Gloomy pension prospects on average salary?

[Kirkmoly]

Mr Whippy said:

Some people never grow out of materialism and consumerism even into their 70s.

If you can, then the need for a huge pension is much reduced.

I understand what you are saying but, with the greatest respect, one must allow for the fact that a ‘huge’ pension actually is needed for people whose preferred lifestyle, whilst deemed by some to be costly, is not remotely reflective of their presumed addiction to materialism or consumerism. I assume your comment is well intended but it also comes across as unnecessarily judgemental.

Edited by Kirkmoly on Tuesday 21st March 20:55

[Mr Whippy]

Kirkmoly said:

Mr Whippy said:

Some people never grow out of materialism and consumerism even into their 70s.

If you can, then the need for a huge pension is much reduced.

I understand what you are saying but, with the greatest respect, one must allow for the fact that a ‘huge’ pension actually is needed for people whose preferred lifestyle, whilst deemed by some to be costly, is not remotely reflective of their presumed addiction to materialism or consumerism. I assume your comment is well intended but it also comes across as unnecessarily judgemental.

Edited by Kirkmoly on Tuesday 21st March 20:55

Judgement is in the eye of the beholder.

In the absence of stuff to buy, especially non-essentials, both poor and wealthy retirees could live happy and comfortable lives.


Unless, somehow, you can get through a ‘huge’ pension by not spending/consuming things?


Is this an allusion to still having dependents, or something that I’m missing?

[GT03ROB]

Mr Whippy said:

Kirkmoly said:

Mr Whippy said:

Some people never grow out of materialism and consumerism even into their 70s.

If you can, then the need for a huge pension is much reduced.

I understand what you are saying but, with the greatest respect, one must allow for the fact that a ‘huge’ pension actually is needed for people whose preferred lifestyle, whilst deemed by some to be costly, is not remotely reflective of their presumed addiction to materialism or consumerism. I assume your comment is well intended but it also comes across as unnecessarily judgemental.

Edited by Kirkmoly on Tuesday 21st March 20:55

Judgement is in the eye of the beholder.

In the absence of stuff to buy, especially non-essentials, both poor and wealthy retirees could live happy and comfortable lives.


Unless, somehow, you can get through a ‘huge’ pension by not spending/consuming things?


Is this an allusion to still having dependents, or something that I’m missing?

Aye, happy & comfortable on bread & dripping and a single coal on the grate.....

[deja.vu]

GT03ROB said:

Mr Whippy said:

Kirkmoly said:

Mr Whippy said:

Some people never grow out of materialism and consumerism even into their 70s.

If you can, then the need for a huge pension is much reduced.

I understand what you are saying but, with the greatest respect, one must allow for the fact that a ‘huge’ pension actually is needed for people whose preferred lifestyle, whilst deemed by some to be costly, is not remotely reflective of their presumed addiction to materialism or consumerism. I assume your comment is well intended but it also comes across as unnecessarily judgemental.

Edited by Kirkmoly on Tuesday 21st March 20:55

Judgement is in the eye of the beholder.

In the absence of stuff to buy, especially non-essentials, both poor and wealthy retirees could live happy and comfortable lives.


Unless, somehow, you can get through a ‘huge’ pension by not spending/consuming things?


Is this an allusion to still having dependents, or something that I’m missing?

Aye, happy & comfortable on bread & dripping and a single coal on the grate.....

Bread and dripping?
You were lucky !

[GT03ROB]

deja.vu said:

GT03ROB said:

Mr Whippy said:

Kirkmoly said:

Mr Whippy said:

Some people never grow out of materialism and consumerism even into their 70s.

If you can, then the need for a huge pension is much reduced.

I understand what you are saying but, with the greatest respect, one must allow for the fact that a ‘huge’ pension actually is needed for people whose preferred lifestyle, whilst deemed by some to be costly, is not remotely reflective of their presumed addiction to materialism or consumerism. I assume your comment is well intended but it also comes across as unnecessarily judgemental.

Edited by Kirkmoly on Tuesday 21st March 20:55

Judgement is in the eye of the beholder.

In the absence of stuff to buy, especially non-essentials, both poor and wealthy retirees could live happy and comfortable lives.


Unless, somehow, you can get through a ‘huge’ pension by not spending/consuming things?


Is this an allusion to still having dependents, or something that I’m missing?

Aye, happy & comfortable on bread & dripping and a single coal on the grate.....

Bread and dripping?
You were lucky !

That was only at Christmas mind!

[James6112]

Defcon5 said:

Of the 16k you are earning above 50k, you are only actually receiving 9k or so.

If you send it to a pension rather than into your pocket, you will receive 16k.

You still get the money, you are just choosing to receive it after you have retired.

I’m a lot older..
Already getting a couple of pensions
I keep my annual salary incl pensions just under the threshold
Most of my current salary now goes into pension
When I call it a day will take out the 25% tax free & keep annual draw @ 20%
Give the least you can to the government

[Chicken Chaser]

Could do with looking at my pensions more closely now.

Currently 41 with a banked police pension of 17 years on the old 87 scheme. Projection at taking it at 60 is showing approx £17000 and £110k lump sum.

I'm now on another DB scheme. I'm earning £10k into the 40% bracket and paying the contribution which is set for the scheme and doesn't seem to be adjustable. On top of that I'm paying into an AVC which is currently only 3.5% of my salary. Given that I've got 2 final salary pensions, one which is now locked in I figured that AVC would jusy be a bit of a nice extra. I'm now wondering whether or not I should significantly increase this. Ive just been enjoying the extra cash for a less restrictive lifestyle.

[phpe]

Chicken Chaser said:

Could do with looking at my pensions more closely now.

