How much do you need to have in your pension fund to live relatively well after retirement?

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TitferAndDaisies@reddit

Retirement? What's that? I thought the norm was work til you drop these days.

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Zealousideal-Habit82@reddit

Only if you fail to plan for the future, pension saving won't guarantee anything but it will reduce your chances of working till you drop.

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Now almost 40. I have nothing in retirement. I’m self employed have been for many year so never had an employer pension. I do have some long term investments in S&S ISA, I’ve got some decent savings but nothing specifically for retirement. I will have the mortgage paid off early in a couple of years, that will free up a decent portion of my income to put towards retirement. I don’t think I’ll bother with a pension at this point, I’d rather have it accessible before 58 years old

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uluvmyredditcomments@reddit

SIPPs can be set up by anyone and be accessed by age 55.

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Cultural_Tank_6947@reddit

Why though? Unless you're planning to be dead by 58, surely the tax advantages gained while putting money into a pension are hugely beneficial? By all means, any money you feel you'll need before 58 needs to be in an ISA but why not take a little extra courtesy of the tax man?

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what_i_reckon@reddit

58 because that’s what the private pension withdrawal age is rising to in a few years. And I’d just rather have full control of the money. Obviously if I was employed and getting a match off my employer I would. But as I’m self employed I be got other ways of reducing my taxes. Plus I’m in building trades there is this little fear at the back of my mind what if I get seriously injured and have to rethink my career, having £50k in a pension I can’t access isn’t much use to me, but £50k in an ISA in a situation like that would be very very helpful

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gym_narb@reddit

If you're ill enough to not be able to work you can access your SIPP early. Please read up on this as you're missing out on big tax savings

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what_i_reckon@reddit

Would I be allowed to cash out my pension to use that money to go to college to retrain if I need to take a office job? No But as I said I save a lot in taxes because of the nature of my work. The government doesn’t really know how much I earn

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deltree000@reddit

Lifetime ISA. You need to open one before you turn 40. Open one ASAP and put the £4k a year in (if you can) until you're 50 and the Gov. will give you £10k. That'll be £50k that'll hopefully sit there and grow. You can start withdrawing at 60.

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IndividualCurious322@reddit

I feel a lot of people will not be retiring when they get into old age.

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BishBeesley@reddit

This isn’t a choice. Your chances of getting another job drop every year after 50.

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Archtronic@reddit

Over a million is what most of us will require for a somewhat basic pension more if you want a decent income. If inflation broadly copies history then take whatever wage you want in todays money and times it by 3.

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SomeHSomeE@reddit

Enough to fund £40k a year (in today's money) after income tax from age 60 until I die. Assumes I have mortgage paid off. On that I could live a very comfortable life with lots of travel and expensive hobbies. If I assume I will live until 90 (ha, we'll see...) then that means, basically: £40k post tax will require me to be drawing down something like £45k before tax. £10k from state pension leaves £35k from private pension. £35k annuity costs around £750k. (Other ways of achieving it are possible by e.g. keeping it invested and drawing down at a safe level, but honestly the maths gets difficult and I CBA).

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TheFlyingScotsman60@reddit

If you are single then 40k is a lot. You can take, just now, 16750 out totally tax free from a SIPP. Double that number if your partner has a reasonable pension. Add on 20k from state pension for the two of you.

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Exita@reddit

Depends on how much you feel you need to spend to live ‘relatively well’. A £1 million pension pot should generate £50k a year more or less indefinitely for instance.

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yabyum@reddit

Give [this](https://www.nutsaboutmoney.com/pensions/average-pension-pot-uk) a read mate.

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Small-Interaction733@reddit

Well, you need to define "pension fund". You don't need a 'pension' to live comfortably, any more than you need one now. But you need money, lots of money. And that's the reality. The state pension is, what, £10k a year in current terms. Okay, you get some benefits and stuff, and maybe you can work part time but at some point you're going to have to truly stop working. Even with no mortgage, you're going to have bills and I don't think that gives you enough to "live well" by any means. Survive, maybe, just

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How much do you need to have in your pension fund to live relatively well after retirement?

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17 Comments

TitferAndDaisies@reddit

Zealousideal-Habit82@reddit

what_i_reckon@reddit

uluvmyredditcomments@reddit

Cultural_Tank_6947@reddit

what_i_reckon@reddit

gym_narb@reddit

what_i_reckon@reddit

deltree000@reddit

IndividualCurious322@reddit

BishBeesley@reddit

Archtronic@reddit

SomeHSomeE@reddit

TheFlyingScotsman60@reddit

Exita@reddit

yabyum@reddit

Small-Interaction733@reddit