[Misc] Retirement

[Seagull58]

I assume you retirees that are enjoying it have decent pensions and paid off mortgages?

I've just turned 50 but am looking at trying to get higher up the greasy pole again because I'm seeing my energy bills and mortgage payments growing like Topsy. Without wanting to dig into anyone's real personal data is there anyone out there who thinks they know what sort of size pension pot allows for a comfortable retirement?

Depends where you live and what you want to do. I retired at 56 and I live on about 2000 euros per month, which includes rent of 1000 euros a month but that's paid for by the rental on my UK property from which I net 950 pounds per month. So, you have to work out how much income you want per month (plus an allowance for emergencies). Then you have to look at what type of pension fund you have. Mine is in equity funds and fixed income notes and is in drawdown so I can vary my income from quarter to quarter within certain parameters.
Say you want 25,000 pounds per annum income and you can withdraw 4% per annum from your pension fund without depleting it, you need a fund of 625,000 pounds. If you move to foreign climes and move your fund offshore so you pay a lot less tax on your income, the requirement gets lower.

 

[jakarta]

I assume you retirees that are enjoying it have decent pensions and paid off mortgages?

I've just turned 50 but am looking at trying to get higher up the greasy pole again because I'm seeing my energy bills and mortgage payments growing like Topsy. Without wanting to dig into anyone's real personal data is there anyone out there who thinks they know what sort of size pension pot allows for a comfortable retirement?

I reckon 350 - 450K should be OK as long as mortgage is paid off and you don't have a millionaires lifestyle? My Pension looks (at present) to give me a £70K lump sum plus £15K a year - hoping to release some dosh from selling my business a couple of years down the line (I'm 61) plus I intend to keep up my second job (Hourly Paid Lecturer at a University) while I'm still compos mentis which pays me around £15K PA. Also have a small pension from my time working in the Chemical Industry around 4K PA.

Mrs Jakarta has a Head Teachers pension so we won't starve!

I don't have any expectations of my State pension, my FA told me by the time I retired it would be OK to run a Car on.

Getting rid of mortgage is key I think, both from financial and mental health points of view. Didn't mention we did that a couple of years ago...

 

[happypig]

I went at 56 in 2019. Plan was for the Mrs to retire in Feb 2020 and we were going to travel a bit but covid knocked that on the head. We moved house instead and I've spent the last year converting the garage into a pub.

I assume you retirees that are enjoying it have decent pensions and paid off mortgages?

I've just turned 50 but am looking at trying to get higher up the greasy pole again because I'm seeing my energy bills and mortgage payments growing like Topsy. Without wanting to dig into anyone's real personal data is there anyone out there who thinks they know what sort of size pension pot allows for a comfortable retirement?

The mortgage was paid off in 2017 when the mother in law passed away; we inherited just enough to clear it.

When I got the offer of voluntary redundancy in 2019 I took it, trousered about £40k in redundancy and £110k pension lump sum. My (and the Mrs' more modest, but handy) pension brings us in about £1850 a month and that's enough.

You need to think of retirement as several periods, each with differing needs and incomes. To explain, if you retired at 55 you will have 12 years until your state pension kicks in and you will be £7k pa better off. You might need to "top up" your income by £2k a year until then so you'd need to set aside £24k for that (if that makes sense).

One bit of advice I was given was to put as much as possible into your pension now; pension contributions come out of pre-tax salary so, for a basic rate payer, If you put £200 a month in, you're only £160 a month down. I did £500 a month for 5 years (I was on decent lolly, paying higher rate tax so was only £300 down).

 

[dazzer6666]

I assume you retirees that are enjoying it have decent pensions and paid off mortgages?

I've just turned 50 but am looking at trying to get higher up the greasy pole again because I'm seeing my energy bills and mortgage payments growing like Topsy. Without wanting to dig into anyone's real personal data is there anyone out there who thinks they know what sort of size pension pot allows for a comfortable retirement?

Maybe, but suspect we all went through some quite deep thoughts and concerns and a lot of soul-searching before jumping (I know I did - took me many months - it’s a big decision). Also hugely depends on what you want to do……..couple of things worth thinking about though…there are loads of ‘pot calculators’ online but most of them are a bit crap (assumptions made regarding expenditure for example - they tend to use a % of your current income, rather than an absolute number which we can all come up with quite easily).

-probably don’t need as much as you think - your spending profile will reduce over time (you won’t spend anything like as much in your 70s as you will in your, say, late 50s)
-pay extra into your mortgage before any other kind of saving. As well as dramatically reducing the term, the psychological aspect of not having one is enormous
-make sure you’re maximising the efficiency of your pensions (as an example I gad a small final salary scheme from a previous employer - was offered 40x the projected pension to take it out which I did. The SIPP I put it into is at least 25% up in 3 years)

I don’t actually have any income at all now (pension or otherwise) and will be living off savings/pension withdrawals (and eventually the state pension) until I croak - where I take money from to live off depends on circumstances at the time (tax efficiency, investment performance etc) and linked to that how much we spend is also flexible. If returns are crap, then some of the ‘discretionary’ spend (holidays, mostly) will reduce. On the plus side I’m also not paying any tax, which is beautiful

Happy to have a chat over a pint if it helps…….actually found the whole thing a bit of a minefield (still is in some respects] and learned a lot

 

[Wrong-Direction]

I can't wait to retire, only my entire 33 year old life to go again..

