Investments, stocks, shares

[Bellend Sebastian]

Have a play with this: 

 

https://www.direct.aviva.co.uk/myfuture/RetirementPlanner/AboutYou

 

You can muck about with the assumptions to model different scenarios

[FoxesDeb]

24 minutes ago, Paninistickers said:

Find this a really interesting conundrum. 

 

I've posted a few times on here about what I may or may not need as my pension pot is way below yours. 

 

Will you need the same quality of life? I suspect my relaxation needs would be less intense if I'm not working and just pottering in the garden all day and walking down to Morrisons for a daily mail. 

 

25% at 35 sounds helluva a lot to me tbh

This is probably where I don't really understand the figures, are we talking about 25% of salary being enough to live on in retirement, or does it mean something else? 

 

Obviously it's all subjective, too. I've spent years spending all my money on my children really, only holidaying in Europe. I want to see the world in comfort so I might no longer have a mortgage to pay but the money saved on that will be spent on travel in my retirement 

[Paninistickers]

11 minutes ago, FoxesDeb said:

This is probably where I don't really understand the figures, are we talking about 25% of salary being enough to live on in retirement, or does it mean something else? 

 

Obviously it's all subjective, too. I've spent years spending all my money on my children really, only holidaying in Europe. I want to see the world in comfort so I might no longer have a mortgage to pay but the money saved on that will be spent on travel in my retirement 

I read it as 25% of current wage (Inc employer's contribution) saved each month for retirement 

 

 

[Greg2607]

6 hours ago, Ginger_Filbert said:

£85kish as of last week. 

As a general rule, at the point you start your pension saving, you should be saving half your age as a contribution.  So start at 20... 10%, start at 30... 15% etc.  as it stands, with what you are doing, you are well on your way to a healthy retirement pot.  

 

I get 20% a year into mine and I'm hopeful of a sensible pot when I retire.

 

If you are concerned, I'd genuinely speak to a Financial Advisor.  They can be worth their weight in gold. 

[Greg2607]

17 minutes ago, Paninistickers said:

I read it as 25% of current wage (Inc employer's contribution) saved each month for retirement 

 

 

That's exactly what he meant.  For our generation, all of our pension will be a defined contribution pot, so it's all about building up a dig enough pot of cash to be able to draw down (spend) in retirement. 

 

No such thing as final salary pensions for us unfortunately. 

[Spiritwalker]

10 hours ago, Ginger_Filbert said:

What sort of % of salary is recommended for a similar quality of life upon retirement?

 

Im at 24% now, 12 myself and 12 from my company. I tend to up mine by 1% with every pay rise but feel like after my next one taking it to 25% that’ll surely be enough?

 

For context I’m about to turn 35 and intend on retiring at 60 using my LISA for a couple of years then taking pension. 

Assuming you’re earning around £40k that’s £10k x 25 that’s  £250k + £50 tax relief £300k.

Add the £85k thats a tidy £385k plus 25 yrs compound growth.

[Greg2607]

10 minutes ago, Spiritwalker said:

Assuming you’re earning around £40k that’s £10k x 25 that’s  £250k + £50 tax relief £300k.

Add the £85k thats a tidy £385k plus 25 yrs compound growth.

Just plugged this into a pension calculator for you and it's a pot of around £500,000 assuming 4% year on year growth 

Edited 29 April 2024 by Greg2607

[Ginger_Filbert]

Thanks for all the replies guys, too many to respond individually but each one has been read and appreciated. 
 

I have got the reassurance I was looking for. 

[grobyfox1990]

On 29/04/2024 at 10:10, Ginger_Filbert said:

What sort of % of salary is recommended for a similar quality of life upon retirement?

 

Im at 24% now, 12 myself and 12 from my company. I tend to up mine by 1% with every pay rise but feel like after my next one taking it to 25% that’ll surely be enough?

 

For context I’m about to turn 35 and intend on retiring at 60 using my LISA for a couple of years then taking pension. 

Mate that is insane, a quarter of your salary into your pot. Your only worry is prob drawdown options and how much fun to have

[grobyfox1990]

15 hours ago, Greg2607 said:

As a general rule, at the point you start your pension saving, you should be saving half your age as a contribution.  So start at 20... 10%, start at 30... 15% etc.  as it stands, with what you are doing, you are well on your way to a healthy retirement pot.  

 

I get 20% a year into mine and I'm hopeful of a sensible pot when I retire.

 

If you are concerned, I'd genuinely speak to a Financial Advisor.  They can be worth their weight in gold. 

Interesting rule, never heard of that one! Only rules I have come across are: invest 100 - your age as a percentage (e.g the 35 year old in question would invest 65% of all cash coming in) and have £3k a month cash in retirement for 30 years of retired life is prob prudent. Obvs now that £3k figure is going to need to stretch.

[Guest Lako42]

30 minutes ago, grobyfox1990 said:

Interesting rule, never heard of that one! Only rules I have come across are: invest 100 - your age as a percentage (e.g the 35 year old in question would invest 65% of all cash coming in) and have £3k a month cash in retirement for 30 years of retired life is prob prudent. Obvs now that £3k figure is going to need to stretch.

65% of his wage should be invested? 

[grobyfox1990]

3 minutes ago, Lako42 said:

65% of his wage should be invested? 

