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)

Nothing because I don't believe in 30 years by the time I retire my money wouldn't of disappeared

I believe there will be many pension scandals and I'm not getting caught up in it. I also don't think state pensions will exist either.

We are protecting our money in other ways.

@Futurama1 wow people are seriously aggressive on here, because you have worked hard and smart.

Ironic they're barking at you like you're an idiot for doing well? Why are people angry that they don't have the same pension pot as OP? It's not OP's fault you know, why are others angry at OP that they have no pension? They could instead study to progress/start a career, or work extra hours, instead of sitting on mumsnet..?

@stairgates

What happens to the pension pot if I die? Does it get cashed out and given to family or is it lost?

Yes, your family can withdraw it.

Kim people are dying

@primrosee, it depends on the pension.

What happens to the pension pot if I die? Does it get cashed out and given to family or is it lost?

Depends on the pension and your circumstances.

@primrosee - depends on whether it is an annuity or drawdown or combination of both.

May I respectfully ask all women who no longer get child benefit due to their husband's earnings, to ensure their right to child benefit is reinstated by their husband's declaring it and taking the adjustment via HMRC. Even if the money has to go straight into paying joint bills, the receipt of cb buys women state pension years regardless of their husband's income.

I'd also say to all women, my dd (and ds) included - start as early as possible and make it a habit. I couldn't contribute until I was 24 in the early 80s due to prevailing legislation. That was daft. I worked from 20ish to 36; then had a career break returning to work at 43 (local, low paid but LPGS). In 2013 I transferred in my previous pensions and 8 years service (only then were my earnings beginning to match the job I left in the 90s) and by chance locked about 20 years into the FSS side of things in 2014 before the switch to career average/defined benefit. I'm 61 and hope to keep going for another couple of years for about 2/3 of a full occupational pension. That additional couple of years will ensure I have a full state pension (35 years of contributions) as am a little short due to the contracted out status of LGPS until about 2014.

The point I am trying to make is that despite being assiduous because I am a woman, couldn't contribute in my early 20s and had a career break and did a bit of part-time work my occupational pension is still only about 2/3 although still exceeds the average.

Compared to DH, who for most of his career was self employed, the employer contributions are a huge added value as part of total remuneration.

DH can access his pension pot and redistribute it to aid IHT planning, I can't do that beyond my allowed lump sum taken when I retire. If I die in service DH gets 3 x my salary and about half my pension. If I die in retirement dh gets about half my pension. If I outlive him, my DC get nothing which is where careful thought is required re taking lump sums.

May I respectfully ask all women who no longer get child benefit due to their husband's earnings, to ensure their right to child benefit is reinstated by their husband's declaring it and taking the adjustment via HMRC. Even if the money has to go straight into paying joint bills, the receipt of cb buys women state pension years regardless of their husband's income.
You don't even have to receive the payment. You can opt out while still receiving the NI credits, also a more minor benefit is your child will automatically get their NI number rather than having to apply for it.

If £60K is deemed 'very wealthy', and in the top 5% of earners, then this shows far more clearly where the truly rich/poor divide truly exists in the UK. The massive proportion of this nation's wealth is in the coffers of about 1-2% of the country; that would be the city, the political classes and the property dealers who are flogging off disproportionately expensive property so that Russian oligarch's can get their money safely out of the country and invest in a more stable economy in the event of another property grab in theirs.

The political classes and financial sector have their snouts in the trough and it suits them fine to people fighting like crabs in buckets for the meagre spoils left over. It isn't the £60K earners and pension-pot-payer who are this country's problem. This isn't at all wealthy by London standards, for that city apparently has an entirely different economy from the rest of the country.

I have a TPS. Judging by the USS precedent practically anything could happen to that before I'm due to retire. Husband's investments are riskier and tied up in his own business.

Nothing 😕

@Sprostongreen21

Any NHS staff previously posting that don’t know how to access their pension. Use ESR and the Total Reward system as that breaks down your yearly contributions/ totals etc. All available online.

