Where to invest from here?

3CC said:

Just a question.

So say in 20 years time you expect to have maybe the following.

Family home worth maybe ~1.5M
Pension ~560k (assuming 8% growth and no further contributions)
Wife's DB Pension ~17k/yr + inflation
2 state pensions ~ 29k/yr + inflation
Expected expenditure in retirement = 60k/yr + inflation

Do that sound right?

(Note I edited this post to account for inflation after I saw the post from Premos below.)

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Hi,
No I expect to contribute much more to pension from here, minimum 5% matched by employer. But in my mind the pension feels reasonable secure, which is why I was wondering if I should diversify more alongside any avcs.

We have some inheritance likely before retirement but it'll be under 300k in today's money. We have added almost all of our net worth in the past 10 years since home ownership, so given a fair wind and compounding interest I guess a figure of 2m is about right with anither 20 years. Again this might be an amateur special.

Add that to the DB pension is why I started to wonder about taking advantage of the small gift exemption or tracking the value of housing by investing, given that kids housing is possibly the biggest concern around when i hit retirement.

Bouncehouse said:

Hey, so I'm presuming state pension kinda tracks inflation, as does my wife's DB pension which will be based on her final salary.

Then on the money side I assumed 4% growth ahead of inflation.

With those in mind I think it's around 60k in today's money.

I got the 60k from a willis calculator on how much to live as a couple comfortably.

This is amateur hour but that's how I think of things. In this context I think of my financial future as secure given I expect to work for most of the next 20 years.

Happy to learn where I went wrong, I assume the gap is the difference between my current salary and the pot, which was due to a desire to go hard on the housing side.

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You didnt go wrong anywhere. Doing well. Maxing out the pension is well within your grasp and over a few short years you will see a big difference.

Good to hear. I think I'll follow the plan you guys advise. Max the pension, throw anything else at the mortgage. Come back and ask for help when that plan stops working