The Mole
Well-known member
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!
[Misc] Retirement
- Thread starter Tim Over Whelmed
- Start date
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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!
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
bomber130
- Jun 10, 2011
- 1,908
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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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
Well-known member
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
Well-known member
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
Well-known member
“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
Well-known member
£12,570 tax free income per year?
Weststander
Well-known member
£9,000 of which is met by the state pension, effectively £18,000 for a couple past state pension age.
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.
- Aug 24, 2020
- 7,180
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.
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.
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Blue Valkyrie
Not seen such Bravery!
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
Well-known member
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.
- Aug 24, 2020
- 7,180
There's a good reason for that.......
bomber130
bomber130
- Jun 10, 2011
- 1,908
Seagull58
In the Algarve
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
Well-known member
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.
Dave the OAP
Well-known member
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.
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.