How much will your monthly pension be?

Soldato
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We'll I guess this thread has kinda been triggered by the other one regarding life at 40.

Yesterday I had my annual pension letter through the door telling me what to expect at retirement. Damn! it really got me thinking.

Now when I do retire, things like loans and mortgage will be paid off so I'll have a lot less debt, but my pension is the only thing I'll have until death.....which hopefully won't be soon after retirement. If I'm retired for 20-30 years, that's a long time to live with little money.

So how much would be considered enough to have a decent life in your twilight years?

The one thing I don't want to be saying when I'm 70, is "if only I'd saved more". Then again, I need money now to actually enjoy my younger years. We have a family, so spending money on kids clothes, days out, the odd holiday etc etc is good for them as well as us. My kids want good memories of growing up.

You can assume that 30 years from now, things will be more expensive. If we look back 30 years ago people earnt less and houses were cheaper. If my predicted pension seems low now, what on earth is it going to look like in 30 years time!

So how much is enough? and how much are you putting away? I guess millions are in the same boat. Everyone wants to save more, but little money left over at the end of each month to do so.

My company matches up to 5% and I am putting away 5%. In a years time when I hit 40 a loan we have will be paid off with something else and I plan to double my contribution. Even then, my monthly pension looks low at what will be £400 a month. Add state pension and it's not a lot....or is it?

I have a second pension from my old job and thinking about moving that into my current one. It was only going for about 2-3 years so probably worthwhile moving it.
 
Caporegime
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Very little but I've inherited the gene for SCA6 which means my quality of life during my 50's will decline rapidly, my mother is 53 and can barely walk far without assistance now, my uncle who's a few years older needs a wheelchair to go anywhere. If there's not a cure by then it'll be euthanasia for me, not wage slaving all my life to rot away in older age unable to move.
 

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Deleted member 66701

I'm currently drawing £1625 a month. I'll start drawing my private pension @ age 55 which is another £1000 per month and another £680 a month will be due when I get to state pension age (subject to inflation).

Currently it's more than enough to live a comfortable life when you've paid your mortgage off and you don't have any work expenses (lunch, commuting, work clothes etc) - when I get to 55 that's when the cruises start ;)
 
Soldato
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I reckon my wife and I will need £2000 a month to continue as we are. Mortgage gone, no children at home two cars to support etc.

State pension is around £150 per week per person (less any marriage penalties) so we have to provide £800/month from our investments/savings for 'x' years.

Andi.
 
Soldato
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actual value

My original plan was to double my contributions next year when my loan is paid off. Mortgage ends when I'm 60, and if I retire when I'm say 70 that's 10 years to up it again.

Then again we're in a decent size house we could sell and downside to provide a next egg for extra stuff.
 
Soldato
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Ha I think my current pension will pay out about £200 per year and considering I'm in my 30's with no chance of buying a property any time soon I think retirement might consist of me swallowing a shot gun. :o

Or worse.... working at B&Q :(
 
Soldato
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Ha I think my current pension will pay out about £200 per year and considering I'm in my 30's with no chance of buying a property any time soon I think retirement might consist of me swallowing a shot gun. :o

Or worse.... working at B&Q :(

You're in the same boat as most in their 20s and 30s. I look at mine and the mrs parents and they are set!

without putting hundreds in and hundreds a month extra in, I just can't see how I can make a decent pension.
 
Don
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1200 to 1400 at current value
Would have been better but for conned out of final salary scheme so.now not going to be food enough
 
Soldato
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17K a year from 60, with the rest to kick in at what is now going to be 68 apparently, until they put it up again.
I'd expect that'll be in a similar amount come 68, and the OAP at the same time which if this ridiculous triple lock persists will no doubt lead to means testing of the ******* thing, and I won't get it at all, else the OAP in 25+ years will be over £1350 a month.
They really need to wise up and sort that triple lock, just leave it in line with inflation.

