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Aegon have got some cracking tools for this. That said, will be pretty scary for many. I think I read somewhere that the average pension pot in the UK at retirement is 40k. No, that is not a typo.
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Did anyone watch that pensions programme? (ITV 19:30 9/5) on 20:01 - May 12 with 5424 views
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 19:55 - May 12 by WD19
Aegon have got some cracking tools for this. That said, will be pretty scary for many. I think I read somewhere that the average pension pot in the UK at retirement is 40k. No, that is not a typo.
Jesus. The guy with £75k who was a renter had 25p left at the end of the week. He was an Everton fan and said he wanted to go to games and play a lot of golf in retirement. He has some work to do.
Surely we're heading for a massive crisis if that's the average?
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 20:01 - May 12 by J2BLUE
Jesus. The guy with £75k who was a renter had 25p left at the end of the week. He was an Everton fan and said he wanted to go to games and play a lot of golf in retirement. He has some work to do.
Surely we're heading for a massive crisis if that's the average?
That’s the average for a single pension pot, it doesn’t take account of people who have more than one pot - that said there is a crisis, people simply don’t save enough for their retirement.
As a rough guide, if you want to have a pension of your own, not including the State pension, you need to have a pot of £500,000 to generate £20,000 a year (a 4% return from an income generating portfolio, leaving the capital intact over the longer term)
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Did anyone watch that pensions programme? (ITV 19:30 9/5) on 21:46 - May 12 with 5286 views
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 20:29 - May 12 by bluefunk
That’s the average for a single pension pot, it doesn’t take account of people who have more than one pot - that said there is a crisis, people simply don’t save enough for their retirement.
As a rough guide, if you want to have a pension of your own, not including the State pension, you need to have a pot of £500,000 to generate £20,000 a year (a 4% return from an income generating portfolio, leaving the capital intact over the longer term)
I'm not sure numbers like that really help. £500k is a huge amount of money, well beyond most people. There's no reason not to draw down the money a little bit. I understand about living longer and not wanting to run out etc but that is a number which would put many off trying.
I think it's also important to break it down. £500k might make people think why bother but if people are told for every £30,000 they save they will have an extra £100 per month (inflation adjusted) it starts to seem like a much better idea.
I'm not sure how people earning £20k a year before tax are supposed to build a massive pension pot.
While retired myself it is frightening how many people over retirement age are in employment not because they don't want to retire but because they need to for financial reasons.
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 22:11 - May 12 by Pinewoodblue
While retired myself it is frightening how many people over retirement age are in employment not because they don't want to retire but because they need to for financial reasons.
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 22:17 - May 12 by J2BLUE
That is frightening. I tried to get my dad to watch the pensions programme but he prefers burying his head in the same.
Currently there is actually a big incentive to work beyond retirement age in as much as you no longer pay National insurance but they want to stop that, they are even considering increasing NI rates for those over 50, or is it 55.
Homeowners have a safety net, they can always fall back on equity release but the trouble is that can lead to a reduction in some benefits. Many honestly believe that every member of the older generation is better off than they will ever be but it clearly isn't true.
We spend more on holidays now than we ever did while working mainly because we were preparing for retirement. Yet most people know of someone who died before reaching retirement age or soon after. You don't know what lies ahead.
It's said that a pot of £100,000 gives a pension of about 5k per annum and that depending on your age you need to put £200 per month in your twenties, £300 per month if your in your thirties and so on. This would be if you started a pension at these ages. Thanks to Gordon Brown who ruined final salary pensions by taxing the dividend on shares. The whole thing is a mess. We now have the Government telling workers to save via their pension 5% of their wage the employer then contributes as well. A person on a low wage won't have a very big pot when and if they retire. I say if, because by the time a person is classed as an O.A.P. they will be between 66 and 68 depending on their current age and I would imagine 15-20% of these will not make that age. It annoys me beyond belief that O.A.P's are singled out as being responsible for all the ills that this Country has. Prescriptions, bed clogging the cost of the Old age pension etc, etc. For many years there have been Census carried out , there are also records of Births and Deaths, therefore Governments have known for years that due to the baby boomers there would be a huge amount of people retiring in the last few years and in future years so it's Governments fault for not making adequate provision and anyway we never hear about MP's getting a large pension for about 8 years in the job.
