To ask you how much you save every month for your pension

[yousignup]

48, not in the UK but similar pension rules. Work part time so will qualify for percentage of state pension. Many years paid in, but no private pension. Mortgage almost paid off, hope to buy another place in a year or two with another mortgage, so basically my paid for house will be my pension pot. It's not worth a lot, but it's something.
Looking at UK articles about pensions, absolutely horrified to realise that for a modest payout at retirement time I need to be paying in approximately 900 GBS equivalent a month until I'm 65. No chance of employer matching any payment, would have to be private scheme.
AIBU to ask you how much you put away each month for your pension, and how old you are? Just thinking about my old age with a sick feeling in my stomach. Why didn't I start 30 years ago?

Mrskoala I don't ever consider myself to have had it. I don't look at the headline figure. Just what is in my account each month. Treat it like a type of tax. Im effectively taxed at 60%.

And fortunately dp and I share childcare so no 50% spend there. Downside is that dp can only work very part time for that to work.

Hopefully one day I'll get some of it back.

I put in roughly £20 a month with that automatic pension thingy and work put something similar in I think. I am 26. DH has no pension savings. He is 39.

We own our house mortgage free. We plan to buy another soon and pay it off as quickly as possible then rinse and repeat once more.

My family have a habit of dying before retirement age anyway.

Wow 26 and mortgage free and able.to buy another and pay it off!!!!

I needed to have done life differently...

Not sure on the %. However my pension contributions tripled a few years ago much to my annoyance and out of my control but the 2/3 extra I put in doesn't go into my pot but pays the deficit off. I've not taken much notice since as I can't afford to pay in more as my contributions to the deficit will also increase

This % figure is just a red herring unless it is a defined contribution scheme. If it is still defined benefit then it doesn't matter what you or the employer is paying. The amount you will get is almost pre determined.

It is amazing how little people know about their future income streams.

If you are in a private pension then think about how much you are paying in and then look at what you might get out based on that.

If you are 40 and pay £50 PM and your employer pays £50 PM until you are 65 then it would not be that unreasonable to think you will get a little bit more than £100 per month when you retire.

Find out what the state pension is. You can do this online.

If you have a "final salary" scheme, ask for the scheme booklet. Be careful about career average earnings. Going part time can cost you!

If you want more out you have to pay more in.

I pay 5% and employer pays 10%. I started contributing when I was about 30.

Yazzoo22

Be careful about career average earnings. Going part time can cost you!

Please can you explain your statement a little more? Thanks.

Years ago your pension was based on final salary so if you were part time for 15 years then went full time for the last 5 or whatever, it didn't affect your pension.

Career average earnings will take into account your average earnings over your career so it will most definitely affect your pension.

The starting point for everyone should be to work out what you need in retirement each month, find out what the state will provide and then work out what the gap is. You can then plan accordingly.

Ok yazzoo I have just worked out that to stay in our current house we would still need half our current income...

Oh. Dear.

Do the over 65s still pay council tax?

Yes, venting, they do.

Ouch. I liked online but couldn't see any discount either.

I had always thought over 65s didn't pay C Tax.

I do, thank goodness, have a small final salary pension from my early 20s, when such things were still fairly common. £4k a year guaranteed minimum, but at their current estimate, could be 8k a year.

That's more than I'm likely to get from the 20 years self-employed PP malarkey that followed it.

Yazzoo22

I really appreciate your reply.

Late 40s here and I put £3000 a year into my pension and my employer puts £9,000 in. Not great and I'm going to increase it as the years go by and negotiate an increase with my employer too.

Don't feel bad about not putting anything into a pension before now. I've always had pensions and two have gone insolvent since I left meaning I'll get very little.

A friend I know who's 60 this year puts £25,000 a year into his pension. That's pocket money for him though.

Currently not paying in ( new job and not sorted it yet) but previously I paid 7% and work paid 10 %

Stumbled on this recent article on BBC site about how much you need to put away in order to have an income of £20,000 in retirement.

www.bbc.co.uk/news/business-38609422

Yazoo

Going part time does affect final salary pensions. The pension at retirement is based on ur service and earnings. If you worked half your contracted hours you will have half a year instead of a year to count towards your pension.

If you have a career average and go part time, say half the contracted hours, you will build up pension based on your earnings.(although will be half than if you were full time).

Final salaries to tend to be better than career average because it's using the salary at retirement which tend to be higher then your average salary throughout your career.

I'm in the civil service scheme. I pay 6% and my employer pays 20%.

Oh my.
I am so stressed after reading yhis thread.
I will never be able to retire or I'll have to live on the streets

Nothing......

I have 2 small pensions from my last 2 jobs which lasted 2 years and 5 years.

I've been a student and self employed for the last two years and have savings...... but nothing recently in terms of an actual pension.

Bluebell you're not alone...!

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