Pension planning

[Racehorse-80s]

Three quarters of workers not on track for 'moderate' pension income, report suggests

A newly-published report suggests a moderate lifestyle in retirement costs £32,700 for one person and £45,400 for two.

www.bbc.co.uk

Are these pension figures really accurate , The amounts are net not gross , If you compare them to the average take home pay for the average worker I’m not surprised few will reach even a moderate pension payout on retirement ..

 

[chris123]

I'd have thought they were post tax numbers.

 

[Racehorse-80s]

I'd have thought they were post tax numbers.

Here are the detailed numbers , All the figures are Net ( After tax deducted )

Home - Retirement Living Standards

Home - The Retirement Living Standards have been developed to help us to picture what kind of lifestyle we could have in retirement.

www.retirementlivingstandards.org.uk

These are estimated costs, not income. They show what different lifestyles could cost.

To cover these costs, you’ll need enough income after tax. As retirement income may be taxed, you may need a higher income to meet these spending levels

 

[ASCPFC]

Hardly any of us are going to have that much in retirement. And hardly anyone is going to be able to ensure they have that much.
Hilariously, off the top of my head I can pretty safely say that the majority of workers don't earn that much.
I do, and I'll probably be looking at a lump sum of a few tens of thousands and maybe the equivalent of 5-600 a week in retirement. If I'm lucky. So I won't be getting that much either.

 

[Badger11]

Three quarters of workers not on track for 'moderate' pension income, report suggests

A newly-published report suggests a moderate lifestyle in retirement costs £32,700 for one person and £45,400 for two.

www.bbc.co.uk

Are these pension figures really accurate , The amounts are net not gross , If you compare them to the average take home pay for the average worker I’m not surprised few will reach even a moderate pension payout on retirement ..

I would agree with these numbers. I am lucky to have a good pension. Being mortgage and rent free and not owning a car makes a major difference. I get by on about 28k pa which includes 3 holidays pa so a comfortable life.

I could survive on 18k but wouldn't have much of a social life. For those who still have a mortgage or pay rent the number would be much higher.

 

[Racehorse-80s]

I would agree with these numbers. I am lucky to have a good pension. Being mortgage and rent free and not owning a car makes a major difference. I get by on about 28k pa which includes 3 holidays pa so a comfortable life.

I could survive on 18k but wouldn't have much of a social life. For those who still have a mortgage or pay rent the number would be much higher.

Glad to hear you are doing good on 28k , I’m retired but the wife still earns a hefty wage so a kept man , Obviously when she retires the drop in income will be huge until we can claim our state pensions ..

 

[PalazioVecchio]

worried about being very elderly and skint ? you need not worry if you smoke & drink your head off for most of your younger years. Winston Churchill (90) was a one-in-a-million statistical outlier.

 

[Badger11]

Glad to hear you are doing good on 28k , I’m retired but the wife still earns a hefty wage so a kept man , Obviously when she retires the drop in income will be huge until we can claim our state pensions ..

I get my state pension next year at which point I will reduce my income from my private pension (I've been taking too much).

My backup plan is equity release (not for a lot of people though).