How much will you receive from your Pension?

[WinteryWonderland]

I'm on track for full state pension after checking recently, so that's something. DH is also on track and has a private pension, but we've been advised to up the payments by £500 month 😬 like we have that surplus floating around!
I just wondered what other people have in place and how much that will provide yearly when you retire?

I get about £12k from a works pension - would have been more but gaps for children. I did get £120K lump sum though. My state pension doesn't kick in until next year when I am 66 but I didn't find that out until I was 58.
Fortunately DH has a healthy pension and we also have SIPPs.

My DC aged 25 and 27 have both started paying into SIPPs now on top of their company pensions.

It's also sad that so many work all their lives, save, have pensions to prepare for retirement to never make it 😢 but then we have to prepare as we could live to be 90!

I have no plans to retire until I can no longer crawl to work.
Which is a good thing because I'll be eating pot noodles when I do.

I'm late 30s, I work and pay for everything, cleared the mortgage, wife looks after the house and sorts the kids. I'm now chucking money at our pension, (about 50% salary) and employer tops up by 10%. Aiming to retire early 50s and take her travelling. Not quite sure what we will get but it will be over 50k/yr

I'm early 40s. Based upon current contributions I think DP and I will have an income in the region of £30-£40k (that includes 2x state pension). I'm also saving into a S&S ISA. DP will probably get some kind of inheritance, I won't. As we should be mortgage free this should be fine for us (our small house = not horrendous utility, council tax or maintenance costs).

Our rough plan is continue paying into pension/savings, do up our fixer upper, once house is done then enjoy the long haul holidays we'd like to do whilst we are young enough to do them (next door neighbours recently retired. They look healthy but actually have hidden conditions which means they can't afford the insurance for long haul holidays now).

Also quite keen to move into the public sector in around 5 years time, the pension will be worth it.

Between OH and me we will have 2 x state pensions, £8000 in DB income pa and will drawdown 4% pa from DC pots (about £6000) to give us £36000 between us. That’s a bit better after tax than we are on now. We have no mortgage.

I have a public sector job and am buying extra years pensions ( additional 7k salary sacrifice a year) that way when I retire I get the full pension. Full state pension small private pensions from previous employers.

Unpaid carer for 2 relatives. Zero
Only state pension.

DH and I are both still working at the moment but are starting to look at cutting back. Both DH and I will get a full SP (he is 61 and I'm 62) and DH already takes his pension from his previous job which is approx £36,500 pa. This means by the time we get to SP age we should have an income of around £56,000 pa pre-tax.

I have a small pension in a SIPP but we used my 25% tax free lump sum to re-do our kitchen. I have about £100,000 left and this will be used as our cash savings. We are mortgage free now and DS is through Uni and already owns a small flat which he rents out so don't have to worry about him. We could downsize our house if needed. There may be an inheritance for me but that will depend on whether DM needs care in the future but I can't bear thinking about that.

I'm not entirely sure how they calculate it, but as it's defined benefits, the more you earn the more both the employee and employer put towards the pension pot. There was also a change in the way the pension is calculated and a lot of DH's pension is calculated on his final salary. He's currently a deputy headteacher on approx £80K.

Dh currently gets £19k pa plus full state pension, age 66. I drew my private pension early at 55 and get £8k pa. I will get a full state pension in 7 years. So around £38k now and £49k gross between us in todays money by the time I'm 67. We are mortgage free and have savings which currently yield an extra £375 per month.
We both gave up work long before our state retirement age and consider that to be worth so much more than can be measured in monetary terms.

So £80k when mid 40s takes him to a £60k per year pension? I am not familiar enough with the teachers scheme to know how that works but it is astounding

@mia85 it reaches that figure proportionately if he works another 20 years. He must just have locked into the old scheme rules. If he stops working at 50 he won't get that much.

An interesting fact is that the average annual pension paid out by the LGPS is about £3k. Interesting to find out what TPS is.

I have an old DB scheme that will give me £14k a year at 55 next year. State pension will give me £203 a week or the equivalent by then at 67 (unless they change it). I also have funds in a private pension that if I converted to income would give me around £6k a year so probably about £30k a year once I am passed 67. Plenty for me that with no mortgage to pay.

State pension plus an NHS defined benefit one. I'm 31 right now and it would pay out £7k a year from age 68. That should start going up quite quickly now as I am done with children and my salary has nearly doubled in four years.

About £45k from private and then the state on top of that. That's a teacher pension though of career average, with me paying 10.2% contributions my entire working life.

At your level on income you'd be far better off paying more into your pensions rather than savings and investments due to the tax relief surely?

Mum and stepdad get just under 800 each i think....

