To ask how much your retirement pot will be

[Futurama1]

Off the back of some threads today, how much are you aiming to have in a retirement pot?

I’m going for 600k at today’s value which seems an insane amount but 20k per year for 30 years + state pension. What are you aiming for?

I put 2k per month in currently (inc employer contribution)

She's not being unreasonable; she is pointing out how much money you need to set aside for retirement. It's much, much more than the amount of state pension, and you/me/we all need to save for it if we ever want more than a cup of tea outside our home.

@XingMing - I totally understand the value of paying in to a pension. I have been doing so all my life, but there is no need to about it if your take home pay just about covers your rent, utilities, travel and food. Quite clearly that is where the OP is being incredibly insensitive to post the opening post she did, in AIBU.
If you read all of my post, I did say I think it is important to talk about pensions, but it is the place she has posted and the insensitivity to people's circumstances that has made people cross.

As ever on all pension threads, @WombatChocolate has made some excellent posts which are really helpful.
FAR more helpful to everyone than someone coming on to say "I pay in to my pension more than some of you take home, what about everyone else?"

Apologies - previous comment meant in reply to @echt

Me too @flirtygirl

My dad died skint after his provider went bust. Feck it.

Pensions are my blind spot. My priority at the minute is clearing some debt and building some savings
I do have one with aviva through my employer which this thread made me log into but I've only been with them a short time, and a tiny one with pension bee which I stick a tenner a month in with the thought something is better than nothing...

It currently stands at about £1000 a year. Hopefully enough to buy a loaf of bread and a pint of milk each week.

I take home what you put into your pension OP; I'm single (divorced) and in my 50s. I don't have any high expectations from my salary provision. About the only positive thing is that it is a final salary pension but I totally expect to be TUPEd out and put onto a piss poor deal.

Ok help me out here more adult people!!

I have found my old pension scheme (it transferred to Aviva from Dec 2020)
The letter says
Your benefits will remain deferred unless you transfer to another pension scheme

Then
Option 1 - deferred lump sum at retirement age £15,444

Option 2 transfer value £4,817

So should I transfer it to aviva, or leave it?

Good lord you could open a chippy in here tonight!

I had no idea about pensions when I started work back in the 70s. The first time I even started thinking about it I was in my late 30s and even then it was just something that happened when you were old.

I have a small private pension of 235 a month and in 8 yrs time I will get (some not all) state pension. I have no idea what my 'pot' was. Or DHs come to that.

My sons are about to start their working lives and we have made sure they know all about pensions and they will start them much younger than we did. It's really important that people think about this stuff sooner rather than later.

Just to point out that in 2018 several news papers reported on the government actuary department forecast that state pension will run out in 2038 as in there won't be enough workers to pay for non workers ergo state pension

This is quite worrying only 11 yrs away.

I think many people eap in 30s and 40s might find access to state pension significantly reduced either through higher retirement age, means testing or reduced amount if that forecast comes true then that is what will happen.

I think its even more prudent to try not to rely on having state pension or certainly not anticipate itll be at same levels today in 20 or 30 yrs time.

Alot of people seem to burt head in the sand with retirement kicking can down thr Road.

I think children need to be educated more on formal life finances as I call it, e
G. Investing, retirement etc.

Gone are the days of partying in your 20s and passing your money away as cost of living increases its more important your adults realise from early age to be more sensible, start pension early, yes parry and go on holidays but maybe not spend it all.

YABU to post this when 2K is a fair bit more than a lot of us take home each month, including me.

I am honestly shocked for words at the replies on this thread. What utter jealous, bitter, nastiness.

OP, In answer to your question, Ive just had a look at a Salerno calculator and it looks like I’m heading for a whopping £550 a month. Oh bloody hell. Put husbands through, his is triple mine.. need to start being extra nice to him, need him to stick around.

2k per month! Absolutely ridiculous, stop it now! Even well off/rich people wouldn’t be doing that, if they had that much spare cash it would be invested properly! With 2k spare each month you would be investing that appropriately and hopefully being advised by your financial advisor!

@Thehop

Me too *@flirtygirl*

My dad died skint after his provider went bust. Feck it.

Awful for him. Before or after the 2005 launch of the PPF though @Thehop ?

The Pension Protection Fund manages £36 billion of assets.

I would just urge you to make your decisions based on current legislation and protection.

The PPF relates to DB schemes, but there is also legislation around DC schemes.

@Twillow

Why is it unreasonable? Are people who earn a good wage not allowed to have conversations on web forums anymore?! The resentment of others is shocking and I say this as a specialist nurse who trained for 5 years and is still only on 35000.

@BigSandyBalls2015

What’s the point of saving that amount per month in a pension when none of us have any idea if we’ll live to retirement age. Enjoy it now.

Statistically most people will

@Dreamstate

I think its even more prudent to try not to rely on having state pension or certainly not anticipate itll be at same levels today in 20 or 30 yrs time.

