How much will your monthly pension be?

UnworthyBean said:
I'm sure most won't mind me asking a pension related question on here rather than everyone waving their willies with who's pension is bigger :D

How do they work? If I pay in amount A with company A then move to company B and pay in amount B. Where does that money actually end up? Do I now have 2 penguins or do they end up paid out together?

Pentions. Definitely pentions. I don't have much use for penguins im afraid.
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Penguins can be profitable, but I'm not sure how much... pensions on the other hand... I think you can move/consolidate pensions from one pot to another - but... big BUT... always get financial advise - it may be worth you just leaving that money there to mature.
 
Monthly pension payment won't be great because mine's self managed so I'll just take it as I need it. Ran my own little co for so long I don't care about a monthly salary. I'll take a lump sum and when it runs out, take another.
Also will use the proceeds in ISA's too.
I just pay into my pension when I feel like it. If the market dips I tend to top up or if it doesn't I'll ensure I pay some in by end of tax year
My company will have retained profits probably so as there's a £5k tax free dividend allowance and hopefully still will be when I retire, it means I can use my company as another pension pot and drain it by £5k a year and it will be tax free.
 
I'm 26.
On a wage of £14.5k a year which works out to under £1200 a month around £7.75p/h
I CANT afford to put anything into a pension (the default 1% its on atm)
I can't put anymore in as I wouldn't be able to pay for everything.

Also people saying "average wages" get real, the average wage is minimum wage not like £22k+ which is NOT ENOUGH to live comfortably (I barely have anything at the end of the month after bills/BASIC food.....so how are you supposed to put money into a pension when all your wages are eaten up by bills?

"Get a better job" Easier said than done.....
I've had 3 jobs since I finished uni.
1st job took 2 years, 2 YEARS to get and it was a call centre which sucked my will to live away, lasted just over a year before I left.
2nd job took another year and again call centre, caused many issues lasted 6 months, had to leave for my sanity.
Current job took another 6 months its administration which is fine but pay is crap and isn't a permanent job (12 month contract).
It's so stupid how long the process takes everywhere wants super experienced people and no one gives you a chance to get the experience in the first place!
 
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MatsyLR said:
I'm 26.
On a wage of £14.5k a year which works out to under £1200 a month around £7.75p/h
I CANT afford to put anything into a pension (the default 1% its on atm)
I can't put anymore in as I wouldn't be able to pay for everything.

Also people saying "average wages" get real, the average wage is minimum wage not like £22k+ which is NOT ENOUGH to live comfortably (I barely have anything at the end of the month after bills/BASIC food.....so how are you supposed to put money into a pension when all your wages are eaten up by bills?

"Get a better job" Easier said than done.....
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I been working 60 hours per week for last 7 years
When I was in my late teens too early 20's I worked 7 days per week most weeks...
And from age of about 22 to 40 I also had a part time job on top of my 40+ hour full time job..

Now am 47 year old and have just about nothing as I wasted it all on fast cars, fast boats, Fast motorbikes, Gaming PC's and the worst of cause was Women...:p
 
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Mr^B said:
Most pension calculators assume that you'll get 5% return on your investment.

My fund selection (BlackRock Consensus 85) has had about 10% average return for the past 5 years, but I still calculate my final pot based on 5% growth.

NEST use a fairly standard list of pension fund managers, so it'll depend entirely on what risk profile/fund you pick as to what returns you could get.
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Ths is what I don't get about pensions. The returns seem pretty poor compared to a low cost market tracker fund. I'm 2 weeks into putting money into this and have made 2% so far. http://www.hl.co.uk/funds/fund-disc...d-lifestrategy-100-equity-accumulation/charts over 5 years, you'd have almost doubled your money.


This thread does make for some depressing reading though. I can't imagine what old age will look like by the time millennials hit it.


Edit: Obviously the tax and employer contributions obviously make up for the difference, but once the money is in there, the returns seem a little disappointing.
 
Trifid said:
Ths is what I don't get about pensions. The returns seem pretty poor compared to a low cost market tracker fund. I'm 2 weeks into putting money into this and have made 2% so far. http://www.hl.co.uk/funds/fund-disc...d-lifestrategy-100-equity-accumulation/charts over 5 years, you'd have almost doubled your money.


This thread does make for some depressing reading though. I can't imagine what old age will look like by the time millennials hit it.


Edit: Obviously the tax and employer contributions obviously make up for the difference, but once the money is in there, the returns seem a little disappointing.
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Lots of pension funds have indexation teams which have a couple bps tolerance of following individuals. Usually quite low cost as well for passive. Depends on your profile and risk tolerance.



MatsyLR said:
I'm 26.
On a wage of £14.5k a year which works out to under £1200 a month around £7.75p/h
I CANT afford to put anything into a pension (the default 1% its on atm)
I can't put anymore in as I wouldn't be able to pay for everything.

Also people saying "average wages" get real, the average wage is minimum wage not like £22k+ which is NOT ENOUGH to live comfortably (I barely have anything at the end of the month after bills/BASIC food.....so how are you supposed to put money into a pension when all your wages are eaten up by bills?

