Just worked out DH and I have 56k in pensions(joint) at age 34 - is this low!?

[theapli]

Sorry if it seems like an obvious Q to some, but we are no clued in on finances (to our own detriment I'm sure) but this is our current pension balance at 34 years old, about 50/50.

Is this bleak? Do we need to up our contributions majorly?

I'd just try to increase it a little each time you get a pay rise if I were you. It all adds up

Thanks all.

I'm very much in the boat of you have to live for today as well as the future.

I think as a PP has said I need to increase my contributions slightly, and I will ask DH to do the same, but I still want to have easy access savings as well as potentially overpaying the mortgage slightly when we stop paying for nursery fees in September.
(we'll still be paying fees but no where near as high as beforehand thanks to 30 free hours).

Our fixed mortgage ends in summer 26, we're currently only 1.6% so we have to factor that in too.

UK article

US article which I found more useful.

By age 35, a reasonable pension target would be 1 - 1.5 x gross income.

One of the tips they have given at work when we’ve had the pension folk in was to up your contributions by any pay rise so it is less noticeable. Also check what fund you are in. A lot of the default work pensions are absolutely rubbish. This guy is really good at explaining pensions.
https://m.youtube.com/watch?v=DsxikyDwdNw

Based on averages I don’t think you are that far off the norm. Lots of people in their 30s have very limited pension pots.

There are lots of calculators, MSE is good for this.

It’s hard in the early years, with mortgage, childcare costs if you have any, full salary potential not yet realised etc.

So easier to put a lot more money in later on. However, money out in earlier works harder for you.

Is your pension a defined benefit or defined contribution? Your workplace pension provider should be able to offer a free review with some projections.

Pensions
Put the money in a investment pot instead
Money will double every seven years on average
And
The chance of living until pension age....
With all the wars breaking out
Who knows
Maybe world war three soon

I'm 34 and partner is 36. We have combined around £450k in pension pots currently (me £150k, him £300k). I don't say this to brag but just to offer a comparison given we are the same age. There will be some with more, others with less.

We began contributing straight from uni (early 20s) and ever since have upped our contributions each year gently but consistently in line with salary increases. We currently each put aside 10% of salaries which is matched by employer, so 20% total. We also put in some of our bonuses each year.

Ultimately the answer of "do I have enough saved" depends on what you need for the retirement lifestyle you want (and what age you want that to start). Partner and I want to retire early with a flexible lifestyle - lots of travelling and activities. We overpay the mortgage here and there for the emotional satisfaction but know that prioritising our long-term tax-free savings is technically smarter. We also have other long-term savings in shares which is less tax efficient but will allow us to retire earlier than the age we can access the pension funds. This is currently around £80k but we are getting more serious about building this from next year and might redirect some pension savings.

Everyone is in a different situation but make sure you are prioritising putting away whatever amount maxes out any employer matched contributions you can get - otherwise you're giving away free money!!

Be cautious and know what your pension is contributing to?
Is it contributing to buying arms/funding genocide
is it investing in the gambling industry
Is it investing in the adult industry

All this needs to be considered

I'm happy that you are in this position and great advice too!!!!

Depends on your outgoings and what you are going to require to live.

If you intend to still finance a 3/4 bedroom house then you'll need much more than if you downsize. I'd love a bigger house and could afford a mortgage on one BUT the bills on my small home are tiny in comparison and long term are the better option. So think carefully on the things that will impact your outgoings as much as the money you are putting in.

Based on our and our friends private pensions ( Govn, nhs, teacher etc pay differently ) we have all worked out that we take home per year approx 4% of the total in income. All of us are either retired or near it.

So your £54,000 ( if it’s similar to the average private pension ) would be a yearly income ( before tax ) of £2160 / yr. That gives a couples income below the minimum required to live a minimum standard of life at retirement.

However
You are only 34, loads of time to invest more.