Tony Blair
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Not a chance.0
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If those are gross numbers then I am in the ballparkelbowloh said:The online guides say to aim for 60-70% of your working income in retirement.
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All depends on your income and lifestyle surely?0
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Hopefully. State pension puts me at about 20% take home. Should be plenty if I emigrate to Bulgaria.TheBigBean said:All depends on your income and lifestyle surely?
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At a guess a higher income = a more lavish lifestyle, unless you save it all, in which case you're fine anyway.TheBigBean said:All depends on your income and lifestyle surely?
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Surely entirely dependent on whether you are planning to be retired for ~15 years or 30. And the further forward you bring retirement the less time to build up the pension in the first place. Or am I missing something?surrey_commuter said:
If those are gross numbers then I am in the ballparkelbowloh said:The online guides say to aim for 60-70% of your working income in retirement.
1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
Pinnacle Monzonite
Part of the anti-growth coalition0 -
SHHHH!!!!!! If you shout about it they'll all want to come!First.Aspect said:
Hopefully. State pension puts me at about 20% take home. Should be plenty if I emigrate to Bulgaria.TheBigBean said:All depends on your income and lifestyle surely?
We're in danger of confusing passion with incompetence
- @ddraver0 -
Irrelevant if you are working out what you need to have the same lifestyle.rjsterry said:
Surely entirely dependent on whether you are planning to be retired for ~15 years or 30. And the further forward you bring retirement the less time to build up the pension in the first place. Or am I missing something?surrey_commuter said:
If those are gross numbers then I am in the ballparkelbowloh said:The online guides say to aim for 60-70% of your working income in retirement.
To keep the maths easy if you earn £100k after tax, NI and pension contributions you will have £5k a month. Assume £2k goes on mortgage, work expenses and kids and you have £3k a month. By my reckoning in retirement you only need £42k0 -
This may be useful for your calculations:
https://thesalarycalculator.co.uk/salary.php0 -
We're talking about two different things. The amount you plan to spend each year of retirement versus the total amount you need to save to fund that over the entire period of retirement.surrey_commuter said:
Irrelevant if you are working out what you need to have the same lifestyle.rjsterry said:
Surely entirely dependent on whether you are planning to be retired for ~15 years or 30. And the further forward you bring retirement the less time to build up the pension in the first place. Or am I missing something?surrey_commuter said:
If those are gross numbers then I am in the ballparkelbowloh said:The online guides say to aim for 60-70% of your working income in retirement.
To keep the maths easy if you earn £100k after tax, NI and pension contributions you will have £5k a month. Assume £2k goes on mortgage, work expenses and kids and you have £3k a month. By my reckoning in retirement you only need £42k
£42k a year for 35 years of retirement will need more saving than £42k a year for 20 years, no?1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
Pinnacle Monzonite
Part of the anti-growth coalition0 -
Surely your maths is the wrong way round and you save for 35 years to pay for 20 years retirement.rjsterry said:
We're talking about two different things. The amount you plan to spend each year of retirement versus the total amount you need to save to fund that over the entire period of retirement.surrey_commuter said:
Irrelevant if you are working out what you need to have the same lifestyle.rjsterry said:
Surely entirely dependent on whether you are planning to be retired for ~15 years or 30. And the further forward you bring retirement the less time to build up the pension in the first place. Or am I missing something?surrey_commuter said:
If those are gross numbers then I am in the ballparkelbowloh said:The online guides say to aim for 60-70% of your working income in retirement.
To keep the maths easy if you earn £100k after tax, NI and pension contributions you will have £5k a month. Assume £2k goes on mortgage, work expenses and kids and you have £3k a month. By my reckoning in retirement you only need £42k
£42k a year for 35 years of retirement will need more saving than £42k a year for 20 years, no?
But if your 20 years were early in the career then yes it would provide more than enough0 -
Eh? Regardless of what figure you need per year to live on, if you start earning in earnest at 20, retire at 55, and live to 90 (a decent age, but far from unheard of and assuming you're not planning on spending your last pennies on the funeral), that's 30 years of earnings to fund 35 years of retirement.surrey_commuter said:
Surely your maths is the wrong way round and you save for 35 years to pay for 20 years retirement.rjsterry said:
We're talking about two different things. The amount you plan to spend each year of retirement versus the total amount you need to save to fund that over the entire period of retirement.surrey_commuter said:
Irrelevant if you are working out what you need to have the same lifestyle.rjsterry said:
Surely entirely dependent on whether you are planning to be retired for ~15 years or 30. And the further forward you bring retirement the less time to build up the pension in the first place. Or am I missing something?surrey_commuter said:
If those are gross numbers then I am in the ballparkelbowloh said:The online guides say to aim for 60-70% of your working income in retirement.
To keep the maths easy if you earn £100k after tax, NI and pension contributions you will have £5k a month. Assume £2k goes on mortgage, work expenses and kids and you have £3k a month. By my reckoning in retirement you only need £42k
£42k a year for 35 years of retirement will need more saving than £42k a year for 20 years, no?