This is quite interesting. By making it harder to attract young tax paying immigrants it could have a big impact on lower income people and delay their retirement.
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 15:04 - May 13 by J2BLUE
This is quite interesting. By making it harder to attract young tax paying immigrants it could have a big impact on lower income people and delay their retirement.
Almost as if immigration is a positive for the UK.
Pronouns: He/Him/His.
"Imagine being a heterosexual white male in Britain at this moment. How bad is that. Everything you say is racist, everything you say is homophobic. The Woke community have really f****d this country."
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 15:18 - May 13 by J2BLUE
I don't disagree
Oh I didn't think you would J2. You seem like you're not the type who would consider immigration as a negative thing.
Pronouns: He/Him/His.
"Imagine being a heterosexual white male in Britain at this moment. How bad is that. Everything you say is racist, everything you say is homophobic. The Woke community have really f****d this country."
Clearly going to become an even bigger issue in the not too distant future.
Without wishing to sound like Callis, I do sympathise with low to middle earners, who aren’t on the property market etc - very difficult to also save for a pension that’ll produce anything remotely worth having.
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Did anyone watch that pensions programme? (ITV 19:30 9/5) on 20:47 - May 19 with 4496 views
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 20:39 - May 19 by PrideOfTheEast
Clearly going to become an even bigger issue in the not too distant future.
Without wishing to sound like Callis, I do sympathise with low to middle earners, who aren’t on the property market etc - very difficult to also save for a pension that’ll produce anything remotely worth having.
They will have the advantage of working until they are 75 though....so longer time to save.
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Did anyone watch that pensions programme? (ITV 19:30 9/5) on 09:07 - May 20 with 4277 views
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 20:29 - May 12 by bluefunk
That’s the average for a single pension pot, it doesn’t take account of people who have more than one pot - that said there is a crisis, people simply don’t save enough for their retirement.
As a rough guide, if you want to have a pension of your own, not including the State pension, you need to have a pot of £500,000 to generate £20,000 a year (a 4% return from an income generating portfolio, leaving the capital intact over the longer term)
A 4% withdrawal rate will erode the capital over time, historically you would need to operate with a 3.25 - 3.65% withdrawal rate.
There is a good blog around this by a guy called 'retirement now', he has worked through the withdrawal rates and the sequence of return risk.
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Did anyone watch that pensions programme? (ITV 19:30 9/5) on 09:23 - May 20 with 4249 views
Finding myself living on a small pension, I would say things needn't be so scary. However you will need to make some lifestyle changes and consider options.
For myself, it has come down to living abroad so my outgoings are not so terrifying. From posts on this forum I know many are open to new ways of living and would welcome a different lifestyle.
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Did anyone watch that pensions programme? (ITV 19:30 9/5) on 17:00 - May 20 with 4155 views
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 16:54 - May 20 by shady
Finding myself living on a small pension, I would say things needn't be so scary. However you will need to make some lifestyle changes and consider options.
For myself, it has come down to living abroad so my outgoings are not so terrifying. From posts on this forum I know many are open to new ways of living and would welcome a different lifestyle.
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 14:58 - May 13 by Whymarkmariner
It's said that a pot of £100,000 gives a pension of about 5k per annum and that depending on your age you need to put £200 per month in your twenties, £300 per month if your in your thirties and so on. This would be if you started a pension at these ages. Thanks to Gordon Brown who ruined final salary pensions by taxing the dividend on shares. The whole thing is a mess. We now have the Government telling workers to save via their pension 5% of their wage the employer then contributes as well. A person on a low wage won't have a very big pot when and if they retire. I say if, because by the time a person is classed as an O.A.P. they will be between 66 and 68 depending on their current age and I would imagine 15-20% of these will not make that age. It annoys me beyond belief that O.A.P's are singled out as being responsible for all the ills that this Country has. Prescriptions, bed clogging the cost of the Old age pension etc, etc. For many years there have been Census carried out , there are also records of Births and Deaths, therefore Governments have known for years that due to the baby boomers there would be a huge amount of people retiring in the last few years and in future years so it's Governments fault for not making adequate provision and anyway we never hear about MP's getting a large pension for about 8 years in the job.
I think I would be more or less happy if I got 5k a year to retire on. Plus the state pension thats 225/week, so I reckon thats about 650/month to live on after paying bills. Not exactly 4 holidays a year like my parents currently enjoy but hey.
