Why Your Job Won’t Give You a Decent Retirement Income.


The Government argues that WORK remains the best route for individuals to create a decent pension pot. But does this stack up in the real world as the hourly minimum wage for workers aged 25 years or more now stands at £7.20, worth £252 a week to someone who works 35 hours.

That’s £13104 per year and I think you’ll agree it’s not enough to live in retirement let alone now.

Yet the UK’s State Pension Website says that “The full new State Pension is £159.55 per week. The actual amount you get depends on your National Insurance record”.

So, that’s £8296 per year or just over £691 per month, the question again is it enough?

Well, the Government is giving a big hint that it isn’t by creating a workplace pension for everyone. The National Employment Saving Trust (Nest) is one example.

They have a good pension forecast page so here is an example calculation for a Female born 12 Feb 1981 with an annual salary of £25k, wanting to retire at 60, paying £250 per month in to the pension from today onwards. (10% of annual salary, the recommended percentage is actually 25%) nest pension forcast

As you can see from the image on the right that will give an additional pension on top of the state pension of £5080 per year however, your state pension of £8296 won’t kick in until you are 68.

What’s the answer?

You can pay more into your Nest pension say 20% of your salary, £5000 per annum, or you can pay in for longer.

Nest pension forecast 2The first option will give you £9460 per year or £788 per month income, option two will yield £18100 per year or £1508 per month if you pay in until your state pension age of 68.

£1508 per month is a bit more like it but is paying 20% of your salary (£500) per month realistic especially when it’s over a 32-year period?

What about parting with £500 per month and not being able to access it until you are 55?


That’s the difficulty most people find themselves in right now.  So, the question still stands what is the answer?

Well, there’s probably not one that fits all situations, only you can decide which one is the best for you.

If it’s the route of an additional pension then the best thing to do is to get advice from a qualified independent financial advisor.

However, there is another way, one that has worked for Ann and me, it is running a little business alongside your day job, you do this in the nooks and crannies of the day, 10 minutes here, half an hour there.

Would it suit you? I don’t know.

Only you can decide.  Watch our short overview video and decide, I have one request, after you watched the video let me know what your decision was.

show me the video


About The Author

Mike & Ann

Mike & Ann Ruffles have been Foreverpreneurs since 1996, they live on their Sailing Yacht in France most of the year. Both are passionate about helping people to live a healthier, wealthier lifestyle. You can reach them on Facebook Here.

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