Retirement

[Matt Hopkins]

Three quarters of people arent on track for moderate retirement

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However when you consider average salary & wages, then deduct NI, other retirement related savings, mortgage, childcare (expenses you wont have in retirement) then why do you need anywhere near that for what they consider moderate. People on average arent on track for that because they dont earn enough. Its just ridiculous their numbers.

Same shit, different year from that lot

 

[Devil71]

Three quarters of people arent on track for moderate retirement

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However when you consider average salary & wages, then deduct NI, other retirement related savings, mortgage, childcare (expenses you wont have in retirement) then why do you need anywhere near that for what they consider moderate. People on average arent on track for that because they dont earn enough. Its just ridiculous their numbers.

It's reports like that which put me off early retirement initially.
If you're on the National Living Wage then your annual earnings are going to be in the region of £25,000 before deductions.

How are you then supposed to jump to an annual retirement income of £32,700 ?

I think it was someone on here who suggested that the figures were inflated by the pension companies purely to scare people into ploughing more money into private pensions managed by said companies.
He probably had a point.

 

[JAZZMANB]

Three quarters of people arent on track for moderate retirement

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However when you consider average salary & wages, then deduct NI, other retirement related savings, mortgage, childcare (expenses you wont have in retirement) then why do you need anywhere near that for what they consider moderate. People on average arent on track for that because they dont earn enough. Its just ridiculous their numbers.

Im a year in at 63 and I didnt spend anywhere near 33k last year . Hols ,footy ,car and house to run . I find those reports not a lot of use . I agree loads have little in place mind but its often not out of choice .

 

[Matt Hopkins]

It's reports like that which put me off early retirement initially.
If you're on the National Living Wage then your annual earnings are going to be in the region of £25,000 before deductions.

How are you then supposed to jump to an annual retirement income of £32,700 ?

I think it was someone on here who suggested that the figures were inflated by the pension companies purely to scare people into ploughing more money into private pensions managed by said companies.
He probably had a point.

That'll have been me and a couple of others Fkn shysters in my opinion

 

[Fletch]

Three quarters of people arent on track for moderate retirement

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However when you consider average salary & wages, then deduct NI, other retirement related savings, mortgage, childcare (expenses you wont have in retirement) then why do you need anywhere near that for what they consider moderate. People on average arent on track for that because they dont earn enough. Its just ridiculous their numbers.

saw that myself, never convinced by the amounts that get quoted and which companies provide those figures , mind you I guess if you live in the south east you need a fair bit more than if live north east

 

[Paul3845]

Three quarters of people arent on track for moderate retirement

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However when you consider average salary & wages, then deduct NI, other retirement related savings, mortgage, childcare (expenses you wont have in retirement) then why do you need anywhere near that for what they consider moderate. People on average arent on track for that because they dont earn enough. Its just ridiculous their numbers.

I'm fairly cynical about these numbers, as often they're provided by the pensions industry to encourage people to invest more with them ...

Also they don't appear to have any regional weighting / differences. We don't all live in the South East of England afterall.

Better, as you say, to arrive at your own number based on actual / likely expenditure.

 

[JAZZMANB]

It's reports like that which put me off early retirement initially.
If you're on the National Living Wage then your annual earnings are going to be in the region of £25,000 before deductions.

How are you then supposed to jump to an annual retirement income of £32,700 ?

I think it was someone on here who suggested that the figures were inflated by the pension companies purely to scare people into ploughing more money into private pensions managed by said companies.
He probably had a point.

I'd say low earners get by on avery humble lifestyle when they retire. Cheap treats and acceptance.

 

[Matt Hopkins]

have you had any issues or has it been ok ?
if dont mind me asking do you just have one fund or a mixture - i read recently that you cant specifiy what fund they should sell when you drawdwon and they take a mix from acroiss the board

as an example - using 100k for simplicity , if you had say 70k as 80/20 (equity/bonds) and 30k as 40/60 , you cant specify from which "pot" to sell ?

3 funds in pre retirement, 1 fund in drawdown.
Yes, in your example, you are correct that is exactly how it works

saw that myself, never convinced by the amounts that get quoted and which companies provide those figures , mind you I guess if you live in the south east you need a fair bit more than if live north east

I retired 3 years ago and wasn't pulling in £2,500 a month and I thought I was well off, apparently not

 

[Swindon On Tour]

Im a year in at 63 and I didnt spend anywhere near 33k last year . Hols ,footy ,car and house to run . I find those reports not a lot of use . I agree loads have little in place mind but its often not out of choice .

