Do I need to save for retirement if I have pension?

Mellorando

Banned
Your pension should be just one tool in your retirement shed. Chances are, most pensions will not produce enough income to fully cover all your retirement needs, so you should be saving in other accounts as well. Your pension should be just one tool in your retirement shed. Chances are, most pensions will not produce enough income to fully cover all your retirement needs, so you should be saving in other accounts as well. Some advisers recommend that you save up 10 times your average working-life salary by the time you retire. So if your average salary is £30,000 you should aim for a pension pot of around £300,000. Another top tip is that you should save 12.5 per cent of your monthly salary.
Many workers look forward to the day when they can retire. A recent survey from Natixis Investment Managers set out to find out exactly when most Americans hope to stop working. The average age is 62, the research found.

While it can be hard to make that assessment, watch for these five signs that suggest it's the right time for you to retire:

1 You have plenty of money saved.
2 You know your withdrawal rate.
3 You have a Social Security claiming
strategy.
4 You've made a budget.
5 You understand the tax rules.
 

jemmy

New member
There is no guarantee that your pension will have the weight or the quantity to get you covered after your retirement or rather after your years of service which calls for a huge extra side savings to a secured and a good finance after your retirement.
 

Jasz

VIP Contributor
It is good have good savings habit. Right before you quit your job. Pension is not to be depended on as the money might end up not sustaining or other expenses that need to be settled and you wouldn't have to be begging or depending on people by then. Pension could also cease coming. In my country there were times when workers pensions were put on hold for several months. It still happens so what will become of you buy them. My ideal is to think of pension as a secondary means of sustaining one self.
 

Alexandoy

VIP Contributor
I am lucky to have a substantial amount of savings when I retired. Since my last formal employment is in a non-profit organization so there was no retirement pay. However, the government has a pension system and I am now receiving $100 every month. That is a small amount but at least it can cover my personal expenditures. For the younger generation I am advising them to think about their retirement. What's important is the volition to save money no matter how small. When the amount of savings become substantial you can invest it so that it can earn somehow. It is not good to depend on the pension plan of the government because aside from being small it will also be eaten by inflation after some year. But the first step for the young ones is to own a house so that you will have a good investment. When you retire you need not bother with the rental expense.
 

Mater

New member
A pension is money you'll use to live on when you retire. Most people get a State Pension from the government, which covers your basic needs. To give you a decent standard of living, it's a good idea to save some extra money in a pension fund.

How much you'll need to put away for your pension depends on:

what you can afford to save
how many years you have to save
what your needs will be when you retire
Your retirement may last from 20 to 30 years, so you may have to live for quite a long time on your pension.
 
E

eldavis

Guest
Well it depends on the individual, most persons tend to rely on just their pension alone. Personally I feel it would be better you also have some savings as well, pension should not be the only thing you rely on cause in most cases it's never enough. I have seen some elderly persons having problems cause their pensions are not enough or they have not been paid for months. So to be on the safer side, have saving as well.
 

Kingsley

Valued Contributor
When it comes to the issue of pension and retirement plans I don't joke with such topic because it is very essential for every on to make necessary plans against their retirement days. Ones retirement will speak more of the kind life one actually lived when one was very young, infact people do say whatever you don with your youthful age will tell more when one retires. So it I will say save all you can mostly when you are strugglimg in Nigeria do not depend on any pension from any body, mostly from the government because even this working under the government have not gotten their pension up to date, let alone someone who is not working under the government and if you decide to depend on pension from any other quarter it might fail it is better to save all you can against your retirement age.

Because by that time, the road will be so narrow and even this days people that depend on their children to Carter for them at their retirement age gets disappointed because their children are still very much dependent on their parents even at a stage where they should be working, all these is as a result of the bad leadership in Nigeria.
 

Caramelle

Active member
Pensions are usually not enough to afford a comfortable life in our retirement years. We have to supplement it with passive earnings from investments and properties. We need to have money set aside for emergencies because life is full of surprises at whatever age. You will likely still need to have your property or home fixed at some point. One or two family members might still need your financial help to help them weather unfavorable circumstances. Making it a habit to save money regularly while you are still earning actively should form part of your retirement preparation.

The retirement age is also the time when our bodies are no longer as robust, a time when we have to spend more on medication, supplementation, or hospitalization. While state healthcare can pay part of the bill, it will be helpful to have healthcare insurance that will allow us to seek treatments and procedures that are not covered by the government's health benefits plan. Healthcare plans are most useful at this age, and if one can afford them, it would be very beneficial to secure one at a younger age when premiums are lower. Many healthcare plans cover treatment for dread diseases and have provisions for pre-existing conditions.​
 
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Deleted member 28127

Guest
Many people claim that there is some delay in pension payment method means it is expected to get funds on 23rd of the end of the month but by the way due to administration requirements sometimes you get your pension at 27th or 28th or 29th and even in 30th of the month means a big delay.
 

Rachael

Verified member
In retirement, the savings and pension is a different side altogether and this does not posit that you should be so relaxed and unsecured about your retirement age. It is mostly those who had opportunities in working with government organizations and also those who are opportune to work in private organizations whereby their retirement benefits is certain. I even recommend saving immediately you start working if you are working in government organizations because at times, even the pension might not be disbursed immediately you retire. In some situations due to negligence from the authorities, it would even take a whole lot of clamor and protests by retirees for them to get their pension and gratuities. It is therefore important not to lay all your eggs in one basket and because change is constant, a tyrant authority who assumes position might even restructure the whole process and the constitution that bind acts of pensions to retirees. Even as workers, it is good to invest while sill in active civil service because no investment is a waste. This mentality of guarantee of pension and gratuities has made some workers both in private and public firms to retire without having any investment or source of livelihood which is not exemplary to the audience.
 

Dora Wi

Active member
How much you should (and can) save monthly will highly depend on your income and where you live but in general I agree that you should prepare for the possibility that your pension might not be enough to keep you financially safe and stable.
 

Kendy

Verified member
Having a pension or being ascertained of getting a pension after retirement is not a yardstick for you to think that savings is not important. From the knowledge I have about pensions, it cannot be the same worth or amount you get while you were in active civil service. For instance, if your a worker in the public civil service organisation then your take-home income was about $2000 per month, after your retirement the pension you would be receiving would be lower than the $2000 you were usually receive which can be pegged at $800 or $1200 depending on the criteria and this goes out to show that savings is a necessary step towards retirement age. Saving towards retirement age is a necessity because the pension cannot solve all your impending problems and at times, a pension may not be paid immediately you retire from your business or your work. It may take some much time for computation and analysis to take place especially in some underdeveloped countries. Even in my country, in some cases, it takes clamour before the government approves pensioners payments, so it is a wise decision to save towards retirement and not to rely solely on pension as a means of survival.
 

funmi

Verified member
Your question sound so strange to me. Maybe it is strange because of the country where I come from. No body in my country will ever ask such question right now looking at the situation of things in my country.
Right now, as a worker whether a government worker or a private worker, people do multiple strime of income. At times, when some people come back from their daily jobs, they still go out to do more jobs before returning to their homes at night. This is so because there is inflation in our country right now and the salaries people get is nothing to write home about
Now, to a retiree, once you retire, am sure you will not be paid the same amount as your salary again. You will only be given stipends. How will this stipend sustain you till the following month conveniently? Especially if you don't have any other investment at hand, am sure you already have the answer.
The truth of the matter is that your pension will never be okay or enough for you no matter how much you are being given. It is better and safer for you to save enough money before you retire.
 
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