£250k

[motorbiking]

Apparently that is the minimum you need saved up on top of your state pension, if you wish to retire at 65 and live modestly. It didn't sound like a lot, but allowing for 2% growth on your pot and an inflation rate of 2%, you can draw down £10k per year until your 89th birthday.

giving you an inflation linked equiv. to someone working, earning £19,300

Does that look realistic?

 

[SammyInnit]

Compared to the price of housing and the increasing difficulty for people to buy their own home, no it doesn't sound realistic.

I'm sure it is a realistic figure but the ability to have that amount saved isn't.

 

[SirGalahad]

Apparently that is the minimum you need saved up on top of your state pension, if you wish to retire at 65 and live modestly. It didn't sound like a lot, but allowing for 2% growth on your pot and an inflation rate of 2%, you can draw down £10k per year until your 89th birthday.

giving you an inflation linked equiv. to someone working, earning £19,300

Does that look realistic?

So 250k by 65. So that would mean over 40 years of work putting away about 2-3k a yr - rough calculation assuming avg growth and reinvestment. I bet most people can't do that unless they hit the property jackpot.

 

[SirGalahad]

Work till you die - that's the Govenments plan. Retirement for the few not the many. More work not less.

 

[Bodd]

Apparently that is the minimum you need saved up on top of your state pension, if you wish to retire at 65 and live modestly. It didn't sound like a lot, but allowing for 2% growth on your pot and an inflation rate of 2%, you can draw down £10k per year until your 89th birthday.

giving you an inflation linked equiv. to someone working, earning £19,300

Does that look realistic?

I'm 51 that £250 grand now what would I need in my pot by the time I'm 65?

 

[SirGalahad]

I'm 51 that £250 grand now what would I need in my pot by the time I'm 65?

Don't retire your brain goes to mush....

 

[Bodd]

Don't retire your brain goes to mush....

That is my fear and spending to much time on here as I would have to. Much time.

 

[SirGalahad]

Some people due to the nature of their jobs can't carry on past 65. If your jobs requires your mental faculties then you can carry on as long as you remain fit and healthy.

 

[pete50]

Apparently that is the minimum you need saved up on top of your state pension, if you wish to retire at 65 and live modestly. It didn't sound like a lot, but allowing for 2% growth on your pot and an inflation rate of 2%, you can draw down £10k per year until your 89th birthday.

giving you an inflation linked equiv. to someone working, earning £19,300

Does that look realistic?

What a total pile of crap you people talk. I retired when I was 60 and I am now 67. I have been able to live quite adequately and comfortably without having to have £250,000 in my bank. In actual fact I finished work when I was 51 as I took early retirement but my pay off was nothing like £250,000 and I wasn't getting any pension then.

 

[securespark]

Don't retire your brain goes to mush....

Mine is already mush...

 

[SammyInnit]

What a total pile of crap you people talk. I retired when I was 60 and I am now 67. I have been able to live quite adequately and comfortably without having to have £250,000 in my bank. In actual fact I finished work when I was 51 as I took early retirement but my pay off was nothing like £250,000 and I wasn't getting any pension then.

So anecdotally, you retired 16 years ago.

 

[JohnD]

as Einstein probably didn't say, compound growth is the eighth wonder of the world.

You have to start young, every year you wait it becomes much harder.

Try a calculator such as

https://www2.trustnet.com/Tools/PensionCalculator/GrowthCalc.aspx

https://www.standardlife.co.uk/c1/guides-and-calculators/pension-calculator.page

http://www.hl.co.uk/tools/calculators

https://www.bankrate.com/calculators/retirement/pension-benefits-calculator.aspx

https://www.nutmeg.com/pension-calculator

(plenty of them around)

If you are a typical UK person, the government will top up your contributions by adding back the tax you are assumed to have paid. For example a contribution of £2,880 out of your pocket receives a £720 top-up , turning into £3,600 in your pension scheme. That would be £240 a month out of your pocket. After 40 years compound growth that would be a tidy sum, provided you avoid high-charging schemes.

A long working life might be age 20 to age 70, and 50 years is sufficient to build up a useful sum

If you hope to work only 25 to 60, only 35 years you will need much more luck, or much bigger contributions. Not just because you have fewer contributing years, but also because your contributions have less time to grow. If you start at age 50, it will be practically impossible unless you are a very high earner.

An investment fund is not the same as interest in a bank account.

2% is an unrealistically low growth rate.

 

[JohnD]

avg growth and reinvestment

I'm not drawing it yet, but the growth of my scheme has been quite satisfactory, though with good years and bad ones.

As an example, I see that my Halifax scheme has had an average return since October 2008 exceeding 10% p.a.

Obviously Brexit will hit investments, but I will try to avoid its effects.

 

[ReganAndCarter]

What?? Twelve posts into the thread - elallah and co haven't blamed Brexit yet.

I don't believe it!

 

[JohnD]

Another very helpful post by the old duffer.