How much money do you need for retirement/pension?

[red_slr]

zubzob said:

Gov only tops up post tax personal contributions. If you pay employer contributions direct to the sipp via ltd, that's pretax and not eligible for further relief.

Ah, I see. Interesting. Never knew that..

[JulianPH]

red_slr said:

I see,,,, so can you explain that to me pls (genuine question as I am paying into a SIPP myself from an LTD and want the best understanding)

The £40,000 company contribution goes directly into your SIPP with no tax deducted (and therefore no tax to be reclaimed).

It is only when you make personal contributions that you have to reclaim the tax back.

The end result is the same, but obviously you cannot have your company pay in a tax free contribution on your behalf and expect to claim back further tax that you haven't paid!

Cheers

Edited to say I hadn't seen the other responses before posting this!

[tighnamara]

soupdragon1 said:

I guess you're not the 'glass half full' type then?

I was thinking that there is something else not “half full” with Welshbeef.
Scary that he continues to post on the finance forum aboslue rubbish on a subject that does require some knowledge and common sense.

[anonymous-user]

tighnamara said:

soupdragon1 said:

I guess you're not the 'glass half full' type then?

I was thinking that there is something else not “half full” with Welshbeef.
Scary that he continues to post on the finance forum aboslue rubbish on a subject that does require some knowledge and common sense.

Even more so when he has his occupation down as Finance Director. I think he posts when he gets lonely, or drunk, or both tbh.

[Welshbeef]

garyhun said:

tighnamara said:

soupdragon1 said:

I guess you're not the 'glass half full' type then?

I was thinking that there is something else not “half full” with Welshbeef.
Scary that he continues to post on the finance forum aboslue rubbish on a subject that does require some knowledge and common sense.

Even more so when he has his occupation down as Finance Director. I think he posts when he gets lonely, or drunk, or both tbh.

Wow you are a nice person .....


Pray tell what is rubbish in my post? Anything in that is possible and the upping of the state pension age whilst linking it to personal pensions /earliest you can draw them can happen/could happen.

I also wasn’t aware that discussion and debate wasn’t allowed ? Strange that I think it’s scraey that some people think you can only post up if your qualified to do so ... get real and grow up.

[x5x3]

Derek Chevalier said:

x5x3 said:

Do you have a link to download the global markets data since 1900?

The Barclays equity gilt study may be a decent starting point, but you'd have to remember that these are long run averages, and there's nothing to say the next twenty years will give you that exact return.

https://www.ft.com/content/afa024b8-3e55-11e8-bcc8...

thanks but that is a pay site.

and yes I understand that the past is no guarantee of the future but it is the best test data available.

[Jon39]

x5x3 said:

Derek Chevalier said:

x5x3 said:

Do you have a link to download the global markets data since 1900?

The Barclays equity gilt study may be a decent starting point, but you'd have to remember that these are long run averages, and there's nothing to say the next twenty years will give you that exact return.

https://www.ft.com/content/afa024b8-3e55-11e8-bcc8...

thanks but that is a pay site.

and yes I understand that the past is no guarantee of the future but it is the best test data available.

The annual ZW long-term Equity Gilt Study used to be more openly available, but when Barclays took over, they obviously wanted to make money from the information. Exactly the same thing has happened with the Halifax House Price, which was acquired by Lloyds. We now cannot access that information without paying.

The Barclays information is interesting, but it does not tell you any more than this quote, from the best investor in history.

Stocks have always come out of crises.
"Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497. Why didn't everyone win then? Answer, they kept dancing in and out of the market."

I know that index constituents change considerably over time, but the proven long-term investment aspect is within the quotation.

Edited by Jon39 on Tuesday 18th September 09:10

[superlightr]

Jon39 said:

The annual ZW long-term Equity Gilt Study used to be more openly available, but when Barclays took over, they obviously wanted to make money from the information. Exactly the same thing has happened with the Halifax House Price, which was acquired by Lloyds. We now cannot access that information without paying.

The Barclays information is interesting, but it does not tell you any more than this quote, from the best investor in history.

Stocks have always come out of crises.
"Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497. Why didn't everyone win then? Answer, they kept dancing in and out of the market."

I know that index constituents change considerably over time, but the proven long-term investment aspect is within the quotation.


I would suggest the same could be said for property as well.

Mentioned it before but with the govt changing my pp from 50 to 55 really peed me off. Slowed paying in when that happened and put it into properties. We will have 80% in properties and the rest isa's and remains of my private pension.

Edited by Jon39 on Tuesday 18th September 09:10

[bongtom]

You don’t have to retire in the UK.
In SE Asia (and many other countries) you can live on less than £1500 per month, an less. I know people in Thailand who live on $1000 (about £800) per month they don’t want for nothing. (Is that the correct saying. Sounds crap!)

When I first came here (early 40s) you could get 12% PA on deposits. It’s now down to max 7%.

I know people who (before the GBP/USD dropped, as Cambodia uses $) lived off their basic state pension. What’s that, £600pm? Now they are struggling slightly but still comfortable.

If you’re really worried about surviving after you retire then look at SE Asia, Eastern Europe, and South America as cheaper alternatives.

[Welshbeef]

bongtom said:

You don’t have to retire in the UK.
In SE Asia (and many other countries) you can live on less than £1500 per month, an less. I know people in Thailand who live on $1000 (about £800) per month they don’t want for nothing. (Is that the correct saying. Sounds crap!)

When I first came here (early 40s) you could get 12% PA on deposits. It’s now down to max 7%.

