Pension Pot

[Whenwillitmakesense]

How much do you think you will have in your pension pot when you retire.

Trying to round up all the pensions I have paid into and work out how much I will have and it it‘s going to be enough

To those who haven't got full national insurance Contributions and are worried about state pension entitlement, you can pay class 3 contributions which are voluntary and can make up for the missed years in order to get the full state pension. You may find that's worth looking into.
As for the rest of it, start now. Ten or fifteen years of compound interest will help a lot.

@Hollywhiskey

You are right you can top it up, but there is a time limit. Unfortunately for me when I looked into it , just this year some years where past the "top up " date, and cannot be added to.

@EachandEveryone

Im a nurse and after 25 years it will be 250,000 but i will only be 55. Its not enough really about £1,100 a month. My boss told me we have to do 40 years to get the maximum back. I dont think I can face it 🙂

Do you plan on retiring fully at 55? That's a long time to be retired (hopefully)

Atalantea my DH and I retired young, most of our parents died a lot earlier than the average age. My DM is alive but only 70 and has advanced Alzheimer’s and needs help with everything. This definitely effected our decision to pay extra into pensions. DH’s DF died three years after he retired.

Probably a stupid question but how do you work out what your annual pension would be from the pot you have? I have a pension but no idea what it will provide annually when I retire (when I'm 84!)

No I cant go at 55 most of my colleagues go at 60 and come back part time

I'm retired and have £700k.

How much interest do they build if at all?

Or mathematically am I looking at what's in there and then dividing that into a per year amount?

For example if I have £200k in there now and am retiring in 20 years would I have 200k in 20 years or more due to interest?

I’ve spent time sorting through my pensions recently, because I wasn’t really on to of them. And you know, time during lockdown.

Firstly I’ve consolidated all my pensions into two pensions - one with my current employer and one self invested and managed. Now I can see exactly what I’ve got. Secondly I’ve been through what my work pension company is investing in, and realised it is nowhere near aggressive enough for my age (36) so I’ve changed the funds myself to higher risk ones.

Would really really recommend playing about with a Compound Interest Calculator. Will show what minor changes to savings or investment gains will do to your pot over the years. After this I have decided how much to top it up, and it’s less than I thought. General rule of what you can take out is 3.5% conservatively without depleting the pot.

@1940s will be a lot lot more due to investment gains. Will more than double over twenty years. www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

@1940s

The Aviva pension planner will work it out for you. Marvellous tool

@poundoflard are you eligible for credits for any of the years? Clutching at straws for you maybe buy some of these have a longer expiry! (Just in case you haven't already looked into them).

www.gov.uk/national-insurance-credits/eligibility

@Hollywhiskey
Thank you. I will look into it.
As I say I was only aware of it this week.

I am in the fortunate position now to be able to increase my personal pension contributions substantially following a pay rise. So I tried to inform them using my online tax account. No doing. Have to ring. So after an hour waiting I eventually got through and spoke to someone who said they can't accept it on the phone so write in. Write in I did.

2 months later, heard nothing so rang again. After several attempts I got to speak to a human who informed me they won't put an allowance in my tax code for my additional pension contributions as they are now over £10k. Have to claim back the following year as they want evidence of every payment. Great. Only option seems to write in every month and try to claim with evidence of each months payment which is substantial.

Any ideas as otherwise I will have to pay a substantial amount out.

Appreciate a nice problem to have

So doing what the government has suggested! However, I'm having a nightmare with HMRC. They will change my tax code to allow for £10k in contributions but nothing more. I have to claim it back.

Has anyone managed to get around this as the options seem to be

I dont plan on taking an annuity with my pot . I prefer the idea of drawing down on my lump sum and eaking it out . I should have a reasonable pot so will live frugally on the state pension and draw down the free lump sum tax free.

That’s what my DH and I are doing.

I am an NHS nurse but very PT but have that pension. When l got divorced l was granted a pension sharing order of £20,000 and opened up a Royal London pension - no idea if they are a decent pension scheme!

I haven't paid into it since but this thread has got me thinking.

Should l try to pay into the Royal London one? It just concerns me that with how the world is currently that Royal London will go bust and I'll lose that money

What's a pension?

It's a portfolio of investments to give the owner an income after retirement.

I'm also paying 1% to Royal London to manage my fund. I have no idea what I'm doing in regards as to how to manage a pension, so is this money well spent?

1% is about average.

@MLMsuperfan - many thanks 😊

@EachandEveryone - how did you find out what your NHS staff pension is worth? I looked on ESR and TRS but didn't understand what l was reading