The biggest single outlay for everyone is a Mortgage / Rent.
Those reports make assumptions and a massive difference if you have paid a mortgage and retired or you are paying rent and retired.
In addition no mention of inheritance if some are lucky to receive any benefits.

All about the individual. I don’t think you need as much as you think to enjoy a decent retirement.

 

[Darlo1973]

It's reports like that which put me off early retirement initially.
If you're on the National Living Wage then your annual earnings are going to be in the region of £25,000 before deductions.

How are you then supposed to jump to an annual retirement income of £32,700 ?

I think it was someone on here who suggested that the figures were inflated by the pension companies purely to scare people into ploughing more money into private pensions managed by said companies.
He probably had a point.

Maybe some people need scaring.

The problem is that looking at averages doesn't tell you much.

There is a huge range of people from those with property, pension and savings worth over a million who can look forward to a very comfortable and early retirement

Yet I know some lads in their 40s (mostly tradies) who are still renting, no pension and are skint at the end of each month.

 

[42]

It's reports like that which put me off early retirement initially.
If you're on the National Living Wage then your annual earnings are going to be in the region of £25,000 before deductions.

How are you then supposed to jump to an annual retirement income of £32,700 ?

I think it was someone on here who suggested that the figures were inflated by the pension companies purely to scare people into ploughing more money into private pensions managed by said companies.
He probably had a point.

It was possibly me who said it as ive made that point a number of times about these reports.

As long as you know where you spend money & know what you need, then just ignore any external noise regarding retirement income requirements

I'd say low earners get by on avery humble lifestyle when they retire. Cheap treats and acceptance.

People generally live the life theyre accustomed to. My inlaws were always in & out of low paid work & benefit. Didn't have pot to piss in. Now they have £24k tax free coming in, it more than theyve had in their lives & living like kings. However relative to me, its still shit & I wouldn't want their lifestyle.

 

[JAZZMANB]

Maybe some people need scaring.

Basic earners get scares from the early days . They have an option of putting away quite a bit of their small wage when there's lots of things to spend it on there and then. The future is old ,illness, uncertain, care homes, death ( not a great sales package ) . So they skip it and concentrate on their prime years . If youre fortunate to start earning a bit more you then looking at rainy day pots and covering yourself a bit

 

[Town End Farmer Giles]

That'll have been me and a couple of others Fkn shysters in my opinion

And me. They have a vested interest in people putting money into pensions, so their numbers are utter bollocks.

 

[Shandy drinker]

Three quarters of people arent on track for moderate retirement

You must be logged on to see external links

However when you consider average salary & wages, then deduct NI, other retirement related savings, mortgage, childcare (expenses you wont have in retirement) then why do you need anywhere near that for what they consider moderate. People on average arent on track for that because they dont earn enough. Its just ridiculous their numbers.

You’d be surprised
We are just trying to work out some budget plan and you can quickly get to more than these figures with out living anything more than moderate and that doesn’t include paying for cars or mortgages

 

[fireballs]

HR hate that sort of thing on goal setting forms.

I got picked up at 29 for not setting many career goals. I had just joined the place I was working, a huge organisation doing networking with a complexity I had never been exposed to before. I said I wanted to stay where I was for around 10 years, because I loved the technical challenge and felt it would take 3-4 years minimum to be quite knowledgeable about all areas, 7-8 years to be considered an expert.

The only promotion option was management and I did not want to do that and move away from technical until I felt I had really mastered it.

I was told to be more ambitious, so I through in loads of tech jargon about what I wanted to learn and achieve. Some of it was made up. They left me alone after that.

Around 39 I started getting bored of the technical, interested in management to get into the fight against overall poor management at the place, so actually it turned out my 10 year estimate was spot on.

It's frightening how some people/organisations can't see that some people only want to get to a certain level and can accept being comfortable just doing their job - find the right ones who do a good job and it's a god send.

Then even as a manger you get set goals like ensuring all of your direct reports have career plans, progression paths etc.
My first job in management had a couple of blokes who were working towards early retirement (DB scheme) with little to no interest in moving up the ladder or any 5/10 year plans and no interest in even the corporate merry-go-round of annual performance reviews.

 

[Darlo1973]

It's frightening how some people/organisations can't see that some people only want to get to a certain level and can accept being comfortable just doing their job - find the right ones who do a good job and it's a god send.

