If you're comfortable how much £ per month goes into your pension?

[Heatherbell1978]

Firstly, I know we're privileged to be able to contribute a fair amount into a pension, this isn't a stealth boast post.

DH are I are 45, 2 DC, always contributed something into pensions although for a while it wasn't that much. I'm lucky that I did 10 years in a final salary scheme job so I have that pot but been in a contributory scheme for last 10 years. For a while I put in around 10% of salary and DH the minimum...so 5% ish. We had a bit of a wake up in lockdown when we realised that we weren't really on target for the type of retirement we'd like so we ramped it right up. More than doubled our % contributions. So between us we now put in around £3k a month. Roughly 50/50. Great. But that's obviously had an impact on our spend. We have enough for bills, mortgage etc obviously just not the treats like dining out. We're not lavish people but enjoy holidays which we still do but on a pretty tight budget.

We wonder if maybe we're being a big OTT and we should live a little - we suspect our friends in similar paid jobs don't contribute quite what we do (some nothing..) but don't want to have that money chat.

Where is your balance?

It doesn’t matter what others do, the questions are what sort of lifestyle do you want when you retire and how early do you want that to be.

rule of thumb is you need C£300k of capital to generate £10kpa of income.

Thanks @Mia85

I guess the problem js having had the kids fairly young (age 25-29) by the time I can access rhe pension money (56) it's after the period of uni

I didn't say but we have x3 buy to let houses as well with 50% equity so kids can either have 1 each or probably sell one and hopefully release £80-100k each for a house deposit and use other two for rental income / pension top up. They're interest only though

Do need to look at pensions again.

We probably have done this very differently to most people. Dh has hit his pension limit - had a very generous private sector pension and he hit the limit late 40s. We still have quite a big mortgage - but loan to value is comfortable. We work out how much we want to spend and then look at what’s left over - not enough we’ll evaluate, enjoying the present is important to us as is enjoying our retirement - not sure we’ll pay off the mortgage ever- more likely to downsize.

I think you pension contributions are very low - the mortgage will devalue with time - better to invest in your pension and get your tax free sum. What are your pension goals - how much do you think you need to be comfortable in retirement because you don’t want to go from high earner to skint retiree living in a big house with no money to spend.

We're in our 50s. Paying in between us a total of £60k pa into our workplace pensions. That includes tax relief and employer contribution.

We're going to pay off the mortgage with the tax free lump sum in 10 years time when our combined pension should hopefully be worth £800k.

We're only prioritising pensions now in our 50s which is very late.

We've spent a lot of money on holidays, eating out, social life and a huge extension over the years. I don't regret a penny of that as the holidays in particular were absolutely amazing trip of a lifetime types which we and the DCs talk about often and will remember forever.

However I feel I did waste a lot of money on buying tat and stuff that I didn't need, lots of clothes etc. I've cut right back on all of that now.

There is definitely a balance to be struck between living in the here and now, especially while DCs are young and still living at home.

We've all had an amazing time and probably spent a little bit too much on living the dream and should have saved more for the future but if I died tomorrow I'd have no regrets.

DH’s pot is maxed out. I make maximum contributions.

Combined about £6k a month, DH will soon be maxed out. However, also do savings,but all in a SIPP.

I contribute equivalent of £1200 a month to mine (not in UK) and husband about £900. We have a massive mortgage where we are currently living so once school fees paid off in a few years we will increase pension and mortgage payments. We are nearing 50.

We also have a house in the UK which is rented out and that will release a lot of equity once sold which will be our pension pit too (yes we will pay CGT but still in a better position due to tax laws where we live).

I put 13.3% into my DB pension and employer puts in 21.6%. I'm paying in quite a bit currently as I've only got another 6 years work and I worked out what I will need.

It is interesting that employees are swallowing the propaganda from government of what the tax payer puts in your pension scheme. They don't put anything in it until,you decide to retire as the whole thing is one giant Ponzi scheme, same as the "National Insurance" fund which doesn't exist. Todays taxpayers fund todays demands. Hence why the govt in pension reform didn't move to private pension based provision as the income to fund these commitments would cease immediately

I am 58 so at the tail end of my career, I currently put in 5K pm(well me and my employer) so the max plus it reduces my salary (I still lose my personal allowance). Mort not paid off but have £700k equity between a couple of properties. Plan is to consolidate, down size and take out the max in tax free cash (and live somewhere warm). At the moment I am making the most of the cap lifted on pensions, I know this will probably go if Labour get in.

None of us are guaranteed a long life.It's important to strike a healthy balance between planning for the future we may get and living for now.

I'm of a similar age, but a single parent, and I've paid my mortgage off, but I contribute the same as you (as a couple - I put in 3k/month) to my pension, plus occasional lump sums - I calculate it based on keeping myself at the lower tax band as much as possible.

5 years ago I had nothing, now I'm on track for an OK retirement given my current age.

You need a big spreadsheet (or maybe a good accountant) and to tweak/tune it as much as possible to get the most of your money out (into pension I count as out) with as little tax as legally possible. Work out where your money works best for you (mortgage payoff vs. pension, given you can't get pension for a while yet, but mortgage interest rates are high for example)

I also think that 3k/month for 2, at 45, is a bit low, if it's at all possible to change that, I would.

I pay £648 a month. The employer also matches it (I think). They contribute anyway. It's public sector. I'm 41. No intention of retiring any time soon sadly.

I'm in USS pension scheme. We now contribute 6.1% and employer 14.5%. I pay another 3.5% into an investment account though.

Public sector pensions. The "employer", ie the tax payer doesn't contribute anything until drawdown occurs. There is no fund. In reality it is a giant Ponzi scheme. The contribution shown on your payslip/pension advice is a notional calculation probably designed to think your pay package is higher than it is. Some truth in that when comparing to a private pension plan

It’s about 20%.

we should get a decent monthly final pension between us.

Mortgage paid off in 10 ish years. And house large. We have onsite additional rental for extra income and space for Ds to stay living at home as adult if he wants to which would be him contributing to some day to day costs.

I would up your pensions - I also have a large london mortgage that I overpay even though its not the most tax efficient way, because I want to have it at a more reasonable level in case of life changes. But remember you can withdraw 25% of your pension tax free at 57 so I wouldn't worry so much about paying off your mortgage entirely, especially as the value of it will go down.

I put quite a lot in my pension but I am not sure I will stay in my career and earning level long term so I am trying to get it as high as possible. Also my husbands is rubbish so I'm really saving for two

Same. DH has a crap workplace scheme so he puts in the minimum (although he earns more than me) and I put in 40% of my salary. We're both higher rate tax payers so everything we're putting in gets higher tax relief. Trying to hammer it now as not sure what future holds!

I'm am just in receipt of my NHS pension now. As people have rightly said what you pay in has nothing to do with what you get directly. The people paying taxes and superannuation now are paying my pension. GPs (partners not salaried) have to pay employee AND employer contributions so I was paying 12.7 plus 20.7% each month.