[Misc] Retirement

[Beach Hut]

I finished at 50 (11 years ago now). I immediately moved the majority of my pensions (some of which were final salary) out and manage them myself with an IFA. We still have a couple of final salary scheme ones that looked like they were worth keeping. One of the main reasons was so that Mrs Wz and the kids would have it if anything happened to me and to give us more flexibility (helping kids out buying etc).

I had some other savings dotted about and got bored after 18 months so took up some part time teaching that I still do. Mrs Wz also does a couple of days a week and consequently I haven't even dipped into any pensions yet, although my IFA has said it's probably worth us taking a couple of final salary ones that come up in the next couple of years. The investments have generally performed very well (ignoring the last few months) but I have a lot of them in higher risk areas. You need very good financial advice.

The three things that majorly effect the amount you need are, paying off your mortgage (managed to do that 20 years ago), your kids becoming properly self sufficient (mine at 25 and 27 have done that in the last couple of years) and downsizing your house (been looking for the last 2/3 years but haven't found anything yet).

Good valid point about downsizing as may release more cash, something as yet to be considered in the Hut household however three years down the line from retirement haven't spend any of the tax free lump sum

 

[dazzer6666]

Can I asked about pension funds?

Did any of you opt to move money out of a defined benefits / final salary pension so that you could draw down on the money early or ensure you leave some to your partner/kids?

Yep, I did. Took a modest final salary scheme (result of my first 16 years of work) out and stuck it in a SIPP - at the time was offered 40x the projected pension as a lump sum. Invested it fairly aggressively and it’s performed pretty well so far. So much more flexibility and protection for the family doing things this way, but need to be very clear on the downside risks and implications - also it’s becoming increasingly difficult to actually do it now as advisors are reluctant to provide the advice due to the regulatory risks (and you have to get advice if the pot is over £30k).

 

[jakarta]

The three things that majorly effect the amount you need are, paying off your mortgage (managed to do that 20 years ago), your kids becoming properly self sufficient (mine at 25 and 27 have done that in the last couple of years) and downsizing your house (been looking for the last 2/3 years but haven't found anything yet).

In our case:

1. Mortgage already paid off.
2. No Children so we can squander whatever we have on ourselves! It was exotic holidays - pre COVID...
3. Downsizing - we have a pretty modest house and have agreed we both love where we live and (health dependent) we will both be carried out.

 

[Cowfold Seagull]

Try and double guess when Easyjet planes will be empty. Go to the Arctic Circle (Tromso, Rovaniemi) early January midweek, Rome in February midweek etc. See places you'd maybe never otherwise see, at off-peak prices. And never share a flight with schoolkids other than maybe the odd well-behaved ski trip. It's brilliant!

Definately this. I've been to places like Porto, Split, and Thessoniliki. All travelling midweek, out of season for 4 night mini breaks. Facinating cities they are too.

 

[happypig]

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?

Vilamoura you say....

Remember to factor in impulsive on line spending

I'm actually spending less on impulse buys now than I did when I was working; I only buy stuff I need (apart from still buying the odd penknife).

 

[Seagull58]

Vilamoura you say....



I'm actually spending less on impulse buys now than I did when I was working; I only buy stuff I need (apart from still buying the odd penknife).

it really warmed the street up

https://algarvedailynews.com/news/20146-bar-in-vilamoura-is-torched-by-hooded-men

 

[dazzer6666]

Vilamoura you say....



I'm actually spending less on impulse buys now than I did when I was working; I only buy stuff I need (apart from still buying the odd penknife).

I also quickly realised the eyewatering amount I was spending by simply going to and being at work - rail fare (couldn't take advantage of an annual ST so was either £130/week or £50/day), breakfast, lunch, multiple coffees, regular drinks/meals after work and loads of spending when away on business travel that wasn't 'claimable'.

 

[Tim Over Whelmed]

I assume you're in the Arundel area going by your avatar? But, if you're in Brighton, or Hove actually, or somewhere nearby, PM me and I can get you involved in organised kick-abouts. I'm 66 and play proper football three times a week.
I also retired at 60 years old. Where the last six years have gone is a complete mystery. It's gone in a flash.
Initially, it was really strange, waking up when I woke up - no alarm clock any more, then wondering what to do. Once I sorted out a new routine, which took about three months, I've not looked back.
I look after a couple of friends' gardens, and generally just take my time doing all the things I used to have to cram in to a busy week. It's all about being content in your mind.
The best advice I was given is that you don't have to do anything. I used to think I had to be doing something, but you don't.
I've done a bit of volunteer work for Butterfly Conservation, including building huge bonfires and tree planting.
I just sloth around gently. It's great. I'm back on the French learning, I do a crossword every day and generally just enjoy doing not much. It is an art though, and I can understand people that might struggle having worked all their lives and then suddenly stop.
Hope you sort yourself out a new routine and enjoy yourself.

Thank you

 

[Tim Over Whelmed]

Try and double guess when Easyjet planes will be empty. Go to the Arctic Circle (Tromso, Rovaniemi) early January midweek, Rome in February midweek etc. See places you'd maybe never otherwise see, at off-peak prices. And never share a flight with schoolkids other than maybe the odd well-behaved ski trip. It's brilliant!

