[Misc] Retirement

[The Mole]

A week, or so, ago I retired. I chose to do so early, I'm 60, so I can enjoy some travel and sports before I'm too frail etc to do so.

I've sorted out a fair bit in terms of travel (interrailling) and sports but just wondered if anyone knows of a over 60's footie team? There are lots of walking football clubs but I'm not quite ready for that yet. I still play 5-a-side and 11-a-side wouldn't be beyond me if it was RORO.

Anyone got any trips planned or retirement tips, I'd very much appreciate it, thank you.

Congratulations Tim - didn’t realise you were as old as me! Unfortunately I’ve a few years left before I retire. I hope you keep active and enjoy the travel… may see you on an inter rail one day!

 

[Gwylan]

My company announced last week they are insolvent and in administration. They are a world leading DR and data centre company and increased power costs have ****ed the UK business

So after 21 years I am about to be laid off. Have to get any redundancy and notice from the government direct as we are totally empty.

Still I am 64 this year and hope I have enough in my pension pots to have a good retirement.

Yeah, I saw that Sungard went bust and wondered whether you were still working there.

Sorry to hear that, Dave. Hope you're OK

 

[bomber130]

I’m very fortunate, I have a RAF Pension of £13,500 pa and a prison service pensions of £5,000 pa. Both are taxed, however given the rise in the cost of living it looks like I may have to go and find some part time work to make ends meet.


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[monty uk]

Other than ex business owners, I suspect many of the rest have defined benefit pensions (local authority, education, NHS, large companies before they stopped them for new entrants). Someone in my family retired last year in their 50’s, on an index linked > £50k per year headteachers pension).

And another not in that category. Been paying into private pension for years, and it mounts up. As well as making other investments as and when appropriate.
My advice to the youngsters on here is not to neglect investing when you can, or rely on employers but take responsibility yourself. One day you'll need it or be grateful for it, as several on here have shown.

This says it all...

 

[Weststander]

And another not in that category. Been paying into private pension for years, and it mounts up. As well as making other investments as and when appropriate.
My advice to the youngsters on here is not to neglect investing when you can, or rely on employers but take responsibility yourself. One day you'll need it or be grateful for it, as several on here have shown.

This says it all...

View attachment 146590

There's a recent BBC R4 You & Yours that covered this exact point.

The expert compared the growth from investing eg from age 25 to 35, against any later decade, and compared the contrasting capital pots at say age 60. World's apart.

 

[HalfaSeatOn]

It hasn’t been mentioned but reckon I will indulge in equity release at some point (whilst paying off the interest) with money tied up in my bricks and mortar. Seems a common thing to do talking to others.

 

[HalfaSeatOn]

“A popular way to estimate this figure is the ’70 per cent rule’, which states you will need 70 per cent of your working income to maintain the lifestyle you want in retirement. So if you retire on a salary of £50,000 you would be looking at achieving an income of around £35,000” just read this on a web site. Not sure how taking a 30% hit helps maintain your lifestyle.

 

[Weststander]

I’m very fortunate, I have a RAF Pension of £13,500 pa and a prison service pensions of £5,000 pa. Both are taxed, however given the rise in the cost of living it looks like I may have to go and find some part time work to make ends meet.


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£12,570 tax free income per year?

 

[Weststander]

“A popular way to estimate this figure is the ’70 per cent rule’, which states you will need 70 per cent of your working income to maintain the lifestyle you want in retirement. So if you retire on a salary of £50,000 you would be looking at achieving an income of around £35,000” just read this on a web site. Not sure how taking a 30% hit helps maintain your lifestyle.

£9,000 of which is met by the state pension, effectively £18,000 for a couple past state pension age.

 

[dazzer6666]

“A popular way to estimate this figure is the ’70 per cent rule’, which states you will need 70 per cent of your working income to maintain the lifestyle you want in retirement. So if you retire on a salary of £50,000 you would be looking at achieving an income of around £35,000” just read this on a web site. Not sure how taking a 30% hit helps maintain your lifestyle.

