To ask how much is in your pension pot if your mid 30s?

[Kanfuzed123]

I started working in a proper PAYE job at 28. Didn’t know the foggiest about pensions and the place I worked in did the bare minimum which at that point was like 1%/2%.

ive moved around a bit work wise so got 3 separate pots and did some life admin today and saw I’ve got 30k. I’m 33.

my husband has around the same. His pension provider has a calc that shows if you continue at this rate you’ll have X amount by state retirement age and can expect X amount per month and what sort of lifestyle it correlates to. DH’s calc said it would be 3k a month which correlates to a moderate lifestyle. That whole thing seems baffling, since when is 3k a month (no mortgage) moderate and not comfortable but whatever.

maybe that should fill me with confidence that it will be enough in retirement but it doesn’t really. 30k at my age seems low? Any one?

How does a person work out their pension pot? Sorry to be naive! I have two workplace final salary pensions, two private pensions and then I will get 100% state pension and about 75% of another EU country state pension. If I count everything right, and not accounting for any lump sums taken, nor inflation, it should be about £26K a year from 67.

@AuntieAntik

The full UK state pension is currently £10,600. If you have another EU pension maybe another £7k?

I'd expect your two final salary pensions to be worth more than £9k (£26k total)?

@AuntieAntik you don't have a "pot" for a final salary scheme, you will have a promise to pay you a certain amount from a certain age, these amounts are usually guaranteed and will usually increase in line with inflation. The private pension providers will be able to tell you how big each pot is now but the prediction of how much it will be on retirement and how much it will pay out per year is based on assumptions which may or may not turn out to be accurate so these are only estimates.

FWIW - this isn’t true. Contribution rates are completely arbitrary in defined benefit pensions.

I'm 37 with 0. I have a progressive neurological condition so I imagine I only have one way to go before that's a worry of mine.

Please link the UK DB pension with total current contributions that add up to lower than that?

To be fair to @Talkinpeace I think she was talking about the true "cost" of providing the pension not how much the employee contributes. The NHS scheme has a varying rate for employees but roughly around + or - 10% depending on your grade. The NHS then pays 20.6% so in total it is around 30%.

I don’t understand what this means.

In a defined benefit pension, it doesn’t matter what the employee or employer contribution rates are. They could be 11%, 23%, 36%, whatever. The actual pension earned depends solely on the accrual rate and the salary earned in a given year. There is no link with actual contributions. They are arbitrary.

This shows you the average pot for a man or woman based on age:
https://www.pensionmirror.co.uk/

I’m nearing retirement and have a very healthy pot, but don’t have a crystal ball showing how inflation might erode it, or any governmental back pedalling.

This is so confusing as I earn the same as the OPs husband and have employer contributions of 19% and I contribute 6%=25% overall and my pension is predicted to be nowhere near what his is. I am looking at around 16k a year (not including state pension as I too don't believe it will be available to all)

They're all just estimates though, yours will be based on different (presumably more conservative) factors. Neither OPs husband nor yours is a guarantee

You can always plug it in a compound interest calculator yourself and play around with it

Mine is a guaranteed income as long as I keep working earning my current salary until 68

Oh sorry I assumed yours was contributory also. If it's DB it may be lower but being guaranteed is a huge advantage!

It is a weird one as it isn't like the old huge pensions but my employer has to make up the difference if the fund falls short of predictions. I need to look up what it is called- I know I don't have the option of paying more into it though, I would have to pay into a private pension if I wanted to save more

Best wishes Crooklodge hope you're ok

It’s refreshing on MN to see a post where lots of people have fairly ‘normal’ amounts / salaries and sensible responses vs the ‘we earn 300k between us and the pots full already at 38’..
I have pennies as SAHM and haven’t worked for a few years. Partner had about 15k up to a few years ago when we finished our big house move, got the pension statement and panicked when we suddenly realised how important it was and we were mid-30’s with no pension. After some big promotions we are throwing everything at it to avoid the 100-125k equiv tax rate so about 40k a year in total (employer contribution is tiny, 3%). We would have laughed if someone had said we could afford this a few years ago when this was his actual take home salary. Taking the good years when we can as no idea if our luck will run out, can’t believe he’s on this salary. If we can get 500k in over the next 10 years we can relax a bit. Definitely want to retire early and take 25% tax free at 57. I’m also going to get a job and focus on pension contributions

We had a similar 'epiphany' a few years back but were 40 at that point. I have a bit of a cushion as I have a final salary scheme pension worth £9k a year from 60 from my first job (I scraped into the scheme as they closed it a month later!) but our pots weren't looking great. We're now hammering them - between us both about £3500 a month which we get higher rate tax relief for. Like you, doing it while we can.

Only £13k in vanguard and a few grand in a newly started alpha pension. I have 51% equity in my home and I am 36 with 23 years left on mortgage. Retirement will not be luxurious for me. I plan on continuing in CS so hopefully my alpha will grow nicely. I wasted 15 years in health and social care sector so did not manage any significant contributions aged 20-35.

Oh and how are people getting retirement income projection of £3,000 pm / £36,000 per annum with £30,000 pot? a £3000,000 pot wouldn't net that so I am confused?

It’s the projections based on future contributions, pay rises and the future performance of the fund.

Early 40s and I currently have about 100k across 2 DC pots and I also have a frozen career average DB pension that I was a member of from my early twenties to mid thirties.

Funded schemes - like the LGPS - have very clear funding formulae and actuarial calculations.
To pay for a DB scheme requires around 30% of salaries to be set aside.

Unfunded schemes - like the civil service - will be paid for by crippling taxes on our children.

I'd currently get about 5k a year, inflation adjusted. If I carry on working I should end up with about 30k a year (in today's money), or a bit more if I carry on up the ladder etc.

I'm 39 and have £97k which I feel like is pretty good, but the dire warning letters that come with the statement suggest otherwise (I benefited hugely from spending a few years working somewhere with a great pension. I'm not going to save anywhere near the same again over the next decade!)

I’ve got next to nothing!

Been working part time since DC1 8 years ago plus 3 maternity leaves.

Ill be screwed if I ever divorce.