Aye, you're right. I'll just stop being disabled. Cheers.

OP I earn the same as you . How is Gods name are you able to put away 1/3 of your take home monthly pay to a pension?? Don't you have a mortgage , outgoings , kids , etc ....
Seriously .. how are you doing it ???

Nothing. I am on UC, and wont live to retirement age anyway.

How many people will be applying for public sector roles on the back of this thread. Librarian anyone?

That seriously an excellent idea though. I’m a decent earner with a decent pension pot and other investments but might jack it in in a few years and go public sector.

[quote User310]@Twillow

Why is it unreasonable? Are people who earn a good wage not allowed to have conversations on web forums anymore?! The resentment of others is shocking and I say this as a specialist nurse who trained for 5 years and is still only on 35000.[/quote]
See Kite22's post above.
Posted in Financial -fair enough.
Posted in AIBU? Here's my personal answer.

[quote FrDamo]@ArabellaScott

Apologies if my post was in anyway inflammatory. That was not my intention.

I absolutely acknowledge not all graduates earn the big bucks, but in general the higher your qualifications the better the earning potential.

I think I failed to say that financial education is what our young are missing. They need to be taught about: rent, mortgages, gas/electric/phone/internet utilities, insurances, taxes, savings, national insurance, pensions, childcare costs, groceries, loans, leases, interest, compound interest, apr etc

If the young (of both sexes) have this knowledge then perhaps they will be able to make more informed decisions that will not impact adversely on them come retirement age.

Perhaps this is not in the remit of the National curriculum but maybe it should be in some format or other. It could be argued it is the parents' responsibility to educate the next generation but if the parents don't have the knowledge themselves or struggle to successfully impart info to their disinterested kids, some kids could at least gain some info in the more traditional school setting.[/quote]
Excellent post!

I agree some type of education on at least some of these topics.

@speakupattheback

Oh please. This is Mumsnet, not "minimum wage net". Some people - a great many people - earn a lot more than the national average. Are they to stay quiet and meditate on their good fortune? Many on MN spend stupid money imo on tat, on interior decs, hobbies, etc. If the OP who is on a decent but not excessive salary wants to save for her future then good for her. She has a right to ask questions like every other poster.

Totally agree !

Congrats op on a great salary and being sensible !

[quote DumplingsAndStew]@Dreamstate

I think its even more prudent to try not to rely on having state pension or certainly not anticipate itll be at same levels today in 20 or 30 yrs time.

Aye, you're right. I'll just stop being disabled. Cheers.[/quote]
I didnt say for everyone, I said people should try not to. Obviously there will be exceptions. I dont believe it will go completely, I do think though it will be means tested more meaning most people like me on around £50k might find we don't get as much state pension as we would today or may get nothing cos of means testing.

The fact cant be ignored though and if your young now and depending on your circumstances should factoring that scenario in.

I plan to die before I retire. That'll be at 80 while working for b&q at this rate.

If I save hard I'll get me a paupers burial 🤞

@WombatChocolate

This thread worries me. Op is aiming for a £600k pension pot, and will be lucky if that delivers £20k a year. £30k in a pension pit will buy an annuity (life long income) of about £1k per year.

It is absolutley right that people talk about pensions and can talk about it on the Internet because they iften can't in real life.

There are threads about pensions every week. Each time, some people learn something and realise what position they are in and learn about little steps to improve their future. It's very valuable.

So many people, especially women are clueless about their pension provision. They have a strange fatalistic approach to it, as if it's something they should know about, but don't and seem to assume it's impossible to get to grips with. Yes, lots of people don't have huge amounts of money now before retirement. That doesn't mean showing zero interest in pensions or berating anyone who wants to talk about it. Not engaging means the retirement ahead will be worse than it needs to be.

I honestly don't think Op was bragging. Which says about £20k is needed for a moderate retirement and £12k for the bare essentials. £30k is needed for a really comfortable retirement...these are figures for a single person. Having a plan to reach £20k in pension is not a brag. £600k has not been achieved yet but Op is working on it.

People in occupational pensions like NHS,meta hers, civil servants - public sector with defined benefit pensions done have a POT to fund retirement, but a guaranteed yearly income. These pensions (like the Police) genuinely are gold plated. Employers are usually paying in over 25% of income in contributions and employees are often laying in close to 10%. It's a huge amount and partly explains why this E pensions are so good. But even with those figures, they far exceed what a defined contribution pension will deliver.

Lots of public sector workers who earn in the £40k+ bracket can be boosting their yearly pension by almost £1k per year. They d need to pay £30k into a pension pot per year to generate an annuity to pay that. Most won't be doing that.

It's not a race to the bottom and anyone with an interest in discussing money or pensions isn't necessarily bragging.

The maths is wrong as it doesn't factor in investment gains in the draw down period looking at my rough scribbles .

Also most people set higher income for early retirement and taper it down into older age when they are likely to be less active