Such formulae are mostly bollox and too broad-brush to have any real relevance. Work out what your budget is….list all the unavoidable expenditure (housing, food, car etc), plus whatever ‘discretionary’ spending you envisage (new cars, holidays, gifts, home improvements etc - ie stuff you don’t have to do unless you can). Then work out your income and see where that leaves you against the ‘unavoidable’ stuff, with any excess being applied to the ‘discretionary’ stuff.

 

[Eric the meek]

If you look closely, there is a huge wealth of experience on this thread. The successes and failures of those who have contributed to it, if heeded, could make a big difference to the final pension pots of those just starting out. There are many ISA millionaires.

 

[timbha]

It hasn’t been mentioned but reckon I will indulge in equity release at some point (whilst paying off the interest) with money tied up in my bricks and mortar. Seems a common thing to do talking to others.

Equity release (or lifetime mortgage) is right for some people but can be regarded as an expensive way of borrowing (your own) money, is fine if house prices continue to rise, and if you are happy that if you live a relatively long life there maybe little capital, if any to pass on to your dependants.

Special and independent Financial advice is currently compulsory.

 

[Blue Valkyrie]

“A popular way to estimate this figure is the ’70 per cent rule’, which states you will need 70 per cent of your working income to maintain the lifestyle you want in retirement. So if you retire on a salary of £50,000 you would be looking at achieving an income of around £35,000” just read this on a web site. Not sure how taking a 30% hit helps maintain your lifestyle.

It relies on your weekly costs going down like travel to work fuel and perhaps moving from paying a mortgage to being mortgage free, getting the winter fuel allowance, getting discount tickets for the albion etc.

And don't forget you don't pay national insurance on your income after you reach state retirement age.

It all adds up.

 

[Weststander]

Such formulae are mostly bollox and too broad-brush to have any real relevance. Work out what your budget is….list all the unavoidable expenditure (housing, food, car etc), plus whatever ‘discretionary’ spending you envisage (new cars, holidays, gifts, home improvements etc - ie stuff you don’t have to do unless you can). Then work out your income and see where that leaves you against the ‘unavoidable’ stuff, with any excess being applied to the ‘discretionary’ stuff.

I agree.

Most folk have a mortgage, especially these days, until their 60’s. Add commuting costs and possibly the absolutely necessity for two cars.

People do not need 70% of their working life final income, in a post mortgage retired scenario.

 

[Eric the meek]

Equity release (or lifetime mortgage) is right for some people but can be regarded as an expensive way of borrowing (your own) money, is fine if house prices continue to rise, and if you are happy that if you live a relatively long life there maybe little capital, if any to pass on to your dependants.

Special and independent Financial advice is currently compulsory.

There's a good reason for that.......

 

[bomber130]

£12,570 tax free income per year?

And


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[Seagull58]

“A popular way to estimate this figure is the ’70 per cent rule’, which states you will need 70 per cent of your working income to maintain the lifestyle you want in retirement. So if you retire on a salary of £50,000 you would be looking at achieving an income of around £35,000” just read this on a web site. Not sure how taking a 30% hit helps maintain your lifestyle.

That's utter nonsense. I was earning 6 figures for a number of years and I'm living comfortably on 20K.. The sensible way to look at it is what do you want to do in your retirement and how much do you need to do it.

 

[Weststander]

And


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Part of the pensions you mention are received tax-free.

If you’re not yet receiving a state pension, that would be a substantial part.

 

[Publius Ovidius]

Yeah, I saw that Sungard went bust and wondered whether you were still working there.

Sorry to hear that, Dave. Hope you're OK

Thanks mate

Yes. Just waiting out for what’s going to happen next.

Could get myself down to a supermarket for a delivery driver job. Lol

Cheer.

 

[dazzer6666]

That's utter nonsense. I was earning 6 figures for a number of years and I'm living comfortably on 20K.. The sensible way to look at it is what do you want to do in your retirement and how much do you need to do it.

Exactly……myself and several pals/colleagues (all on decent salaries) have all given up work in the last 18 months or so and consensus among us is that (without a mortgage) something like 25-30k pa covers all normal/reasonable outgoings and a pretty comfortable lifestyle for a couple. It doesn’t matter what your salary was in that context. Hence those calculators being pretty useless.