To ask what pension plans you have in place

[Toystory4]

I have around £40k in a pension pot and save around £100 per month and the company pays similar I am 48.

I went to see the company's pension adviser and he said I really need to be paying a lot more if I want a decent income in retirement. He worked out the figures and said somewhere in the region of £600 extra a month would get me back on track and help me have the pension I want in retirement. I was shocked that it would take this much and that my own savings were on track to give me as little as £80-100 a week in retirement.

Anyone else in the same boat and worried about it? I am single so have to look after myself.

[WongTobyWong]

To clarify - there isn't a dollar maximum, rather the maximum is 25% of pre-tax income. Because my husband is self-employed rules for him are slightly different. In total we have about £175k.

[DrDreReturns]

Private sector pensions have changed so much. When I started looking after my mum's affairs after she developed dementia, I was amazed to discover that she was being paid a monthly widows pension from a British chemical manufacturer of £800 per month, even though my dad (who wasn't a senior manager) died in 1973 aged in his mid 40s, and worked there for no more than 12 years.

My dad retired in his mid forties about 25 years ago due to ill health. He worked for British Telecom for about twenty years. He has a very generous pension that has paid out since he was in his forties. I can't see our generation getting deals like that.

[NewBallsPlease00]

(oh a thavks To gov, all our friends who chose modest 2nd home route to replace a pension are niw screwed too)

[Noodledoodledoo]

Agree with the private sector pension changes my Granny was pensioned off on grounds of ill health at the age of 29 and got a healthy pension from the Bank of England until the day she died at 102.5!!!

Bet the actuaries were stumped by that one!

[scarlets]

We've modest pensions, and property.

[BackforGood]

I agree with whoever it was on the first page saying that it makes sense to think about how much you will need to spend at that time, first.
£80 - £100 per week on top of your state pension doesn't sound like you'll be struggling to me, as you say you'll own your own home by then.

[DisgraceToTheYChromosome]

Very little, like most of the working class. Still, I have a repeat tramadol prescription, which combined with a bottle of decent single malt will see me off quite nicely. One of the Speysides I think.

[morningtoncrescent62]

I have a company pension which I've been in for 15 years (I'm in my early 50s) - the company contribution plus mine comes to about 20% of my salary. The rules seem to keep changing but as far as I can tell if I keep working with the same employer till 67 I'll get about £16,000 a year plus a lump sum of about £50,000. Pre this thread I thought the £16,000 wouldn't be taxed, so it's not quite as good as I thought! If I were to retire any earlier it would reduce substantially - e.g. if I went at 55 I'd get about £5,000 a year, and at 60 I'd get about £9,500. My to-do list for this year includes finding out about options to increase my pension contributions so that I don't have to be obliged to work till 67, but I'm very hazy about how it all works and I don't want to find that all I do by paying extra is to reduce my state pension when it comes. I've worked since my early 20s but in a series of low-paid jobs until I joined my present company, so pension contributions weren't a priority (especially as I was the sole supporter of two children for most of that time).

Does everyone who's got full NI contributions get the state pension regardless of income, or is it means-tested? I sometimes think everyone except me knows these basics.

[scarlets]

The state pension isn't means tested at all. Yet.

[Lndnmummy]

I have a very generous final salary pension as well as other pension plans through my employer. When I retire, my income will be higher than now .

[Beth2511]

Absolutely nothing, only 22 and have dd to worry about as priority but i dont earn enough to qualify for nest and my other half only has the nest scheme that he has been paying into for 5 years.

Curre tly doing a degree and work part time and plan on doing a graudate scheme once i finish my degree so am planning at 30 to be in a position to not only pay minimum but pay in extra!

[smellsofelderberries]

I have nothing except a very small superannuation in Australia, but save about £500 into an ISA every month. DH does about £500 a month through work (this includes employer contributions). Right now we are paying down the mortgage hard, as interest rates are so pathetic we'd rather be paying that down faster than earning piddling interest. Hopefully mortgage will be much smaller when interest rates go up, at which point we'll keep paying what is required on mortgage and pay the extra into super accounts/pensions.

We're looking into buying a house in Australia in the next few years (moving there later in the year) so we have the option to retire there or back in London in 30 years. Also find saving for retirement in Australia much easier, employer contributions are good and the state pension is (currently) quite good, plus my super fun performs exceptionally well in terms of investment options, which should give things a nice boost.