Currently 41 with a banked police pension of 17 years on the old 87 scheme. Projection at taking it at 60 is showing approx £17000 and £110k lump sum.

I'm now on another DB scheme. I'm earning £10k into the 40% bracket and paying the contribution which is set for the scheme and doesn't seem to be adjustable. On top of that I'm paying into an AVC which is currently only 3.5% of my salary. Given that I've got 2 final salary pensions, one which is now locked in I figured that AVC would jusy be a bit of a nice extra. I'm now wondering whether or not I should significantly increase this. Ive just been enjoying the extra cash for a less restrictive lifestyle.

Your current DB scheme contributions are set by the trustees, so as you are doing, the Additional Voluntary Contributions are a way for you to pay extra into a separate pot, saving tax and national insurance in full up front automatically.

By your state pension age (68 for you, I think), you will have 2 DB schemes in payment to you with lots of protection in terms of inflation proofing and no investment risk on your part, plus your state pension, again with lots of protection in the form of the current triple lock for rises. Plus the AVC value.

Other options for additional savings could be

Contributing into a personal pension (benefit: a notional £80 from you is boosted to £100 by addition of tax relief, possibly wider fund choice than the AVC options. Drawback: probably overall higher cost than the AVC options, but not necessarily, plus no saving from National Insurance and you'd have to reclaim the difference between basic rate tax and higher rate tax yourself from HMRC)

Saving into an ISA (benefit: access it any time you like, completely free of tax, drawback: no tax relief at 40% added to your contribution)

[Mr Pointy]

Mr Whippy said:

PeteinSQ said:

We're not going to retire as millionaires but we're not millionaires now, and I don't think we'll need that much in retirement either.

Some people never grow out of materialism and consumerism even into their 70s.

If you can, then the need for a huge pension is much reduced.

Right up to the point where you need a new hip or knee & are faced with a long NHS waiting list or you develop dementia & are faced with huge long term care costs. That's when you'll be glad you have a million in your pension fund.

[deja.vu]

Mr Pointy said:

Mr Whippy said:

PeteinSQ said:

We're not going to retire as millionaires but we're not millionaires now, and I don't think we'll need that much in retirement either.

Some people never grow out of materialism and consumerism even into their 70s.

If you can, then the need for a huge pension is much reduced.

Right up to the point where you need a new hip or knee & are faced with a long NHS waiting list or you develop dementia & are faced with huge long term care costs. That's when you'll be glad you have a million in your pension fund.

Faced with dementia, all I'll need is a one way ticket to Switzerland plus around £5k.

[The Leaper]

Mr Pointy said:

Mr Whippy said:

PeteinSQ said:

We're not going to retire as millionaires but we're not millionaires now, and I don't think we'll need that much in retirement either.

Some people never grow out of materialism and consumerism even into their 70s.

If you can, then the need for a huge pension is much reduced.

Right up to the point where you need a new hip or knee & are faced with a long NHS waiting list or you develop dementia & are faced with huge long term care costs. That's when you'll be glad you have a million in your pension fund.

I know what you mean. I'm 80, 18 years into being retired. Total hip replacement in May and then another in November or about then. I have private cover. No dementia signs, yet!

R.

[Chicken Chaser]

phpe said:

Your current DB scheme contributions are set by the trustees, so as you are doing, the Additional Voluntary Contributions are a way for you to pay extra into a separate pot, saving tax and national insurance in full up front automatically.

By your state pension age (68 for you, I think), you will have 2 DB schemes in payment to you with lots of protection in terms of inflation proofing and no investment risk on your part, plus your state pension, again with lots of protection in the form of the current triple lock for rises. Plus the AVC value.

Other options for additional savings could be

Contributing into a personal pension (benefit: a notional £80 from you is boosted to £100 by addition of tax relief, possibly wider fund choice than the AVC options. Drawback: probably overall higher cost than the AVC options, but not necessarily, plus no saving from National Insurance and you'd have to reclaim the difference between basic rate tax and higher rate tax yourself from HMRC)

Saving into an ISA (benefit: access it any time you like, completely free of tax, drawback: no tax relief at 40% added to your contribution)

Thanks. I'm already putting some money into a cash ISA, although it's peanuts for interest.

My intent is to take the Police DB at 60 and then decide whether to keep working until this DB concludes at 62 so it'll be at least a 6yr gap until the state pension if there's one at all then.

I think I'll just add to the AVC and do so every time I get a pay rise just so that I don't notice it coming out. It'll offset some of the 40% at least so will be making a greater contribution to it than I would recognise.

[Hondashark]

I'm just after someone telling me I'm doing OK really!

I'm currently 38 and have 12 years of military pension that I can claim at the state pension age.

I have 2 DC pensions, one from my last job with DHL that has about £10k in it (I'd transfer it to my other current DC pension but its alot of paperwork to do) and one from my current job with about £30k in it.

I'm currently putting 11% into my pension with my employer putting 9% and sacrificing my annual bonus. This is to keep my taxable pay below £50k as I have 2 kids (63% effective tax rate £50-60k for me). Last year I still had to put a £1300 lump sum in my pension in March to bring my taxable pay down.

So this year I'm going to have to up my contributions to 25-30% (total) to keep my taxable pay below £50k as we are due hopefully a 10+% payrise.

I think the plan is to my this DC pension last from retirement (I've not decided an age yet) until 75 or 80 and then just live on the state+military from then on. (Obviously state+military will start at 68-70ish so I'll be just topping up with my DC for those last years.

Am I doing enough/too much though. One of the guys at work was putting about 80% in his a year as he was 58 and then dropped dead.
I'd really like to take home some more now but it breaks me giving ~63% back to the gov over £50k.