How much pension do I need

[Bluesky999]

I am 50 and have around 60k in pension fund; want to retire when I am 60k with a pensión of around 30k per year. How much do I need to save now? I think probably realistically I won’t get to 30k per year retirement and we may ending having to downsize move somewhere cheaper.

thanks in advance

Thank you

We had one who did look at our finances together but the last one didn’t; I guess he just wanted to sell some products to DH, that’s how they earn their commission? Will speak to DH.

Previous Finance Advisor asked me to stick as much as possible into pension and sold me some insurances which I have now cancelled as they are part of my job package now

I am 40 and have 300k in mine (none from employer as self employed just personal contributions and capital growth over last 15 years. I am on track for 22k if I retire at 60. I would just save as much as you can without sacrificing the now and then when the time comes see what your situation is and if you need to downsize or can get by

People saying pensions are rubbish

I have been investing since 24. I am now 40

Mine is worth 304k. I have put in 185k and the rest is from capital growth. I don't think that is a bad investment. Works out about 8% over the time I have had it. I am contributing 1k a month

Why is this only up to you to sort? How much is in your DH's pension pot? If DH has an IFA then he should be fairly up to speed with how much you need as a couple and whereabouts you are on savings? My DH also has an IFA who doesn't manage my pensions and ISAs - like you, I think I'm just not worth enough to him - but he absolutely does consider my savings and pension amounts when he speaks to DH every six months or so to work out our joint requirements and income. Is your husband sharing all the details of his chats with the advisor with you?

@forgotmyusername1 has done well. Started at 24, 40 now. 16 years. Put in £185k in 16 years. 16 years, x 12 months = £963.54 per month. Most people barely earn that much, let alone invest it in a pension.

whats in your DH pension pot? Do you have any other investments elsewhere? Any likely inheritance?

if you need £50k between why is the expectation £30k of that would come from you?

2x state pension is c£22k if you can both work at least part time until then.

so you really need £30k between you

£558 from net pay (if doing salx) if higher rate taxpayer and that's assuming employee funds all of it. More likely to be roughly 50/50 depending on the scheme (my employer does 12 to my 6%, which is very good) so it could be less than £250 from net pay getting that much return.
Now I'm aware that not everyone can afford even that, but if you can then the employer matching contributions and tax relief make pension a very worthwhile investment indeed for most people.

Thanks; I don’t think I have done my plans/maths very well.

No inheretance on my side but potentially on DH’s side. I don’t really count on that money; his mother will probably live to nearly 100 similar to his grandmother which would be great. His father will leave his state to his new partner who is younger. What my mother has will leave to the siblings who need the most which I am happy with and let’s hope she live another 20 years.

I think realistically DH and I will continue part time until state pension and between both we could make the 30k on the private pension.

I think I just got the 30k as the pension calculators always said you need around 50 percent of current income or so I thought

so with state pension you need 11 more years within the next 17/18 years so you need to contribute until you are 61, you can voluntarily contribute even if you have taken a private pension at 60, so you seem on track for full state pension at state pension age that's good. assuming DH is the same and you want 50K between you you need a pot that pays out approx 28K per year ( 50 - 11-11)
or 14k each plus whatever you need between ages 60-67

You don’t need to buy missed years for the state pension OP, if you need to pay in 11 years worth that’s only one year past your ideal of retiring at 60, and it seems you’re unlikely to end up retiring at 60 anyway. So that is a good thing!

I did this in 2017 - bought back years when I was living abroad.

If you were paying NI before you left the country , then you will have missing years.

I had a pension pot of £250k which I had contributed to all my working life. It was de-valued by more than £40k just due to stock market downturns, over which we don't have control.
I think the equity in your property is a good investment and you should not worry about downsizing as you will need to later in life anyway, and your home will increase in value over the long term.

Pleaseĺ get yourself a Pensions Adviser as I think you may have unrealistic expectations.

I paid before I went abroad, I paid some class 3 whilst abroad and then after I returned I paid back some years to get to my full pension.

Thanks. i guess thats always the risk

You have to factor in inflation to your target. Prices are up 20% over the last 3 years so any figure you see as a reasonable income today may need to be a lot higher in 15 years

This is very poor advice. A pension is just a 'wrapper' that has specific rules attached to it. You can hold pretty much any type of investment a regular person would want to in a pension. It's not the pension wrapper that results in poor performance, it's the investment that's held in the pension.

An ISA is another type of 'wrapper' with different rules.

Most people need just one of each.

Google 'Meaningful Money' for lots of useful content.

We are talking across purposes. OP said she only came to this country some years ago. You cannot buy ‘missing years’ when you were not part of the system, i.e. you were never a resident and did not have a National Insurance Number. This does not apply to people who left the country and later came back.

Thanks. Makes sense. I think is good to know this; but it doesn’t apply to me. I have not left the country since I arrived and I think I am on track for full state pension with 11 more years working,

Ok thanks I missed that bit about OP.

As if she's gonna be able to put in £60k per year. Get real!

Remember if you retire before state pension age you will have to have savings or high enough private pension to completely fund those years.

Unless you have an occupational pension that pays earlier.

Have you checked your state pension status? Will you get full state pension?

Will your DH get full state pension? When will he get it? Does he have a private pension?

Look at your joint prospects and joint outgoings.

If your DH has a pension and full state pension work out how much you need from your pension to top it up to the budget you have written for yourselves.

Retiring at 60 is a luxury most can't afford, I'd rejig to 65 or older and base your sums on that