Pension fund performance - do you monitor yours, how is it doing, do you actively change it?

Uther said:
Work out what the equivalent of 20~30k needs to be by the time you retire and go with that.
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Even now that would be quite a downgrade in living though.

I dunno if you can predict it now that far away.
I mean just in the last 2 years inflation has rocketed CoL.

Tax, medical, food, everything is probably going to moon.
A lot is going to depend on if state shrinks or grows. If we just let poor people die vs if tax burden goes up massively.

That's a huge factor can't really guarantee.

Let's say mortgage is gone. Thay only saves me 600 a month. Every other cost will go up. So even essentials now is 1400 a month for us both.

If that goes up x2. You're looking at 3000*12 or 36k a year base cost to live.
Add a few holidays. Which could be 5k+ you're looking at 40+.


I don't think 36k is an unrealistic base cost to plan for in 20 years time. Could easily be more.
 
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413x said:
I believe my total pension pot is only... 70k..I'm 38... RiP retirement! :D
I think I've found them all.
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Mines not that much better and I have 7 years on you.. hence why I'm hammering it now. Between 40-50 is when most people put the most into their pension and don't forget you will have a lot more cash once you paid of the mortage.
Thou two of mine, the biggest two are in DB pensions so it's hands of the RNG gods.

413x said:
With inflation like it is.. Who knows!
A loaf of bread might be 50 quid by then
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When working out pensions go by todays value... inflation should be taken care with my compounding.

There's loads of pension calculators online where you bang in the value of your pots and how much you are paying now and it forecast how much you have during retirement.

even with mine poor figures, it works out that if I carry paying into them as I am now.. I will never run out of money if I live a humble lifestyle.. if I live a moderate lifestyle it runs out after I'm 105 years old and if I live a gucci lifestyle it runs out at 90 odd... That's not taking account my stocks and shares.
 
My goal is get to the point I can draw down £66k a year and then I'm out.
That seems to be the best bang for buck for the work you put in as you can take 25% tax free and then keep under higher rate tax. Hopefully fiscal drag doesn't screw this up much more.
 
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EvilRob said:
My goal is get to the point I can draw down £66k a year and then I'm out.
That seems to be the best bang for buck for the work you put in as you can take 25% tax free and then keep under higher rate tax. Hopefully fiscal drag doesn't screw this up much more.
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If I could draw 40 and top it up with some part time work I'd be very happy.

I've said before.. I don't want loads of time but no money to do anything with it.

Also will equity release my house as much as I can.

Maybe selling up completely and living on a cruise ship is a genuine option too.
 
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Jack_green said:
The trick is having a good start, meaning you reduce what you put in few years later. When you in your 20s you don't have much outgoings if you live with family.
For example if you get 5 k a year for 30 years that's 150k, but as 5k returns increase over time by itself including the returns of what you put in. When you get to your 30s, you no longer need to pay all your earns you start to pay the difference.

It surprisingly beneficial if you can do this at the start, as it grows so fast.

That Is why family open 2 junior sipps, max payment £2880 ie £3600 would mean 80k plus sipp by 18. its a way of inheritance tax saving.

I have even helped a friend of mine who has a rare for of disability who gets pip and is putting ,£100 per month away has opened a sipp. He didn't know he could do that if he was not working.
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Yeah but on the other hand if your career takes off you earn way, way more later than you did in your 20s so you threw away your quality of life for rather little return.
 
Jack_green said:
Had to re edit it.
No, you still having quality of life in you 20s if living at home. I even took a few years off and bummed around, while my money was still growing. My returns grew more compared to what others were putting into their pensions.

I did it for just over 6 years, and I still partied during the weekends. When you leave home that's when the expenses pile in.

Most of my mates became jealous and some even copied it for a while if they could.
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Living at home was the worst for me. Couldn't handle it. Plus limited by jobs at home. It isn't always that cut and dry
 
EvilRob said:
Yeah but on the other hand if your career takes off you earn way, way more later than you did in your 20s so you threw away your quality of life for rather little return.
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This is getting harder and harder for people… uni degree is the minimum just to get a slight advantage, lots of the basic starter jobs have moved off shore and young people are crimped with debt from being a student.

Not everyone is lucky enough to get a job in the field that they study, some can’t stay at under the same roof as their parent(s) for one reason or another… as seen from the rent thread.

Personally I’m a believer of a universal standard income for everyone from birth to death, even thou that means having to pay a lot more taxes for those who can afford it. It’s a shame that this government haven’t invested in any other source of income apart from taxing their people.
 
Jack_green said:
Problem is UK can't afford many things it did before. Yet future generations will be paying more and more while getting less and less.
One thing that really gets me, the government keeps telling the public their is a need for certain skills, yet if education is not free then how do people even attempt to get those skills.
I personally think there are too many barriers towards getting skills that are needed. And no barriers to free education for skills that are worthless.

