Agree but 40k is still a substantial amount of pension provision to have in place for many people
Agree but 40k is still a substantial amount of pension provision to have in place for many peopleI think sometimes people can overestimate their income requirement in retirement. When you take out the big ticket items like mortgage repayment, saving, and retirement provision itself, a €2m fund might be too much for a lot of people. I did an exercise relatively recently and worked-out that €60k a year net of tax in today’s terms would be ‘adequate’ for us. 2 x State Pension is €26k, so around €40k extra a year in today’s terms would do the job.
In today’s terms, €5k a month net landing into your account with no debt and no particular requirement to plan for the future is actually a lot of money.
I agree, but the key thing is that it's almost impossible to come up with any one size fits all rule of thumb in this context. Whether it be an actual € amount, a multiple/fraction of final income, or anything else.Agree but 40k is still a substantial amount of pension provision to have in place for many people
Dont think anyones trying to come up with a one size fits all rule of thumbI agree, but the key thing is that it's almost impossible to come up with any one size fits all rule of thumb in this context. Whether it be an actual € amount, a multiple/fraction of final income, or anything else.
People who blindly say that people should have a €2M pension pot or calculators that make gross generalisations are.Dont think anyones trying to come up with a one size fits all rule of thumb
When I said “€5k a month net”, was it unclear whether I meant gross or net, is that the question?Would that be net Gordon, would there not be some tax due on that? Maybe iv missed something.
I agree.In today’s terms, €5k a month net landing into your account with no debt and no particular requirement to plan for the future is actually a lot of money.
One thing I noticed when my mother passed away was the financial impact on my father.. Fixed costs remained the same more or less (think heating, house costs, car and food etc) but a major hit to household finances with loss of state pension and part time work.I agree.
My parents (late 60s) have probably a little more than that jointly in retirement with 2x public service pensions. They struggle to spend it all even with three foreign holidays a year and pretty active lives.