Poll: Pensions - Are you worried about the future?

[Semple]

Average pension pots [UK] - Occam Investing

Every now and then it’s interesting to see where the UK’s at with its finances.So I thought I'd use this week's post to see how the average UK pension pots are looking. And I found it pretty surprising. I was not only shocked by the average size of pension pots, but also how many people

occaminvesting.co.uk

Average pension pots [UK]:​

• Ages 16-24: £2,700
• Ages 25-34: £9,500
• Ages 35-44: £30,600
• Ages 45-54: £81,200
• Ages 55-64: £189,700
• Ages 65-74: £190,000
• Ages 75+: £90,300

This would have been a better question tbh. In your age bracket, are you above or below the average pension pot.

I've not quite fallen into the 35-44 age bracket yet, but I know my pension pot is well above what my age bracket is at.

 

[Uther]

Blimey those are rubbish, if you live 20 years that's about 8.5k or have I got that wrong.

Yep. Stop thinking your pension is a bit crap, you're actually quite wealthy lol.

 

[dirtychinchilla]

You've just reminded me that I need to up my pension contribution, thank you. I'm putting in 7.5% at the moment but I'm upping it to 10% (aged 32 for reference).

My pot is around £30k, and to be honest I think it's a bit slim. But I have a long time to add to it.

 

[Mercenary Keyboard Warrior]

Will be less than that if the state pension doesn't become means-tested.

I can't see how they can possibly consider means testing the state pension. Right now there is a very small section of people that shouldn't contribute to a pension ( the very low paid) as they will be on benefits to make up income on retirement and everything they receive from their pension will reduce the amount being made up.
But there is a vast wide gap of people who be better off not saving if the state pension became means tested.
Would certainly IMO be anther real shooting themselves in the foot moment if the government were to do that.

 

[mrk]

It's top secret.

I put in 4%, my employer puts in 6%

I'm also leveraging the shares incentive scheme to bolster my retirement in the future. I buy £75 of shares each month and my employer matches that amount so every month I end up with £150 worth of shares. The share prices seem to be rising all the time too in this industry, so quids in hopefully unless world peace is achieved over the next 25+ years or so.

 

[Azza]

£9110.40 a year.

 

[throwaway4372]

I find pension planning a problem, in mid 30s, trying to work out how much I should contribute for comfortable retirement, whatever that even means, considering investment growth rate, and pay rises roughly in line with target inflation, and wanting to retire as early as possible, and trying to avoid exceeding the max pot size, whatever that would be at the time.

I think I'm pretty thorough with my spreadsheet, and it's just not possible to plan properly.

 

[Semple]

True. As I'm living on savings I should actually have more money once I push the 'take pension' button (I'm 57) but am leaving it where it is for a good while yet now stupid is running the country in the hope that it recovers the thousands it loses every time she opens her trap.
I always take the state pension into account as well, which is around 10k currently.

Yeah similar approach to my old man. He gets a final salary pension, but retired early and they take pretty sizeable chunks out of it for every year before retirement. So he's been living on savings as it doesn't make sense to lose X% of the pot unless you desperately needed it.

 

[Destination]

Blimey those are rubbish, if you live 20 years that's about 8.5k or have I got that wrong.

Nope, you are right, but also there is state pension to incorporate into actual income.

 

[Uther]

Yeah similar approach to my old man. He gets a final salary pension, but retired early and they take pretty sizeable chunks out of it for every year before retirement. So he's been living on savings as it doesn't make sense to lose X% of the pot unless you desperately needed it.

If I was taking the state pension today that would easily cover all my living expenses, so my private pension is for the fun stuff above that.

 

[Semple]

I can't see how they can possibly consider means testing the state pension. Right now there is a very small section of people that shouldn't contribute to a pension ( the very low paid) as they will be on benefits to make up income on retirement and everything they receive from their pension will reduce the amount being made up.
But there is a vast wide gap of people who be better off not saving if the state pension became means tested.
Would certainly IMO be anther real shooting themselves in the foot moment if the government were to do that.

It'd be a real kick in the teeth for my generation if they eventually swapped it to means tested, if there was a plan down the line then the choice should be given now to opt out of contributions, so that you can funnel that towards your private pension.

At least by then we'll more than likely have a PM from my generation.

 

[200sols]

I welcome any crash so I can hoover up cheap assets.

 

[Irish_Tom]

I'm 36. My pension pot is roughly £46k (so above the average band posted earlier). I'm paying in just under £1k a month (employee + employer contributions). I'm predicted to have about £550k by the time I retire if I maintain my current rate, but that doesn't seem nearly enough.

Personally, I'm not overly worried about the mini-budget crash — I have plenty of years of work left in me for all of this to even out. I feel sorry for anyone close to retirement right now though.

 

[Mercenary Keyboard Warrior]

I welcome any crash so I can hoover up cheap assets.

Propose name change to JRM

 

[Uther]

I'm 36. My pension pot is roughly £46k (so above the average band posted earlier). I'm paying in just under £1k a month (employee + employer contributions). I'm predicted to have about £550k by the time I retire if I maintain my current rate, but that doesn't seem nearly enough.

Personally, I'm not overly worried about the mini-budget crash — I have plenty of years of work left in me for all of this to even out. I feel sorry for anyone close to retirement right now though.

I suppose it depends on how long you intend to live. I plan to pop off at about 80 so my pension, which is a lot lower than yours is fine.

 

[Zenduri]

Im putting in 6% atm and my employer is putting in 12%. Shame its 18% of not a lot... lol

 

[Haggisman]

Sounds about right, well done Truss and Kamikwasi

Yup, great isn't it!

Fortunately I still have ~25 years to go, and will hopefully be in a position to increase my contributions soon.

Wonder how many people will decide to opt out over the next year or so with all increasing costs though. When it's a choice between putting food on the table today, or worrying about 20-30 years in the future, I think many people may choose the former

 

[Mercenary Keyboard Warrior]

Yup, great isn't it!

Fortunately I still have ~25 years to go, and will hopefully be in a position to increase my contributions soon.

Wonder how many people will decide to opt out over the next year or so with all increasing costs though. When it's a choice between putting food on the table today, or worrying about 20-30 years in the future, I think many people may choose the former

Only 15 here but also not too worried
I share concerns that people will opt out of pension contributions but what can you do, not pay your bills now for an easier life in old age...

 

[200sols]

Those saying Truss tanked their pensions, are you biased towards UK stocks for a reason?

 

[Haggisman]

Those saying Truss tanked their pensions, are you biased towards UK stocks for a reason?

Honestly, I have no idea - it was in the company scheme which is managed by an outside provider, who (probably) have far more expertise on the subject than me.