Gloomy pension prospects on average salary?
Discussion
Hi,
Early thirties and earning low 60s but have only really been earning in this region very recent, was mid 20s just over five years ago and was a student until 25.
The web based pension forecast tools I have used paint a very gloomy pension income picture even with 5% employer and 6% employee contribution. Employer is capped at 50k though which seems to be HMRC thing?
It looks like I would need to put away almost half of my monthly income into a pension to make it near the guidance value? Which doesn’t make sense??
Is my generation going to be (very for some) poor pensioner generation?
Early thirties and earning low 60s but have only really been earning in this region very recent, was mid 20s just over five years ago and was a student until 25.
The web based pension forecast tools I have used paint a very gloomy pension income picture even with 5% employer and 6% employee contribution. Employer is capped at 50k though which seems to be HMRC thing?
It looks like I would need to put away almost half of my monthly income into a pension to make it near the guidance value? Which doesn’t make sense??
Is my generation going to be (very for some) poor pensioner generation?
DickP said:
Hi,
Early thirties and earning low 60s but have only really been earning in this region very recent, was mid 20s just over five years ago and was a student until 25.
The web based pension forecast tools I have used paint a very gloomy pension income picture even with 5% employer and 6% employee contribution. Employer is capped at 50k though which seems to be HMRC thing?
It looks like I would need to put away almost half of my monthly income into a pension to make it near the guidance value? Which doesn’t make sense??
Is my generation going to be (very for some) poor pensioner generation?
We'll just be working until we're 80 and then dropping dead soon after retirement. It'll be fiiiiiine.Early thirties and earning low 60s but have only really been earning in this region very recent, was mid 20s just over five years ago and was a student until 25.
The web based pension forecast tools I have used paint a very gloomy pension income picture even with 5% employer and 6% employee contribution. Employer is capped at 50k though which seems to be HMRC thing?
It looks like I would need to put away almost half of my monthly income into a pension to make it near the guidance value? Which doesn’t make sense??
Is my generation going to be (very for some) poor pensioner generation?
geeks said:
alock said:
Up your contributions so you stop paying 40% tax
I keep seeing this but I will be significantly worse off (in the here and now) in this scenario, I still don't understand what it means.Or you can put £10k into your pension.
DickP said:
Hi,
The web based pension forecast tools I have used paint a very gloomy pension income picture even with 5% employer and 6% employee contribution. Employer is capped at 50k though which seems to be HMRC thing?
6% is too low IMO. The web based pension forecast tools I have used paint a very gloomy pension income picture even with 5% employer and 6% employee contribution. Employer is capped at 50k though which seems to be HMRC thing?
Ok I’m public sector, but my contribution is set at 12.7% and I add a further voluntary 3%. It stings, but the higher rate tax relief helps soften the blow.
I’m just over £70k.
DickP said:
Hi,
Early thirties and earning low 60s but have only really been earning in this region very recent, was mid 20s just over five years ago and was a student until 25.
The web based pension forecast tools I have used paint a very gloomy pension income picture even with 5% employer and 6% employee contribution. Employer is capped at 50k though which seems to be HMRC thing?
It looks like I would need to put away almost half of my monthly income into a pension to make it near the guidance value? Which doesn’t make sense??
Is my generation going to be (very for some) poor pensioner generation?
Live fast die young?Early thirties and earning low 60s but have only really been earning in this region very recent, was mid 20s just over five years ago and was a student until 25.
The web based pension forecast tools I have used paint a very gloomy pension income picture even with 5% employer and 6% employee contribution. Employer is capped at 50k though which seems to be HMRC thing?
It looks like I would need to put away almost half of my monthly income into a pension to make it near the guidance value? Which doesn’t make sense??
Is my generation going to be (very for some) poor pensioner generation?
TX.
I would be sacrificing every penny over £50k if I were you. A few years ago, earning about £85k I did this and while I was netting just a little over £3k a month I was seeing roughly £4.5k going into my pension. I calculated at the time that I was only "losing" about £100 a month in deductions.
I took a pleasure in filling out the self assesment and putting £49,999 in the box.
But boy was it hard going. I went into more and more debt as I struggled to make ends meet - but I'd rather stick it to the man, than give it to the man!
I took a pleasure in filling out the self assesment and putting £49,999 in the box.
But boy was it hard going. I went into more and more debt as I struggled to make ends meet - but I'd rather stick it to the man, than give it to the man!
geeks said:
alock said:
Up your contributions so you stop paying 40% tax
I keep seeing this but I will be significantly worse off (in the here and now) in this scenario, I still don't understand what it means.Judging by the PH retired lot, when you’re really old you’ll likely just be in the NPandE complaining about immigration and wokeness or whatever so being well off will be the least of your worries.
WhiskyDisco said:
I would be sacrificing every penny over £50k if I were you. A few years ago, earning about £85k I did this and while I was netting just a little over £3k a month I was seeing roughly £4.5k going into my pension. I calculated at the time that I was only "losing" about £100 a month in deductions.
I took a pleasure in filling out the self assesment and putting £49,999 in the box.
But boy was it hard going. I went into more and more debt as I struggled to make ends meet - but I'd rather stick it to the man, than give it to the man!
Well that’s the most bizarre thing I’ve heard in a while. Going into debt due to paying too much into a pension - wtf?I took a pleasure in filling out the self assesment and putting £49,999 in the box.
But boy was it hard going. I went into more and more debt as I struggled to make ends meet - but I'd rather stick it to the man, than give it to the man!
DickP said:
Hi,
The web based pension forecast tools I have used paint a very gloomy pension income picture…
Many online tools assume that you’re going to use your fund to buy an annuity - Things may look a bit better if you take the forecast value when you hope to retire and plug it into a pension drawdown calculator instead…The web based pension forecast tools I have used paint a very gloomy pension income picture…
P.S. I’m also a little wary of the tools sponsored by/hosted on pension company websites. They can be biased towards making your glass look half empty because they make more money if you pay more into your pension…
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