This is when Immigration comes to play as education is free or very cheap in other countries.
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Completely agree with this. Lots of people here pro immigration and I understand why but like you say it is ultimately passing the buck i.e subcontracting out our own stuff at the expense of our own people's skills and education.
 
slinxy said:
This is getting harder and harder for people… uni degree is the minimum just to get a slight advantage, lots of the basic starter jobs have moved off shore and young people are crimped with debt from being a student.

Not everyone is lucky enough to get a job in the field that they study, some can’t stay at under the same roof as their parent(s) for one reason or another… as seen from the rent thread.

Personally I’m a believer of a universal standard income for everyone from birth to death, even thou that means having to pay a lot more taxes for those who can afford it. It’s a shame that this government haven’t invested in any other source of income apart from taxing their people.
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Open your gateway account and see how much of the tax you pay goes in benefits and pension payments.
 
Can someone give me a simple answer to the following.

If my work place pension is net pay
And
I make a one off SIPP contribution this tax year
And
I'm in the 40pc rate
And
My SIPP contribution will all be in the 40pc band

Do I need to just enter the amount I pay into the SIPP + it's 20pc?
Ie I don't even need to think about my net pay workplace contribution when filling it in?

8xNDfTh.jpeg
 
413x said:
Can someone give me a simple answer to the following.

If my work place pension is net pay
And
I make a one off SIPP contribution this tax year
And
I'm in the 40pc rate
And
My SIPP contribution will all be in the 40pc band

Do I need to just enter the amount I pay into the SIPP + it's 20pc?
Ie I don't even need to think about my net pay workplace contribution when filling it in?

8xNDfTh.jpeg
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The explanation paragraph is pretty clear, no? It explicitly says you don't need to.
 
413x said:
Even now that would be quite a downgrade in living though.

....

Let's say mortgage is gone. Thay only saves me 600 a month. Every other cost will go up. So even essentials now is 1400 a month for us both.

If that goes up x2. You're looking at 3000*12 or 36k a year base cost to live.
Add a few holidays. Which could be 5k+ you're looking at 40+.


I don't think 36k is an unrealistic base cost to plan for in 20 years time. Could easily be more.
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413x said:
I've said before.. I don't want loads of time but no money to do anything with it.
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I think people over-estimate what you may be capable or willing to do as you age.... Once you get to 70-plus then, generally, your life will slow down considerably and you wont be going on lots of foreign holidays etc.

Haven't you said that this is why you are doing the holidays and experiences now?
 
Richie said:
I think people over-estimate what you may be capable or willing to do as you age.... Once you get to 70-plus then, generally, your life will slow down considerably and you wont be going on lots of foreign holidays etc.

Haven't you said that this is why you are doing the holidays and experiences now?
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Agree. I think this is why it's important to retire well before state pension age if possible.
 
Richie said:
I think people over-estimate what you may be capable or willing to do as you age.... Once you get to 70-plus then, generally, your life will slow down considerably and you wont be going on lots of foreign holidays etc.

Haven't you said that this is why you are doing the holidays and experiences now?
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Yes. But I'd hope to be doing stuff as long as possible.

Besides. Who knows what the future will bring. Maybe new medical advances will mean you can do things much longer.

Just a random example. E-bikes allow people to go MTBing a lot older than manual bikes.

Maybe you'll be able to VR to places and it will be amazing. But maybe it'll be expensive. So when you can't physically go.. You can mentally explore.

Quite concerned how I'll cope mentally at that stage really
 
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413x said:
I thought so. But tax language can be complicated. I mean even calling it net pay scheme is completely counter intuitive
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If you call up HMRC they are quite helpful - I phoned them up and said how much I was paying into my pension and they adjusted my tax code over the phone. They'll tell you what number they want from you.
 
413x said:
Yes. But I'd hope to be doing stuff as long as possible.

Besides. Who knows what the future will bring. Maybe new medical advances will mean you can do things much longer.

Just a random example. E-bikes allow people to go MTBing a lot older than manual bikes.

Maybe you'll be able to VR to places and it will be amazing. But maybe it'll be expensive. So when you can't physically go.. You can mentally explore.

Quite concerned how I'll cope mentally at that stage really
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That's the important part. You have read my post from the physical capability side. Note I also said "willing to do as you age"... Sure, tech advances may be able to extend activities into an older age bracket but being able to do something and being willing/bothered to do it are different.

I don't think its unreasonable to think that most people in their 70's and older just want an easy/quiet life and even activities like going out for a meal tend to lessen as they would rather just be at home and away from the hustle and bustle of life,
 
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