I know people who (before the GBP/USD dropped, as Cambodia uses $) lived off their basic state pension. What’s that, £600pm? Now they are struggling slightly but still comfortable.

If you’re really worried about surviving after you retire then look at SE Asia, Eastern Europe, and South America as cheaper alternatives.

Depending if they will permit you to become a citizen or not really. Or provide you with a visa for the rest of your life otherwise you might have to leave as and when the visa expires.

Try to emigrate to Canada... or even the USA it’s epically difficult

[BoRED S2upid]

bongtom said:

You don’t have to retire in the UK.
In SE Asia (and many other countries) you can live on less than £1500 per month, an less. I know people in Thailand who live on $1000 (about £800) per month they don’t want for nothing. (Is that the correct saying. Sounds crap!)

When I first came here (early 40s) you could get 12% PA on deposits. It’s now down to max 7%.

I know people who (before the GBP/USD dropped, as Cambodia uses $) lived off their basic state pension. What’s that, £600pm? Now they are struggling slightly but still comfortable.

If you’re really worried about surviving after you retire then look at SE Asia, Eastern Europe, and South America as cheaper alternatives.

Or just holiday there 6 months of the year (winter) we took a holiday over that way and a lot of old folks were doing just that. Cheaper and warmer to holiday over that way over the rubbish months.

Ps don’t want for anything for what it’s worth.

[Mark300zx]

Saw an article saying Portugal has one of the best quality of life/cost benefits for retirees and with the tax reductions it could be a contender!!!

[ooid]

Welshbeef said:

Depending if they will permit you to become a citizen or not really. Or provide you with a visa for the rest of your life otherwise you might have to leave as and when the visa expires.

Try to emigrate to Canada... or even the USA it’s epically difficult

My parents did it but they spend most of their time in Turkey/Spain(Barcelona). 6 months in Turkey, the rest in Spain and London.(mostly christmas and easter breaks, festive season)

U.K. is an expensive and very cold place to be a retiree

[mart73]

Jon39 said:

x5x3 said:

Derek Chevalier said:

x5x3 said:

Do you have a link to download the global markets data since 1900?

The Barclays equity gilt study may be a decent starting point, but you'd have to remember that these are long run averages, and there's nothing to say the next twenty years will give you that exact return.

https://www.ft.com/content/afa024b8-3e55-11e8-bcc8...

thanks but that is a pay site.

and yes I understand that the past is no guarantee of the future but it is the best test data available.

The annual ZW long-term Equity Gilt Study used to be more openly available, but when Barclays took over, they obviously wanted to make money from the information. Exactly the same thing has happened with the Halifax House Price, which was acquired by Lloyds. We now cannot access that information without paying.

The Barclays information is interesting, but it does not tell you any more than this quote, from the best investor in history.

Stocks have always come out of crises.
"Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497. Why didn't everyone win then? Answer, they kept dancing in and out of the market."

I know that index constituents change considerably over time, but the proven long-term investment aspect is within the quotation.

Edited by Jon39 on Tuesday 18th September 09:10

My only caveat to that would be Japan. Their markets have yet to recover from their early 90's slump.
Hence, I'm taking the wider investment approach with a global tracker for my equity exposure.
If you were purely invested in the Nikkei & relying on that to retire in 1995 - you'd have been in trouble!

[CoolHands]

Bump

this thread has the right title although I can't see an answer to my question which is not how big should your pension pot be, but:

How much money do you reckon is a decent amount per month? (in today's money) ie for an average type middle-class lifestyle as we all are here on PH. I know there's a million what-ifs. Mainly around if you've paid off your mortgage or need to rent forever, I suppose. But like, 800 a month? a 1000? 1500?

[sociopath]

My wife and I put 2k I to our spending account every month, and generally speaking we don't spend that amount so long term I'd say we are ok with 1500.

Well we would be if I didn't keep buying toys

[CoolHands]

You put in 2k each or 2k in total?

[GT03ROB]

CoolHands said:

How much money do you reckon is a decent amount per month? (in today's money) ie for an average type middle-class lifestyle as we all are here on PH. I know there's a million what-ifs. Mainly around if you've paid off your mortgage or need to rent forever, I suppose. But like, 800 a month? a 1000? 1500?

It really is unanswerable.

You have to look at your personal situation, personal preferences, personal perception of what an average middle class lifestyle is.

The answer is probably anything between 800 - 10000 /month!

[Welshbeef]

Just think firstly what costs you will NOT have in retirement Or shouldn’t
1. Mortgage
2. Commuting
3 . Work suits shoes shirts
4. Needing to run as new a car as you do
5. Servicing frequency and tyres
6. The need to holiday peak season
7. Daily costa etc
8. Pension /retirement investing.
Take your current income and deduct that lot from it.
You then clearly have a £ pcm value that you currently live on.


Then what new things might you be spending money on.

Job done do this and let us know the ball park pcm that gives you.

[GT03ROB]

Welshbeef said:

Just think firstly what costs you will NOT have in retirement Or shouldn’t
1. Mortgage
2. Commuting
3 . Work suits shoes shirts
4. Needing to run as new a car as you do
5. Servicing frequency and tyres
6. The need to holiday peak season
7. Daily costa etc
8. Pension /retirement investing.
Take your current income and deduct that lot from it.
You then clearly have a £ pcm value that you currently live on.

Then what new things might you be spending money on.

Job done do this and let us know the ball park pcm that gives you.

Most of those costs I don't have while working! Hence why I'm not always convinced by this spend far less in retirement argument!