The NHS pension has changed twice maybe three times since I joined 16 years ago. It’s not as good as it was but I’m still running up a nice pot that even if I left now I’d have money to top up a state pension and live more comfortably. We are lucky with the employer contributions. I never understood why people opted out: I’m not on about those struggling financially but those that just didn’t want to pay it.

Thank you - I didn't know you could access it on ESR!

@Cocomarine
Oh thanks that makes sense now. It is like the blind leading the blind with me trying to offer advice but as you say my original point holds true in that pensions are not at all scary once you actually get into the nitty gritty and knowledge is definitely power in this case.

www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

Free advice available.

Thank you @Cocomarine I’ll
Investigate. I’ve been so conditioned against pensions I just got engrained into thinking a buy to let was the way forward. I’ll have a good look.

@Futurama1

Okay wow! I didn’t intend for people to take offence, probs shouldn’t have mentioned individual contributions.

I don’t earn a wild salary BTW, just have prioritised this and employer pays a lot

really?

*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 in 1.2k per month, my employer contributes 800 per month*

Not following your calculations here, 2k per month would be £24k/annum, £720k contributions over 30 years.

What funds are you investing in? That should give you some idea of what growth you can expect over 30 years.

Once you factor in some growth, you might want to keep an eye on your lifetime allowance

https://www.gov.uk/tax-on-your-private-pension/lifetime-allowance

Who was the idiot who said that the very wealthy don’t have pensions?
One look at the MSE pension board tells you that pensions are an integral part of estate planning, how else could you pass on £1million, tax free if you die before 75?
Pensions ARE investments, well they are the tax efficient investment wrapper, you can invest in pretty much anything, even bitcoin.

Where else will give you a 40% gain ( as a higher rate tax payer) before any investment returns?
I really wish I had started a pension many years ago but pensions were very different pre2016.
Even non earners like me can pay in £240 a month and it gets £60 added in tax relief, so £720 a year free cash. I started 3 years ago and chose fairly high risk funds to invest in, my SIPP is now at almost £20k and I’ve dialled back the risk a bit but I’m expecting a pot of £50k in 5/6 years.

@ChewChewPanda I've been there 3 years but I'm only a band 2 so I guess 6% of £19K so around £1140? Not great 😩

Pretty close to zero
I have about 2 years of contributions from a workplace pension years ago. But nothing else. I am barely surviving as it is, have absolutely nothing left over to put aside.

£2k per month, wow. I could only dream of even earning that much in total, let alone having that left over to put into a pension.....

State pension is 800 pm. My bills atm are 300pm without mortgage.
No mortgage then.
Ill be ok.
If not Ill get one (or two) lodgers, in my then emptier 3 bed house, or poss get a job. Ive no worries and live for now.

@GenderApostatemk2
Same here. I can only pay in 240 as well and it doesn't sound much but over approx 12 yrs it has grown to 90 odd grand and as you say the tax relief on top is basically free money. So even investing small amounts over time can make a huge difference to retirement quality of living.
I have another 10yrs before retirement to keep paying in so it will continue to grow and hopefully we will be able to eek it out over the remainder of our lives to supplement our state pension.
So labouring the point yet again that it is worth saving even small amounts into a private pension (not that 240 is a small amount when you're struggling I know but even if it is much less it is a start and well worth looking at ). I had no understanding of pensions or indeed interest in them but a good financial adviser encouraged me to get one in my early 40s and now I am so glad he did.

@GenderApostatemk2 Thats shocking and disgusting.
There are people starving to death in this country and you get £720 per year free money you obv dont need.

If I had a spare 1.2k to put in each month I would, but it's not far off what I earn

I'm expecting to be poor in old age

Embroidery
There is tax relief on pension contributions. It is to encourage people to save for their old age. When people take this opportunity and do save, it costs the state less in old age benefit payments.

As other posters have said, even very small monthly payments into a pension can make a difference. Anyone saying they can’t afford to pay into a pension, even £10 per month is better than nothing and a start.