If you are retired and have a good life, can I ask how much pension you draw?

[User5512]

I tried some calculators and they all gave me vastly different numbers.

I’d like to know (roughly) how much money does a couple need to have a good life in retirement.

If you are retired, would you be kind enough to give me a rough idea of your lifestyle and how much pension you get?

thanks :)

Well of course they do - it is one way of paying some extra tax before the reckoning at 75 or they put it in a trust or investment or hand over directly as deposits for houses etc.

If it happens it happens but will take a while to legislate on. There are so many considerations. Already Financial Advisors take this into account and are looking at ways around it or calculating the impact.

I am not sure I follow what you mean. Pension planning takes decades so unless you are close to pension age and trying to start drawing it before its reintroduction then the timing is of little relevance, it's the rule that will apply to you that matters.

@Mia85 I am already retired so only talking from my own POV. There is talk of possibly grandfathering some changes - I don't think anyone really knows yet and that probably includes the Labour Party. It's all very complicated and unknown at the moment.

@Mia85 so disappointing. Another reason that I just don’t trust labour to govern competently, even in relation to the very low bar set by conservatives.

as someone mid-40s, I think it probably still makes sense to keep contributing when there are tax advantages to doing so, and just hope that 20 years from now either the penalty is removed or the threshold is significantly raised.

@Mia85 yes especially as a good number of people with large pensions will also be hit by the addition of VAT to school fees.
As much as it is popular at the moment to root for Labour, people won’t vote that way if it means they won’t be able to retire as planned / keep DC in private school. I hope the opposition will make sure the public is aware of the potential impact - at the moment lots of people think it will only affect the super-rich / affect them but will still be manageable.

That’s strange given that a teachers pension is one of the best in the U.K. Could you afford to pay extra as its tax free into it.

I've got both a teacher pension plus local govt. I'll clear, with state pension, about £100/month less than I'm on now. Still 7 years to go though.

DH's work pension is more than my current salary, but he's still working as well as getting his pension. He'll be able to get his state pension from next January as well.

We're also looking to downsize once DS2 (23] moves out and mortgage is now paid off. So I think we'll be comfortable enough. Just wish I could retire early but the penalties are just too much, so I'll probably just drop a day when I've got 5 years to go. I've also got a private pension from years ago that will make up the shortfall.

Just thinking about it makes my head hurt though.

I just looked at our bank statements and I agree with Houseplanter.
We have a car but I am disabled so no car tax, no travel, rarely go out. Mortgage paid off. I buy expensive organic food and natural fibres. We have expensive lap tops. Mostly we have all we need already so don't buy much. No smoking. I drink wine. We never spend it all. Give away quite a bit.
Having grown up poor, I feel so grateful to be able to be generous.

My OH retires in a few months, we have no mortgage or debts. I have a small pension & combined we will have about 40k before tax (about 3k/month nett), it will increase next year when he gets his state pension, to about 52k gross. I have another 4 years before I get my state pension at 67. We will be able to live fairly comfortably on 3k/month but probably need to supplement from savings (which are considerable) and his pension drawdown funds for a new car, big holiday etc. I know we are in a fortunate position compared to a lot of people, our son who is in a very good job earns around what our gross retirement income will be, but reading the figures that were published this week you can’t help but worry if you have enough. We also have a large property with land which we can, and probably will, downsize from at some point & that will release more capital.
I don’t really think reading things like that report or what I have written (to me I sound very boastful but I’m being honest & we have been fortunate in our working lives, neither of us come from wealthy families) is helpful though, everyone is different and the quoted figures in the report depend how you live your life.

Teacher pension is great, as it's defined benefit. Some years part time while my kids and 2 years mat leave have dented the number of years of service I've got banked.

I've got 10 years left (if I last out til then) until I can take the the final salary part of my pension without having it reduced, so it will still rise due to increasing salary and interest raises over that time.

At the moment it shows that I get a £40k lump sum and £14k annual salary.

I also took out an AVC at the start of my career and have paid a bit extra into that. It's harder to predict what that will be worth on retirement.
I could take a £10k lump sum and a £2k per year pension. Or a greater lump sum and lower annual pension.