Sent from my SM-A326B using Tapatalk

 

[portslade seagull]

I went at 56 in 2019. Plan was for the Mrs to retire in Feb 2020 and we were going to travel a bit but covid knocked that on the head. We moved house instead and I've spent the last year converting the garage into a pub.




The mortgage was paid off in 2017 when the mother in law passed away; we inherited just enough to clear it.

When I got the offer of voluntary redundancy in 2019 I took it, trousered about £40k in redundancy and £110k pension lump sum. My (and the Mrs' more modest, but handy) pension brings us in about £1850 a month and that's enough.

You need to think of retirement as several periods, each with differing needs and incomes. To explain, if you retired at 55 you will have 12 years until your state pension kicks in and you will be £7k pa better off. You might need to "top up" your income by £2k a year until then so you'd need to set aside £24k for that (if that makes sense).

One bit of advice I was given was to put as much as possible into your pension now; pension contributions come out of pre-tax salary so, for a basic rate payer, If you put £200 a month in, you're only £160 a month down. I did £500 a month for 5 years (I was on decent lolly, paying higher rate tax so was only £300 down).

Took the plunge when OR decided to move most offices south of Oxford to Birmingham and take on new staff at 2/3rds of the pay with less leave and sick payments. Took 25% pension lump sum £110k and also 40k redundancy with a combined pension for me and Mrs P of 23k.
Mortgage paid and also have sizeable shares portfolio.
7 yrs until my OAP.
Walking the dogs, cooking dinner and cleaning seems to eat up the day, oh and the occasional golf

 

[Guinness Boy]

Maybe, but suspect we all went through some quite deep thoughts and concerns and a lot of soul-searching before jumping (I know I did - took me many months - it’s a big decision). Also hugely depends on what you want to do……..couple of things worth thinking about though…there are loads of ‘pot calculators’ online but most of them are a bit crap (assumptions made regarding expenditure for example - they tend to use a % of your current income, rather than an absolute number which we can all come up with quite easily).

-probably don’t need as much as you think - your spending profile will reduce over time (you won’t spend anything like as much in your 70s as you will in your, say, late 50s)
-pay extra into your mortgage before any other kind of saving. As well as dramatically reducing the term, the psychological aspect of not having one is enormous
-make sure you’re maximising the efficiency of your pensions (as an example I gad a small final salary scheme from a previous employer - was offered 40x the projected pension to take it out which I did. The SIPP I put it into is at least 25% up in 3 years)

I don’t actually have any income at all now (pension or otherwise) and will be living off savings/pension withdrawals (and eventually the state pension) until I croak - where I take money from to live off depends on circumstances at the time (tax efficiency, investment performance etc) and linked to that how much we spend is also flexible. If returns are crap, then some of the ‘discretionary’ spend (holidays, mostly) will reduce. On the plus side I’m also not paying any tax, which is beautiful

Happy to have a chat over a pint if it helps…….actually found the whole thing a bit of a minefield (still is in some respects] and learned a lot

Thanks Dazzer (and everyone else who replied).

Many NSCers. not just me, are now looking more at retirement and grandkids than the lads' magazine models, shared houses and all day sessions we posted about when the site first started, I hope this is useful for many of us.

Yeah. I'd love to catch up over a pint. I have a gig to get to tomorrow so won't be hanging around but am at Spurs away or we can do after the Saints game or, as I'm back up the greasy pole, very happy to stop in at BH on the way home from Victoria one night. Will drop you a line.

 

[essbee1]

Tom Over Whelmed: Can I ask you what made you finally decide to retire? It must have been a huge decision.
Did you do lots of financial stuff to see if you would be comfortable financially? Or did you simply wake up one day and
think 'I'm going to hand in my notice today'?

 

[Beach Hut]

Been retired over three years now and Mrs downed her hours severely last October. Mortgage was paid off a year or so prior to retirement and only one kid was still at home with half a Uni year left.

I think the most important thing is have a plan but as others have stated it takes time to settle in.

 

[Nitram]

I retired at age 50, redundancy and early retirement. Wife retired at 60. We have never been ones for expensive cars or holidays most of our money went into our house. Neither of us are on great pensions but it’s enough to pay the bills and leave money over. The mortgage was paid off a few years ago which obviously helps.
What pension you need to retire on depends on your lifestyle and adjustments or otherwise you are prepared to make.
I work part time as I like to be busy and found not working a bit boring. The wife on the other hand has never looked back after retiring and has no intention of working again.
We are both busy and out of the house seven days a week doing things we like.

 

[BN9 BHA]

I can't wait to retire, only my entire 33 year old life to go again..

Sent from my SM-A326B using Tapatalk

Your knees have got plenty of years work in them

 

[Motogull]

I'm with The Who on this one.