Then even as a manger you get set goals like ensuring all of your direct reports have career plans, progression paths etc.
My first job in management had a couple of blokes who were working towards early retirement (DB scheme) with little to no interest in moving up the ladder or any 5/10 year plans and no interest in even the corporate merry-go-round of annual performance reviews.

That's exactly where I am. My current manager is hyper-ambitious (she will be running the whole place in the next 5 years if she isn't headhunted before then) which is fantastic for her but she doesn't comprehend how some people just want to do their current job rather than trying to climb the ladder every year.

I got marked down on my last performance review as I wasn't showing enough ambition or growth. It really didn't bother me but she think it makes her look like a bad manager for not developing me.

Anyway, I sense Yet Another Reorg is on the horizon (we haven't had one in 6 months!) so I will probably be shuffled off so that I can be another manager's problem to deal with.

 

[Matt Hopkins]

You’d be surprised
We are just trying to work out some budget plan and you can quickly get to more than these figures with out living anything more than moderate and that doesn’t include paying for cars or mortgages

For me the figures are meaningless, although I do like to twist about them every time they are brought up I had spreadsheets going back years so I knew how much I needed before I packed in. Always said I would have liked to have done another 2 years but it didn't work out but hey ho.
I've got nowhere near the moderate figure, in fact I'm a lot closer to the minimum, but I feel like I'm living the life of Riley.

 

[Darlo1973]

For me the figures are meaningless, although I do like to twist about them every time they are brought up I had spreadsheets going back years so I knew how much I needed before I packed in. Always said I would have liked to have done another 2 years but it didn't work out but hey ho.
I've got nowhere near the moderate figure, in fact I'm a lot closer to the minimum, but I feel like I'm living the life of Riley.

I was decluttering my hard disk the day (the things I do for fun!) and found a spreadsheet I had created 20 years ago which tried to model my future finances.

My pension and ISA are in a far better position than I ever thought they would be. Despite the regular crashes the last 20 years have been good. The dot com crash didn't really affect me as I was just starting out with investing after spending the 90s being permanently skint.

On the other hand my salary prediction was way lower than reality as I never got aboard the corporate career progression ladder (see above) and we are now in an age when pay rises of 5-10% a year are a distant memory.

 

[DaveH]

Three quarters of people arent on track for moderate retirement

You must be logged on to see external links

However when you consider average salary & wages, then deduct NI, other retirement related savings, mortgage, childcare (expenses you wont have in retirement) then why do you need anywhere near that for what they consider moderate. People on average arent on track for that because they dont earn enough. Its just ridiculous their numbers.

I agree with what a couple of others have said, it is a scare story to keep you investing into pensions longer.

I earn a decent wage, my wife is ok but often earns below national average (she is freelance so it changes a lot).

If we added up what we earn now, take off things like the higher tax I pay, take away pension contributions, take away what we are putting into savings, the £2-3k I spend on commuting, and the big one, mortgage payments, I bet that is not anywhere close to the moderate level.

But when I look at our lives, we don't have cash to spread about and do need to think about the bigger purchases. We are not skint either. Things like the old car needing replacing in a hurry were annoying but achievable without a worry. I would say that is a moderate life.

And all this is with two teenagers at home, needing clothing and feeding. If my son left home, the electricity bill alone would drop significantly!

I'm aiming for £40-£45k income for the two of us in retirement, but occasionally I wonder if that is too much and will have me working for longer than I need.

 

[Shandy drinker]

I agree with what a couple of others have said, it is a scare story to keep you investing into pensions longer.

I earn a decent wage, my wife is ok but often earns below national average (she is freelance so it changes a lot).

If we added up what we earn now, take off things like the higher tax I pay, take away pension contributions, take away what we are putting into savings, the £2-3k I spend on commuting, and the big one, mortgage payments, I bet that is not anywhere close to the moderate level.

But when I look at our lives, we don't have cash to spread about and do need to think about the bigger purchases. We are not skint either. Things like the old car needing replacing in a hurry were annoying but achievable without a worry. I would say that is a moderate life.

And all this is with two teenagers at home, needing clothing and feeding. If my son left home, the electricity bill alone would drop significantly!

I'm aiming for £40-£45k income for the two of us in retirement, but occasionally I wonder if that is too much and will have me working for longer than I need.

If my daughter left home the hot water bill would decrease by the gdp of a small country