I'll keep paying into this one for the next 10 years too. I didn't predict mat leave or part time when I took it out, but am glad I did now, to make up for some of my lack of pensionable years.

Part of my teacher pension I can take at 60 unreduced and the other half (payments from 2022 onward) will be reduced if I take it before 67.

AVC pension/lump sum will mitigate any reduction in pension when I retire.

It still isn't going to ever make 2/3rds of my salary.

Not doubting you - genuine question - but how do you draw down 70k per year from age 52 on a 1.5M pension pot? Surely it runs out by age 75?

Hi - £500 for direct debits?? Our council tax alone is £160 + energy £300+ water £40+ phone/internet £45+ home ins £35 + TV lic. This does not include car ins or car costs. ? Just curious 🧐

The idea is you can draw down about 4-5% of your pot per year without reducing it. Growth of 4-5% should offset the withdrawal.

£70k is about 5% of the pot here.

I get £2,600 per month with private pension and state pension and it gives a reasonable lifestyle but with the cost of living being so high and energy price increase it doesn’t leave much and as a single person I pay all the bills so am considering going back to work part time at 66 yrs old

We are retired. Both 60. No mortgage, kids left home. No private pensions though. We draw off capital. Have property assets and we're hoping a £mil will last us 20 years, so 50k a year. Won't be leaving much for the kids though if we live that long. 😄

The idea with pension funds which are invested is that you withdraw less than it earns in interest . There may come a time though when eg care home fees will outstrip that.

Some of the suggestions on the Retirement Living site are over inflated. The moderate plan spends £60 a WEEK on eating out and £20 a WEEK on takeways on top of £100 a week on groceries.

Over £60k per annum because my lovely husband worked so hard at building up our private pension pot.

£60 on eating out won't get a meal here in Yorkshire and £20 on takeaways will just about get McDonald's for 2 with delivery

If you want to eat out once a week and have Takeaway once a week it would be £120-150 not £80

I live alone in my own 4 bed house, with no mortgage. I run a car. My income is £24. I watch what I spend, but can afford meals out. Last year I enjoyed 4 holidays, two long haul, but I had saved hard for these.
I spend very little on new clothes, beauty treatments etc. i am almost veggie and try not to spend much on food, but I am absolutely never hungry. You just have to choose what you want to spend your money on.

I semi retired last year and won’t get my state pension for another 4 years. I currently earn iro £12000 pa for two days work per week and anticipate that my state pension will be a minimum of that same figure.
I have three small private pensions; one a final salary which I will take as a pension and the others I will cash in and use to pay for some extensive travelling.
I am lucky in that I own 50% of my parents home which is currently let for £1400 pcm. At some point I will inherit my dad’s share plus his retirement flat- which I will probably let as it may be very hard to sell it.
I know I am fortunate. When I semi retired last year I had no idea that any of this was going to happen, then my mum died…. I had costed everything out and was going to live frugally and dip into savings until my state pension arrived.

We’re 56 & 57 this year. I’m self employed and plan to work until I’m 70 if I’m able. Husband probably late 60s (again if able). State pension and husband has small work pension (think around 100k). I have tiny amount in Nest pension from an employed job but not significant. Hoping at 70 to downsize and use equity if need be. Regret not paying into pension from a young age but struggled with money at that time. Having said that we’ve been lucky making money on our house.

My occupational pension is definitely not that much. It’s 1/3. My husband’s occupational pension is less than 1/3. He has his state pension (reduced due to being in an opted-out public sector job) takes it to about 2/3. We have some savings that we use for holidays and a safety net. We have a good life, but not luxurious.

@ZsaZsaTheCat 170 council tax, 35 water rates, 14 tv licence, 62 Sky, 135 gas/electricity, packaged bank account 17 (covers rac, trav ins etc) two x 6 sim only cards (great data unlimited calls) and 29 fibre broadband, totals 474 so 500 was over generous. Car insurance 2 x 200 paid out of the 1500 remaining after direct debits in full not monthly, car tax 2 x 140 I think again paid in full. They are all due different months so easy to do. Home insurance also paid in full.