How much will your monthly pension be?

[rubberduck]

Thanks, will look forward to hearing your story.

 

[KNiVES]

Nowadays it seems that the REAL trick is to make sure you own a place to live that's been paid off fully before you retire. It seems that if you need to rent when you reach retirement age you are in deep ****.

Unfortunately that seems to be the case for the majority of the UK population, seems to be an impending crisis looming?

 

[Irish_Tom]

Thanks, will look forward to hearing your story.

+1 I would read this book.

 

[balky12]

Unfortunately that seems to be the case for the majority of the UK population, seems to be an impending crisis looming?

Biggest crisis is the amount of people with interest only mortgages, imo.

 

[Jokester]

Biggest crisis is the amount of people with interest only mortgages, imo.

I think between this and Brexit there's a very real risk of a major housing slump, particularly in London.

 

[Telecaster]

No pension here. Inheritance is what I'm relying on, and maybe some luck.

 

[Destination]

I think between this and Brexit there's a very real risk of a major housing slump, particularly in London.

Might happen, but not too much, the entire city will be bought up by foreign nations at country and corp level who will end up owning the UK, although we'll have our own sovereignty we just won't own anything in the country.
Look at the stocks and shares market, the utter trouncing the pound has taken has mean our stocks have soared due to foreign purchase. We're an easy lift at the moment. Greta until it slumps and pension plummet.

 

[Amp34]

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.

Yep, for anyone under 35ish you need to be looking at putting around 20%+ of your pre tax income into a pension pot to have anything near a reasonable pension when you retire. That's just no chance for most people. Might as well face it, most of us are going to have to be working until we are 75+ unless you can find a company with a very generous pension plan (akin to the one sod the older generation).

 

[Amp34]

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.

It's more this >>

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

The older generation just don't realize quite how much pensions appear to have changed in the last 10 years or so. To get the sort of pensions the older folk in here are talking about you need to be either incredibly lucky with company contributions/pensions schemes or putting in a ridiculous sum of money, which would leave even those well paid with virtually no money, especially once student loans have been factored in.

I think Gordon Browns treasury letter sums it up... "the money's gone." We millenials are ******, unless as stated the reduced income and pensions we will get starts to reduce our living standards and we all start dieing younger.

 

[Woden]

It's more this >>



The older generation just don't realize quite how much pensions appear to have changed in the last 10 years or so. To get the sort of pensions the older folk in here are talking about you need to be either incredibly lucky with company contributions/pensions schemes or putting in a ridiculous sum of money, which would leave even those well paid with virtually no money, especially once student loans have been factored in.

I think Gordon Browns treasury letter sums it up... "the money's gone." We millenials are ******, unless as stated the reduced income and pensions we will get starts to reduce our living standards and we all start dieing younger.

I think a lot don't want to realise. It's justa lot easier to blame lazyness or recklessness rather than try to solve the huge problem on the horizon.

 

[Jokester]

Hardly, weringo can't earn that much, £400 a month will give you a more than adequate pension, which is pretty much 40% of minimum wage.

 

[Selekt0r]

I'm very lucky, as I have 10 years of non-contributory final salary pension from my previous employer, and both final salary elements and pension pot from 18 years with my current employer (they currently contribute 15.5% to top-up my 6%, but a few years ago before they cut it their contribution was 25% ).

My biggest problem is likely to be getting whacked for silly tax on the excess over the Lifetime Allowance (nice problem to have, I'll admit).

I'll probably be better off in retirement than I am now (putting three kids through Uni is expensive ).

 

[Amp34]

Hardly, weringo can't earn that much, £400 a month will give you a more than adequate pension, which is pretty much 40% of minimum wage.

You'll have to provide a bit more detail than that. £400 a month to live on after retirement? £400 a month from the age of 18 to get a small pot for when you retire?

Last time I checked the recommended amount for me was around 30% of my pre tax salary on the pensions websites to live at a similar standard to today.

For millennials unless your company is putting at least 10% into your pensions pot you're going to really struggle to put in the recommended amount, especially if you're not living at home (so need a mortgage or rent, which is 40-50% of your take home minimum anyway) and also have student loans.