[mygrandchildrenrock]

When you retire you won't need smart work clothes, so can buy most of your clothes at charity shops (not underwear or socks!). You won't need to buy lunches or convenience food because you'll have time to cook from scratch and even grow most of your own food - if you have a garden/balcony, so not much spent on food. You'll have time to go to the supermarket when they discount food, bread and meat etc. and buy things then.
You won't need to run a car, even if you'd like to, currently you can use your bus pass to get out and about so no cost there. (I spend about £350 on petrol just to get to work and back)
Our local library and community centre do 101 courses for retired people, from zumba, map reading, ancestry, knitting etc. so you can keep busy and occupied for a minimal amount, plus (if your library has not been closed down by council cutbacks) you can take books and DVDs out of the library. If you can't afford broadband at home, you can log onto the library computers to mumsnet for 2 hrs a day free of charge (or a very low charge).
I'm sure there are many other things we spend money on now that we won't need to when we're retired, so fingers crossed it will all work out alright!

[DyslexicScientist]

Pensions really is going to be a huge divider between the haves and have nots.

The ones that retire in 50s mortgage free, a few buy to let's and a generous pension. Vs those that never retire, drop dead at 70 and are still renting.

[Lancelottie]

The only bit I have that's apparently worth more than I paid in is, bizarrely, the Final Salary bit I'll get from a job I did for about 6 years in my early twenties.

I have other odds and ends but suspect I'll be joining the poster up thread with the one good meal out a year.

Hey ho...

[Figmentofmyimagination]

Dyslexic the collapse in private sector pensions, such as they were, will also be very damaging to the care sector. Care homes take the whole of your pension, including your state pension and any attendance allowance to which you are entitled and apply these sources of income again get your care home fees, leaving with you a low notional sum of 'spending money'. You then make up the difference by contributing your assets above the threshold (£24k) if you have any.

Obviously as more and more people have minimal pension beyond what the state provides, and/or own no home, these care providers will have to look elsewhere for their funding, or else go to the wall.

[Figmentofmyimagination]

Sorry - "against" your care home fees - not "again get" your care home fees - autocorrect!

[Goalie]

I've been very fortunate with jobs. I'm early 40s and been in pension schemes since I was 18. I currently work for a company with a gold plated pension - non contributory, final salary. Before that I had 12 years with another similar scheme. At current wage and retiring at 65, I'll get circa £47k plus a considerable lump sum.

[ArmchairTraveller]

I might just buy a couple of Krugerand a year and stash them in a secret hoard.

[smellsofelderberries]

Holy shit Goalie that's incredible!

[Tryingthisonefornow]

Not sure if this was answered earlier but the lump sum (25% of cd pension pot) is payable tax free. Also if you have a money purchase pension you don't have to buy an annuity anymore, you can take it all as a lump sum (25% tax free and 75% taxable).

The calculation for the maximum lump sum for a final salary scheme is slightly more complicated and varies from scheme to scheme.

can you tell I with in pensions!

[NewLife4Me]

Property, musical instruments, antiques and rare antique musical instruments

I don't trust banks , financial advisors nor pension companies.

[PigletJohn]

Wong "our financial advisor really emphasized to us that other that day to day expenses, pension planning should be the next priority"

He may be right, but my immediate thought was "does he get bigger commission on Pensions than on savings schemes?"

Over here, there is a tax rebate on (almost all) pensions contributions, so with the same growth and charges, a pension fund would be 20% bigger than the value of a savings scheme.

[slightlyglitterbrained]

Have been in pension scheme since 20, but sadly my expected amount is nowhere near 47k! That's an amazing pension Goalie - I didn't think anywhere did final salary schemes any more.

wherethewildthingis Prob is, I never got to save much in my twenties - bailing out family with red bills, boiler failures, getting through uni etc. Managed to put together enough for house deposit at 37, will be paying that off till 52. Current payment amount is stupidly low as I didn't push it back up after mat leave, which was pretty dumb.

A good salary (not Xenia level good) doesn't go as far when spread over extended family, who don't have to be feckless or spendthrift to run into money problems if they're in what are now "normal" jobs - i.e. no security, low wage, temp contracts.

[Turquoisetamborine]

My stepdad was made redundant a year ago from a large chemicals company. He was on 100k salary. He got 100k redundancy plus his full pension of 55k per annum immediately at the age of 56.
He started another job two months later, don't know what he earns now but it'll be a decent salary. Just as well because my mam will be relying on him as her NHS pension is £150 a month for 20 years service as a nurse.
Pensions like that are a thing of the past for most people.