How much money do you need for retirement/pension?
Discussion
CoolHands said:
The reason I’m asking about monthly income to aim for rather than size of the pot is I am in the fortunate position of having defined benefit pension. I’m currently at £15k pa with it, so just wondering what I need to get it to ie what age I can retire when I get it to, say, £20k or whatever. Although I will need to subtract the % reductions from taking it early as f
ked if I’m working to 68. I prob need to get to £25k so it is about £20 if I go 5 years early after actuarial reduction
In some places you can go early as a 'good leaver' and there is no acturial reduction.ked if I’m working to 68. I prob need to get to £25k so it is about £20 if I go 5 years early after actuarial reductionI looked at this, and it was circa 5% pa compounded - which takes a heck of a chunk out if you want to withdraw before the retirement age!
I opted to take the lump sum and use that as a pension pot - the benefit (for me) being that my wife is definitely going to outlive me.
On my demise, the DB would give her 50% of my pension. Assuming it is not all urinated up the wall, she should be able to benefit from the pension pot and receive a similar level of income. And then, if there is monies left, that can be passed on to the kids (with restriction).
Keep under the current LTA, so say £1m, work on a 3% income, that is 30k/pa.
State pension is lookng further and further away, but that should also assist in monthlies.
Appreciate you give up the certaintity of income for the whole retirement, but I'm planning to leave before retirement age and not sure I would get good leaver status! This (for me) allows an early retirement if I chose to do so, reduces my cost to the company when they are looking to scalp headcount and allows me to pay a Wealth Manager a hefty quarterly fee to get me to (and above) the sum I want....
Perhaps not the best idea to put a chunky sum into the market with the aim of high growth in Q120......
CoolHands said:
The reason I’m asking about monthly income to aim for rather than size of the pot is I am in the fortunate position of having defined benefit pension. I’m currently at £15k pa with it, so just wondering what I need to get it to ie what age I can retire when I get it to, say, £20k or whatever. Although I will need to subtract the % reductions from taking it early as fked if I’m working to 68. I prob need to get to £25k so it is about £20 if I go 5 years early after actuarial reduction
I don't know where you are at age-wise but at some point you should at least ask what the transfer value of your DB pension is. I had two, amongst other DC pensions as well. One of the DB pensions wasn't worth moving but the other offered me 43x the annual pension value - that one was a bit of a no-brainer, even taking RPI into account, and has put me in a much better position today. Be aware also that you have to jump many hoops, and pay a not inconsiderable amount in fees, to transfer out, but mine was still very much worth it.ked if I’m working to 68. I prob need to get to £25k so it is about £20 if I go 5 years early after actuarial reductioncraig1912 said:
Meeten-5dulx said:
allows me to pay a Wealth Manager a hefty quarterly fee to get me to (and above) the sum I want....
That’s a big mistake, you’ll have to save a lot more or a lot longer if you are paying a wealth manager. To be fair it did go down substantially in the midst of the crisi but has recovered and is higher still.
I know that past performance is no guide but i had an in depth chat with 3 companies before deciding n this outfit. Fees are fine as long as they produce results. 6 months in and they have done a pretty good job considering. I have no issues with paying for a service , as long as it is fair.
42x contributions for me. Was 34 when i had enquired 18m prior. My guess is low bond returns pushes up the sum.
craig1912 said:
The very term “wealth manager” is a misnomer- managing their own wealth at the expense of yours.
I don’t mind paying for a service and in fact do, but, not a hefty amount. Be interested who you are with and what they charge
I'm with Brewin Dolphin. I don’t mind paying for a service and in fact do, but, not a hefty amount. Be interested who you are with and what they charge
Happy to share more details but via PM if you really want to know.
Meeten-5dulx said:
In some places you can go early as a 'good leaver' and there is no acturial reduction.
I looked at this, and it was circa 5% pa compounded - which takes a heck of a chunk out if you want to withdraw before the retirement age!
I opted to take the lump sum and use that as a pension pot - the benefit (for me) being that my wife is definitely going to outlive me.
On my demise, the DB would give her 50% of my pension. Assuming it is not all urinated up the wall, she should be able to benefit from the pension pot and receive a similar level of income. And then, if there is monies left, that can be passed on to the kids (with restriction).
Keep under the current LTA, so say £1m, work on a 3% income, that is 30k/pa.
State pension is lookng further and further away, but that should also assist in monthlies.
