Pension pot @ 45, is it on track?

[Isiteveroktousethecword]

As per the title, fund sits at 225k currently. No debt. 150 k in ISAS, 40 k emergency fund, 1.1 million equity in property with 180 k mortgage. Healthy six figure salary.

private income of at least 30 k a year at retirement.

do I need to save more into pension?

I am of course going to ask an adviser -
but then he also makes money of me putting more into pension.

asking - as I can go PT and then under the 100 k -
so have the time to enjoy self more….but can’t decide if it’s best to work to put the excess over 100 into pension.

How much do you want a year in income?

A few Qs:

When do you want to retire?
Are the ISAs cash or S&S?
Are these figures for you or as a couple?

Do you mean you already have £30k per year in retirement or that’s what you’re looking for?

what age do you want to retire?

i like the https://try.guiide.co.uk calculator - it allows for tax, you can vary retirement age and what you want to take when and it will stress test scenarios for you

Also, do you mind saying what the private income is (roughly)? How reliable is it? Will it be keeping up with inflation?

Edit - or do you mean that this is the income you are aiming for (in addition to any state pension? I had taken it to be a source of income.

Looks like a hell of a lot of money to me! I'd go PT and enjoy the next decade for sure.

Is there anyone else who will be financially dependent or co-dependent on you in retirement?

You sound very well set up to me.

It all depends when you want to actually retire. Will you work for another 15 years to 60? Beyond? Or are you aiming for retiring at 50 in 5 years?

Will you downsize your house?

Factor in state pension from state pension age, but you will have to manage on your own savings or private pension from when you stop working. You can usually start drawing on private pension 10 years before the state date.

Clearly you don't need to. It depends what you want, which is an amazing place to be. You just need to decide if you want to prioritise time, which I believe is the most precious asset we have and is never certain.

Oh my. I hope everyone says you’re in a really good position, otherwise I’m completely f**ked!

To answer queries:

Have a private income guaranteed circa 30 k at the moment and will increase with inflation.

May not downsize - would take a lifetime mortgage or something if really needed more money.

I like work - so don’t plan to retire early. Plan to do
current job till 60 and still want to do something after that.

ISA - stocks and shares.

Am pondering the position - as could go to 4 days a week; to allow myself time to go to the gym, catch up on admin, see friends and not always feel like everything is a rush!

Yes - this is where I am coming out at!

I am speaking to a financial adviser next week, but it’s one of those things - people don’t talk about money in this country and I want to be comfortable but I also just want to enjoy life more now (when I have the health).

It's a no brainer, isn't it? Of course go to four days.

I would definitely go to 4 days. Make the most of your life.

Well if you have £30k of income guaranteed,. you'll already have more than most. So you need to decide what you need. You won't have a mortgage, but you do want to keep a million pound house. You should get an extra 8k a year from the pension if you want. So that's what, £38k.

Sounds alright to me, but I spend about £22k a year and that covers 4 European holidays, a car, a nice gym membership, a cleaner and some help in the garden.

If you have expensive tastes in holidays or cars or whatever, or your bills are expensive because you have a million pounds of house, then you'll need to calibrate accordingly.

It’s actually a central London flat….so the bills are not excessive. The service charge (which covers all the communal works as well) is currently 4 k a year. Its share of freehold - so not some freeholder that tells us the bill is this, pay now.

have always played it safe, worked hard, don’t waste money on nonsense - just getting to the stage where seeing people get ill, die young and it’s made me really think about what I want.

The responses are very much appreciated.

I'd go 4 days - you are 45, as am I and it's an age and above where looking after your mental and physical health can make the difference to how long you enjoy your life for and the quality of that life.

I'm 45 and we have decent assets but not your level and if I could go 4 days I would even with our less stellar savings.

I've worked 4 days and 5 in 4 and feel that it's a sweet spot where you can do your job to a good level but still enjoy more leisure.

Yes me too - I was at work last week and got an email that a lovely person I worked with had just keeled over unexpectedly and gone, I believe in their 50s. Terribly tragic.

I have nowhere near what you have, but I am the same age. I am about to drop a day a week because we can manage it (DP could too but doesn't want to) and I plan to use the time to regroup and look at how I want the next stage of my working life to be.

So dont forget, you can make this decision now and change it again if you want. I have been working since I was 15, I deserve a break.

I have 257k in a pension, 150k in an S&S isa, no mortgage. To my mind it's about your projected contributions, and growth rates. I'm geared up to contribute c.50k into my pension each year and maybe 5k into my ISA. Based on 6-7% growth they should both get to £1m+ by retirement, which with the state pension puts me in a strong position.
Yours sounds similar. Equity in a house is a bit irrelevant since you need a home, and (I at least) don't plan on downsizing.
I'd evaluate how things are invested alongside sustained contributions, that's the key, good luck.

£1m in a dc pension gives you an income of about £30k at normal retirement age. You have income of £30k which is equivalent a maxed out pension. Plus you have property, ISAs and an actual pension. You’re fine. Drop the day and enjoy your secure position.

You want to be getting a lot more than that. Even a drawdown at 4% will give you more.

You're obviously in a very good place financially by the sounds of it so the things I'd be looking at....

Hows your health at the moment...?
Are you married/long term relationship??
Kids/dependants that may require uni etc

Obviously you've said you enjoy work which is great but even if you can go to 4 days a week now and then in 5 years time maybe drop another day again if possible and start enjoying yourself.

You even say yourself you've started looking at this after seeing people getting ill/die young etc so try and enjoy yourself if you can as unfortunately you only get one time on this planet and you're in a good position to enjoy yourself a little 😀

You are doing more than ok.... well on track!

No children, no dependants.

Have had a very stressful few years - and feel like didn’t prioritise health - hence being at this juncture.

Well I'm afraid I only speak from a bit of a negative experience but my late father planned on retiring at 62 and him and my mother were going to buy a large camper van so they could travel around the UK / Europe and enjoy their retirement before getting too old to do so!

Unfortunately 2 years before this day even come my father passed away and never even got to enjoy his retirement!

He wasn't in as good a position as you financially but if you have the opportunity enjoy your time/life as much as you can whilst you are fit to do so!! The beauty of life is you never know whats around the corner but pointless having £500k in the bank if you can't get out to enjoy yourself!!