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.

To be honest the property part is less than 15% of the total and partly through inheritance because I lost my parents quite young . The rest is mostly as a result of getting into a well-paid grad job after uni and progressing well, continuing to work as a full-time parent and having always been interested and active in savings and investments for the last 40 years. I made some good investments in technology and healthcare funds which massively outperformed the market.

DH and I were both cautious savers (possibly too much so in our 20s!) - probably because we both came from very modest backgrounds where money was tight/ not taken for granted and we probably wanted to feel more secure than our parents.

We now need to get used to spending again before we're too old/ infirm or dead!

Christ you’d think the investments board would be a fair place to ask pensions questions without the diamond shoe brigade rocking up

I think mine (DB) will be about 40K index linked which is entirely insufficient for the lifestyle I want when I’m retired. I’ve got a decent bit in S&S ISAs but this will likely go on house deposits and Uni expenses for the DC unless they become teen entrepreneurs. OP not sure if you’re planning the same for your DC too? I was all about retiring at 60 until I remembered the bloody kids

We’ve covered school fees and uni maintenance. We have so far assumed that anything we inherit from our parents will be passed to our children for weddings/houses etc. Of course no guarantees of what or when…

When I’m 40 I should have c£320k based on current projections although the last couple of years haven’t done it any favours. I’m considering stopping contributing when it gets to 500k and just let compounding do it’s thing from there (except employer contributions) so make the most of the extra cash while young ish and hopefully healthy ish. I plan to retire by 55.

how to project what you’ll actually need in retirement still blows my mind a bit

You really are making yourself look like a complete idiot. OP has posted on the investments board which was set up for precisely these type of questions. Only someone that was a bit thick would make a comment like yours on a board designed to talk about investments 🙄

OP, you’ll need more than £1.5million if you want £60k a year pension, as even the oft touted 4% rule isn’t really safe anymore due to people living longer and sequence of returns risk.

But if we say two state pensions would be £20k that leaves you needing £40k so only £1million.

However, I assume you mean £60k in todays buying power and not £60k in buying power in 30 years time…. £60k today will equal about £100k when you are 70. But the state pension will be higher, likely £17.5k each, so that leaves you needing £65k a year from your pension pot, so you will definitely need over £1.5 million.

If I was you I would aim for at least £2million.

That said, you have £400k. If you get good stock market returns in future like S&P500 historical, then your pots should double every 8 years. £400k becomes £800k becomes £1.6million becomes £3.2million and that’s without you paying in any more. Even if you only get your pot to double 3 times you would have £1.6million.

I have more than you, but am older too.

https://www.nutsaboutmoney.com/pensions/average-pension-pot-uk

What a stupid thing to say on a board titled INVESTMENTS when someone asks a question about their investments.
Embarrassed for you 🙄

How do you all know how much you have? I've had several jobs and pensions in my career but never received a statement on how much is in my pot/s.

Ha ha ha ha

I get statements and have logins for the various pension schemes (Aviva, etc.) I do get annual statements in the post as well.

LOL, never had £60k income when I had a mortgage and childcare to pay for so I’ll manage in a third of that in retirement.

FFS, OP.

Thank you - weird I've never received a statement through the post! I'll have to see if I can login to my current one.

Hilarious - teacher doesn't think this is a lot.

I can tell you, that's a lot more than most pension pots of 'workers' pay out.

If I retire at 60 (in 5 years time) I'll get about £19k a year pension with a £55k lump sum (I will have been teaching full time for 31 years then ) so it's not a massive amount as many people seem to think teachers get. I want to retire earlier than this however so may have to settle for a smaller pension.

£19k a year on top of the state pension - so you'll be on £30k a year with no mortgage. Hardly scraping the barrel. The teacher's pension is one of the best pensions there is.

Well all speed to you OP but personally I think you're crackers to be working till 70 just to get that magic £60k a year. Realistically at 70 how many years are you going to be able to enjoy spending £60k? I guess it'll get you a good care home if you need it past 80 or so, but is that worth the effort?

My own goals are fairly modest and on track to be met. I want a spare £6k a year on top of living expenses for the first ten years (am going to draw down) so that I can travel a bit including hopefully having three months in winter somewhere nice like the Canaries. Like I say I'm on track for that so happy enough.

This thread has worried me 😳 I'm 26 and only have £9k in my pension pot, no idea if I am on track or not yet!

250 k outside pensions, no mortgage house , full state pension, 500k Sipp and about 7k pa from 60 from some legacy DB schemes, 48 years old. Already vey part time and hoping to continue that till 57. Target income about 40k but assuming spending tilted to earlier retirement, ie if I get to 80 some combo of DB, state and selling house will see me out 😁😁

Realistically at 70 how many years are you going to be able to enjoy spending £60k? I guess it'll get you a good care home if you need it past 80 or so, but is that worth the effort?

My grandparents are in their 90s and have nearly (maybe even actually) outlived their pension. Outliving the pension fund is a real possibility and I am trying to plan accordingly.

Well yeah but there's still state pension. It's not like you have nothing. State pension is loads. Even compared to earnings it's decent.

For now.

It’s just under a third of average earnings. It’s not much at all.

Sure but it's literally just spending money because if you have no other income everything else is taken care of, rent, prescriptions , bus fares, council tax, bit of a bung on your utilities, all covered. That's more spending money than lots of working age people have. And at 90 for eg how much spending money do you need? Of all the things I'd worry about, this isn't one.

For now, like I say.

I mean when I get to 90, if I do, doubtless it will have changed. But if I was 90 now I would be unconcerned.

I don't have a pot. ( well I have one that will be 50k) but I have 4 defined benefit pensions. They will all roughly combine to allow me the same lifestyle.

State pension is loads.

You're kidding right? I wouldn't want to be existing on the state pension alone

Borough appears to be forgetting one or two non-discretionary costs. Food, for a start.