AIBU to know how much in your pension pot

[Newnamepension]

If you have a private pension, roughly how much is it worth?

Asking because I got ill several years ago and it’s been progressive. As a result, I can’t work anymore and my finances are shot, savings gone. We had to remortgage during the Truss debacle which hasn’t helped. I have £100k in private pension, but no idea how much that will increase or what it will be worth in real terms in 20 years’ time. I am pretty limited in what I can do in any given week, so need to be realistic. I have decided to pause most health appointments (have been more detrimental than helpful to my health unfortunately) and use that energy to apply for PIP (hopefully manageable to apply for by end of year/Spring) as one step. Husband has a small amount put in pension by company each month, but obviously can’t afford to contribute himself anymore due to me no longer being able to work.

Yes I'm sorry @Newnamepension You are being very unreasonable in my opinion.

I think posts like this just breed and engender extreme and bizarre responses , with many of them fictional. You'll get loads of the kind of responses which say "I've got 3/4 of a million plus two flats " etc... what are you going to do with that information? How will it help you take the next steps you need?

You should really be asking, what products or methodologies should you be using to top up your pension, what sacrificies can be made realistically, and also whether your pot is enough.

Anything comparative is just the thief of joy. I have a comfortable position but I am fortunate I never got ill and I invested early. How does that help you? It doesnt.

I'm 53 and have got £17k. That's it. Can't work as I'm disabled.

@JacquesHarlowSometimes it's comforting to know you're not the only one in the brown sticky stuff.

Between us my husband and I have around £850k. Will still be contributing for around 3 more years.

You have 20 years so will benefit from a lot of compounding.

A realistic real return is approx 5%pa based on investing in global equities with a nominal return of 8-9% pa and inflation of 3% pa.

Anything you/your husband can continue to contribute will help especially if left to compound for 2 decades.

We have a big pot because we're mid 50s.

I have a similar amount to you, but dh has a lot, we’ll be fine. More important is the get your current situation to best you can be considering circumstances and ensure you claim what you are entitled to and perhaps see if there’s any forms of income you can earn, even if it’s small amounts, that extra money you could invest

I’m not sure how much we have all together as DH puts a lot more into his than I do into mine.

I suppose put in as much as you can afford?

Same here I'm 60 only got £20k

£0

@IloveeverycatIt's so awful, it's not even worrying about, is it? Perhaps we can share a cardboard box under the pier?!

I’ve only got 12k in my private pension but do have a DB pension from when I was in the civil service which is fairly decent.

I’m 47 and just divorced and plan to spend the next 20 years getting as much into my private pension as possible. Also just started a new job (have been self employed for a long time) so will be putting about 500 a month into that one inc employer contributions

Mine is pretty poor having earned less than £25k until my 40s. I'm contributing 10% now and increase the % at every payrise, but I'm aware it's probably too late to be decent. If I can get it to £200k at retirement, I'd be pleased with that current projections are £185k.

I'm sorry to hear you're struggling with your health. You haven't said how old you are (I don't think), and I've heard the amount doubles roughly every 10 years so may be worth something if you're young.

I'm 43, 50k in a private pension and a local government pension that's estimated to pay £20+k in 25 years, if I continue at my current income. I don't own a home though, so 🤷🏾‍♀️.

I’ll have about £600k by Feb 27 when I plan to retire at 55 , paying half my pay into an AVC now to get to that level

I have no idea. The IFA we spoke to today was baffled too, but will work it out! I know it isn’t enough

@ JacquesHarlow I can see that. I have no idea what a normal amount is though. I’m happy with any ideas - and know there will be trade offs.

I’m hoping we don’t have to move. Downsizing isn’t an option as we are already cramped (we’d had an extension saved up for before I got ill). We would have to move area, but factor in uprooting kids, cost of carers, stamp duty, childcare as don’t think husband would be able to go fully remote. It would also mean going from seeing family a lot to a little (like now, due to illness) to seeing them hardly at all due to travel. It would mean a loan and paying someone to deal with some of the admin and grunt of it (repay by some of difference in housing costs). We desperately need some help at home as things have steadily deteriorated there also.

I’m trying to see what I can do, accepting my limitations and husband’s limitations (he is trying to be everything and can’t). I kept having hope that I’d be one of the ones to recover, thought that various specialists would be more helpful, even did a drug trial. There is still a chance I can get a bit better which will reduce the caring load on him and maybe I’d even be able to work again, but I also need to accept the likelihood that the trajectory will continue and try to plan for that as best I can. We will have a bit of inheritance to reduce mortgage a bit. Also, if it reaches the point where I need to go into a care home, will husband have to sell house?

