Yes, that's about right.I should have clarified, I will be entitled to the state pension of around 12K so would be happy with 18K on top of that. Does that mean I only need 450K after taking my lump sum?
For what it’s worth, my personal preference is the 25% lump sum/ARF/AMRF route; I like the idea of having something to pass on to the next generation.
The best advice is probably to try and amass the biggest pension pot possible, while maintaining a reasonable lifestyle during your working life.
Anyone like to hazzard a guess as to how much money a person would have the contribute to there pension to have a fund worth a million after 30 years ??
Anyone like to hazzard a guess as to how much money a person would have the contribute to there pension to have a fund worth a million after 30 years ??
....I will be entitled to the state pension of around 12K.....
Relying on the state pension being 12K, is a dangerous assumption to make..
IMHO annuities are terrible value just at the moment. QE has led to quite unbelievably low interest rates even negative at the shorter end. If guaranteed pension is what suits your psyche wait for rates to improve. Ok you are foregoing the insurance against living long but by definition this risk does not suddenly hit you overnight, so it can safely be postponed.
I agree with other posters on the order of money’s needed to answer OP though I note inflation is being ignored.
Hello,
I could not agree more with fistophobia on the point about the state pension.
- The population is aging, so there will be more people drawing on the state pension in the future
- Average life expectancy is getting longer, so those who draw on the state pension will draw on it for longer periods
- Successive governments continue to make no meaningful arrangements to provide for future obligations under state pensions
Notwithstanding the moral obligation that the state may have to pay pensions in the future to those who have contributed into the system for many years, financially I don't see the state being able to afford to do so. As such, sooner or later, the government of the day is going to have to break the bad news to the population and make some radical changes. Obviously, governments don't want to grasp this nettle given the fear of them then being penalised in subsequent elections, but tinkering with the state pension (by pushing our the age before payments commence for example) can only continue for so long.
Hi all,
I am just starting to investigate the pensions issue and must admit I feel quite intimidated by how complicated it is. I was wondering if anybody could answer a very basic question just to get me started. How big a pension fund would I need at retirement age to guarantee an annual income of 30,000?
Any help gratefully received - thanks.
Not really - one TV licence, one ESB bill, one gas bill, one LPT bill, etc.I ask as it isn’t clear and a significant other will probably double the amount you will need to have to support in retirement.
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