From: "Miss L. Toe" 
Newsgroups: uk.finance
Subject: Re: Warning on state pension payments
Date: Sun, 3 Sep 2006 10:51:04 +0100


"Chris Blunt"  wrote in message
news:smnkf21jjdim2otpvdgrmj3fv3197odu9k@4ax.com...
> 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

The way I see it, someone earning £50,000pa is quite likely to be 'putting
away bewteen 200 and 1,000 per month depending on the life style they chose
to lead and their short/medium term intentions (i.e. if they are looking to
retire soon they may well decide to put away the max they can) so could well
be living on the same net income as someone on £30,000pa who is spending it
all.