How much will your monthly pension be?

[Puzzled]

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.

Tbh the system was never designed for the majority to not only reach retirement age but live a good fair few years after. A good citizen should pay tax all their working life and then die quite soon after they start to draw their state pension, an even better citizen will die before and leave no will or dependants.

I can see the state pension being means tested in the future though which will impact the middle ground the hardest, those that have saved but need the state top off to be comfortable.

 

[weringo]

I can see the state pension being means tested in the future though which will impact the middle ground the hardest, those that have saved but need the state top off to be comfortable.

That would **** me off to no end if that happens but I can see it becoming a reality. It would be outrageous if it is means tested by reference to your pension pot such that someone who has squandered their earnings throughout their working life has greater entitlement to the state pension than someone who has made sufficient provision by building up a pot.

 

[kaiowas]

I fully expect to work until I die. I'm far from frivolous with my money but I just don't see how I can possibly put enough into a pension fund for it to pay out enough to live on.

 

[Rroff]

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.

So many people I know have nothing but state pension to rely on - even those that aren't doing too badly income wise because even if they are doing OK they are increasingly squeezed trying to afford the lifestyle ostensibly their salary would command and did command in the past.

Personally I'm most likely to be in similar position to you only my job is only half at a desk and the physical part will be pretty much impossible much beyond 60 for most people and I have no idea what state my health will be in by then :s way my life is though I could be anywhere between royally ***** or pretty comfortable when it comes to retirement - I have a few investments that were in previous times doing OK but now they are paying out pitiful amounts - dividends on average are paying out like 22% of what they used to etc.

 

[bayo000]

More than enough.

 

[CREATIVE!11]

Bout tree fiddy

I fully expect to work until I die. I'm far from frivolous with my money but I just don't see how I can possibly put enough into a pension fund for it to pay out enough to live on.

A lot of people really even don't have that much left over to put into it whether they wanted too or not.... cost of living has soared.

 

[Mr Badger]

That would **** me off to no end if that happens but I can see it becoming a reality. It would be outrageous if it is means tested by reference to your pension pot such that someone who has squandered their earnings throughout their working life has greater entitlement to the state pension than someone who has made sufficient provision by building up a pot.

Depends on the level of means testing. As has been debated in other threads, if someone has a private pension that makes them a higher rate tax payer and/or millions of pounds in assets then arguably they don't need a state pension and that money can be better directed elsewhere.

 

[Mr^B]

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

I don't see why not. £22k salary average over their working life, with a reasonable pension agreement (5/10%), an annual growth of about 5% will get them in the region of £400k by the time they are 65 (assuming contributions start at age 25).

 

[UnworthyBean]

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

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.

 

[blairw]

I'm putting in 22% a month including company contribution at this point - I am 28 at the moment.
I may flex this up and down as life events happen, but as it stands I get married in the next month and have not felt any need to bring it down at this point. I started this last year when I changed company and took a substantial wage rise, decided to lessen the increase to my bank balance in search of a stronger pension pot. Prior to that it was going in around 12% for the 7 years i served the early stages of my professional career at BT - that actually left me with a substantial amount considering the small impact it had to my daily life.
My soon to be wife also puts in around 15%.

Currently we are living in a 2 bed flat that we bought as a short - medium term place to live while I decide if I'm going to pursue my career options abroad. Decision time on that is within the next year, we will likely keep the flat either way and rent it out going forward. Housing is cheap here in central Scotland and even without converting it to Buy to let, it wouldn't impact our affordability for the future house's we may consider.

Add on both our parents starting to get close to retirement age with no outstanding mortgage on good/high value properties for the area and a strong pension position themselves we should be very comfortable and in a position to create a similar scenario for our future children.

 

[weringo]

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

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.

Each time you switch employer you open a new pension scheme and your employer pension contributions will go into that scheme. When you reach 55 you will receive a letter from all of your pension providers letting you know you have access to your pension.

You can consolidate all of your pensions into one scheme if you like, there is not usually a fee for doing this.

 

[Surfer]

I will hopefully have the following by the time I retire

Work pension
State pension
Flat (mortgage hopefully paid off) so possibly sell and retire abroad somewhere for my twilight years

 

[UnworthyBean]

Each time you switch employer you open a new pension scheme and your employer pension contributions will go into that scheme. When you reach 55 you will receive a letter from all of your pension providers letting you know you have access to your pension.

You can consolidate all of your pensions into one scheme if you like, there is not usually a fee for doing this.

Ah I see, thanks. I'm at that age where I need to think about putting money away so thought I'd have an investigate.

 

[DXP55]

Whatever you decide is enough to live on double it and add some more. - What has killed my savings is stupid low interest rate which means we have to cut back - we only have one car now which is a pain although when I had my limo it sat on drive for 6 days a week most of time costing lots.

If you can put just £50 a week away you won't miss it after a few months but you need inner strength not to touch it and will be glad you did save it in future.

 

[Destination]

I don't see why not. £22k salary average over their working life, with a reasonable pension agreement (5/10%), an annual growth of about 5% will get them in the region of £400k by the time they are 65 (assuming contributions start at age 25).

IIRC government pensions annual growth is 1.5% I believe, not 5%, makes a fair difference.
What about the new pensions thingys, NEST and that lot, how have they been performing, or are they took young to tell?

 

[M1k3H]

I've been paying since 22, 5% with 8% by employer. Current "average" prediction by L&G is that, if I retire at 60, I'll be able to take £46,800 as a lump sum and then £4,950 per year till I die, or £16,500 till 69.

It does seem awfully low....

On a "strong" prediction the amounts go up significantly to £113,00 lump sum and £16,500 until I am 100.
On a "weak" prediction the lump sum is £23,700 and I get £1,730 until I die or £16,500 until 64.

I don't want to think about what's gonna happen if the "weak" prediction is all I get...
Average I could probably make it work.

 

[Scam]

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.

lol, made me laugh even though I'm in exactly the same boat

 

[Mr^B]

IIRC government pensions annual growth is 1.5% I believe, not 5%, makes a fair difference.
What about the new pensions thingys, NEST and that lot, how have they been performing, or are they took young to tell?

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.

 

[chaparral]

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.

Why would you need £2000 per month with no mortgage and no children

 

[chaparral]

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.

Or worse.... working at B&Q

Well am in my late 40's with what looks like no chance of ever owning my own property/house or flat....
Rent is close to 1k now for just a single bedroom flat.. what the rent going cost in another 20 years time (as rent prices must have tripled in the last 20 or so years )

Maybe rent will cost close to 3k per month for just a single bedroom flat in another 20 years time