How many years are you planning on working for to get £500 a month up to £1million?
Including capital growth of say 7% - 40 years would be more than enough.
[i]Including capital growth of say 7% - 40 years would be more than enough.[/i]
Yes that's what I was thinking. But I'd rather retire at 55 and have a bit less in the pot than slog along till I'm 65.
That must also be a fairly high salary for a 25 year old to be able to put £500 a month in a pension and have it matched by the employer.
Most would be paying of mortgage in earlier years - best that way IMO, also best to wait until on higher tax rate.
I paid of mortgage then put lump sums into SIPP, using 40% tax, and ISAs. Hard to get the balance right between enjoying money whilst young enough to take full advantage, and having enough to be comfortable later.
Grabbing an online calculator shows I should be saving £1k/month inc 20% tax back to get c 25k/year. Not a massive amount to live off at all. I'm 42 and have been paying into a personal pension every month for 15 years but there's no way I can find £800k/month at current rent/house prices and I earn well and am pretty tight with my cash IMO...
Anyone who's not paying into a pension at all or hasn't worked through one of those calculators is insane... you do wonder if we're going to be faced with mass pensioner poverty in 20+ years time, when you see how much debt people are in and how little they're saving for retirement or assuming they can just use their house as a nest egg...
I'm 39 and have 17 years of pension payments totalling £80k, now I'm running my own Ltd company I've just started a SIPP which I plan to sweep all excess profits in to - about £15k a year. That should get to about £500k of pension pot plus any future inheritance plus released equity from downsizing in later retirement.
Our first child is due in October which may screw up my savings plan though...
I get the impression that most people my age and younger are going to be screwed come retirement age.
