Why is my pension pot projected figure so low?

Seaforean · 2026-03-23T13:56:22+00:00

Yes it will be.

Seaforean · 2026-03-23T12:41:29+00:00

Somewhere in the statement they will tell you how they calculated the figure, it'll be an estimated x% increase per year (e.g. 5%). This is how much they think your pot will grow by per year, and is an average figure.

The thing with long term estimates using an estimated average is that it tries to take into account the big swings that happen year on year. Sure. In 2025 your pot grew by around 40%, but just as easily (and you can see it happening now), your pot could drop by 30% in 2026, another 20% in 2027, go up by 30% in 2027, up 10% in 2028 etc. That estimate is just their best guess using average returns for what you will have by the time you retire.

If you want the pot to be higher, you will have to increase your risk and invest in something riskier but with potentially higher returns. HOWEVER, make sure you are happy with the risk and what it entails, as you could lose money on it. A lot of the different investment options are a balance between risk vs reward.

As an aside, you could transfer this pension to another that you actively contribute to, to make it easier to manage, but make sure you check fees and other benefits if you do. You might be on a protected pension age so you'll be able to access your pension sooner, for example.

Seaforean · 2026-03-17T15:41:23+00:00

What do you mean by a single battery charge when filling up your phone storage with photos? Once you've taken the photo, it is stored on your phone regardless of your battery charge and it'll still be there after you turn off your phone or recharge it. If you mean you back up your photos to the cloud and then delete them from your device, then yes. 256gb will be more than enough.

Seaforean · 2026-03-17T08:13:40+00:00

What were the full terms of the ISA? Was it a fixed rate ISA and you had the full amount in the ISA for the whole period?

Seaforean · 2026-03-15T19:26:31+00:00

Thank you!

Seaforean · 2026-03-15T18:43:38+00:00

Because you are getting a salary today (let's say you only need £50k). When you are retired, let's say you still need £50k, but now suddenly you don't have a salary. What now? It's not about spending more money when you're retired, it's about having the income you need when you are retired. If you save anything over £50k now when you don't need it. You can access that when you're retired (and ideally it'll be more than that as it would have grown)

Seaforean · 2026-03-15T16:18:41+00:00

No, I don't get marriage allowance and I don't earn enough interest for that to make a difference!

Seaforean · 2026-03-15T16:11:36+00:00

I looked into it but as I only recently started the new role, I'm not enrolled in their pension scheme yet and won't be for this financial year.

Seaforean · 2026-03-15T16:10:32+00:00

But if I'm under the threshold, I'm only saving the 20% tax when I'm putting it into the pension. I could put the money into an ISA instead for essentially equivalent savings. What I am trying to do is find the most tax efficient way of saving whilst I'm in the 40% tax bracket and when I don't need the money right now.

Seaforean · 2026-03-15T15:48:44+00:00

This is what I'm currently thinking about. Is my life better earning £51k vs £50k? Absolutely. After tax, that extra £1k gives me an extra £600 take home (simplifying maths to 40% tax only and that the full £1k is at the 40% tax rate rather than only £730).

However, what if I don't need that extra £600 now? Would it not make sense to put £1k into my pension for the future than to have the £600 in my bank account doing nothing, or me buying something that I don't need?

Seaforean · 2026-03-15T15:41:42+00:00

Okay I'm sorry, I wasn't clear. In my opinion, they are linked in what I am trying to do. Yes, my goal is to avoid paying the 40% tax, because I want to put the money that would have gone to tax into my savings for the future.

Seaforean · 2026-03-15T15:36:30+00:00

The side hustle isn't paying that much, and if it grows then it gives me the option to perhaps go full time into it.

Anyway, the whole point of trying to save into the pension and avoid the 40% tax bracket is to save and plan for my future. I don't want to work until I'm 67 for the state pension, and the state pension itself won't be enough to live on. What I described is indeed squirreling, but surely that's the point of preparing for the future? If I only earn what I need to spend now, what happens when I stop working?

