How much will your monthly pension be?

[Teknobry]

36 here and not paid into any pension. i've got a 2nd property which is being paid for by the rent. I'm gambling on that being paid off in 19 years and either selling it or use the rental income as pension. Obviously one won't be enough so i've got to get other revenue streams in place.

 

[Mr^B]

£1,000,000 a day.

These threads are horribly cringe.

Ironically, I'm retiring when my pension pot reaches £1,000,000 - which is about £45,000 a year depending on which annuity calculator you use.

 

[Em3bbs]

Ironically, I'm retiring when my pension pot reaches £1,000,000

Why is that ironic? Don't you mean coincidentally?

 

[Delvis]

I manage £35 ish with my work one which they match a bit, then something like £20 in a personal one

I'm going to be screwed really!

 

[Mr^B]

Why is that ironic? Don't you mean coincidentally?

Sorry, it's a private Alanis Morissette joke.

 

[Dan_P]

I started paying into my pension 5 years ago (22) at 5% matched and the prediction doesn't show yearly income but a total pot value - so not sure how well I will do as don't know how long you would calculate you would draw from it?

Your projected account balance (at 65 years 0 months): £385,000
You could take up to 25% of your account as a tax-free lump sum of: £96,308

D

 

[Jokester]

£400k is a respectable amount and should give you a decent annuity.

Do a google search for an annuity calculator to tell you what you can expect as a pension.

 

[glenimp617]

I do worry though, that people in their 20s and 30s (taking into account austerity and the 'must have it today' mindset) that when I retire there will be millions and millions living on basic state pension. Unless I'm mistaken and the majority of the workforce are putting a decent amount away into a pension scheme?

 

[Buffman]

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.

Yeah just do up to what they match. More than that isn't worth it, and post uni is better put aside to a house deposit/similar.

 

[glenimp617]

Well I think my pot will be 350k which is kinda the minimum I'd like, plus I will have 78k in savings. Sell the house, downsize to something smaller and I should be ok.

 

[Jokester]

I do worry though, that people in their 20s and 30s (taking into account austerity and the 'must have it today' mindset) that when I retire there will be millions and millions living on basic state pension. Unless I'm mistaken and the majority of the workforce are putting a decent amount away into a pension scheme?

You're right most surveys tend to suggest millennials are saving no where near enough to have a reasonable pension come retirement age. Fair enough those on lower wages just don't really have an option but even those that are better off are tending to be living in the here and now.

It's the single most costliest mistake in not investing enough, early enough.

 

[Destination]

You're right most surveys tend to suggest millennials are saving no where near enough to have a reasonable pension come retirement age. Fair enough those on lower wages just don't really have an option but even those that are better off are tending to be living in the here and now.

It's the single most costliest mistake in not investing enough, early enough.

I think modern lifestyle, mixed with sedentary teens, overweight obese diabetics will lead to a reduction in the eventual life expectancy, coupled with an increasing retirement age of 70 for that group will solve much of this issue itself.

 

[weringo]

I put 20% in a year and the Standard Life pension calculator says I am only putting half of what a need to put in a year to have a "normal" pension income. Depressing

 

[glenimp617]

I have no issues working till 70 personally

 

[Kemik]

The Money Advice Service has a great calculator for this. Generally, you should put in half of your age of when you start. E.g. if you start at 30 you should put in 15% (total between your own contribution and your employer's). I personally don't think this is enough for most. At the young age it is a balancing act between saving for a house (in which case at least take full advantage of any maximum contribution your employer provides) and making the most of compound interest.

 

[Ayahuasca]

Tour is over for most of the younger generation, many will get nowhere near 3-400k into a pension pot.

 

[Jokester]

I think modern lifestyle, mixed with sedentary teens, overweight obese diabetics will lead to a reduction in the eventual life expectancy, coupled with an increasing retirement age of 70 for that group will solve much of this issue itself.

Aye it looks like natural limits are now being hit as regards life expectancy.

My concern with the wider economics is whether there will be jobs for everyone to work till they're 70+!

 

[Roar87]

You're right most surveys tend to suggest millennials are saving no where near enough to have a reasonable pension come retirement age. Fair enough those on lower wages just don't really have an option but even those that are better off are tending to be living in the here and now.

It's the single most costliest mistake in not investing enough, early enough.

When you consider the costs of getting on the property ladder while renting, the amount of "better off millenials" is tiny. Mean while our parents are retiring at age 55 with huge pensions. If anyone my age had a clue they'd be going berserk.

 

[Woden]

You're right most surveys tend to suggest millennials are saving no where near enough to have a reasonable pension come retirement age. Fair enough those on lower wages just don't really have an option but even those that are better off are tending to be living in the here and now.

It's the single most costliest mistake in not investing enough, early enough.

Most millennials can't afford to save enough. Cost of living had risen well above wage increases, and newer pension schemes are no where near as good as older ones.

I'll have about £14k a year if nothing changes (I pay 5%, company pays 10%) but I'm hoping to move upwards soon. I work at a desk though, do that till I'm 70 if need be ... Do a manual labour job, not only are you usually paid less, but you can't work as long.

 

[Sheff]

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.

I can see my contribution summary and employer's contribution for 15/16 but like you said, it doesn't estimate how much that will be worth come retirement.

All of my pension will be linked to the state pension age so if I manage to buy a house I'll probably look at going part-time in my sixties.