how much should I put in my pension?
Discussion
Following on from my earlier post about retiring early, I have had to change what I want to do. I'm changing jobs in the next couple of months, moving from a short (4 year) stay in the public sector back to the private sector. In the last 4 years I have had a stroke, and as I had insurance my house is now paid off, I have no debts (other than a couple of hundred quid on my credit card that gets paid off each month) and I have some money in my account in my account set aside for later on. We have always owned our cars outright, so have no loans for them.
Looking at money saving expert it says you half your age and put that amount in - so the example given is someone at age 32 puts in 16% of their salary. I'm 46 now, but I have been paying into various pension schemes since I was 21 years old, although I am not sure of how much I have put away!
So assuming I haven't been daft, if I choose to put away around about 21% of my salary - that is 11% from me, 10% from the company, will that be enough? What with pension ages going up, I was still hoping on retiring at 55, so does that mean I should be saving more?
Looking at money saving expert it says you half your age and put that amount in - so the example given is someone at age 32 puts in 16% of their salary. I'm 46 now, but I have been paying into various pension schemes since I was 21 years old, although I am not sure of how much I have put away!
So assuming I haven't been daft, if I choose to put away around about 21% of my salary - that is 11% from me, 10% from the company, will that be enough? What with pension ages going up, I was still hoping on retiring at 55, so does that mean I should be saving more?
If you've had a stroke recently, is a pension the most effective tax wrapper for you? If you can't work in the future because your health suffers, and if you need capital, would decent protection and keeping your money liquid be a wise move? If you want to make single contributions subsequently and sporadically, then you can still do.
aclivity said:
Following on from my earlier post about retiring early, I have had to change what I want to do. I'm changing jobs in the next couple of months, moving from a short (4 year) stay in the public sector back to the private sector. In the last 4 years I have had a stroke, and as I had insurance my house is now paid off, I have no debts (other than a couple of hundred quid on my credit card that gets paid off each month) and I have some money in my account in my account set aside for later on. We have always owned our cars outright, so have no loans for them.
Looking at money saving expert it says you half your age and put that amount in - so the example given is someone at age 32 puts in 16% of their salary. I'm 46 now, but I have been paying into various pension schemes since I was 21 years old, although I am not sure of how much I have put away!
So assuming I haven't been daft, if I choose to put away around about 21% of my salary - that is 11% from me, 10% from the company, will that be enough? What with pension ages going up, I was still hoping on retiring at 55, so does that mean I should be saving more?
Blimey what conmpany (outside the public sector) pays 10% contributions? Especially to new starters.Looking at money saving expert it says you half your age and put that amount in - so the example given is someone at age 32 puts in 16% of their salary. I'm 46 now, but I have been paying into various pension schemes since I was 21 years old, although I am not sure of how much I have put away!
So assuming I haven't been daft, if I choose to put away around about 21% of my salary - that is 11% from me, 10% from the company, will that be enough? What with pension ages going up, I was still hoping on retiring at 55, so does that mean I should be saving more?
The first thing I'd do is go and seek advice from a finance expert. You've paid into a pension since you were 21 but have no idea how much that pension is now worth or what it breaks down to as an estimated monthly income ?? Get someone to get your pension sorted for you, how do you even know the current return for it ? It could be in a really lousy fund and hardly making you anything.
I'm not really sure of the half of age as a % of salary thing. You just need to ask yourself (and your financial advisor will also ask you) what you think will be a reasonable amount to live on once you retire. That way your estimated income will either exceed (hopefully!) or not match your expected income and your advisor can then tell you how much you need to be topping up your pension amounts by.
I'm not really sure of the half of age as a % of salary thing. You just need to ask yourself (and your financial advisor will also ask you) what you think will be a reasonable amount to live on once you retire. That way your estimated income will either exceed (hopefully!) or not match your expected income and your advisor can then tell you how much you need to be topping up your pension amounts by.
oyster said:
Blimey what conmpany (outside the public sector) pays 10% contributions? Especially to new starters.
My previous employer (a 'Big Four' consultancy) had the following contribution levels and is open to new joiners. Employee 6%, Employer 9%
Employee 7%, Employer 10.5%
Employee 8%, Employer 12%
My current lot (IT Consultancy) contribute 9%.
It depends on your age, current pension pot, cash flow, tax band, opportunity cost and a bunch of other stuff.
My wife gets 8% + some matched contributions too (not sure how much), she works in an energy company.
oyster said:
Blimey what conmpany (outside the public sector) pays 10% contributions? Especially to new starters.
I'm a contractor but the permies at HSBC get 13% (8% + 5% matched).My wife gets 8% + some matched contributions too (not sure how much), she works in an energy company.
You've done the right thing saving from 21, that'll surely help (The often forgotten magical powers of compound interest).