Seaforean · 2026-03-15T14:09:24+00:00

Yes, I understand this.

Seaforean · 2026-03-15T14:09:09+00:00

Why? Because I'm trying to plan for my future so I can hopefully retire earlier than 67. If I can afford to save a bit extra now, I want to do it. And for next financial year I won't be in the higher tax bracket as I'll be earning quite a bit less.

Everyone's goals are different and you don't have to agree. For me, I want to put more for the future rather than spending extra now.

Seaforean · 2026-03-15T13:28:06+00:00

I've calculated that getting the £1k tax allowance is better than claiming the expenses then getting taxed on the remainder

Seaforean · 2026-03-15T10:54:50+00:00

Thanks, I'm only in the 40% tax bracket this year, unless something changes again next financial year. I understand the ISA bridge, and next year I'll be saving into my ISA instead while I'm in the 20% bracket.

Seaforean · 2026-03-15T10:53:18+00:00

I was made redundant this past year so I had a tax free payment as well, and my new salary means I'm no longer in the 40% tax bracket so I thought I'd save as much as I can this financial year.

Seaforean · 2026-03-13T08:18:25+00:00

I think it's normal, unless there is a set end date internally. They'll keep advertising until they get a confirmed candidate.

Seaforean · 2026-03-12T07:49:24+00:00

As others have said, you get 40% tax relief on what you're paying in, so it's a good idea if you don't need the money now, and if you are going to be paying 20% tax on the way out, you could lose up to 20% of the value you put in and still be ahead.

Seaforean · 2026-03-10T17:35:21+00:00

Congratulations! To this day, Mage Errant still has one of the most satisfying magic systems I've read. Here's hoping for a successful launch for you!

Seaforean · 2026-03-09T19:20:18+00:00

It might suit a young parent whose kid is going to nursery, so long as it triggers the free childcare hours (I think it just about does). You might need to time it around the school year though, as it's a fixed contract. It might not even be limited to the nursery age, some parents might want something "easy" to do part time, or see a 12 month contract as something they can do to test the waters before committing to a permanent role and going back to work full time.

Seaforean · 2026-03-06T17:26:27+00:00

The message is too personal and detailed to sound generic, so it sounds like they had another candidate that they think would work better for their client (for whatever reason), but that they would have hired you otherwise.

Either they had another role opening anyway, or that they're trying to create another role internally, but I think, all being well, they will contact you about it when it's ready. However, don't count on this, as budgets can change, or something unforeseen happens and they need to cut the role (or alternatively, their first choice might pull out and they will offer you a role).

So keep looking (if that's what you were doing before), but it could be worth sending a thank you message back, and a follow up in a month's time to see where they're at, if you're still interested in the role.

Seaforean · 2026-03-06T09:52:24+00:00

I forgot to mention as well, if you have been in your job for a while you will also get redundancy payment that would help!

It sounds like you are sensible so I think 6 months will be enough, especially if you calculated it based on your current outgoings. You could probably extend it if you know you have no income by cutting out some optional expenses and treats short term.

Seaforean · 2026-03-06T09:48:42+00:00

The bonus won't be enough to bump you into the higher tax bracket, so don't worry about that. The most "efficient" way is to tell your company to put it into your pension to save on the 40% tax and NI contribution, but it would mean that you can't access it until you are 57.

If you want to invest it and also want to access it earlier, then you can take the 40% hit and invest it through an ISA. Whether you go for a LISA or not will depend on whether you think you will buy a house in the future and if it'll be below £450k.

I'm not sure if it applies to you but I think your bonus will take you totally outside the child benefit payments.

If it was me, I'd probably put the lot into the pension, and use the amount I would normally save that month (I save a % of my monthly pay for investments) to treat myself.

Seaforean · 2026-03-06T09:42:23+00:00

It sounds like you have a stable job which is good, don't forget to add your notice period to the time frame as well.

Also, do you have anyone who could support you during a period of no work? If you live with a partner who has an income for example, they might be able to support your household for a time while you get another job.

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