On Track?

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  • Alexland
    Alexland Posts: 9,653 Forumite
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    5% return above inflation and fees seems optimistic. I am working on 2 to 3 percent.
  • Zola.
    Zola. Posts: 2,204 Forumite
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    Alexland wrote: »
    5% return above inflation and fees seems optimistic. I am working on 2 to 3 percent.

    I just did some sums again, annual interest rate of 3%, and an inflation rate of 2%, increasing deposits with inflation, would return £900k.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    But 30 years would mean you retire in your early 60s? Also your partner's pay or ability to put money aside might reduce if you have children? My wife went part time but others have nursery costs. Also saving to help them with uni costs, house deposits, etc might occur?
  • Zola.
    Zola. Posts: 2,204 Forumite
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    haha yes, thats if the projections are as conservative as projected...they could be worse of course :/

    we will have our first kid fairly imminent actually, why is why I probably am focusing on this now! :rotfl:

    Will also be setting up Vanguard LS 100% Acc for him or her when they are born. :beer:
  • atush
    atush Posts: 18,726 Forumite
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    Zola. wrote: »
    On track for a comfortable retirement. Ideally by mid 50s onwards.

    Short term is build wealth
    Mid term is keep building
    Long term is have fun and have little financial worries

    Your pot is low if trying for mid 50's. So raise your savings rate.
  • fiisch
    fiisch Posts: 510 Forumite
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    Similar situation, but I am 31. Currently have £18000 in pension pot, but adding just over £1k per month (6% me, 15% employer). Have a fifteen-month old, and wife is part-time, with no pension to speak of (nor paying into one currently.....)

    I've been pondering the same question, and consider myself to be behind the curve in terms of pension savings for my age - particularly if I want to fantasise about early retirement - so fully intend to further up my pension contributions when my other half can increase her hours. My monthly contributions are probably above average (but then I live in the Southeast), but I paid little attention to pensions until last year, when my pot was standing at a miserable £5k. Not much for 8 years of working....

    There's nothing like throwing your finances into disarray like having a baby!
  • Zola.
    Zola. Posts: 2,204 Forumite
    First Anniversary Photogenic Name Dropper First Post
    fiisch wrote: »
    Similar situation, but I am 31. Currently have £18000 in pension pot, but adding just over £1k per month (6% me, 15% employer). Have a fifteen-month old, and wife is part-time, with no pension to speak of (nor paying into one currently.....)

    I've been pondering the same question, and consider myself to be behind the curve in terms of pension savings for my age - particularly if I want to fantasise about early retirement - so fully intend to further up my pension contributions when my other half can increase her hours. My monthly contributions are probably above average (but then I live in the Southeast), but I paid little attention to pensions until last year, when my pot was standing at a miserable £5k. Not much for 8 years of working....

    There's nothing like throwing your finances into disarray like having a baby!

    You have an awesome employer contribution there, thats incredible! 1k going in a month is solid.

    Yeah testing times coming for us soon, she will be off for at least 9 months and SMP is dire. Will have to focus on the cash flow more so than ever.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    I guess the answer is that if you zoom in on the best cast scenario of two full time earners then early retirement in 50s looks just about possible for many people however once you overlay life events and the need to provide for children you get back to the same kind of average retirement dates as the majority of people achieve.

    p.s. I agree a 15% employer contribution is excellent for a DC scheme.
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