If you are over 40…How big is your retirement pot?

[AnIndianWoman]

Just that really. If you’re over 40 how much have you earmarked for retirement? My pensions are approx 200k and I have another 200k in stocks and shares ISAs. Even then I won’t come close to the £50-60k a year income we will need in retirement and so can’t think of stopping working before 70.

I was thinking of investing more but not sure what size pot I should be aiming for. I’m 40.

Can people stop with this sort of nonsense? OP’s asked a reasonable question on the correct board. Most people are horribly under-pensioned, often unwittingly, and it’s an issue that affects women in particular. So it would be great if we could discuss pensions without snarky remarks. If you don’t want to read it, maybe don’t hang out on the Investments board.

Why do you need £60k in retirement?
I think unless you plan on many exotic holidays, have expensive cars and still have a mortgage you surely won't need that much!

Oh god braggers.inc

Zero.
My father's private pension was stolen by the employer and he had to work until the day he died. My brother's pension pot collapsed as well.

This is a fair point, threads MN that talk about high earners etc get shot down. It’s not like this is in chat or AIBU.

OP I have less than you but not by much. Barring something unexpected it will be enough. My one financially savvy decision as a 20 something was to start a pension.

What does this have to do with you and your pension?

£70k in pension schemes, £150k in ISAs and £500k in unwrapped investments.

How will you fund your retirement then?

I’m 62 and have £510,000 in my pension pot, will also get full state pension in 4 years time. I’m still working 3 days a week but if I begin to get tired of it I’ll start to draw down on my pension. OP - if you’re mortgage free at retirement I think you’ll be fine with your pot, although I know everybody’s idea of ‘comfortable’ is different. Recent news article suggests £600,000 will allow comfortable retirement, you’re only 40 so I really don’t think you’ll have to work until 70.

https://www.thisismoney.co.uk/money/pensions/article-12442079/How-need-save-retirement.html?ico=mol_mobile_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.266882382.1783081205.1693273591-amp-q8EzMZlFAo5qrrOq9i72_A&_gl=1myd396_gaYW1wLXE4RXpNWmxGQW81cXJyT3E5aTcyX0E._ga_XE0XLFFF16*MTY5MzI5ODA1NS4yMS4xLjE2OTMyOTgwODcuMC4wLjA.

Funnily looked at ours the other day as DH does a physical job so looked to see if in 7yrs he reduced hours to PT 20hr what affect it would have on his pension (as hopefully I will be in a better earning position than I am now, in my profession) if he does then he retires at 65 so 8 yrs pt he can take lump sum £127k pays of the mortgage entirely working on renewal being a 6% mortgage next year which tbh i hope it isn't and yearly pension £19k then 2 yrs later if it still exists take state pension £10kish
Mine I take at 67 when state pension kicks in as I do a desk job I currently have one worth £11k per year (if I transfer out which i won't as DB it says its worth £137k) plus state at £10kish per Yr plus whatever I have in my current job which I havd only been at for 5yrs when I changed profession so currently only have £15k saved in if I discount my current one we will have with state pension a joint yearly income of £50k with no mortgage from my dh at 65 and I'm 5yrs younger so by my calculation we should be comfortable or at least I hope we will be ! And I hope state pension still going if not I will have to rethink our plans. But hopefully far better of financially than we are now because now is a struggle as I build my new career and cost of living.

Not enough! Only about 45K due to crap work pensions and a low wage. Once DD finishes school + possibly uni I will be looking to massively increase my contributions but I know I'm very far behind.
The issue for people on low wages is that the % taken out for a pension is significant every month but yet the overall pot is tiny. I have no hope of building it up to anywhere near a decent amount. Thankfully DH is the higher wage earner and will get a decent pension but it does worry me that I will have worked constantly for 40 years and come out with a pension worth only a couple of hundred per month!

The amount regarded for a pensioner couple to have a very comfortable life if no mortgage is around 40k. I wonder why you think you need so much income per annum. Are you planning a lavish retirement ? Have you worked out your actual outgoings with adjustments for inflation because we have to the penny over the last year and our pensions cover it easily. However we like quite a simple life, off with a picnic walking round the Peak District today and a pub dinner on the way home, but that’s what we actually enjoy.

I'm 40 and I have about £40k 😳

Off topic but as it's been mentioned above can I ask what happens when a pension fund collapses? I thought they were highly regulated and expected to provide regular updates on their 'health'. I did try to find out awhile ago if they had a higher cover limit than the FSCS £85k but couldn't get a clear answer.

She didn't say her savings/pension were small.
She asked for tips on where to invest.

Given the size of the fund, she can presumably pay for investment advice. I'd rather rely on that than the opinions of randoms on the internet.

You could say that about any thread that anyone starts asking for recommendations.
You have several yourself. Why not get up and go out and find out yourself instead of asking on MN?

www.lgpsmember.org/your-pension/the-essentials/key-features/#:~:text=Your%20pension%20is%20worked%20out,in%20the%20cost%20of%20living.

Depending on your salary, you'll pay a set % of that monthly, I pay 5.8% for a min wage role. The more you earn, the bigger % you pay.

For that 5.8% contribution, I gain 1/49 of my salary to be paid annually upon retirement until death. It accumulates.

So each year, you pot or guaranteed annual payout grows by 1/49 of you salary.

It also gets an inflation uplift annually.

The numbers of contributions Vs growth while you're paying in may seem low. But once you retire, it's a guaranteed annual payment for life. Whether you live 10 years beyond retirement or 25.

The longer you live, the better value it is

Zero here too, worked all my life and now working a 50 hour week aged 61 but never had the excess to pay into one with the exception of a small Nest one, im trying to save a bit now but tbh i refuse to lose any sleep over it

Oh my gif I wish I'd not clicked on this thread!!!
I'm mid 40s. Have £60k in my pension.
How can you be worrying about it when you have £400k at 40?!?!?!

I'm 49 and have £35k. No where near enough. I might get a lodger when the DC's leave home.
Mortgage is paid off though.

I think she's asking for views on the size of the pot rather than where to invest.

OP would you be able to clarify the £50-60k income you're aiming for. Is this for a couple or you as an individual? You talk about the income 'we' need but only refer to your pension/ISA. How much are you personally aiming to have each year? Also, is this pre-tax or post and are you including the state pension in that figure?

£50-60k is at the high end of what most research suggests couples spend (inc state pension) in retirement. That's not to say it's wrong but you don't want to set yourself an unnecessarily high goal.

I’m 40 and have £263,000 saved in pension accounts (5 in total as I’ve moved around jobs…)

Keep meaning to look and see if I should consolidate/move any.

At 40, I had about £120k in my DC pension. Now at 51, I have about £330k in my DC pension. I plan to work until at least 60. (I may want to keep working, but down shift a little in terms of hours/pressure.) By 60, I should have about £640k, if I keep contributing.

OP, assuming you will continue to work for another 10 to 15 years, and assuming you continue to make contributions, your pot will be at least 3 times as large as now, plus you will have the state pension.