When I stop working it'll be hookers and class As all the way. Ideally I'll go down in hail of bullets in the middle of something dodgy.

 

[dazzer6666]

I'm with The Who on this one.

When I stop working it'll be hookers and class As all the way. Ideally I'll go down in hail of bullets in the middle of something dodgy.

Met a financial advisor a couple of weeks ago. Had several things to discuss, one of which was avoiding inheritance tax. Only two options he said - spend it, or give it away. I need to go back to my old audit team’s favourite bar in Miami so I can ‘give it away’ and help fund those girls through college

 

[A mex eyecan]

Yup took the plunge myself 10 weeks . I’m coming 63 and had been paying into pension since I was 19. Decided early in life to not just have everything I’d have liked at the time but to make some sacrifices at that time to build for a future, that i just hoped I’d live long enough to to get to. So pleased I did.

Took me ages to decide to do this, trying to decide how much i’d need to live on, and came to decision it’s all subjective. Depends on what type of life you want, frugalness or extravagance or probably something down the middle. Will you want camping holidays or 5 star luxury hotels. Will you be content with a bottle of house wine or would you rather a £100 bottle. Do you want to dive a Kia, an old banger or a nice new BMW every 2-3 years?

it is probably the biggest conundrum any of us will ever make. But having done so I’m convinced it was the right thing to do and I just have to hope that what I planned turns into a reality, that investments achieve somewhere near what I hope, that inflation doesn’t start running at double digits for years on end, but those are all factors that you will never have total control over. In short you can carry on working, just in case finances all go wrong, or you decide time is right for ‘me time’ and just hope and take a bit of a chance.

I still as yet don’t have a clue what I’ll do with all my time. Having run my own business for 20 odd years I’ve never had time to even think about what hobbies I may like to do, let alone actually do any of them.

I’m also up in Bugs Hole Dazzer, so sounds like all the inhabitants have decided to pack in working around the same time.

 

[Seagull58]

I'm with The Who on this one.

When I stop working it'll be hookers and class As all the way. Ideally I'll go down in hail of bullets in the middle of something dodgy.

Vilamoura would suit you down to the ground. Swarming with Brazilian, and other, hookers, sniff is more prevalent than beer, and one of the bars (the funky dogo) got fire-bombed and burnt out a couple of weeks ago over a drug-dealing argument. What more could you ask for?

 

[dazzer6666]

Vilamoura would suit you down to the ground. Swarming with Brazilian, and other, hookers, sniff is more prevalent than beer, and one of the bars (the funky dogo) got fire-bombed and burnt out a couple of weeks ago over a drug-dealing argument. What more could you ask for?

Cat’s Club (under the Olympic) was always the go-to place on our trips………actually heard about the fire last weekend. Possibly the same place ?

We go to Alvor these days, less chance of getting into trouble

 

[dazzer6666]

Yup took the plunge myself 10 weeks . I’m coming 63 and had been paying into pension since I was 19. Decided early in life to not just have everything I’d have liked at the time but to make some sacrifices at that time to build for a future, that i just hoped I’d live long enough to to get to. So pleased I did.

Took me ages to decide to do this, trying to decide how much i’d need to live on, and came to decision it’s all subjective. Depends on what type of life you want, frugalness or extravagance or probably something down the middle. Will you want camping holidays or 5 star luxury hotels. Will you be content with a bottle of house wine or would you rather a £100 bottle. Do you want to dive a Kia, an old banger or a nice new BMW every 2-3 years?

it is probably the biggest conundrum any of us will ever make. But having done so I’m convinced it was the right thing to do and I just have to hope that what I planned turns into a reality, that investments achieve somewhere near what I hope, that inflation doesn’t start running at double digits for years on end, but those are all factors that you will never have total control over. In short you can carry on working, just in case finances all go wrong, or you decide time is right for ‘me time’ and just hope and take a bit of a chance.

I still as yet don’t have a clue what I’ll do with all my time. Having run my own business for 20 odd years I’ve never had time to even think about what hobbies I may like to do, let alone actually do any of them.

I’m also up in Bugs Hole Dazzer, so sounds like all the inhabitants have decided to pack in working around the same time.

I can’t afford to move anywhere better

 

[A mex eyecan]

I can’t afford to move anywhere better

there’s many a worse place to live. Anyhow the best thing happening around here is all the shops closing down as it means Mrs Mexeycan doesn’t have many places to go and spend the retirement monies in ..

 

[timbha]

there’s many a worse place to live. Anyhow the best thing happening around here is all the shops closing down as it means Mrs Mexeycan doesn’t have many places to go and spend the retirement monies in ..

Remember to factor in impulsive on line spending

 

[dazzer6666]

there’s many a worse place to live. Anyhow the best thing happening around here is all the shops closing down as it means Mrs Mexeycan doesn’t have many places to go and spend the retirement monies in ..

Exactly, Mrs D has to make a proper effort to go anywhere where she can spend any real money It’s alright really….we’re close to Brighton, close to Gatwick and London within walking distance of the station and we’re kind of on the edge of town (garden backs on to Bedelands). Been in this house 25 years so not planning on moving now.