Navy Net - Royal Navy Community

Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Pension guide.

Stirlin

War Hero
Recent findings by the state-backed pensions provider NEST (National Employment Savings Trust), suggest that £15,000 is the minimum annual income you need for a comfortable lifestyle. In fact, it found a noticeable drop in living standards for those whose annual household retirement income was less than £15,000 ,
taking housing costs into account the minimum pension £15,000 might become £ 21,000.

While £15,000 is enough to cover living costs, it doesn’t leave much left over for disposable income. To meet bills and living costs while having something extra for some luxuries, you should be striving for between £15,000 and £20,000, the research revealed.

According to NEST, a third of pensioners receiving less than £15,000 a year struggle to afford their energy bills, while a quarter find it difficult to meet grocery costs. For those receiving between £15,000 to £20,000 a year, this falls to 15 and nine percent, respectively – reflecting the significant difference that an extra £5,000 makes.


In retirement, it’s expected that some of your costs will have reduced. For example, it’s likely you’ll either have lower mortgage repayments by this stage or you’ll have paid off your mortgage entirely. Similarly, you’re less likely to have dependents, which will give you more financial leg room. And, without the commute to work, you’ll save on travel costs. However, if you’re spending more time at home, you may see your energy bills increase.

As everyone’s required income is dependent on their lifestyle, location and outgoings, the size of pension pot you need will be personal to your needs. But as a useful estimate, some experts say that you need up to two-thirds of your salary in retirement to live comfortably.

Working to NEST’s benchmark of £15,000, those who save eight percent of their salary from age 22 should be on track to achieve this by the time they reach retirement age. But it’s worth bearing in mind that NEST’s research found that pensioners’ satisfaction with life increased by seven percent for each additional £5,000 they had in annual income. Which is why we think it’s worth saving for tomorrow today. Our own theory is that you should take the same approach to saving for your pension as you do for your mortgage payments – budgeting for automatic monthly payments to help provide for your future security.
 

Wightsparker

War Hero
All young thrusters should look to start saving for a decent pension at 25 , or younger.

http://www.bbc.co.uk/news/business-38609422


Very, very sensible advice from Stirlin.
When I was 25, the idea of retirement was so far in the future that it simply didn't seem relevant. And that was when the state pension age for men was 65, and for women 60........
Having said that, I can't recall having spare money to put into a pension at that time. With the benefit of hindsight, I could have spent less on beer, women and song.
But it might not have been so much fun.
 

Stirlin

War Hero
When I started work at Uni of York aged 26 I started paying into the pension scheme , even additional money to cover the first year giving you 40 yrs input at 65. Future wife was 2nd I/C at pensions admin what is now Aviva in York and she said it was the best I could get anywhere. Left Uni with 20 yrs contributions when I fell ill but it is STILL a good payday once a month.
 

vauxhall

Lantern Swinger
It is very true that you need more money in retirement than you might think, The AFPS arrangements are all good and, if you are still serving, you can improve your pensions.

If you are still in AFPS 75 or 05 (in that you were not transferred to AFPS 15 on 1 April 2015), there is the provision for Added Years

If you are in AFPS 15, you can buy Added Pension.

If you a member of the Forces Pension Society and interested in the above, contact our team on [email protected] or on 0207 820 9988. If you are not a member, and want to know more about us, visit www.forcespensionsociety.org
 
Thread starter Similar threads Forum Replies Date
vauxhall Preserved Pension Benefits Guide Finance & Pensions 0
MoD_RSS Pension costs review for Northern Ireland Water MoD News 0
MoD_RSS Simple statements boost for pension planning MoD News 0
MoD_RSS Landmark pension proposals will protect savers from scams and help tackle climate change MoD News 0
MoD_RSS Pension boost protected by new bill MoD News 0
MoD_RSS Government launches cross-sector Working Group to help address multiple small pension pots MoD News 0
MoD_RSS Government to help pension schemes seize long-term opportunities MoD News 0
MoD_RSS Taking action on climate risk: Improving governance and reporting by occupational pension schemes MoD News 0
MoD_RSS Britain’s pension schemes lead on climate risk MoD News 0
MoD_RSS New Chair of Firefighters’ Pension Scheme Advisory Board of England appointed MoD News 0
K AFPS 75 - preserved pension rates Finance & Pensions 2
MoD_RSS Landmark Pension Schemes Bill proceeds to House of Commons MoD News 0
MoD_RSS Canada Pension Plan MoD News 0
MoD_RSS GAD's support on pension entitlements for fee-paid judges MoD News 0
MoD_RSS Pension Credit claimants now able to apply online MoD News 0
MoD_RSS GAD project helps 1,000+ pension scheme members MoD News 0
MoD_RSS Pension investment advisor banned MoD News 0
A OR2 full career pension rates 1998 Finance & Pensions 8
B Commute my pension or not? Finance & Pensions 4
MoD_RSS GAD pension specialists share expertise at industry conference MoD News 0
theoldti FTRS effect of pay rise on pension abatement Finance & Pensions 4
MoD_RSS GAD’s review of the Local Government Pension Scheme (Scotland) MoD News 0
MoD_RSS Statement from the Secretary of State on the Clinician Pension Tax Scheme MoD News 0
vauxhall How good is your pension? Finance & Pensions 0
MoD_RSS Russell Agius reappointed to the Judicial Pension Board MoD News 0
E Added pension Finance & Pensions 5
MoD_RSS Changes to the currency of UK State Pension and Industrial Injuries Disablement Benefit paid into Yemeni bank accounts MoD News 0
J Collection Pension From Overseas Finance & Pensions 2
vauxhall Pension Roadshow Schedule 7-11 October Finance & Pensions 0
B Pension for reservist 1 year operational service Finance & Pensions 1
MoD_RSS Multi-million-pound pension liberation bosses banned for 34 years MoD News 0
MoD_RSS Pension entitlements for fee-paid judges MoD News 0
vauxhall Keeping an eye on your pension! Finance & Pensions 0
MoD_RSS Non-Executive Chair to the Civil Service Pension Board: 5 September 2019 MoD News 0
MoD_RSS Pension company wound-up after mismanaging £14m of funds MoD News 0
MoD_RSS Uprating guarantee for UK State Pension recipients living in EU MoD News 0
vauxhall Telegraph Reports on Pension Tax Trap Finance & Pensions 0
vauxhall Pension Tax Update Finance & Pensions 0
vauxhall Forces Pension Society Appoints New Chief of Staff Finance & Pensions 0
vauxhall BBC reports that 'woman wins rights to her late partner's military pension Finance & Pensions 0
Sumo 'Unlawful' pension schemes to cost government £4bn a year Finance & Pensions 3
MoD_RSS Pension scheme negligence lands insurance boss seven-year ban MoD News 0
Archstoker Forces pension and age pension Finance & Pensions 6
vauxhall AFPS 15 and Added Pension Finance & Pensions 0
vauxhall Flexible Service - How does it affect your Armed Forces Pension? Finance & Pensions 0
MoD_RSS News story: Review of the Local Government Pension Scheme Northern Ireland actuarial valuation MoD News 0
MoD_RSS Press release: Trustees to mitigate the effect of unequal GMP's on pension income MoD News 0
vauxhall Over 75 and not yet dipped into your Pension Pot? Finance & Pensions 0
F Navy Pension Finance & Pensions 3
MoD_RSS News story: Teachers' Pension Scheme protected to ensure it remains among most lucrative MoD News 0
Similar threads


















































Latest Threads

New Posts

Top