From: Chris Blunt 
Newsgroups: uk.finance
Subject: Re: Warning on state pension payments
Date: Sun, 03 Sep 2006 12:50:31 +0800

On Sat, 2 Sep 2006 16:01:21 +0100, "Tim"  wrote:

>"Gordon" wrote
>> For retirement at 65, much discussion amongst colleagues
>> of a practical disposition produced a consensus that you need
>> 50% of your *gross* salary as disposable retirement income...
>
>Why did the group feel that someone earning (say) £20,000pa
>needs a pension of £10,000pa (50%), but that someone earning
>£30,000pa needs *more* than a pension of £10,000pa (33%)?
>
>One is OK with a £10,000pa pension but the other isn't?!  :-(

Isn't it obvious? Someone earning £30,000pa would have got used to
living a different lifestyle than someone on £20,000. Upon retirement,
they would need more money to maintain that lifestyle than someone on
the lower salary. The "need" refers to the amount of money required to
maintain their current lifestyle, not "need" as in the sense of
survival, if that's what you were thinking.

Chris