-edit
I make contributions of 13.5% per month, which being the NHS schemes isn't really matched as its magic money pot, that doesn't exist at any point in time bar numbers on a table.
What is interesting for anyone in the NSH schemes, I am able to get pension analysis done once per year, with projections, but currently since the introduction of the 2015 scheme to replace the 1995 scheme I was on (career average in both cases, based of a 43.9% of gross earnings/slice rate at 80 or 54, original 1/80 with 3*80 lump available at 60, versus new scheme 1/54 with no lump available at STAT [68]), I have been reliably told that they can't analyse the 2015/2016 and 2016/2017 years yet, as the pension figures haven't been agreed and they have no indication on when the pension figures might be.
I don't know if this is just a Northern Ireland thing, due to us not having a devolved govt at the moment, as they can't be arsed to work, or if it is a UK wide issue. Be nice if anyone knows.
 
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Soldato
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Although I get an annual pension estimate (usually in November) I finally got round to signing up to the online service. That allows you to play around with ages and other variables such as lump sum etc. I was actually pleasantly surprised to see that in real terms if I retire at 58 (2 years from now) providing the mortgage is paid off which it should be, we shouldn't be any worse off than now. That also factors in you won't be paying pension contributions or AVC on your pension and (I believe) no NI either, until the government decide to change that of course. Running the numbers on going at 57 I was also interested to see only about £900pa less than going at 58 so still doable, though I would rather push the extra year. Now I know some will be insanely jealous of that but bear in mind I have been paying in the fund for nearly 40 years (scheme contributions end in Oct '18) and work a 24/7 shift pattern including nights which as I age leaves me increasingly exhausted, I have no guilt in going while I still have some fuel left in the tank!
 
Man of Honour
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Based on my current salary and current value - and existing pension pot looking at around £18-£20k per year at 65 (taking the full 25% lump sum - but not sure on that yet). Then I get the government pension on top of that from 68 now I believe.

In my previous role (rail industry) I had a magic final salary pension which helped me build up a decent pension pot. Now including company contributions I put aside 15% a month.

I never worried about pension before, but now I have started to plough a lot more effort and money into it. I was in a huge amount of debt in the past, living the life of riley - all my fault - but didn't really think about the future in my 20s. Fortunately, I cleared my debts, and started to save - as much as I could - whilst still trying to live a bit of a life. Fortunately as I progressed in my career I managed to become more mature in my behaviour towards my pension. Started to contribute top ups as and when I could.

I hope to have the mortgage cleared before I retire - in which case life should be okay if you include both mine and my wife's. I'd like to retire early, but unless I win the lottery or do something extravagant it's never going to happen!
 
Soldato
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State pension age for as just been bumped to 68, not sure if I will make they tbh.
Private pension I have 12 in a good final salary one before they changed it. The new one is not going to give me much so I guess I will take the draw down on that. I have been advised I need to 40%of current salary to maintain current lifestyle! I am sinking 10% cant see be affording the extra 30%! I have young family and want to enjoy life now, not if I live to an old age! Hopefully kids we move out and we can downsize to smaller place
 
Soldato
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well I'm pleased I made this thread. Done the sums and have decided once my loan has been paid I'm upping my pension to 13% which will give me the same amount a month as now without mortgage. That is taking into account state pension as well.

Then between the age of 60-70 when I'm mortgage free I will save that amount.
 
Soldato
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What's the consensus regarding pensions for somebody who is just entering the world of work post uni? My employer matches up to 5% that I put in. Just go with 5%? Similar boat to others here whereby my parents health has began to deteriorate once they reached 60+ so I can only imagine mine will follow a similar path.
 
Don
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As long as it doesn't leave you struggling today with making ends meet, I would always recommend getting the maximum employer contribution.

The more money you can get in your pension earlier will pay massive dividends for you when you get to retirement - i.e. retiring earlier or with a larger pension.
 
Permabanned
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I put in 6% of my salary via sacrifice and my employer puts in a further 22.5% to my pot. I also have buy 1 get 3 shares scheme for a FTSE 100 company... Base salary is lower than I'd like but i should get a 4% bonus this year and the total package also includes life insurance so all combined it works out pretty good.
 
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