Twice your salary in your pension pot at 35

[Mushroo]

I saw this headline earlier from the Telegraph. Is it just me or is that crazy?

Do people really have that much saved up in their pension pot at 35?

Im 30 and don’t even have a years salary saved!

Most people don't. Most people will be poor in old age. Particularly women.

So if I make £30k, I should have £60k in there? (I’m 33.)

@ReeseWitherfork yes that’s what it was saying. It just seems impossible, especially with the stock markets tanking and rising living costs.

I got told at 30 I should be saving 30% into pension. Yeah right, I can of need to live. I'm older now and have a decent pot but in 30s, no way.

I once read that whatever age you start to save for your pension, you half that, and that’s the percentage of your salary that you need to save.

I’m 35 and have around £4K in my pot. If I’m lucky, it will pay for an annual hair cut haha

I am mid 40s and have more than double my age in pension, which is just as well as I have no substantial savings or any inheritance coming my way.

It’s good advice but difficult for many people to achieve.

Which? has a good guide to what you will need in retirement depending on how you plan to see out your days.

Just to clarify that the percentage generated by half your age in this advice includes both your contributions and those of your employer (assuming you are not self-employed).

I'm 37 and have approximately £400 in my pension pot. Guess I'd better find a rich husband!

OP
At what age did you start your pension? How long have you been in full time employment?

I started as soon as I entered full time employment age 22. I pay in the minimum though whereas some of my friends and colleagues top up by a few hundred pounds each month.

@Lovinglife45 i started at 24 and have paid in since then. The amount has varied because of life / job changes but I’ve tried to put in 8% from me, and employers have probably put in about 8% on average as well.

I thought I was doing ok but I guess it could always be more! We’re saving hard for a family home and atm that is the priority (currently
in a flat)

I don't know whether to laugh or cry about this!

Not a chance. With student loan, sky high rents, nursery fees that are in the thousands a month, plus the government minimum pension contributions.

Fuck me. I've only got a quarter of that at 33, and I have quite a good job

Few people can afford 30% at 30, can they!

Tbh most people are currently trying to survive cost of living increases so for those I think pension contributions will be dropped or reduced just to balance the books monthly

We are two nations in terms of pensions. Private sector as represented above with little chance of saving and facing living on £9k a year (current value) when they retire.
Public sector e.g teaching, civil service where the employer pays in 24% of salary and employee c 8% resulting in a great retirement income of up to two thirds final salary and no need to worry about annuities, investment return etc.
it’s all done for you and it’s guaranteed with inflation linked increase every year.

I guess it depends how you live and what you earn? Twice £50k is a lot more than twice £20k.
DS has twice his salary in a pension pot at 26. He's a teacher so not a high earner.

@YourLittleSecret proving @NellieJean s point

Yes, and if you're on £20k you're going to be spending every penny of it just to get by. You won't be able to save much - if anything.

If he’s a teacher paying into the TPS then he doesn’t have a ‘pot’ as such as he will be in receipt of a defined benefits pension, not a defined contributions pension.

On the one hand, it’s solid advice: have a big pension pot, have some liquid cash savings, have a small mortgage in an energy efficient house, have a portfolio of investments. On the other hand, it’s crazy because it amounts to: just be rich! Be rich, and not poor!

I have just over 3 x my salary at 40. Private company just paid in as much as I can - it still won’t be worth much at retirement though ☹️

Also, if he’s 26, he’s been a teacher for a maximum of 5 years. His salary will have started at 22K and unless he’s in a management position will be on approx 35K. You’re saying he has paid 70K in 5 years? At an average salary of 28K over 5 years of 30% employer / employee contributions that works out at around 42K. Methinks your maths is a bit out there.

So by 35 you need to have saved (you and employer) 20% for 10 years?
If you have an exceptional employer you might have a chance. But, by law they only have to pay in 3% if the employee puts in 5%
Mine does exactly that. I'm the wrong side of 50 and save 25% of mine into another pension but I'm lucky cos mortgage free. Am actively looking for a job with decent pension contributions.