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Pensions - how prepared are you for retirement? Do you know how much you're likely to have to live on?

(135 Posts)
littleredsquirrel Mon 09-Dec-13 13:08:11

Just curious really. I am currently trying to plough my way through all the paperwork to work out what my likely income levels will be when I retire.

I have a pension which I paid into for ten years but nothing being paid in at the moment. Trying to work out whether its worth putting more in or look at other forms of investment.

Currently my pension fund is projecting I'll have 24k pa (or £14k in real terms taking inflation into account.). I have 20 years to go if I want to retire at 60. Looks like we'd definitely be selling the house!

What arrangements have you made for retirement?

littleredsquirrel Thu 12-Dec-13 08:09:46

I do take your point juliet but its not about making your fortune for the vast majority, its about having something, anything (!) to live on given that the state pension is already inadequate and is likely to be much lower or non existent in the future.

Plus its all very well if you have your own business but those planning to go and work in B&Q are going to be fighting the youngsters for those jobs! We are all needing to work for longer but there are likely to be fewer jobs to go around.

SMorgauseBordOfChristmasTat Thu 12-Dec-13 08:29:22

We're retired now and are "comfortable". We both took out pensions as soon as we started work and have always overpaid into them. After the DSs left home we saved as much as we could and lived quite frugally for 10 years and threw all spare money into pension funds and investments.

Dh retired at 60 but isn't yet getting his state pension. I get my private pension and state pension and also still work part time.

We've encourage DSs to take out pensions as well because by the time they retire the state pension will be hardly worth having. They have friends who say they cannot afford to have a pension but they really cannot afford not to, long term.

Grennie Thu 12-Dec-13 12:43:00

Tat - You know lots of people my age did the same and now have private pensions that are worth less than they paid into it? Pensions are a gamble, and we should be honest about that.

littleredsquirrel Mon 13-Jan-14 08:46:59

Still can't decide what to do about this. DH thinks we have enough tied up in pensions at the moment and should look at other assets.

SMCGWealth Tue 28-Jan-14 15:59:17

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

Putthatbookdown Tue 18-Feb-14 15:32:43

With pensions the earlier you start saving for one the better whatever scheme you are in People who started in their twenties are laughing by their forties Investing in a buy to let property is a common way of saving for a pension Again those who bought early are laughing given the rise in property in the last 20 to 30 years

thriftymrs Wed 19-Feb-14 10:51:55

Juliet - really interesting to read what you say about opting out of automatic enrolment. I've just found out our company scheme starts in July and the company are going to contribute 1% of salary. If I do the same it will be about �50 a month going into a pension (I have no previous pensions worth mentioning, just a couple of tiny short-lived ones from years ago). I realise this is �25 a month from my company that I get, effectively, for free. But is it worth it or should I just spend my �25 and over pay the mortgage, or put �25 a month into an ISA or similar? (I'm 50 and due to retire (currently) at 66).

Secondly, would you advise starting pensions now for my two teenage DCs who are still in full time education?

I worry about putting money into pensions because they get so much bad press and a family member lost everything in their pension fund when the company they had worked for for 40 years suddenly and unexpectedly folded.

LadyLapsang Fri 21-Feb-14 23:50:35

DH & I both fully paid up for state pension. I have a live final salary scheme and am now buying extra years too. DH has a paid up final salary scheme and two live private schemes. Both pay in ISA limit each year and could be mortgage free but keep the offset for flexibility; may want to give DS money for first property in the future.

May receive money from both lots of parents but frankly I encourage them to enjoy it - as I say to my ma in law I would rather you are gadding about abroad etc. than in a nursing home & it's cheaper too! I have always told them that I see it as my responsibility to plan for my own retirement. Any money we get from them would be great (I would like to pass some down to DS) but my retirement plans have never been based on their money / houses.

alanapartridge Thu 24-Apr-14 00:23:31

At the age of 58, I´ve found myself in a wonderfully enviable position. Ten years ago our 20 year old business failed. We lost everything, including our home and have never really managed to get back on our feet. Both oh and I are self employed and just barely earn enough to live. We are about 6 years behind in our stamps so won´t even qualify for a full state pension. We rent our home and neither of us stand to inherit a bean. Therefore, my pension plan is as follows - work till I´m 80 odd (although hopefully I won´t live that long), have a day off, then kick the bucket.

lovingmatleave Sat 03-May-14 18:14:00

I have worked for 14 years in public sector, so of which ptime, and currently working ptime. My projections are sent to me yearly from my pension scheme provider. It is about I think about £4.5k per year at current amount invested and will have another say 20 odd years of contributions so not much really. That is for a relatively well paying job in the sector.

I keep meaning to start AVCs but something always crops up. Am investing a small amount monthly in a stocks and share isa though. Husband has MUCH better pension provision, but I would like to see myself have enough to support myself as you never know what the longer term future holds.

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