But if your 20 years were early in the career then yes it would provide more than enough
That's quite different from earning until you are 70 with 20 years of retirement. An extra 15 years of savings and growth, and 15 fewer years of spending that larger pot.1985 Mercian King of Mercia - work in progress (Hah! Who am I kidding?)
Pinnacle Monzonite
Part of the anti-growth coalition0 -
I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place0
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Which index?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
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How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
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I don't mind. I don't need a perfect hedge.rick_chasey said:
Which index?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
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RPI. is being abolished so would be CPI or CPIHrick_chasey said:I mean I have no idea even what genre of index an annuity would be linked to.
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Here is some data based on £100k. So a £1m fund would get 10 times.kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
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So if you could reliably invest at an annual increase of RPI + 0%, you would need to live to 107 to come out better with that annuity at 60 years old? How does that match to life expectancy?TheBigBean said:
Here is some data based on £100k. So a £1m fund would get 10 times.kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
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You can't invest at RPI. You would need to discount it significantly. For example, the 2032 index linked gilt has a gross redemption yield of -2.49%.kingstongraham said:
So if you could reliably invest at an annual increase of RPI + 0%, you would need to live to 107 to come out better with that annuity at 60 years old? How does that match to life expectancy?TheBigBean said:
Here is some data based on £100k. So a £1m fund would get 10 times.kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
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Inflation gotchasurrey_commuter said:
RPI. is being abolished so would be CPI or CPIHrick_chasey said:I mean I have no idea even what genre of index an annuity would be linked to.
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That means you can't invest risk free at RPI, but yes, makes sense. How does any of it match to life expectancy figures?TheBigBean said:
You can't invest at RPI. You would need to discount it significantly. For example, the 2032 index linked gilt has a gross redemption yield of -2.49%.kingstongraham said:
So if you could reliably invest at an annual increase of RPI + 0%, you would need to live to 107 to come out better with that annuity at 60 years old? How does that match to life expectancy?TheBigBean said:
Here is some data based on £100k. So a £1m fund would get 10 times.kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
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The current average UK retirement pot is currently just under £62k...0
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Man up and put it in a mixed fund if you get 7% you can allow 3% for inflation and drawdown 4% a year. When you die you will have £2m for others to inherit.TheBigBean said:
You can't invest at RPI. You would need to discount it significantly. For example, the 2032 index linked gilt has a gross redemption yield of -2.49%.kingstongraham said:
So if you could reliably invest at an annual increase of RPI + 0%, you would need to live to 107 to come out better with that annuity at 60 years old? How does that match to life expectancy?TheBigBean said:
Here is some data based on £100k. So a £1m fund would get 10 times.kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
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kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
Depends on how old he is now and postcode.
Move to the west end of Glasgow before asking for a quote0 -
You can invest risk free at RPI, but it will cost you more to do so than you are factoring in in your calculations.kingstongraham said:
That means you can't invest risk free at RPI, but yes, makes sense. How does any of it match to life expectancy figures?TheBigBean said:
You can't invest at RPI. You would need to discount it significantly. For example, the 2032 index linked gilt has a gross redemption yield of -2.49%.kingstongraham said:
So if you could reliably invest at an annual increase of RPI + 0%, you would need to live to 107 to come out better with that annuity at 60 years old? How does that match to life expectancy?TheBigBean said:
Here is some data based on £100k. So a £1m fund would get 10 times.kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
Given the current yield curve, I would have thought that the breakeven on annuities is only slightly shorter than life expectancy, but I don't have that info.0 -
A 60 year old is about 60 years old. And an average would be an average of postcodes.surrey_commuter said:kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
Depends on how old he is now and postcode.
Move to the west end of Glasgow before asking for a quote
This says a 60 year old male would expect to live on average to 85.
https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-070 -
Just a point of correction on this. It isn't. RPI will adopt the methodology of CPIH from 2030, but will still be published. I believe some of the variants such as RPIX may be abolished. This is significant, because most contracts that reference RPI (e.g. gilts) will have clauses that trigger if it is no longer published, but if the methodology changes, they won't.surrey_commuter said:
RPI. is being abolished so would be CPI or CPIHrick_chasey said:I mean I have no idea even what genre of index an annuity would be linked to.
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That's more or less what I was quoted and why I will be going with drawdown. I don't expect to live to 110 and using my Dad as a guide spending reduces drastically at around 85.kingstongraham said:
So if you could reliably invest at an annual increase of RPI + 0%, you would need to live to 107 to come out better with that annuity at 60 years old? How does that match to life expectancy?TheBigBean said:
Here is some data based on £100k. So a £1m fund would get 10 times.kingstongraham said:
How long would they expect a 60 year old non smoking male to live on average?TheBigBean said:I would like to swap my pension pot for an index-linked annuity. The problem is that even with the maximum of £1m in the pot, the income is still pretty low. That ignores how challenging it is to earn enough to get to £1m with all the tax rules currently in place
The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0
