Is £2M pension fund enough? Post Reply

[Esmerelda]

Using a different name today but would love some help.

I am fortunate to earn low six figures and have always had in my head that i will need £2M in a pension pot assuming no mortgage and children flown the nest. Now I am wondering if this will be enough?

Would love to understand from others what they think think is enough. Please don't me shoot me down for this question, I appreciate that it is a fortune compared to a great many but I have worked very hard to be in this position.

[VickyatKillik]

Hi Esmerelda! We frequently get asked questions around pensions, if you would like to pop in for a chat to discuss your financial circumstances, please do get in touch northcoteroad@killik.com.Have a lovely weekend.
Kind regards,Vicky Smallwood
Killik & Co 
125D Northcote Road
SW11 6PS

[handbagsatdawn]

I would love to know the answer to this question - maybe you could reply or at least give some insight  here so we can all see Vicky??

[robinm]

As with most things in life, it's all relative to your situation - some might say that's plenty, some might say you'll need $5m!

- What lifestyle you want to have when you're retired
- Outgoings outside of debt
- Any dependants you might want to help later on

With inflation the way it is currently $2m might be then new $1m by the time I retire :/

Would recommend speaking to an IFA just so they can build some models on your likely demands.

Robin

[Clare Lupton]

Hi - I do a business that pays like royalties, so it starts like a pension straight away. If you’d like more info just PM me.

[SW12dadfincladviser]

Hi Esmerelda, there are lots of moving parts with this, hence would need independent advice given your specific situation.
As an indication, I would be looking at the risk-free rate of return - if we focussed on the UK 30 year GILT, this is currently giving a yield to maturity of 3.76% - so if we invested £2mn into this, this should provide an indicative annual income of £75,200 per year for the next 30 years
Happy to discuss in more detail if you like: jaips.rekhi@ccfpllp.com, mobile 07826 101718. I live in Balham   

[Up Town Girl]

I find this post very scary. £2M seems a LOT of money , an amount that most people would kill to have and yet I am reading this last post and thinking that it might not be? If you want to travel, buy a new car at some point and probably carry out some house renovations like a new kitchen etc. it doesn't seem like it will be. But it is £2M it must be, surely??!!!!

[SW11er]

Questions like this are really difficult as there lots of variables (how long you will live, interest rates, inflation, and return on your investments). You then have the standard of living you want to maintain. So it’s an almost impossible calculation. All you can do is do a very rough calculation and then reappraise over time and adjust standard of living as required eg if the value of your investments changes massively.

For this reason most people do a very conservative estimate as they don’t want to run out of money.

The reality is, if you have a sensible standard or living, invest wisely and live until normal life expectancy £2m should be plenty if you have a house paid off and no other debts.

[mummy2-3]

Hi Esmeralda,
                     As a Financial Planner I am frequently asked 'When can I retire?' or 'Do I have enough to retire?' these are such  personal questions and impossible to answer without knowing you, your cost of living, expectations of retirement and at what age you hope to retire ( plus much more!).  There are also potentially large tax implications of having a pension pot that size, again depending on your circumstances.

I do a lot of cash flow modelling with my clients, working through various economic and family scenarios to help them to be as best prepared as possible for their future.

If you would like to know more, please get in touch for a no obligation chat rebecca.maxwell-hyslop@sjpp.co.uk 

Rebecca

[chorister]

Have a chat to Killik - they are sensible and apart from anything else will make you a decent cup of coffee.

[muddyboots]

I find this post extremely insensitive and tone death in the middle of a financial crisis ….

[chorister]

@muddyboots - do you mean my comment? Why? They are sensible financial planners who will have a no pressure discussion with you. That seems to me a good thing worth recommending, financial crisis (with a £2m pension pot ….) or not.

[muddyboots]

No, not you chorister, I meant OP.

I just feel that Esmeralda ( did the forget to change username as she’s posted before)
wirh a 6-figure salary and worrying 2M pot being enough should know about financial planners.
Is the answer to go on NVN??

I thought it was a bit insensitive to “worry” about 2M being enough and staring 6 fig salary number.

All she had to do is ask if anyone can recommend a place for pension planning .

Just my personal reaction.
She is of course free to post what she likes

[chorister]

Thanks for clarifying - now I’ll have to look around for something else to get huffy about!!

[Kirstie’s Mom]

You are entitled to your opinion but if someone has a valid question like this I certainly don’t . It’s not like she is asking for recommendations for 5 star hotel in Mauritius or if we prefer Bollinger to DP.