An old rule is to invest 100 - minus your age as a percentage in assets. Tbh these days 110 is probably more accurate. Not just pensions, any assets inc housing/cash etc. I totally get the huge tax efficiency angle and employer contribution positives of a company pension, but I do not contribute anymore than the minimum that gets me the max employer contribution. Whilst younger I can do some riskier things (not fcking BTC or Nvidia)

[Steve_Guppy_Left_Foot]

The only good thing about my job is the 27% employee contribution. 3 guesses what I do.

[South Shire Fox]

19 hours ago, Paninistickers said:

Find this a really interesting conundrum. 

 

I've posted a few times on here about what I may or may not need as my pension pot is way below yours. 

 

Will you need the same quality of life? I suspect my relaxation needs would be less intense if I'm not working and just pottering in the garden all day and walking down to Morrisons for a daily mail. 

 

25% at 35 sounds helluva a lot to me tbh

Sounds morbid but you dont know if you’ll actually make it to retirement age either.. you could drop dead next week. Id rather enjoy life now while im still fit and able but put away enough to be comfortable in retirement. Unless you’re on a massive wage anyway so 25 percent isnt stopping you enjoying everything you want to do in life.. in that case fair play

Edited 30 April 2024 by South Shire Fox

[Otis]

49 minutes ago, Steve_Guppy_Left_Foot said:

The only good thing about my job is the 27% employee contribution. 3 guesses what I do.

Police 

[Izzy]

52 minutes ago, Steve_Guppy_Left_Foot said:

The only good thing about my job is the 27% employee contribution. 

 

Civil Service?

 

Edited 30 April 2024 by Izzy

[grobyfox1990]

55 minutes ago, Steve_Guppy_Left_Foot said:

The only good thing about my job is the 27% employee contribution. 3 guesses what I do.

27%!!!!!!!!!!!!!!!!!!!!! Guesses:

1. Pension plan provider

2. Pension consultant

3. Pension advisor 

[Nalis]

1 hour ago, Steve_Guppy_Left_Foot said:

The only good thing about my job is the 27% employee contribution. 3 guesses what I do.

Definitely public sector or a pension provider.

[Bellend Sebastian]

I've got 18% going in now but when the mortgage ends in about 6 years I'm going to go contribution crazy in the hope that retiring earlier than State Pension Age becomes an option (it isn't really at the minute) as working to 67 is filed firmly under f*** that sky high at the minute

[Steve_Guppy_Left_Foot]

5 hours ago, Izzy said:

 

Civil Service?

 

We have a winner. I pay in 4.6% a month and they pay in 27.8% which is great in terms of my retirement but the fact we’ve had real terms paycuts for 13 years (used to be an executive officer was paid 31% more than an administrative officer and now it’s 11%) sort of cancels it out though, and anyone who reads the daily mail or express seems to think I’m a scumbag by way of simply trying to do a job well sort of makes it wipe its face.

[Steve_Guppy_Left_Foot]

I’m a higher executive officer on 33.5k but if I was doing a similar job in the private sector I could comfortably be on 43.5k+. For metrics pension wise

[Izzy]

4 minutes ago, Steve_Guppy_Left_Foot said:

We have a winner. I pay in 4.6% a month and they pay in 27.8% which is great in terms of my retirement but the fact we’ve had real terms paycuts for 13 years (used to be an executive officer was paid 31% more than an administrative officer and now it’s 11%) sort of cancels it out though, and anyone who reads the daily mail or express seems to think I’m a scumbag by way of simply trying to do a job well sort of makes it wipe its face.

 

2 minutes ago, Steve_Guppy_Left_Foot said:

I’m a higher executive officer on 33.5k but if I was doing a similar job in the private sector I could comfortably be on 43.5k+. For metrics pension wise

Fair play to you mate, totally get what you mean about things cancelling each other out.

 

I hope you enjoy your job and stay healthy to benefit from what will hopefully be a sizeable pension.

[Steve_Guppy_Left_Foot]

6 minutes ago, Izzy said:

 

Fair play to you mate, totally get what you mean about things cancelling each other out.

 

I hope you enjoy your job and stay healthy to benefit from what will hopefully be a sizeable pension.

And it’s tied to the state age so I won’t be seeing it any time soon, not like a private pension where you can take a chunk at 55 (you can but it cripples you). Just putting 400 aside every month in Amazon/global tech fund so I can hopefully take partial retirement before I’m dead.

[Steve_Guppy_Left_Foot]

And the thing is I love my job. Tax is obviously a sore subject for a lot of people and a lot of it is very, very backwards but I’ve worked out I’ve put thousands of kids through school, paid for hundreds of life saving operations etc since I took up my current role. I could take a job with more money somewhere else but I don’t want to. Happy to be putting in to the purse and hopefully the incoming government will be a bit more generous.

[grobyfox1990]

1 hour ago, Steve_Guppy_Left_Foot said:

We have a winner. I pay in 4.6% a month and they pay in 27.8% which is great in terms of my retirement but the fact we’ve had real terms paycuts for 13 years (used to be an executive officer was paid 31% more than an administrative officer and now it’s 11%) sort of cancels it out though, and anyone who reads the daily mail or express seems to think I’m a scumbag by way of simply trying to do a job well sort of makes it wipe its face.

Yeh from idiots like this…

Good on you mate, you’re always gonna be far better off in what really matters in life than the cretins such as the above