Mine should be around £1900 private that I'll take at 60 with a 70k ish lump sum that'll I use to top up my monthly pension until I hit state pension age. Should have the mortgage paid off in around 7 years so I'll save hard for the remaining 6 years of work and fully intend to go at 60.

It all depends on when I retire (currently 53) and how my investments do over that time. I currently have about £600K in my DC pots, if I retire at 65 and pay maximum annual allowance into them, they do well and the government doesn't tinker with annual payments or life time allowance, then I could have circa £1.6-£1.8M in there, which I will draw down as needed throughout my retirement. So many variables though, I could retire earlier than 65, I could get ill, I could die before then, the goverment messes around with pensions again, my investments don't do as well as I would hope....

It's a long game but I would think there will be enough whatever the outcome. My husband doesn't have much in pensions but we will both get full state pension.

We will have a house we can downsize from, and savings/investments elsewhere.

@Notjustamum10 you can buy in extra years of NI contributions if you fall short at retirement age - might be a rolling 3 years IIRC. Worth checking out

I thought Labour had committed to brining the lifetime allowance back in again? They said they would do something bespoke for Drs but bring it back for everyone else. Not sure whether they are still continuing with that plan but if they bring it back at the old rate it will be expensive for a few people on here, including those with high DB pensions.

OP these kinds of threads are always quite worrying for people as they tend to atrract quite a range of posters including those at the very high end and that can make it seem completely impossible to get to a decent level.

Do you mind saying how old you are? Of course you will get tax relief on the £500 a month if you do follow the advice of the financial advisor. Depending on what tax band you/DH is in that means the £500 won't be as much of a hit as you think. If there is any kind of employer matching of salary sacrifice available that'll make it more manageable.

There are some good pieces of research on what people actually spend in retirement:
https://www.retirementlivingstandards.org.uk
https://www.which.co.uk/money/pensions-and-retirement/planning-your-retirement/how-much-will-you-need-to-retire-aNmlv7V7sVe9

They might be more reassuring than some of the higher posts on here might suggest. Of course there's nothing wrong with wanting a high income in retirement but it can be quite worrying for anyone looking to see whether they can manage more modest plans.

I thought Labour had committed to brining the lifetime allowance back in again? They said they would do something bespoke for Drs but bring it back for everyone else.

That would be hugely discriminatory, especially given the multiplier applied to defined benefit pension schemes to establish a "pot value" for the purposes of the lifetime allowance is already incredibly generous, meaning that a DC pension to provide equivalent income to a DB one will be hit by the lifetime allowance limit at a far lower value in terms of annual income achievable from the total. I think if they try to make specific rules exempting doctors from the limits imposed on everyone else then they will be challenged in court and likely lose.

To be honest the lifetime limit should be scrapped entirely. Pension saving should be encouraged and it's peverse for a Government to expect people to predict investment growth decades into the future to try and avoid an arbitrary tax cliff edge, particularly when successive Governments keep changing the rules for political reasons.

It's this type of unneccessarily complicated system and lack of reliability that creates distrust in the system and reduces pension savings across the Board. All politicians should agree to leave pension tax laws as they are, so that there is finally a stable platform with no more raids or tinkering, with all threshold uprated by inflation every year, if they want more people to become self-sufficient in retirement.

This is interesting, thanks for the link. I find some of the figures quoted in it bizarre though! I am a member of Which? and usually find their research thorough but some of this seems very unlikely to me, for example the amounts quoted for private medical insurance (for a supposedly "luxurious lifestyle") which are less than it costs people decades younger than retirees. I know some older people with medical insurance who are not in terrible health and they pay per month what this says it would cost per year. The amounts quoted for long haul travel, utilities and gorceries also seem highly unrealistic (£48 per week on groceries is a "luxury lifestyle", given current food prices?).

Interesting how it compares to this research on retirement standards that many pension providers use in their illustrations to people:

www.retirementlivingstandards.org.uk

The two seems similar at the lower end (in terms of the cost of meeting totally essential needs and subsistence level existence) but vary more in terms of their analysis of what is needed to be "comfortable". I found even the Loughborough research I've linked to be very low in terms of what it was claiming could be provided for that level of income, though, and the one you posted says a similar standard of living is achievable on even less money! And compounding that, it appears that the Which? analysis is expecting some rent/ mortgage payments to be included within the specified income levels, whereas the Loughborough research us quoting figures without housing costs (it includes house maintenance/ upgrading kitchens/ bathrooms periodically but is assuming a mortgage fully paid by retirement, no mortgage/ rent payments). So the Which? numbers seem really low for what they're claiming could be achieve on the specified incomes. I shall dig further into their research!