How's your pension looking?

[illbebroke]

Just calculated mine and I'll be looking at £9K a year if I retire at 60 (won't get state pension 'til I'm 67). What's your future looking like?

£9k is quite a good amount if your mortgage is paid off.

Mine is looking about £6.5k a year, although its only a private stakeholder one, not one that my employer contributes too.

That's the problem, we rent. Desperately trying to sort out a mortgage and buying a house but feel like I'm running out of time to pay it off before retirement.

Transferred to a SIPP made some good investments and quadrupled pension value in 4 years. I may actually have a better income retired than I will employed!

I'm very fortunate to be on a non contributory final salary pension...last booklet I got through put me at just under £19k pa.

My final salary scheme is either £10k or £15k - pension statement i received when i was made redundant mentioned both amounts, I really should find out which is correct, but I'm assuming it's the lower amount.

I'm lucky, my mortgage was paid off with my redundancy.

I've started paying £100 p/m into a my new employers pension scheme, but seeing as I'm 48, it'll pay peanuts when I retire!

DC projections are pie in the sky.
looking at what has been happening to recent retirees, cut that projection by at least 30%

Am looking at 11k a year plus state pension at 67. Mortgage will be paid off. I'm hoping to retire a bit earlier than 67 though.

I'm on track to get £15k pa as I've been paying in since I was 18 and now put 8% in that the company matches. DH has also been very prudent and should get £25k. This is all without taking a lump sum but we don't know yet whether we'll need that.

I'm so glad that I've thought to sort this out while we're reasonable young. My parents are about to retire and have lived their life on the principle that they might get knocked down by a bus tomorrow. In short, they're screwed.

Many of you have commented on pensions looking ok if your mortgage is paid off. I did some calculations and for a modest house you need to factor in around £300pm just to pay utlities (council tax, TV license, gas/elec, water etc) and say £200pm for repairs (boiler replacement, pipes, usual house stuff). So it's £500pm needed (£6,000pa) just to run a mortgage free home. Then you have other costs, car, food, etc etc. I'm never one to assume, so I've based my retirement sums on me being on my own. If I retire at 55 it's 11k pa (no where near enough), at 60 it's £22k pa.

If I work forever and pay in everything I can (currently 15% +5 from employer) I will be looking at about 6k! Hoping to increase salary when dc older but v aware time is running out. Lottery anyone?

I can't remember the exact amount but my annual pension should be enough for a cheap weekend away for us once a year and nothing more! I know I should have done things differently but at 18 retirement seemed like something for other people. Then we saved every penny for a deposit (although we were paying into dh's pension ). I started a pension but was on maternity leave 2 years later and now don't work at all.

Not brilliant, and at the moment I rent. But I'm only 35 and fully intend that to change soon, plus my career has big potential in the next 5, 10, 20 years. I would hope that within the next 20 years I will either be an equity partner or a district judge. That's my 20 year plan anyway.

£43k p.a. at 60 from a 16 year defined benefit stint in the City, plus state pension at 66. City job nearly killed me and I only stuck at it for so long because of the pension.

Sicutlilium - I hear you. Ditto here, in corporate land in a job that is definately not my vocation and doing my head in, but a rare final salary pension scheme and it's the only reason I stay there. Short(ish) term pain, long term gain.

Look at the funds you are in. Projections are based on equity returns. Although talkinpeace and I disagree on the benefit of pensions, ensure you ask for REGULAR advice from the provider of anything other than a defined benefit pension or projections will indeed be pie in the sky.

Housekeeping a pension is essential. Mix your assets, take age appropriate risk, rebalance quarterly (no less than once a year) AND remember risk is: the risk you need your money when markets are low. So, take risk when you are young and get rid of it when you are getting older (55+ as a rough guide) and your projections will be much closer to reality.

I get £9k pa (retired at 50) after 34 years in Civil Service. Also got lump sum which used as 45% deposit for our house.

I have no pension at 34, as I've never earned enough. DH has a decent one, and the mortgage will be paid off by the time I'm 40 so we can put a fair chunk towards one then.
DHs parents are minted, and he's an only child, so I'm naively? banking on these to keep me in my dotage.
My lack of pension is at odds with my otherwise prudent approach to finances, but I've always been part time and skimming NMW so there's never been spare to put in a pension, and it feels somehow wrong to make DH pay into my personal pension when there are more immediate calls on the money (DCs, house, mortgage etc.)

Look at the funds you are in. Projections are based on equity returns. Although talkinpeace and I disagree on the benefit of pensions, ensure you ask for REGULAR advice from the provider of anything other than a defined benefit pension or projections will indeed be pie in the sky.

Sorry, just to clarify, projections are based on a number of assumptions, including example returns on equity investments, it is also important to note that they make assumptions on annuity rates and the amount of tax free cash you will take.

Also, most pension providers do not provide financial advice, and if they do they are normally tied to that provider. It is important that you seek regular independent advice on your pension. It is highly unlikely a provider will tell you to move your funds away from them.

It's not looking at all

Mine looks ok, that's if I believed any of the assumptions they use to project it........

I'd go as far to say almost criminally misleading, never mind pie in the sky!

When I said provider I meant the company that will handle it for your co (if via work) or the IFA you use, not the pension company itself, poor choice of words on my part. However my main point is that ongoing advice is needed.

I haven't paid into mine for a couple of years now since I'm self employed but I am about to change that. Pensions are a really difficult area. They are complicated and confuse the vast majority of people. I know I don't feel like I understand everything and I'm an employment lawyer!

The issue raised about having paid off the mortgage though is that most people who have paid off their mortgage would then look to downsize wouldn't they and then use the money from the sale of their house? Certainly that is part of our plan. There's no way we need a house this size if its just the two of us (although money grabbing DSs (6 and 8) have their beady eyes on the place already!)