Appreciate you give up the certaintity of income for the whole retirement, but I'm planning to leave before retirement age and not sure I would get good leaver status! This (for me) allows an early retirement if I chose to do so, reduces my cost to the company when they are looking to scalp headcount and allows me to pay a Wealth Manager a hefty quarterly fee to get me to (and above) the sum I want....
Perhaps not the best idea to put a chunky sum into the market with the aim of high growth in Q120......
I cashed out a pension in January for very similar reasons.....the fact it sits outside my estate for IHT purposes and also the potential benefit if my wife survives me were big drivers. Luckily I only invested about 20% of it and got lucky with what I invested. Cash is expensive to hold though ! Clearly missed a big opportunity in March. I looked at this, and it was circa 5% pa compounded - which takes a heck of a chunk out if you want to withdraw before the retirement age!
I opted to take the lump sum and use that as a pension pot - the benefit (for me) being that my wife is definitely going to outlive me.
On my demise, the DB would give her 50% of my pension. Assuming it is not all urinated up the wall, she should be able to benefit from the pension pot and receive a similar level of income. And then, if there is monies left, that can be passed on to the kids (with restriction).
Keep under the current LTA, so say £1m, work on a 3% income, that is 30k/pa.
State pension is lookng further and further away, but that should also assist in monthlies.
Appreciate you give up the certaintity of income for the whole retirement, but I'm planning to leave before retirement age and not sure I would get good leaver status! This (for me) allows an early retirement if I chose to do so, reduces my cost to the company when they are looking to scalp headcount and allows me to pay a Wealth Manager a hefty quarterly fee to get me to (and above) the sum I want....
Perhaps not the best idea to put a chunky sum into the market with the aim of high growth in Q120......
Meeten-5dulx said:
C Lee Farquar said:
garyhun said:
mikeiow said:
I reckon our regular monthly essential outgoings amount to around £800pcm......where the other 30k goes, I've no idea 
I think you are me 
Where’s that parrot when you need it?CoolHands said:
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?
https://www.retirementlivingstandards.org.uk/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?
This gives food for thought from the Pensions and Lifetime Savings Association.
I've been living on my own now for 7 years, separated then divorced, so I know what I need to spend. I'm 63 and plan to retire at the end of this year. I will be retiring to Scotland so cost of living is relatively low in UK terms. Own house, new cars, all new household (white goods etc) so reasonable life. No debt.
I'm setting up for £25k a year until I'm 80, £20k from 80 to 85 and £15k a year over 85 (if I get there). All index-linked.
I'm not planning to fully retire and I'll do some part-time consulting, but income from that isn't included above, and will go straight into my coke and hookers account.
I'm setting up for £25k a year until I'm 80, £20k from 80 to 85 and £15k a year over 85 (if I get there). All index-linked.
I'm not planning to fully retire and I'll do some part-time consulting, but income from that isn't included above, and will go straight into my coke and hookers account.
garyhun said:
Meeten-5dulx said:
C Lee Farquar said:
garyhun said:
mikeiow said:
I reckon our regular monthly essential outgoings amount to around £800pcm......where the other 30k goes, I've no idea
I think you are me Where’s that parrot when you need it?CoolHands said:
The reason I’m asking about monthly income to aim for rather than size of the pot is I am in the fortunate position of having defined benefit pension. I’m currently at £15k pa with it, so just wondering what I need to get it to ie what age I can retire when I get it to, say, £20k or whatever. Although I will need to subtract the % reductions from taking it early as fked if I’m working to 68. I prob need to get to £25k so it is about £20 if I go 5 years early after actuarial reduction
For you and others deeply interested in this topic, there is a monster thread on The Number here ked if I’m working to 68. I prob need to get to £25k so it is about £20 if I go 5 years early after actuarial reductionhutchst said:
I've been living on my own now for 7 years, separated then divorced, so I know what I need to spend. I'm 63 and plan to retire at the end of this year. I will be retiring to Scotland so cost of living is relatively low in UK terms. Own house, new cars, all new household (white goods etc) so reasonable life. No debt.
I'm setting up for £25k a year until I'm 80, £20k from 80 to 85 and £15k a year over 85 (if I get there). All index-linked.
I'm not planning to fully retire and I'll do some part-time consulting, but income from that isn't included above, and will go straight into my coke and hookers account.
Hope you've factored in the higher heating bills - it's lovely up here but we still have the heating on tonight!I'm setting up for £25k a year until I'm 80, £20k from 80 to 85 and £15k a year over 85 (if I get there). All index-linked.
I'm not planning to fully retire and I'll do some part-time consulting, but income from that isn't included above, and will go straight into my coke and hookers account.
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