Poll: Pensions - Are you worried about the future?

[OldKitMan]

Mid 30s so hope so.

With tax relief and employer contributions it's possible to build up a sizable pot in relation to the amount put in.

 

[Surveyor]

He wouldn't need a higher gross if he didn't take the 25% tax free up front. He could take £1666 a month / 20k a year tax free if it was his only income. Personal allowance + 25% tax free.

Wouldn't that depend on the type of pension he has and if he wants to draw down on the capital?

 

[Uther]

Wouldn't that depend on the type of pension he has and if he wants to draw down on the capital?

Of course it does.

 

[LabR@t]

Cash in a dB pension of build income around it?

 

[jon86]

Aiming for £30k per annum retirement income is a bit overkill though, especially if that's for both of you in a couple - remember your outgoings should (hopefully) have reduced considerably by then due to having no mortgage, no commuting costs, etc.

For me and my partner to live the same lifestyle we do now excluding those costs, we'd only need £10k in total between us plus a bit extra for say 1 or 2 nice holidays a year. Either we live hella frugally or a lot of people waste tons of money on stuff they don't really need but consider essential for whatever reason. I wouldn't know what to spend £30k a year on in retirement unless I suffered extreme lifestyle creep between now and then and took up expensive hobbies.

My wife and I (and two kids) currently live on a monthly budget of about $4000, which includes all of our living expenses except for our mortgage, but excludes about $10,000 of additional annual expenses and savings for car maintenance/replacement, house renovations, travel, etc. We eat well, have what we need/want, and have additional margin to give to charities and others when the opportunity/need arises.

We're currently targeting to have at least $5000 (inflation adjusted) per month in retirement (only living off of the growth), although I am pretty confident that we'll end up needing a lot more than that if inflation remains persistently high over the next few decades. Because of this, we're continuing to save over and above our minimum savings levels.

 

[Uther]

My wife and I (and two kids) currently live on a monthly budget of about $4000, which includes all of our living expenses except for our mortgage, but excludes about $10,000 of additional annual expenses and savings for car maintenance/replacement, house renovations, travel, etc. We eat well, have what we need/want, and have additional margin to give to charities and others when the opportunity/need arises.

We're currently targeting to have at least $5000 (inflation adjusted) per month in retirement (only living off of the growth), although I am pretty confident that we'll end up needing a lot more than that if inflation remains persistently high over the next few decades.

How much will you have to put aside for medical costs?

 

[sigma]

How much will you have to put aside for medical costs?

An arm and a leg.

 

[jon86]

How much will you have to put aside for medical costs?

$0, because we'll just move back to the UK to use the NHS (funded by the UK tax payer [which won't include us though, as we'll use the dual tax treaty to pay £0 income tax], thanks everyone!).










/s

My currently working assumption is ~$500 to ~$750 each per month to pay for Medicare plus whatever additional coverage will be needed in order to actually have coverage when we need it - so about $12,000 to $18,000 per year (inflation adjusted). We're saving over and above our normal retirement savings in order to be able to afford this.

 

[Uther]

My currently working assumption is ~$500 to ~$750 each per month for additional coverage that will actually pay out when we need it - so about $12,000 to $18,000 per year (inflation adjusted). We're saving over and above our normal savings in order to be able to afford this.

Ouch. No doubt why American youtube pension channels are usually talking about having a couple of million in the pot. Not needed here luckily. Yet.

 

[jon86]

Ouch. No doubt why American youtube pension channels are usually talking about having a couple of million in the pot. Not needed here luckily. Yet.

Yep. Like many countries, the USA is a great place to live in if you're not poor. If you're poor, it sucks worse than a lot of other countries.

 

[[FnG]magnolia]

Just LOL if you're not as worried about the future as I you probably should be.

e: noobs.

 

[dlockers]

Just LOL if you're not as worried about the future as I you probably should be.

e: noobs.

Those thinking they're going to be dead by 60 exceptionally sad tbh.

 

[Uther]

Those thinking they're going to be dead by 60 exceptionally sad tbh.

And not that uncommon either. I think it might even be worse for the ones who make it right up to pension age and then die.

 

[Richie]

Your expenditure in retirement will drop significantly as you get older... All these multiple holidays a year, for example, will eventually be almost zero as you get to late 70s and into your 80s.

 

[ivrytwr3]

Phone/Internet/Netflix etc - £62
Petrol/Car Maintenance - £111
Lunch/Food - £447
Council Tax - £139
Utilities - £70
Total - £829

There'd be some annual costs on top of that for tax, insurance, service charge on our flat etc - so make it £12k per year on essentials.

Varies month to month if we eat out anywhere, visit family etc. I rarely buy new clothes/gadgets unless I need them due to old ones wearing out or whatever so I wouldn't include them and I don't spend a lot when I do. We cook a lot ourselves and eat well I'd say.

Then as I said, a bit extra every year for a nice holiday or two and obviously replacing appliances as needed (£5k - obviously depends where you go).

It's not like we're living as hermits either - just got back from a weekend in Lyon which cost us £270~ each.

So your £10k initial figure is now £12K, i think in reality it's going to be more.

What about servicing costs for your car? Or a new car when needed? An expensive repair? House repair - boiler, roof etc these get expensive. ALL utilities are just £70 per month? TV licence? Car parking? Medical? Pet(s)? Haircuts? Kids, grand kids? ie Birthday/Xmas gifts etc

Any savings? If not you are one repair/replacement bill away from having to forgo a holiday etc to something more serious.

 

[EvilRob]

Your expenditure in retirement will drop significantly as you get older... All these multiple holidays a year, for example, will eventually be almost zero as you get to late 70s and into your 80s.

Definitely. A well thought retirement plan should take that into account. I've posted his videos before but I really like James Shack view on this. Strategy includes plan to reduce income from 75 and guard rails for adjusting how much you draw down depending on market performance. He has a few other good pension strategy videos too.

 

[EvilRob]

And not that uncommon either. I think it might even be worse for the ones who make it right up to pension age and then die.

I'd rather plan for a reasonable length retirement and make people I care about very happy if it doesn't pan out

 

[Uther]

Definitely. A well thought retirement plan should take that into account. I've posted his videos before but I really like James Shack view on this. Strategy includes plan to reduce income from 75 and guard rails for adjusting how much you draw down depending on market performance. He has a few other good pension strategy videos too.

Yep, I rate him highly. I've spent the last few years putting all my ducks in a row, consolidating pensions etc. Wasn't much else to do during lockdown.

 

[jon86]

And not that uncommon either. I think it might even be worse for the ones who make it right up to pension age and then die.

If I die before I retire, I'll die happy knowing that my loved ones who I'm leaving behind will be well taken care of.

Your expenditure in retirement will drop significantly as you get older... All these multiple holidays a year, for example, will eventually be almost zero as you get to late 70s and into your 80s.

Anything that my wife and I don't spend in retirement will simply go to (improve the lives of) our heirs.

I'd rather plan for a reasonable length retirement and make people I care about very happy if it doesn't pan out

Indeed. My retirement plan is based on only living on the growth / dividends (the proverbial "eggs"), and leaving the principle (the proverbial "golden goose") to my heirs.

 

[EvilRob]

Indeed. My retirement plan is based on only living on the growth / dividends (the proverbial "eggs"), and leaving the principle (the proverbial "golden goose") to my heirs.

Interesting to think about. Although I want take care of others I care about too and will do so, hoarding wealth and filtering it down affects society negatively. That said, you have to play the game according to how the rules are currently set out.