Average UK Pension - have you saved enough?
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- čas přidán 18. 06. 2023
- We all want to know that when we finish work to retire we have a nice lump of cash so that retiring is enjoyable, not stressful. Have you ever wondered where your pension sits compared with the average in the UK?
Read more here: moneynerd.co.uk/average-uk-pe... - Jak na to + styl
Good video, thanks, make more :)
Thanks! Will do 😁
Great video
I'm about to turn 30 and it scares the life out of me, the number of my friends my age that know nothing about pensions. So much "hype" on social media about high risk short term investment strategies that more often than not fail. I also can't believe how low these averages are - most people that retire are going to have to supplement with part time work with those numbers. I wish more young people sacrificed more now so they can benefit from the superpower of compound interest!!!
Pensions also work on what Einstein called the "8th wonder of the world", compound interest. The bigger you grow the fund the more exponential the growth you see later on. I'm 52 and been saving since I was 19 and my various pensions are really picking up the pace now. I've nagged my daughter since she was young about saving, investing and pensions. She's still at uni so pensions aren't a factor right now but she's got the "frugal bug" and she makes a real effort to try to save some cash from her part time work rather than pissing it away on usual student activities! ha ha!
Also don't forget that the government gives you free money to boost your pension compound interest driver in the form of tax relief. 20% mininum, 40% if you earn more than £50k/yr. My wife doesn't work but I fund a SIPP for her and she gets the 20% relief, plus when we both retire we can both take advantage of the £12k tax free income allowance so we can cut down the tax paid in retirement to just the big above the tax free allowance.
Don't know where you get your numbers. What is important is the value of your pot at retirement age,cnot the average amount of money across all pension pots.
£62k pension pot? A £500k pension pot would be terrible, let alone £62k
500k wouldnt be so terrible. Many can survive on that.
You joking?? £500k pot combined with the state pension would generate around £33k a year at state retirement age, which is pretty good.
Not terrible but not great and you'd certainly only be able to retire at 67 when SP starts to kick in as you wouldn't have the kick to retire early. Sadly many people can't afford pensions or simply don't earn enough. I don't mean this nasty in anyway but I certainly expect to see many more older people working down TESCO and Sainbury's right into their mid to late 70s in order to make up for the low pensions they saved. People think they can fix it when they hit 40, not too late but not easy. i started planning my retirement savings when i was 19 and I've not let up saving and investing in the last 30 years. I want to retire early at age 58 no matter what, and if you want something badly enough you find a way to make it happen.
@@KevinOLoughlin-ys5ef With 500k you could certainly retire 3-4 years early.
Reality is something that doesn't affect you is it? Easy to retire early with 500k
Heck I've got 460K and with the cost of living it's nowhere near enough. So I'll live like a pauper until retirement and hope. Inflation outstripped my pension growth by 6% last year. Thanks Liz. We need a better state pension based on sovereign wealth fund, not current taxation.
How old are you?
Very funny, sovereign wealth. Tories funded their pensions selling off the country.
Bollocks.
Is your pension pot entirely invested in bonds? Everybody else got 10 to 20 percent from their equities.
Thanks for the video, I see so many different figures mentioned when looking at the average pension pot, are you saying that the average pension pot for men just about to retire is 62k?
Yes..that's the average figure..but the state pension is worth about £250k. So the real average is closer to £300k...
Thanks for your reply.
Yes, exactly what Martin said
Stoopid to quote "average pot size." Most folks have MULTIPLE pots from different employers. I have 7. Also, no way can anyone expect to live "comfortably" on anything less than 500k, especially in the South.
I believe "comfortable" is now set at around £45k for a couple which is around £850k of combined pots.
Not true. You can live perfectly well on a £500k pot as long as you've paid your mortgage, but this is for ONE person, not two.
@@KevinOLoughlin-ys5ef Yes
These are crazy low numbers.
I don’t understand these numbers either. So low?!??
They never include the 'transfer' value of defined pensions which still exist in the state sector. If they added those in the figures would become a lot higher on average. I suspect these figures are just defined contribution schemes only because they are easier to add up. I suspect also that these are individual pensions and many people have many different ones. I could be wrong on this last point but if people cant bring their pensions together under one banner, how can someone gathering stats do so in order to get a correct value per person?
I assume that this isn't the sum of pension pots a person has, so if the typical person has three pension pots, they will have 3x the amount. And then there may be two of them in the household, so the household has 6x the pot, plus two state pensions.
@@AgileSnowWeasel I was thinking the same. In which case, the analysis is of little value.
@@AgileSnowWeasel The typical person does not have three pension pots.
Switched off as soon as I heard “the gender pay gap”
Gender pay gap. What BS.