"Get a better job" Easier said than done.....
I've had 3 jobs since I finished uni.
1st job took 2 years, 2 YEARS to get and it was a call centre which sucked my will to live away, lasted just over a year before I left.
2nd job took another year and again call centre, caused many issues lasted 6 months, had to leave for my sanity.
Current job took another 6 months its administration which is fine but pay is crap and isn't a permanent job (12 month contract).
It's so stupid how long the process takes everywhere wants super experienced people and no one gives you a chance to get the experience in the first place!
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14.5k is a joke. Think about upskilling. Might not be easy or quick but would help the future out a lot more.
 
Trifid said:
Ths is what I don't get about pensions. The returns seem pretty poor compared to a low cost market tracker fund. I'm 2 weeks into putting money into this and have made 2% so far. http://www.hl.co.uk/funds/fund-disc...d-lifestrategy-100-equity-accumulation/charts over 5 years, you'd have almost doubled your money.


This thread does make for some depressing reading though. I can't imagine what old age will look like by the time millennials hit it.


Edit: Obviously the tax and employer contributions obviously make up for the difference, but once the money is in there, the returns seem a little disappointing.
Click to expand...

You can switch to whatever funds you like, any reasonable pension provider will give you a wide range of funds to invest into with different risk/return profiles.

Trackers are fine whilst what they are tracking is doing well, but obviously higher risk than something a little more diversified.

Look at what that fund did between 2011 and 2013, it tracked the MSCI, which probably averaged about -5% for those years.

So spread that sort of pattern over 30+ years, and the more diversified investment will probably do better. That's why they're popular investments for pensions.
 
Mine is no.way near enough :( I started mine at a late age or 29, I'm nearly 33 I think .

Stupid really but in previous jobs there wasnt any decent pension schemes.

This one is only 3% I think plus my contributions which at the moment are not enough

When I do the projection it says something stupid like 64k pension pot. And If you look at monthly it's low. I am planning to double the amount but at the moment my aim is building my existing savings .

Should I be worried ?
 
If i can stick my job for another 6 years i will be 51 and will get a tax free lump sum of £50k and an immediate pension of £15k rising to £20k at SPA.

Also in 6 years i will have paid my mortgage off. However, at this stage my kids will be late teens and so will need bank of mum and dad/uni etc.

My pension isn't too bad, but wife's is terrible having worked in retail. Not sure how best to rectify this...............

My concern too is mean tested pensions.
 
chaparral said:
Why would you need £2000 per month with no mortgage and no children :confused:
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I think the clue might be in "to continue as we are."

I'm 59 and since the age of 21 have been self employed. I have always put money back into my business to expand it and make more profit. But very early on decided not to put any money into a pension after a very long series of conversations with my accountant.
Some may ask Why, the reason was my business is my pension and i have always had full control over it. If you have full control, then anything is possible. In my case i sold my business 3 years ago, nothing that any pension fund could have given me would have ever come anywhere near what i sold it for.
The thing is though, a lot of self employed people now days don't really run a business.................they work self employed for a wage. That is, they
actually work for someone else. If any of you fall into that space and you are under the age of 25 then have a serious think about how you would deal with living on £125 a week in today's money. Because by the time you come to retire you simply will not be able to live.
I think what i'm saying here is, if you are self employed then don't just do it for tax reasons so that you benefit now. Do it because you have a real business that you can grow and sell on to fund your pension..........................................because if you don't you will be *****d
 
I have 41 years until i can have state pension but I've planned to retire at 50.

That should be around £2.5k a month with me paying 7% and my company matching it.
 
MatsyLR said:
I'm 26.
On a wage of £14.5k a year which works out to under £1200 a month around £7.75p/h
I CANT afford to put anything into a pension (the default 1% its on atm)
I can't put anymore in as I wouldn't be able to pay for everything.

Also people saying "average wages" get real, the average wage is minimum wage not like £22k+ which is NOT ENOUGH to live comfortably (I barely have anything at the end of the month after bills/BASIC food.....so how are you supposed to put money into a pension when all your wages are eaten up by bills?

"Get a better job" Easier said than done.....
I've had 3 jobs since I finished uni.
1st job took 2 years, 2 YEARS to get and it was a call centre which sucked my will to live away, lasted just over a year before I left.
2nd job took another year and again call centre, caused many issues lasted 6 months, had to leave for my sanity.
Current job took another 6 months its administration which is fine but pay is crap and isn't a permanent job (12 month contract).
It's so stupid how long the process takes everywhere wants super experienced people and no one gives you a chance to get the experience in the first place!
Click to expand...

The average wage is not minimum wage and the only thing holding you back is yourself, it's very easy to get caught up in negative thought patterns and it'll only lead to a life of misery.
 
26 and putting as little as I can :) a lot goes on simply living and rest goes on house deposit saving.. when you need 30-40k for a deposit it makes more sense at this time.

I will probably start investing once house deposit is done and dusted.
 
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