How big is your pension pot?
Discussion
BigMon said:
A very rough rule of thumb i go by is think about how much you'd like per year and multiply by 25.
So, £25K per year would require £625000.
It's pretty sobering.
Whilst that’s a big number for some it’s worth understanding whether thats on top of state pension or just income level required?So, £25K per year would require £625000.
It's pretty sobering.
(A couple retiring on state pensions currently would have near £25k combined without any additional private pension). The kicker is though they need to wait for state retirement age.
2and3and4 said:
73.
2 x annuities paying a combined £83.79 per month.
...and SP of £552.60 a month
Have you checked to see if you are eligible for “Pension Credit”. Frustratingly there’s a lot of people don’t know they are.2 x annuities paying a combined £83.79 per month.
...and SP of £552.60 a month
Edited by 2and3and4 on Friday 6th June 16:37
https://www.gov.uk/pension-credit/eligibility
BigMon said:
A very rough rule of thumb i go by is think about how much you'd like per year and multiply by 25.
So, £25K per year would require £625000.
It's pretty sobering.
Estimates on my current pot (were I to take pension now, currently 65) is that I'd get £1K per year for every £12K in the pot, assuming I don't take a lump sum. I think the factor of 25 is rather pessimistic, but who knows what annuity rates will be in future.So, £25K per year would require £625000.
It's pretty sobering.
Quattr04. said:
32 - 50k in a dc
The app from mercer says that s £2750 a month when I retire
Are you planning on dying 18 months after you retire The app from mercer says that s £2750 a month when I retire
I’m 38 and have a DB (CARE) pension. The latest paperwork says if I retired at state pension age it would pay me 52k per year. Not that I plan on staying that long! It’s about half that to retire at 55 I think.
The amount accrued to date is worth 17k a year at state pension age - not sure how you could value that in cash terms
Obvs they are inflation linked
Defcon5 said:
Quattr04. said:
32 - 50k in a dc
The app from mercer says that s £2750 a month when I retire
Are you planning on dying 18 months after you retire The app from mercer says that s £2750 a month when I retire
5% return over 35 years is going to compound the £50K to around £300K.
Age 41
Around 400k in a db scheme and another 100k in sipp.
I think in a couple years I’ll lay off making additional pension payments and focus on s&s isa with a view to use cash 1st to allow an early retirement and start to draw down pensions when I’m 60.
I’m thinking around 30k a year would be enough in retirement.
Around 400k in a db scheme and another 100k in sipp.
I think in a couple years I’ll lay off making additional pension payments and focus on s&s isa with a view to use cash 1st to allow an early retirement and start to draw down pensions when I’m 60.
I’m thinking around 30k a year would be enough in retirement.
I'm getting £12.5k a year from two DB schemes, so £24.5k with my state pension.
That's for 28 years of contributions.
When I stopped working for the second employer, I did a rough calculation of how much I'd contributed over those 28 years, and it came out at £42k. I remember the number, because it was the same as my endowment mortgage sum, which I paid off with my voluntary redundancy.
I took early retirement aged 52, so I've been getting the pensions for 16 years. One the pensions paid at a lower rate until I reached 65.
So far, they have paid me nearly £150k.
Seems like a decent return?
That's for 28 years of contributions.
When I stopped working for the second employer, I did a rough calculation of how much I'd contributed over those 28 years, and it came out at £42k. I remember the number, because it was the same as my endowment mortgage sum, which I paid off with my voluntary redundancy.
I took early retirement aged 52, so I've been getting the pensions for 16 years. One the pensions paid at a lower rate until I reached 65.
So far, they have paid me nearly £150k.
Seems like a decent return?
Edible Roadkill said:
Age 41
Around 400k in a db scheme and another 100k in sipp.
I think in a couple years I ll lay off making additional pension payments and focus on s&s isa with a view to use cash 1st to allow an early retirement and start to draw down pensions when I m 60.
I m thinking around 30k a year would be enough in retirement.
It all depends on what you might want to do in retirement.Around 400k in a db scheme and another 100k in sipp.
I think in a couple years I ll lay off making additional pension payments and focus on s&s isa with a view to use cash 1st to allow an early retirement and start to draw down pensions when I m 60.
I m thinking around 30k a year would be enough in retirement.
I would suggest £30k might not enough especially if you want to travel.
I retired at 58 (7 years ago) and at that point we had 2 final salary pensions (paying then £21k (value circa £420k)between us and £150k of Tax free lump sums along with £150k in a SIPP.
We have been drawing on tax free cash and spending in the region of 35/£40k pa to live a good lifestyle (joint income pre retirement was circa £90k pa)
I reckon you need to have at least circa £1m in pension and cash funds to retire at a decent level of income at 55.
Me and the wife both retired in our 50's with a private pension each on flexi access drawdown
We both had final salary pensions but transferred out when the scheme closed so we could take early retirement,
for the last few years we've both been taking £50k each per year to avoid paying higher rate tax,
but we'll probably be taking a lot less this year as our funds suffered quite a big hit thanks to the market dropping back in March and are still nowhere near recovered,
and also we haven't really got any big spending plans for the year so shouldn't really need as much
I'm 52 and would like to retire at 57, Mrs BigMon will be 55.
Thanks to her we're on track to do that. Aiming for about £50K a year to live on between us and have a backup 'rainy day' pot for emergencies.
My own pensions are s
te. At 52 I have about £150K in SIPPs and I'll get about £8K a year when I'm 67 from various DB schemes along with hopefully the state pension.
I wouldn't be retiring early on that.
When I was 22 and working in a pub my boss told me to open a pension, put £50 a month in and I'd thank him when I was 60.
I was an idiot and didn't.
Things may change in the next few years with our investments which mean we get less or more than the above but we have a simple life really and could survive on a fair bit less.
Thanks to her we're on track to do that. Aiming for about £50K a year to live on between us and have a backup 'rainy day' pot for emergencies.
My own pensions are s
te. At 52 I have about £150K in SIPPs and I'll get about £8K a year when I'm 67 from various DB schemes along with hopefully the state pension.I wouldn't be retiring early on that.
When I was 22 and working in a pub my boss told me to open a pension, put £50 a month in and I'd thank him when I was 60.
I was an idiot and didn't.
Things may change in the next few years with our investments which mean we get less or more than the above but we have a simple life really and could survive on a fair bit less.
Edited by BigMon on Friday 6th June 18:48
Edited by BigMon on Friday 6th June 18:49
Edited by BigMon on Friday 6th June 18:51
Defcon5 said:
Are you planning on dying 18 months after you retire
I m 38 and have a DB (CARE) pension. The latest paperwork says if I retired at state pension age it would pay me 52k per year. Not that I plan on staying that long! It s about half that to retire at 55 I think.
The amount accrued to date is worth 17k a year at state pension age - not sure how you could value that in cash terms
Obvs they are inflation linked
I guess if you based it on annuities it would be about £300k accrued now. You’d need about £1m to get £52k a year from annuities. God knows why you’d choose an annuity, though. They seem like terrible value for money. I m 38 and have a DB (CARE) pension. The latest paperwork says if I retired at state pension age it would pay me 52k per year. Not that I plan on staying that long! It s about half that to retire at 55 I think.
The amount accrued to date is worth 17k a year at state pension age - not sure how you could value that in cash terms
Obvs they are inflation linked
I think my wife’s public sector pension currently forecasts something like £18k at retirement - staggeringly good considering how little she seems to put in.
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