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Pensions and too many variables!

7 replies

BrassicaBabe · 25/06/2023 18:30

Forward planning is frying my brain. I understand why it's vague, shades of grey and "how long is a piece of string" but that doesn't stop me searching for a black and white straight answer 🤣🤣

I'm 50. I've been employed as "normal" for most of my working life. (Full time, maternity leave, part time, eventual redundancy.) But I've been on short term contracts for the last 4 years which mean that I've been lucky enough to contribute the max 40k to my pension pot. But that might stop at any moment. That pension contribution is outside of what I use as salary. That is...I get paid net into a savings account, I "pay" myself a smaller amount into our current account, I contribute the pension lump sum out of that savings account and the remainder is mentally marked in case I have a long period of unemployment.

I'm a worker by mentality. I also can't see me maintaining my current income for 10-15 years. (I've been lucky in the last 4 years. But I'm not daft enough to think that'll carry on)

Added complexity is that DH is self employed in the family business. All bills are paid directly from the business which take the form of dividends. But has nearly zero in terms of pension.

For someone who likes binary details I'm blathering aren't I 🤣

I'm trying to forward plan what why pension pot might be, what it should be and what I need my pension pot to be.

OP posts:
doingthehokeykokey · 29/06/2023 14:02

Have a look here: https://www.retirementlivingstandards.org.uk/ for what it might need to generate

State Pension is c£10k

You can then look at capital as generating about 4% income (give or take), and if you are happy to spend capital, go for 7%, This is a very rough guide and not a magic number.

Home - PLSA - Retirement Living Standards

Home - The Retirement Living Standards have been developed to help us to picture what kind of lifestyle we could have in retirement.

https://www.retirementlivingstandards.org.uk

FarTooHotForMe · 29/06/2023 15:34

If it’s a million you can draw approximately 40k income from it.

butterflycatcher · 04/07/2023 10:18

James Shack has some really great pension advice videos on YouTube. I would highly recommend checking him out.

HabberdasheryAddict · 04/07/2023 10:21

The best advice is to just buy cheap low-cost index trackers and avoid “funds”.

I agree. And some of the best and cheapest trackers are offered by Vanguard.

fireflyloo · 04/07/2023 10:26

Your dh can set up a private pension and pay for it directly through his company. So it saves on corporation tax and income tax.

Are you doing self-assessment? Are you getting tax relief on your pension contributions?

ch4shirecat1234 · 28/07/2023 09:56

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