Do you mind if I ask how you built up a pension pot by the age of 39 that bought an annuity that pays £1625 a month? That's seriously impressive. I didn't think you could even draw a pension before 55.
How much will your monthly pension be?
- Thread starter glenimp617
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Do you mind if I ask how you built up a pension pot by the age of 39 that bought an annuity that pays £1625 a month? That's seriously impressive. I didn't think you could even draw a pension before 55.
Soldato
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Teachers Pension
My contribution rate is 9.6%, with the balance falling on employers; meaning that the new Scheme employer contribution rate will be 16.4%
Total 26%
I can't see me teaching until i'm 67 though
Did they do the same with the teachers as they did with the NHS, move you to a career average scheme, and your first years of contributions you get at 60 with the rest at STAT?
im thinking asia more than europe tbh
Don't think so...I just used this to see what I'll get ant any given age when I decide to quit...
https://www.teacherspensions.co.uk/members/calculators/want-to-retire-early.aspx
Soldato
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I had a quick read over the teacher stuff, it seems mostly similar to us, and it'll really depend on how many years you have currently worked.
BTW your 67 age hasn't been updated yet on that website, it is now as of last week 68. Go Tories!
Be worth speaking to someone in your union or the pensions people as they are speaking about your old final salary benefits being available at your Normal Pension Age, whatever that was will depend on when you started teaching. So if you have contributions in the older scheme, they will be available earlier.
Deleted member 66701
Deleted member 66701
It's not an annuity, it's investment returns (what else is a pension?).
I'm a transition member so I have final salary benefits along with Career average...
Soldato
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nothing at the minute (it'll be the state mandated work place pension of 2% rising to 8% by 2020 soon enough), other than what ever is left of the state pension. I'm mortgage free at 55, earlier if I can help it, and then the plan is to plough the savings straight in to pension
You're only 26 so plenty of time to go and you will get better earning jobs over time with experience.
Even if you don't as long as you aren't abroad for a very long period of time you will get the state pension which is currently £160pw. It exists to help people who can't build a private pension.
If you currently live on £1200 pm, you may ask how you would manage on only £700 pm remember that pensioners do get additional support if incomes are low.
Soldato
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It's not how much we'll get, but will we actually get a pension? The establishment is banking that us younger lot will be dead before we become pensionable.
Well that is another debate. Unfortunately, means testing the pension is off the table because of where voting power currently lies. Which means yes it might reach breaking point or reach stupidly high ages because people are too stupid to look that far ahead at the cost of people currently under 40 (especially those that don't have the incomes to buy a house or save for a private pension).
Soldato
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that's an interesting point, I can't remember the exact statistic but when the state pension was brought in it was a vanishingly small number of people who actually made it to retirement (in the single digits %) now almost everyone does and for at least a decade on average. Are we just trying to live to an unrealistic dream?
Large thread here.
https://forums.overclockers.co.uk/threads/pensions.18757811/
It requires too much political capital to move away from a pension system which pays out to well off pensioners at the cost of poorer pensioners (now and in the distant future) and other public services.
In fact we have the opposite where the triple lock makes it more and more unsustainable.
What is the solution people prefer? Make future pensioners wait till they are older and older before they get it. As long as the triple lock for pensioners (rich and poor) now isn't touched!
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Soldato
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Similar to me then, some of which you'll get at 60, and the rest at 68 then.
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26 and putting as little as I cana 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.
Yeah, if you don't own a house this is definitely the way to go. As a mortgage-free pensioner I think the state pension along with a small private topup is more than sufficient. Why exactly would you need £2k+/month when you're 70?
. I contribute 5% but only because of tax relief & that my employer matches.
Soldato
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I think at some point you have to have a two tier pension system and say that these people have been promised 'x' and they've paid in to 'x' with that in mind will continue to pay in to 'x' and receive 'x' as their pension provision, those entering the workplace now will be on 'y' and pay in to 'y' and 'y' will be their provision. At some point the youth will have to accept extended working life, or reduced income or a balance of both, there's no alternative as I see it and if I end up being one of those people that have to accept 'y' then so be it, this is already the case with the workplace pension, it going up to 5% contribution would cripple my family in my current situation but knowing that I've taken steps to find an employer willing to pay for my studies with progression linked pay to offset that. I don't think it's a bad thing to start saying to people 'actually, this is unsustainable and you now need to take a bit more responsibility for your own future, it's not reasonable to expect it on a plate.'
With the caveat that government need to be more transparent with what tax and NI is for, or just bite the bullet and role them in to one being as that is what they are already in all but name, and say actually, this doesn't cover pension anymore.
Soldato
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Yeah, if you don't own a house this is definitely the way to go. As a mortgage-free pensioner I think the state pension along with a small private topup is more than sufficient. Why exactly would you need £2k+/month when you're 70?
Well I worked out a few months ago, that between rates, electric, heating, tv licence, insurance for house and car, and car contributions, and a few other essentail bills,basically all essential things before food and anything we actually purchase costs in our household close to 11000 a year now, before any inflationary effect.
I must rerun the figures again to be sure.
Given food clothes and perhaps a holiday, I could easily see you needing 2K a month as a family income.