I save £400 per month to my savings account I have dones this since the age of 16 and I'm now 20, if I was to retire at say 65 can you tell me how much I would have? and if I would still be able to get the state pension? Do you think I'd have a comfortable existence or would I be borderline poor?
Much appreciated,
Thank you in advance YA!!
2007-09-30 11:57:59 · 18 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
If I were you I'd put it under the mattress, banks are a gamble and then the tax man will come and nick half of it. I can't really be bothered to get my calculator out, so I'd take a guess to say that you'd be pretty comfortable - unless the bank takes a fall or theres another wall street crash or you get divorced.
2007-09-30 12:15:51 · answer #1 · answered by floppity 7 · 1⤊ 1⤋
How the hell does a 16 year old get 400 per month to save??!
Also, there's no mention of or knowing what kind of interest there would be, in 45 years there may not even be a state pension and your savings account might have been harvested by a corrupt banker, or wiped out by a bad investment.
2007-09-30 12:00:37 · answer #2 · answered by Anonymous · 2⤊ 1⤋
400 per month = 4,800 per year
16 to 65 = 49 years
4,800 x 49 = 235,200 in total that you would have actually saved - presuming you had not increased the amount at all.
this does not take into account any interest paid to you. As you do not know what is going to happen in economy, inflation - deflation, it is impossible to say how this would equate against today's life style. I doubt if you would be eligible for a state pension, but I do not think you will be well off purely on these figures.
2007-09-30 12:13:18 · answer #3 · answered by Anonymous · 0⤊ 1⤋
About a quarter of a million in savings, given the rate of inflation based on previous 20 years, would be worth in relative terms about £120,000 when you're 65. So, no it wont provide a 'comfortable existence' as the expected cost of living would mean that would last about 2-3 years. This takes no account of growth on the savings, which, if invested carefully could net another £150,000 in interest/dividends.
but this would only add about 1.5 years on to the orignal calculated cost of living.
And yes, you'd still be entitled to a state pension unless you opt out of SERPS (stautory ernings related pensiom scheme)
In that case the government would pay a subsidised amount into a private scheme until you're 65.
Confused? Yeah, I know, I'm only just getting to terms with it and I'm 38!
2007-09-30 12:08:11 · answer #4 · answered by Anonymous · 0⤊ 1⤋
The amount saved is highly dependent on the interest rate for your savings account. Assuming a conservative 2% APR, this would give you...
at age 17, you had about £ 5,472.13
at age 20, you have about £ 32,376,24
at age 30, you will have about £ 547,744,78
at age 40, you will have about £ 6,095,771,22
at age 50, you will have about £ 65,821,180,18
at age 60, you will have about £ 708,774,946,71
at age 65, you will have about £ 2,325,558,955.22
So, it's safe to say you won't be borderline poor--even if you don't get any pension.
2007-09-30 13:33:13 · answer #5 · answered by DK 3 · 1⤊ 1⤋
You would have around two hundred and fifty thousand pounds, with interest a little more! It sounds a fair amount now, but in forty five years, you would be lucky if it bought you a car! Invest your money in a long term investment account, or better still, get a mortgage on a property, and pay your money into that, the rewards will be far higher!!
Good luck!!
2007-09-30 12:06:30 · answer #6 · answered by speedboat 3 · 0⤊ 1⤋
Sorry , by the time you retire in 40 to 50 years the planet will have totally changed .
If there is $$$$ , meat will be $100 a pound and produce will be similar .
No telling what house utilities will be like .
Saving good , trying to predict 45 years ahead ? futile .
>
2007-09-30 12:03:58 · answer #7 · answered by kate 7 · 2⤊ 1⤋
I doubt you would still get getting $400 a month .. by the time you were 65. You should be getting .. more than that.
o__o;
And you would be spending some of that, too.
Unless you lived with your parents .. until that age.
2007-09-30 12:08:49 · answer #8 · answered by Anonymous · 0⤊ 1⤋
£235200 Which is a site more than I'll ever have. I should think that when (if) you have a family you won't be able to save much if any. Most of us seem to live to or beyond our means. The key is if you have so much to INVEST not save. Property and land are always a safe bet.
2007-09-30 12:45:19 · answer #9 · answered by Anonymous · 0⤊ 1⤋
£235,200
This is not allowing for interest on the account or tax paid either.
Its quite easy to work out;
65 take away 16 is 49. (thats the years)
400 times 12 is 4800 (£4,800 per year)
49 times £4800 is £235,200
2007-09-30 12:03:31 · answer #10 · answered by Anonymous · 0⤊ 1⤋