money question! Can you help?

    Hi guys
    My wife and I last night were talking about retirement (even though its 30 years from now!)
    Ok so between us we pay 200£ a month and have been doing so for 3 years. = 3600£
    ok so if we do this for 30 more years we have 40K.
    Now this doesnt sound much to live on ? So it goes up yearly with interest etc, but what sort of figure will we be looking at?
    I cant seem to find anywhere on the net to give me a rough figure.
    Does anyone know about these things?

    Also 1 last thing - If a house is worth £100,000 what is it likely to be worth in 30 years?

    Sorry for the "back to the future" questions!

    A flux capacitor to anyone who helps me.....



    Have you done your maths wrong?

    £200 x 12 x 30 = £72000.00

    As far as how much your house may be worth, it depends on your area, future developments, future housing booms & crashes... kinda difficult to estimate. The other thing worth considering is that in 20 years time, £200 won't seem as much to pay into a pension, and you'll probably be paying a lot more in to get a decent yield at the end of the 30yrs.

    Make an appointment with your banks financial advisor, it's usually free and they can tell you which accounts would be best for you both.

    I would seek professional advise personally, as pensions have to be planned out in advance, if left too late then you will never make up the lost years.

    Thinking about it now is the right thing to do.

    Don't really think any of us on here are qualified to advise you on such a complicated and important matter.

    Get yourself some professional advise, I'm pretty sure as spohie*** says its free from your bank but do be aware they will have schemes of their own they will be keen to push you towards. Perhaps you would be better seeking the advise of an independent.

    Hope this helps.

    Is it worth it? Your probably struggling to pay the £200 and £72000 even with additional interest if your lucky still will not give a decent pension, it doesn't now so it definitely will not in the future.


    IMHO, pensions are a waste of money unless you are going to end up with a sizeable fund around £250K+

    With the current pension system, you get a top up if you have no pension whatsover to around £125 per week. I think the basic pension is around £75 per week.

    If you had a pension fund of £100,000 then an annuity would pay about 3% = £56 per week. You would not be entitled to the pension top up so in effect are in the same position as someone who didnt save for a pension at all.

    Only it gets worse as if you are in receipt of the top up then you are entitled to all the other benefits (reduced council tax, warm front scheme etc etc.)

    My parents are worse off than their friends despite my father saving all his life and their friends not saving a bean!

    I stopped paying into a pension when I was 25 and put it into housing instead.

    Just my take on things.

    Hi There,

    I work in the finanacial sector and have sold and advised on morgages.

    To get the most accurate projection for your pension you should recieve a pension statement twice annually. The only way to judge what money will be workth in the future, is to use todays inflation and recent fluctuations inthe markets, i.e and some figures will tell you inflation currently sits aroun 3-4% so on that basis £100,000 is the equivalent of about £320,000 in 30 years time. For some sound advice on pensions there is a good artice on the bbc...


    [FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black]A property located in [COLOR=red]UK [/COLOR][COLOR=black] which was valued at [COLOR=red]£100000[/COLOR][COLOR=black] in [COLOR=red]Q4[/COLOR][COLOR=black] of [COLOR=red]1977[/COLOR][COLOR=black], would be worth approximately [COLOR=red]£1,398,886[/COLOR][COLOR=black] in [COLOR=red]Q4[/COLOR][COLOR=black] of [COLOR=red]2007[/COLOR][COLOR=black]. [/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT][FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black]This is equivalent to a change of [COLOR=red]1298.89%.[/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/COLOR][/SIZE][/FONT]

    [FONT=Verdana, Arial, Helvetica, sans-serif][SIZE=2][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=black][COLOR=red]Past performance is not to be relied on!

    I work in the financial sector, and have been advising financial planning for a few years.
    is this a private pension you are paying into at the moment? (i.e. not one you pay in through a matched scheme through your work) either way, (generally) you will find yourself far better off continuing to pay into your pension than through other savings or into other equity such as housing, which has no guarenteed income, to best understand why pension schemes are more financially beneficial, ]there is an excellent article on the bbc

    As far as your house goes, as the cash inflation conintues to rise at say a steady 4% your house would need to be worth at least £325,000 in 30 years, otherwise it would have lost money.

    As for pension top-ups and other benefits, it is impossible to predict the stae of the UK economy in 30 years (let alone 5 years) it is predicted that the state pension may no longer be available, so it would be unwise to rely upon that or the pension top-up at this stage.

    also - if you are concerned make sure you get sound financial advice.. from somebody qualified to give it!

    Original Poster

    Thanks guys!
    I was just trying to get an estimate really.
    We pay in £200 but our work puts in £100 too.
    I think i bolloxed my maths up before too.:oops:

    We were talking about what we are gunna do in 30 years time.

    My wifes nan & grandad are like 80 and loaded, however they do not
    go on holidays, dont spend much and dont have many luxuries!. As they say their money
    & house are for for thier kids!
    (all in their 50's)
    We both agreed that of we were in their position we would be travelling the world,
    doing all mad things and generally living.
    Even the poeple who stand to make a few bob are forever urging them to "do things"

    I suppose its hard for me to understand being a different generation?

    I'd re-itterate what has been said earlier on that I doubt anyone on here is appropriately qualified to give advice - opinions definately, but not advice!
    Comments that people are in a worse position now having saved all their lives than those who saved nothing may be relavent now, however are built on the assumption that there will still be a state pension when you or I retire in 30 or so years!
    As people live longer and longer, it is increasingly hard for the Government to be able to sustain state pensions (whilst continuing to pay MP's expenses! ha!) - so I personally IMHO, not rely on receiving a state pension as you could find that come retirement, one simply does not exist.

    Anyway, back to the OP, you state that you 'pay' £200 a month - is that into a savings account or an existing pension? if it's a pension then it depends on what kind of pension it is - is it a work's pension? - again, there are several different types - money-purchase and final salary, to name a few.
    If you are just putting money away each month into a savings account, obviously look for high interest accounts and don't forget your annual tax-free ISA allowance. Property is usually a good investment - purchase a second property, rent it out which covers any mortgage payments, then sell it at retirement using the equity to live on.
    In any case, digest the suggestions on here, but seek guidance from a professional!


    OK, I'm no financial wizard but I've been playing around with the numbers, and I've a question... If you pay in £200 a month after 3 years that would total £7200 excluding any interest, not £3600?
    Assuming that you're paying in £2400 a year with 5% interest paid annually. With all the compound interest I worked out that after 33 years you would have a final sum of £192153.05. Could someone verify that?
    I've no idea what the interest rates are like in a a pension plan so I took a pretty standard interest rate.

    your pension contribution is

    3600 per year

    which is 108000 before taking account of interest

    Also remember that paying into an employment pension reduces you tax payable each year.


    Original Poster

    Thanks guys!

    I did cock the figures up sorry!

    I was just after a rough estimate just for interest.
    Its a bit far ahead like - 30 years!:oops:
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