Good tips, thank you

 

[Tim Over Whelmed]

Great decision! Packed it in myself about 18 months ago (at 54) and haven’t regretted it for a single second. Don’t play football because I’m shot and would get instantly injured anyway, but in terms of other ‘tips’, be aware it takes a little while getting your head around the availability of time (which I never had when working) and the fact you don’t need to rush everything or overfill your weekends trying to do too much. I initially felt guilty realising it was 10am and all I’d done some days was read the paper and drink coffee. Anywhere you want to go is likely to be much more pleasant midweek. Other key thing I did was take on a voluntary role with a local charity - would highly recommend this, it’s incredibly fulfilling. Even as a main board trustee and sitting on 3 committees I reckon it’s maybe 15-20 hours a month max.

Been travelling a fair bit since pandemic restrictions have started to lift and have a few other trips planned ahead - typically trying to do 2 x 10/11 day ‘proper’ holidays, a couple of European city breaks (Budapest a couple of weeks ago was fantastic), a golf trip and maybe 5-6 UK short breaks every year, plus some more bucket-list type trips soon hopefully. Apart from that, can’t believe how quickly the last 18 months have gone……running, fishing, walking, travelling and even done quite a bit of decorating which I pretty much never did when working

Your plans pretty much replicate mine, at the moment.

 

[Barry Izbak]

I called it a day last May.
Very lucky to have been able to do so, and loving it.

I have a couple of part time jobs. One of them, one day in a pub.

But time to travel, see family, enjoy life.

Well done. Enjoy

 

[Blue Valkyrie]

I didn't realise so many people retired early.

My plan is still to work until 67, although when I get close to that, if a reasonable redundancy/early retirement incentive is offered then of course I'd take it.

 

[Gwylan]

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.

If you're, er, packing a few kilos, you could join Man v Fat football every week at Sussex Uni. I'm 65 and have been playing every week, it's reasonably competitive without being totally full-on.

I'm also tentatively winding up to play rugby again. There's a Vets team at Hove and I'm wondering whether I'm fit enough for it. But if you fancy a bit of egg-chasing, that's always an option.

Retirement is a dream for me. I'll still be working in ten years time, I reckon. But good luck to you

 

[Tim Over Whelmed]

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 think it depends on what lifestyle you want in your retirement, where you are in terms of debt / costs and age.

I think a pot of around £300k will give you appx £10k per annum.

You're right, it's a much easier decision when mortgage and pot is sorted, of course.

 

[Weststander]

I finished at 50 (11 years ago now). I immediately moved the majority of my pensions (some of which were final salary) out and manage them myself with an IFA. We still have a couple of final salary scheme ones that looked like they were worth keeping. One of the main reasons was so that Mrs Wz and the kids would have it if anything happened to me and to give us more flexibility (helping kids out buying etc).

I had some other savings dotted about and got bored after 18 months so took up some part time teaching that I still do. Mrs Wz also does a couple of days a week and consequently I haven't even dipped into any pensions yet, although my IFA has said it's probably worth us taking a couple of final salary ones that come up in the next couple of years. The investments have generally performed very well (ignoring the last few months) but I have a lot of them in higher risk areas. You need very good financial advice.

The three things that majorly effect the amount you need are, paying off your mortgage (managed to do that 20 years ago), your kids becoming properly self sufficient (mine at 25 and 27 have done that in the last couple of years) and downsizing your house (been looking for the last 2/3 years but haven't found anything yet).

Hi.

When the high risk equity funds hit a severe and sustained dip (now), do you take very early action or stay relaxed in seeing it out (taking the long view).

I’ve got investments in that area.

I’ve a private investor friend (big sums) and another friend also with a 7-figure pot who gives total wealth management control to Cazenove’s. In both cases, they’re very early movers out of high risk equities eg Feb 20 and Sept 21, then they move back in soon afterwards. They’ve benefitted hugely.

Not sure if it was luck or knowledge/intelligence.

 

[Tim Over Whelmed]

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'?

I sold my business twelve months ago and was offered the opportunity to continue in the business which I've done for the last year but had a Prostectomy last year, and during recovery, caught COVID, and was in a bad way in hospital. Massive wake up call, life's too short and want to do some more adventurous / physical holidays and trips before I get much older.

Luckily sorted financially so it was an easy decision.

 

[jakarta]

one day in a pub. Enjoy

I have feeling it may be several lunchtimes in a pub when I'm done & dusted!

 

[Tim Over Whelmed]

Retirement is but a dream for most of us. Decent pensions closed 20+ years ago now

I'll be dead before I can afford to retire. My son will inherit £1m of house and a shit load of old cars, guitars & scooters to deal with

£1m house, sell it and live off of the interest?

 

[WATFORD zero]

Hi.

When the high risk equity funds hit a severe and sustained dip (now), do you take very early action or stay relaxed in seeing it out (taking the long view).

I’ve got investments in that area.

I’ve a private investor friend (big sums) and another friend also with a 7-figure pot who gives total wealth management control to Cazenove’s. In both cases, they’re very early movers out of high risk equities eg Feb 20 and Sept 21, then they move back in soon afterwards. They’ve benefitted hugely.

Not sure if it was luck or knowledge/intelligence.

I have about 70% high(ish) risk. I know that if I was more active (my IFA does tell me ) I could get better returns but I'm afraid my investment strategy is similar to my football supporting one, sit tight and hope for the best.

It's got me lower half premier, so not bad in both cases.

Yep, it's definitely 'taking the long view' like what you said

 

[Tim Over Whelmed]

Definately this. I've been to places like Porto, Split, and Thessoniliki. All travelling midweek, out of season for 4 night mini breaks. Facinating cities they are too.

Hotels or AirBnB?