/ Yet another pension question
Ok, trying to figure out how much I "need" in my pension pot for retirement - a broad question I know!
I read the following, and wonder if this is decent enough advice :- " However, a very rough rule of thumb is that for every £1,000 you have in a pension pot you should expect to get roughly £1 per week in income from age 65"
So, if my pension pot was £100K then I should get £100 per week?
And if it were £200K then that would be £200 per week?
Would that be decent enough guide for me to try and see if my retirement pot is needing topped up etc.
If you take a pessimistic view that your savings/investments will cover inflation plus costs and no more, then your income simply becomes pot/years-expect-be-retired. So if you have £100k and expect to be retired for 30 years, you will have an income of £64/week.
Have a play with one of the online annuity rate calculators to see what they are offering 65 year olds with 100K right now. That will give you a starting point
Not saying an annuity is the best solution, though it may well be the safest long term
If you want to live off the interest and leave the capital to your children or the cat, the rule of thumb is that you can take 4% out a year.
That would give you about £80 a week.
Note that the state pension will give you about £8K a year. You can check how much you'll get on the government website if you haven't paid NI for significant lengths of time.
My work has a Fidelity Pension scheme and they have some tools that you might be able to utilise:
Your rough figures are a reasonable guide I would say.
You may eligible for the state pension too which is c.£130 p/w
Annuities have improved a little (still better options though). I noticed recently that £100k would get you £6000 a year.
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