Serious stuff this thread.
The pension you need will naturally depend on the kind of life you would like in retirement.
You need to think about:-
Your 'survival' estimated monthly budget be for day-to-day expenses (Energy/Water/Council Tax/Telephone/Car/Clothes/Food etc)
What kind of 'life' would you want to enjoy above and beyond survival. Holidays can be expensive! Would you like to eat out now and then? How will you spend your time?
Just as an eye-opener and to throw some numbers around, for a modest £10,000 pa retirement pension income you would typically need a pension 'pot' of around £150,000
Remember as well that income tax is payable on pension incomes.
Peanutz, that £100 per month for 25 years would only be worth around £60,000 based on 5% interest pa
To reach a target pension pot of £150,000 you would need to invest more like £250 per month for 25 years at 5% annual interest
If you want a pension of £20,000 pa income you would typically need a pension 'pot' of around £330,000
To reach that target of £330,000 you would need to invest more like £550 per month for 25 years at 5% annual interest
Most people with only state pension as income will tell you that it's only very basic survival mode if that. Make no mistake it's tough!. That maximum full state pension currently stands at about £97.65 per week (£5000 per year)
Food for thought.
