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Pension guide.


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.


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

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.


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.


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
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