Pension - how much

[dumbdumbdumb]

If I want to retire age 60 how much do I need in my pension?
Or age 65?

Well, it's unlikely you'll reach £800k, isn't it?

So you need to cut your cloth now and accept you'll have a low income in retirement. Or increase your income now so you can save more.

How much do you live on now, what are your outgoings, which of those will remain after retirement and therefore how much do you need to live on in retirement. Taking into account the state pension is c£8,600 ish (ignore inflation, just use today's figures for everything).

@dumbdumbdumb

Im 40 and have just 20k, how the hell do I reach £800k?? I'm self employed so no workplace pension. I can at absolute stretch put £400 or £500 away a month if I really cut back on my spending.

Anything you can afford to put in your pension will help as you get the tax relief along with more time for your investments to increase in value.

Then at your retirement it will help pay the bills even if it isn't enough for a lavish lifestyle. Then remember you have your state pension assuming you have paid in enough NI.

I wouldn't worry about figures people say you must have because it's all relative to outgoings and some people live frugally compared to others. Just try and maximise your pension now until retirement.

Hi OP. I was in your position until recently. Self employed, 40, had about 25k in pension, and was earning about 25k part time in my business. I did a free midlife pension review with the government’s pension advisory service and realised I wouldn’t have enough in retirement. Felt totally put off by the huge sums I would have to save to purchase retirement income via an annuity - this is what my pension provider uses to quote retirement income. I made big efforts to find out more about finances and learnt how I could draw down my pension savings on retirement and how long the money would last. There are some great you tube channels and podcasts that explain this.

Now I am saving £600 a month which is topped up to £750 with tax relief. I have also increased my income and am looking at how I can create new income streams from my business. My plan now is to keep working until 60 and paying into my pension investments till then, upping this when I can. At that point my mortgage should be paid off and my children will be adults and so I will have lower expenses (maybe downsizing, maybe they will be working and can cover their own food etc) and I should have developed some different income to supplement my pension till state pension kicks in. Also I’ve taken out income protection insurance in case anything happens health wise that means I can’t work. I feel much better now I have a plan and realise I don’t need 800k. What is your self employed business? You might find that it gives you great flexibility later on, as you can pick your own hours.