what percentage of our wages should go into a pension each month?

Question

i'm 33 and my husband is 45

neither of our employers contribute

Answer 1

pension schemes usually put a cap on 5% of your salary. Your employer will put in an extra 5-8% if they are nice :)

Answer 2

Hello,

This is still a tricky question to answer even if you have a good grasp of the whole pensions system. I'm assuming your talking about a private pension & private pension contributions.

I was told a rough formula for calculating this goes as follows:-

Take your present age 33 and divide it by x2=16.5, then you should be putting 16.5% of your total annual income into private contributions. So for example if your annual salary was £20,000, divided by 16.5% that would equal =£3,300 a year or £275 per month.

**for your spouse 45 divided by x2=22.5, then he should be putting 22.5% of his annual income into private contributions. So example again if he earned £23,000 a year,divided by 22.5%
=£5175 a year or £431.25 monthly.

**NOTE: the older you become the BIGGER the % of your annual salary needs to go into your pension pot.

**But of course the earlier you start your pension fund the longer time you have in theory to build up your pot.

**Even if you are close to 50ish I'd still say try and save something, some provision is better than nothing at all.

**Finally DONT rely on your state pension alone for your retirement otherwise you might be in for a very nasty shock when the day comes and you find out what you'll have to live on each week. (words like poor as a church mouse come to mind!!).

Hope that helps?
IR

Answer 3

Start and manage YOUR OWN pension such as an IRA...

Put 30% in it faithfully and watch it grow ! Add to it monthly !!

Its great if Employers have pension plans but DO NOT count on them for your financial freedom when you most desire it. Start your own NOW!

Limit time spent with friends and family who are not doing this or say that amount is too high! Only you can make your future bright so do not listen to those who will hinder your goals. ONLY YOU can make the choices regarding your financial future ! Choose to make it good !

Answer 4

Pensions are the worst thing to invest in try saving the money in a high yield account you will get more for your money at the end of the day, and more help off the government at the end of your working life free prescriptions, pension, help with heating, etc etc take your money out of the bank before you retire and the gov will help even more trust me it works.After all you pay tax all your life why pay when you retire.

Answer 5

Assuming that each of you has access to a 401K where you work I would suggest that if you can afford it that each of you max your salary deferral at the $15,000 allowed for your ages.
If your employer plan allows it and you can afford the taxes I would also suggest that one of you consider a ROTH 401K option. The money is deferred on an after tax basis but the funds withdrawn at retirement are not taxable like they will be from a regular 401K.

Answer 6

33 1/3 percent

Answer 7

As much as you can afford.Its been suggested on here £100.Hope that is per month and not per week.Wages are only £200 per week,£100 to pay bills, buy food, car running costs,couldn't do it.I think the norm is about 5% of your wages which your employer normally matches.

Answer 8

As much as you can afford, the company you set your pension up with will give you projected yearly forecasts for you to get an idea of how much your pension will be worth at retirement age.

Answer 9

At minimum you should be putting away enough to get the maximum match from your employers 401(k). It's free money, and it's tax free (for now), take advantage of it.

Answer 10

I get 6% of my monthly wage taken from me and put into my pension.