What % do you pay?

JustAnotherSaver wrote: »

I can only speak for myself and not others but the answer is yes.


Reading this thread I wonder how so many can afford to put away such high percentages each month. I know I couldn’t afford that out of my pay.
But then I suppose it confirms what I’ve long suspected - that the people on this board, or at least this section of the board, are not the sort of people who move in the same social circles as me, at least as far as earnings go. They earn considerably more, more than me, more than anyone I know (as in know, not know of). Therefore they can likely afford to put these kinds of figures aside because they still have a nice wedge left over anyway.

If I put over 50% of £1600 I’m not paying my bills.
Now if I earned 4-5k per month and put over 50% then that’s still quite a wedge to pay things with.

I agree in a sense. I think that most on here probably earn more than average and possibly came looking on here as a way to learn where to put any excess. I also think that there's plenty who naturally enjoy a lower cost lifestyle which enables them to save more. Then there's the ones that are nearing retirement and maybe have a bit spare after kids have flown the nest. Basically lots of circumstances.


I absolutely agree on the income front though. Its simply not possible for everyone to save large percentages of their salary. Those on lower wages can only afford to save so much after the basic needs are met. There's no getting away from certain costs. I also find, and i'm not suggesting that you're in this bracket, that people get used to spending a certain amount and its not possible for them to spend less. Also they won't think it possible that those that spend less are enjoying life as much. Looking at a lot of the threads on here you see spending ranging from £15k pa to £50k pa with little correlation to happiness.

I am a very late starter with any sort of pension, didn't enter into any pension until the age of 48, various reasons why, including two massive amounts of time too sick to work because of serious accidents. Also, if that aint bad enough I am just above minimum wage, so even harder to catch up.

For the last almost 12 yrs I have been in a LGPS DB pension, i pay 5.8% and my employer pays roughly around 2.5 times that, I know it is not enough but better to have a little of something than a lot of nothing. I also pay £300 p/m into AVC's.

The only good thing that I can see, is that my take home pay is just below £1000, so by the time I get the state pension(fully qualified last year, I only needed 2 more years to contribute from 2016), it will be not be much less than I pick up now, plus my LGPS pension, I will be taking home slightly more money than when working,

The problem I have now is when to go, 5 years early, 4 years early or 3 years early? I would go right now if it wasn't for the mortgage. The later I leave it the more AVC amount I will have and it falls below the 25% of 20 times yearly pension plus tiny lump sum.

Me 50% employer 9%. I can afford 50% as no debts and mortgage paid off and will retire at 60 .

For what it's worth, I fall into the bracket of low earner - £23k a year & about a £1.5k bonus a year before tax (which I sacrifice into my pension - why pay all that tax/NI/student loan?).
I manage to invest over £1000 a month by maxing out all the free money I can get via the matched pension, tax relief, LISA bonus & free work shares etc.
My spreadsheet tells me I invest £1023 a month, I only contribute about £540 of that £1023 a month out of my own pocket.
I'm lucky that I live alone, with low expenses, I'm not a materialistic person & I have a generous employer.