May 19, 6:37 PM
    • 70 Posts
    • 45 Thanks
    ewaste
    • #6
    • 19th May 19, 6:37 PM
    • #6
    • 19th May 19, 6:37 PM
    It really depends at what age etc as well as what others have mentioned, many will be planning for some form for partial retirement or early retirement e.g. retire on Savings before accessing SIP before any defined benefit pensions and state pension come into play.

    Ideally for a single person from mid fifties I'd be looking at around 18k of secure income as a base (Scotland), no rent or mortgage etc with savings for anything out of the ordinary. Essentially to get to the point full time work and job security becomes more of an option by choice.

    The problem is how to get there before SIPP age which will likely be 58 or higher for me and state pension and DB Pension at age 68+. Post age 68 income shouldn't be much of a problem if DB schemes and the state pension continue to exist in their current guise.
    • pensionpawn
    • By pensionpawn 19th May 19, 6:40 PM
    • 166 Posts
    • 120 Thanks
    pensionpawn
    • #7
    • 19th May 19, 6:40 PM
    • #7
    • 19th May 19, 6:40 PM
    Thinking as a couple we're aiming to both retire within a year of turning 55 drawing our tax allowances out of our pots and re-contributing 3k6 (gross) into one pension. So approx 25k combined (net) income (with plenty of wriggle room) and due to a large solar installation no energy bills (until we're 70) and considerably reduced motoring costs. However we'll still have our mortgage for a while.
    • Paul_Herring
    • By Paul_Herring 19th May 19, 6:57 PM
    • 6,852 Posts
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    Paul_Herring
    • #8
    • 19th May 19, 6:57 PM
    • #8
    • 19th May 19, 6:57 PM
    Well I'm currently on around 19k (after lots of salary sacrifce, but before tax) so that's going to be my minimum to aim for.

    I plan on retiring long before SPA.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
    • ratechaser
    • By ratechaser 19th May 19, 7:02 PM
    • 569 Posts
    • 490 Thanks
    ratechaser
    • #9
    • 19th May 19, 7:02 PM
    • #9
    • 19th May 19, 7:02 PM
    Assuming both my wife and I achieve pension pots of ~1m in today's money by the time I hit 55 (not unrealistic), then between that, another DB pension I have plus state benefit, then I think 100k joint pension is realistic from 55.

    Not yet sure I'll need that much, but thinking that we want to travel a lot before I get too decrepit. And not in economy
    • barnstar2077
    • By barnstar2077 19th May 19, 7:34 PM
    • 110 Posts
    • 224 Thanks
    barnstar2077
    This is totally dependant on your circumstances and philosophy. I could live comfortably on 12K a year. I don't have any kids, I don't drive or take big holidays. I enjoy walking and simple days out. I used to spend my money on stuff but as I get older buying shiny stuff for the sake of it does not appeal anymore, I would rather spend time with friends and family. Time is the only commodity that has any real value to me.
    If you don't have your own plan, then you're following someone else's!
    • Sea Shell
    • By Sea Shell 19th May 19, 7:41 PM
    • 1,935 Posts
    • 3,288 Thanks
    Sea Shell
    This is totally dependant on your circumstances and philosophy. I could live comfortably on 12K a year. I don't have any kids, I don't drive or take big holidays. I enjoy walking and simple days out. I used to spend my money on stuff but as I get older buying shiny stuff for the sake of it does not appeal anymore, I would rather spend time with friends and family. Time is the only commodity that has any real value to me.
    Originally posted by barnstar2077
    Same here!!! We're planning on an amount of 15000 for a couple until SPs kick in. We've been tracking our spends for a few years and we currently only spend 12-13k.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • michaels
    • By michaels 19th May 19, 8:02 PM
    • 22,511 Posts
    • 103,504 Thanks
    michaels
    https://forums.moneysavingexpert.com/showthread.php?t=2146737

    The NUMBER
    Cool heads and compromise
    • Paul_Herring
    • By Paul_Herring 19th May 19, 8:06 PM
    • 6,852 Posts
    • 3,522 Thanks
    Paul_Herring
    Page 1/34
    I think little side threads are justified sometimes...
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
    • Marcon
    • By Marcon 19th May 19, 8:23 PM
    • 1,017 Posts
    • 781 Thanks
    Marcon
    What help would this be for anyone else? Their circumstances aren't going to be identical to mine.
    • Paul_Herring
    • By Paul_Herring 19th May 19, 8:31 PM
    • 6,852 Posts
    • 3,522 Thanks
    Paul_Herring
    What help would this be for anyone else
    they shouldn't be allowed to at least ask the question, which, by the way, has generate some reasonable answers?
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
    • pensionpawn
    • By pensionpawn 19th May 19, 10:20 PM
    • 166 Posts
    • 120 Thanks
    pensionpawn
    Assuming both my wife and I achieve pension pots of ~1m in today's money by the time I hit 55 (not unrealistic), then between that, another DB pension I have plus state benefit, then I think 100k joint pension is realistic from 55.

