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Easter egg hunt? Try #pension nest egg hunt...

easter 13646 640The boy is off at an Easter egg hunt today: is it just me or has Easter become much more of an event? Not being religious – so not needing to go to church – meant when I was a child Easter was just a long, boring four day weekend when it usually rained. We had one Easter Egg each and had to make it last over the four days. Now Easter seems to rival Christmas in the opportunities it offers to spend money: you can get Easter Egg decorations to hang on Easter trees, Easter crackers, probably Easter stockings too – and surely a visit to Easter Bunny’s Grotto isn’t far behind? What’s the Easter equivalent of Bah Humbug – because I can feel my inner Scrooge rising to the surface...

But while we’re on the subject of eggs, think about nest eggs: in my case, that means the money I’ve saved up in a Sipp (basically a personal pension) that one day will provide me with an income in my retirement. Basically, mine isn’t big enough to keep me in ordinary eggs let alone the chocolate variety. According to a calculator on the www.thisismoney.co.uk site, if I want an income of £15,000 in retirement I need a pension pot of £300,000. I’m not even at six figures yet.

However, this figure is based on annuity rates – and these days you don’t have to buy an annuity with your pension pot. Also, I do have a good few years – maybe 14 – in a final salary scheme and the state pension: although I won’t get that for ages. However, that’s just excuses: I need to save more money than I do at the moment – but I hardly waste tonnes of money as it is. I’m sure I’m not the only person who fears poverty in retirement but what makes it worse is that I’m doing the best I can now to prevent this – but the best isn’t good enough. I’ll just have to hope the boy finds a solid gold egg today.

 

#Investing: it's not just for the boys
#Saving: a three year commitment?
 

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Tuesday, 18 December 2018