Can be quite depressing when you use the online pension calculators, input a desired pension annuity and then see how much you'd need to put in to acheive it!
Remember post Uni, wishing to retire at 50. I'm now 40, and see at least another 20+ years ahead of me.
BTW for comparison, Employee 7.5%, Employer 15% where I work
Can be quite depressing when you use the online pension calculators, input a desired pension annuity and then see how much you'd need to put in to acheive it!
Remember post Uni, wishing to retire at 50. I'm now 40, and see at least another 20+ years ahead of me.
BTW for comparison, Employee 7.5%, Employer 15% where I work
oyster said:
Blimey what conmpany (outside the public sector) pays 10% contributions? Especially to new starters.
I was very lucky to join my current employer just over 4 years ago and got in on their final salary pension scheme. It closed shortly after.The thread makes for interesting reading as I have my own pension as well that i started when I started working which I was thinking of reducing payments to, which will obviously affect what it pays later on.
As others have said, get some professional advice as there are so many variables.
How much have you already got in your pension? If not a lot, then you'll need to pay a greater % in. If it's already stacked out, then you may want to pay less in in case you hit the lifetime threshold
How much do you earn? How much do you need once you retire?
Nobody on here without a lot of detailed financial information that I doubt you'd want to put on a open forum can answer your question properly.
How much have you already got in your pension? If not a lot, then you'll need to pay a greater % in. If it's already stacked out, then you may want to pay less in in case you hit the lifetime threshold
How much do you earn? How much do you need once you retire?
Nobody on here without a lot of detailed financial information that I doubt you'd want to put on a open forum can answer your question properly.
750turbo said:
Some interesting figures listed here.
I am currently on 17%, rising 1% every Jan up to a max of 20% - All non contributory!
Saying that, this scheme was dropped for new employees when we were bought out by a massive American Corporation some years ago.
Your company must be making serious money. I'd love to give my guys a deal like that but it's just not possible in this climate. I am currently on 17%, rising 1% every Jan up to a max of 20% - All non contributory!
Saying that, this scheme was dropped for new employees when we were bought out by a massive American Corporation some years ago.
Hainey said:
750turbo said:
Some interesting figures listed here.
I am currently on 17%, rising 1% every Jan up to a max of 20% - All non contributory!
Saying that, this scheme was dropped for new employees when we were bought out by a massive American Corporation some years ago.
Your company must be making serious money. I'd love to give my guys a deal like that but it's just not possible in this climate. I am currently on 17%, rising 1% every Jan up to a max of 20% - All non contributory!
Saying that, this scheme was dropped for new employees when we were bought out by a massive American Corporation some years ago.
We are listed on Nasdaq, and are probably the worlds biggest player in the Automotive DMS market. I think we have a presence in roughly 70% of the UK Franchised Dealrships, and are making big inroads in the Middle East/Asia.
Not too many people on this benefit leave!
aclivity said:
Looking at money saving expert it says you half your age and put that amount in - so the example given is someone at age 32 puts in 16% of their salary. I'm 46 now, but I have been paying into various pension schemes since I was 21 years old, although I am not sure of how much I have put away!
It says 1/2 of your age when you started your pension, including employer contributions. I'd never heard of that before, so I think I need to up my contibutions slightly. Thanks for posting the link.I am 27, i have a very small pension from a previous job which i only paid into for a few months before i left that job. I have no idea what has happened to this, i need to find out somehow.
I am in a pension at my current work but its not a lot. I think i put 3% in which work match.
My question is though do I start a personal pension now as well? I do not know who to go with/ how to set it up. How much i should pay into it.
I want to setup a good future for myself. I also want to have some fun today as you never knows whats around the corner.
I am in a pension at my current work but its not a lot. I think i put 3% in which work match.
My question is though do I start a personal pension now as well? I do not know who to go with/ how to set it up. How much i should pay into it.
I want to setup a good future for myself. I also want to have some fun today as you never knows whats around the corner.
My firm pay in 12.5% and will also match upto 5%, so 22.5% for me. That is available for new joiners too.
Been getting this deal since I joined the firm at 30....i'm 38 now and also have a small DB (final salary) pension of 7 years from my previous firm.
I'm not that savvy when it comes to pensions, I just join because everyone tells me too, but I guess i'm getting a good deal when I see what some have posted.
Been getting this deal since I joined the firm at 30....i'm 38 now and also have a small DB (final salary) pension of 7 years from my previous firm.
I'm not that savvy when it comes to pensions, I just join because everyone tells me too, but I guess i'm getting a good deal when I see what some have posted.
keo said:
I am 27, i have a very small pension from a previous job which i only paid into for a few months before i left that job. I have no idea what has happened to this, i need to find out somehow.
Here you go.Keo. Drink of champions.
https://www.gov.uk/find-lost-pension
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