/ Yet another pension question

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subtle 12:52 Wed

Ok, trying to figure out how much I "need" in my pension pot for retirement - a broad question I know!

I read the following, and wonder if this is decent enough advice :- " However, a very rough rule of thumb is that for every £1,000 you have in a pension pot you should expect to get roughly £1 per week in income from age 65"

So, if my pension pot was £100K then I should get £100 per week?

And if it were £200K then that would be £200 per week?

Would that be decent enough guide for me to try and see if my retirement pot is needing topped up etc.

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MG 12:57 Wed
In reply to subtle:

If you take a pessimistic view that your savings/investments will cover inflation plus costs and no more, then your income simply becomes pot/years-expect-be-retired.  So if you have £100k and expect to be retired for 30 years, you will have an income of £64/week.

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PaulW 18:24 Wed
In reply to subtle:

Have a play with one of the online annuity rate calculators to see what they are offering 65 year olds with 100K right now. That will give you a starting point

Not saying an annuity is the best solution, though it may well be the safest long term

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Eric9Points 19:27 Wed
In reply to PaulW:

If you want to live off the interest and leave the capital to your children or the cat, the rule of thumb is that you can take 4% out a year.

That would give you about £80 a week.

Note that the state pension will give you about £8K a year. You can check how much you'll get on the government website if you haven't paid NI for significant lengths of time.

Post edited at 19:29
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In reply to Eric9Points:

My work has a Fidelity Pension scheme and they have some tools that you might be able to utilise:

https://www.fidelity.co.uk/retirement/calculators/

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kaiser 19:44 Wed
In reply to subtle:

Your rough figures are a reasonable guide I would say.  

You may eligible for the state pension too which is c.£130 p/w

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Darron 22:05 Wed
In reply to subtle:

Annuities have improved a little (still better options though). I noticed recently that £100k would get you £6000 a year.

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