In the spirit of reconciliation and happiness at the end of the Banter Era (RIP) and as a result of promotion I have cleared out my ignore list. Look forwards to reading your posts!
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 09:07 - May 20 by Andrew4445
A 4% withdrawal rate will erode the capital over time, historically you would need to operate with a 3.25 - 3.65% withdrawal rate.
There is a good blog around this by a guy called 'retirement now', he has worked through the withdrawal rates and the sequence of return risk.
I can confirm that anecdotally - I've been withdrawing 3.35% on average for the last 3 years, which has included some relatively volatile times in the markets, and the remaining fund is a bit higher than the starting value, so a wee bit less after inflation.
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Did anyone watch that pensions programme? (ITV 19:30 9/5) on 17:29 - May 20 with 4114 views
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 17:00 - May 20 by bluelagos
Where did you retire to?
Many places in Asia are fine, just find a place that you enjoy. (Of course Africa and S.America could also work.)
My abode is India, English language makes adjustment easy. Don't believe all the health scares and in your face poverty, Yes, it won't suit everyone but the people are very friendly. It's also a cheap place to live and there are no heating bills. Food is great and there are lots of fruits. Internet streaming of many of our games.
Like everywhere you will need a visa and then check it out to see if you can handle it. However if you can't live life without starting with full English and finishing with lots of beer ...and have too many red lines then life may be a struggle.
Actually beer is available but comparatively expensive and baked beans etc may only be available in few places
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Did anyone watch that pensions programme? (ITV 19:30 9/5) on 08:37 - May 21 with 3921 views
I used to work in pensions and the numbers are frightening - we were told that if you could contribute half your starting age as a %age and continue that through career you'd end up with a salary of approx 2/3 your final salary.
I started at 20, my employer matched 5% so it was quite easy to do - ended up with about £30k in it when I left that job at 26-27ish.
But now work in small family business, no pension contributions for years and am only on the auto enrolment minimums at the moment and I look at my illustrations and it's worse and worse.
The auto enrolment at the highest levels aren't too bad though - employee paying 5% and employer paying 3% - is ensuring the youngsters will actually have something there when it comes to retirement - but guess it is only to take the burden of the state.
I'm fortunate in that my main property, even if I never move which is unlikely, is both worth enough and is big enough to move down from. But appreciate most aren't like that, especially renters who don't have a chance
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 17:10 - May 20 by chicoazul
I think I would be more or less happy if I got 5k a year to retire on. Plus the state pension thats 225/week, so I reckon thats about 650/month to live on after paying bills. Not exactly 4 holidays a year like my parents currently enjoy but hey.
The important thing is to control your outgoings in retirement . Early sacrifices, as long as they lead to home ownership, are important. You don't want to be a renter in later life if you can avoid it.
Did anyone watch that pensions programme? (ITV 19:30 9/5) on 08:37 - May 21 by itfcjoe
I used to work in pensions and the numbers are frightening - we were told that if you could contribute half your starting age as a %age and continue that through career you'd end up with a salary of approx 2/3 your final salary.
I started at 20, my employer matched 5% so it was quite easy to do - ended up with about £30k in it when I left that job at 26-27ish.
But now work in small family business, no pension contributions for years and am only on the auto enrolment minimums at the moment and I look at my illustrations and it's worse and worse.
The auto enrolment at the highest levels aren't too bad though - employee paying 5% and employer paying 3% - is ensuring the youngsters will actually have something there when it comes to retirement - but guess it is only to take the burden of the state.
I'm fortunate in that my main property, even if I never move which is unlikely, is both worth enough and is big enough to move down from. But appreciate most aren't like that, especially renters who don't have a chance
I'd be pretty terrified if I was a renter. The man with £75,000 (generating £3000 per year @ 4%, £250 per month) is looking at a space in a shared house or something I would imagine. Pretty bleak.
By my calculations every £1300 @ 4% would give you another £1 per week in retirement. Not sure what taxes etc are paid on it but hopefully a bit of growth would knock that out. I think it starts to look more manageable if it's broken down. £1 per week isn't amazing but if you have 20-30 years until retirement it would make a hell of a difference compared with not bothering like most people.
The pensions dashboard needs to happen and it needs to be complete. I think it woild make a difference for people who used it.
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