Can I ask how you have such a high amount ? I’m currently 35 and don’t have any sort of private pension.

I used chatGPT for pension planning the other week and found it very useful. Despite starting late I’m on track, mainly as result of almost paying off a house but also need to keep up my monthly contributions. It worked out a couple of different tapering scenarios for me so I’m a bit more clear about when I can drop to PT and how much I’ll still need to bring in 55-60 and 60-65.

An illustration from the other side of retirement might help. When I retired a few years ago I had just under 100k in a private pension. Drawing down an annual sum of 10k, plus a small occupational pension has kept me reasonably well until my state pension becomes payable in a year or so, but the private pension will run out in a few years time.

If your spouse is still living in the marital home and you need to go into care the spouse isn't forced to sell. This was the case with close relatives.

Hope this helps.

I have a lot. About £850k. However it's because both DH and I are fairly higher earners but we are not spenders. As a result we live off DHs salary and with mine I put it all into pension because it's tax efficient for me as a director of a single person company.

Currently about £500k in a DC fund, one other small DC fund of about £10k, growing and a DB fund transfer value about £100k but won’t move that as its likely worth more remaining as a DB fund. Early 50s been contributing since 18.

OP none of this is relevant as your fund will grow dependent on the risk factors in how it is invested.

Do yourself a favour and sign up to the Rebel Finance School (free).

I have £110k in mine and I am 40. But my husband has nothing in his (lots of insecure short contract style work) so it will need to support two of us in our old age.

With reference to your house being sold if you have to go into care.

Your husband/family would be able to remain in the house while you are in care, because it is their main home. But later on when the final cost of care is worked out, it is at the discretion of the local authority whether or not the value of your house is taken into account. Unfortunately in this day & age I wouldn't depend on the council discounting the value of your house. I believe that in days gone by, people would gift their houses to another family member to avoid the house value forming part of their capital, but now the position is that if the council can see you have done this to avoid paying for care, the house value will still be included in their calculations.
As you have an illness, could you apply for NHS continuing care? Medical care is funded by the NHS and would therefore be free to you; social care is not free if your capital amounts to more than [I think] £23,500.

Don’t rely on PIP. My DH had a stroke and suffered cognitive damage that means he can no longer work. We went down the PIP route since our joint finances means that despite contributing for 40+ years he doesn’t qualify for any benefits.
PIP was a joke and he scored zero points despite having significant mobility issues. I could go on at length. I am considering sorting out a GP appointment to establish mental health problems. I think he would have a better chance of qualifying if he was diagnosed with depression. He doesn’t have it but the cognitive and physical problems from the stroke present as depression.

Fortunately he had a small pension, and since he was over 55 he was able to move it into a draw down pension. He took a lump sum of 25% and then draws down between £500-£1000 a month. He is still seeing growth in the pension pot and because he draws down under tax allowance each year he’s not taxed. The plan is to continue drawing down until his state pension kicks in.

I have already taken my NHS pension but still work part time. We are very comfortable as a result. I also have a small private pension that I will start to draw down when I retire fully. I will use it until my state pension kicks in.
Draw down pensions are payable as a lump sum if you die without attracting tax if you are under 75 at death. Whatever remains goes into your estate.

I always planned to retire at 60 and a diagnosis of breast cancer at 57 made it necessary. I am so glad I didn’t opt out of my NHS pension, I was often tempted. I also paid extra NI ( I’m self employed and was contracted to NHS one of the optional benefits /incentives was a pension) in order to qualify for state pension.

If you are not working do check that you are still accumulating qualifiers for state pension. You may need to buy extra years.

But later on when the final cost of care is worked out, it is at the discretion of the local authority whether or not the value of your house is taken into account.

Not if it’s jointly owned and the other person still lives there - that’s a mandatory disregard

Late 40’s and have £225k in my company pension and a small amount in an old scheme. Are company contributions are shite compared to what the public sector get. My goal is to clear my mortgage, do a couple more years of full time and use the “mortgage” money to boost my pension then drop my hours.
or win the lottery

That’s including company pensions ( DB pension x 24 years) - to be honest in 2018 I had about £60k from old companies pension schemes and no savings then joined the civil service and have just really prioritised savings to be able to go at 55 as I have a lot of health issues and need a get out point. I’ve got £130k in ISA and PB’s , 100k in a SIPP and by 55 will have 70k in AVC.

The rebel finance course is free and excellent to help steer you towards early retirement - recommend it !