I don't have a private pension, and almost certainly won't get a state pension as it'll be spread over several countries, but my other half has a very good final salary government pension (significanty changed the year after she joined) she will be able to draw from before she's 40.

We also plan to having a good house paid off by the time we're 40, plus an increase of about 50% on investment in it (outside of any misleading house regional house price increase) and we have various savings options, and my job (if the industry doesn't change) is quite amenable to consulting/contracting so I may be able to work for a few months a year if need be during "retirement".

Compared to most millennials we have it very good, both paid well, and are in a very good standing with house and savings. Most of my friends aren't in the same boat.

Honestly with automation and the ever increasing issue of pensions for the younger generation we may find the solution works itself out with a guaranteed basic income system. Perhaps a move towards taxing corporations more and having a more flexible system where "retirement" doesn't really exist may be the only option.

Edit: as an example have a play with this - https://www.moneyadviceservice.org.uk/en/tools/pension-calculator

For someone around 23 (say having done a degree and masters) on £30,000 a year they need to put in around 25% of their pre tax income to hit the recommended/what people want amount. So thats a take home of around £1200 a month for that person on a fair chunk more than average wage.

It's a bit less of a percentage if you're on minimum wage, but then putting aside a fair wack when on below average wage is going to be difficult. It's a larger chunk over that however, up to 30% or more.

EDIT2: Actually for those on much lower wages it's not as bad as long as you trust that you'll get the current hypothesised state pension, which takes up most of the pensions requirement, so 10%/400 a month is a more realistic amount.

 

[rubberduck]

+1 I would read this book.

I dont see the need for sarcasm... I am geniuenly curious how amigafan has gone about things in the first 20 years of his career to seemingly set himself up for life. Aren't you?

 

[regulus]

From memory I think Amiga owns a caravan park/camping ground.

 

[Amp34]

I dont see the need for sarcasm... I am geniuenly curious how amigafan has gone about things in the first 20 years of his career to seemingly set himself up for life. Aren't you?

He was a union rep that seemed to make a bit pain for his employers. Was around the time HP almost went under and had issues with strikes etc IIRC?

 

[Deleted member 66701]

He was a union rep that seemed to make a bit pain for his employers. Was around the time HP almost went under and had issues with strikes etc IIRC?

One HP exec told me I was the best rep they'd ever had . Oh, and I stopped more strikes than I started.

 

[Deleted member 66701]

From memory I think Amiga owns a caravan park/camping ground.

I do lease out a campground, yes.

 

[Amp34]

One HP exec told me I was the best rep they'd ever had . Oh, and I stopped more strikes than I started.

Perhaps you were one of the good ones, but for an outsider looking in that certainly gave a bad image of unions.

 

[dowie]

He was a union rep that seemed to make a bit pain for his employers. Was around the time HP almost went under and had issues with strikes etc IIRC?

while I don't know much about most posters this one in particular seems to have regularly dropped bits of his life into posts on here enough times as some form of dubious bragging that it is hard to miss it

from what I can tell he presumably worked at EDS (as he's mentioned public sector IT projects several times) though as they got taken over by HP he'll make sure to only refer to HP and make it sound like he was some hot shot at a big tech firm - this then gets contradicted when it seems he was heavily involved in union stuff so presumably not exactly too far up the ladder

he's now in 'academia' - which apparently consisted of pursuing a vocational undergrad degree at a local college and hoping to start a PGCE or something - I've seen this posted about several times, often when winding up other posters who proceed to then bite when he brings up that he'll never pay back his student loans... this can be entertaining to watch

he once claimed to be offered a 'senior lecturer' position before even graduating from his local college course - I'd presume he perhaps means some tutoring at his local college based on industrial experience

seemingly being a full time student meant he claimed to have taken 'early retirement' in his 30s

and lastly in this thread he claimed to already be drawing money from his 'pension' - when the reality was again rather different - IIRC he owns part of a caravan or holiday park or something like that up north? Can't remember what it was exactly but basically it seems he's prone to making claims and stating things in a manner that is probably partly true but rather misleading.