    Not yet sure I'll need that much, but thinking that we want to travel a lot before I get too decrepit. And not in economy
    Originally posted by ratechaser
    A 1m pension pot is quite a target! Assuming (possibly incorrectly) that to achieve such a goal you would have to be a graduate and hence don't really start to earn until you're 21, that gives you 34 years. Now some 'back of a fag packet' sums suggests a flat 325 a month, without breaks, at 10% growth each year would bag you 1m at 55. At current auto enrolment rates a salary of 48750! I appreciate that a linear model isn't realistic however it does illustrate in simple terms the magnitude of the task.

    A pension (just) at my current net pay would effectively be a 'playboy' lifestyle after all the usual costs associated with 'running a family' have gone away. Aiming for higher than that by sacrificing well needed cash in the 'here and now' would, for me, have caused serious financial hardship in the present for too much (heavily taxed) money in the future, assuming you're still around to enjoy it.
    • ratechaser
    • By ratechaser 20th May 19, 5:51 AM
    • 569 Posts
    • 490 Thanks
    ratechaser
    A 1m pension pot is quite a target! Assuming (possibly incorrectly) that to achieve such a goal you would have to be a graduate and hence don't really start to earn until you're 21, that gives you 34 years. Now some 'back of a fag packet' sums suggests a flat 325 a month, without breaks, at 10% growth each year would bag you 1m at 55. At current auto enrolment rates a salary of 48750! I appreciate that a linear model isn't realistic however it does illustrate in simple terms the magnitude of the task.

    A pension (just) at my current net pay would effectively be a 'playboy' lifestyle after all the usual costs associated with 'running a family' have gone away. Aiming for higher than that by sacrificing well needed cash in the 'here and now' would, for me, have caused serious financial hardship in the present for too much (heavily taxed) money in the future, assuming you're still around to enjoy it.
    Originally posted by pensionpawn
    Well to be fair, 100k in pension would be a very substantial reduction to our current combined income, but frankly when you no longer need to be in the city any more, I'm thinking it would be more than adequate. I'm not quite sure what a playboy lifestyle really means, but I certainly know that we are in the 'relatively frugal' camp compared to many of my colleagues in the industry - that's why we've been able to build up substantial pension pots, not to mention clear the mortgage 15 years early.

    The only fly in the ointment is the contributions taper that's now in place, but even then, and without any further growth, my current pot plus maximum tax-efficient future contributions will be at about 800k by the time I'm 55.
    • tony4147
    • By tony4147 20th May 19, 6:08 AM
    • 307 Posts
    • 56 Thanks
    tony4147
    Depends on circumstances, couple, single person, lifestyle etc. We have aimed and have achieved 36k net (3k per month) for a couple. No mortgage. Two cars. Two to three holidays a year and active lifestyle with money for hobbies, meals out etc.
    Originally posted by enthusiasticsaver


    3K a month is what we having being think of.


    I'm hoping for 18-20K, my wife is hoping for 18-20K both at 60 y/o, and then the SP on top at 67.


    My wife will achieve hers 18-20K as they are DB pensions, but mine are DC and unfortunately have been up / down the last 12 months, with 4 years to go I'm starting to think it isn't going to happen with mine, if mine do fall short it might mean that I have to work a year or two longer.
    Last edited by tony4147; 20-05-2019 at 6:26 AM.
    • fred246
    • By fred246 20th May 19, 6:37 AM
    • 1,564 Posts
    • 950 Thanks
    fred246
    The only way really is to work out your own spending. I work on roughly spending 500 a month on direct debits and 2k on the credit card. So 30k a year. I think this article is one of the best
    https://www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-atu0z9k0lw3p
    • Happier Me
    • By Happier Me 20th May 19, 7:01 AM
    • 509 Posts
    • 1,134 Thanks
    Happier Me
    Another couple aiming for the 35k net mark from 55. We have 11/12 years to go and have achieved 30k net from 60 so far with our pension being guaranteed (DB plus state) from 67ish.

    Some gaps to address but we're on track to achieve this figure, which is similar to what we spend now as a family of 4.
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