Retirement

[JAZZMANB]

I know this is a thread about the financial side of retirement and what I’m about to say is slightly off topic.



You come across people on here who are only 30-40- early 50 etc and are chomping at the bit to retire. Why the hell would you wish your life away like that ? By the time your of retirement age your life won’t be as it is now. You’ll not be as fit, people very close to you have a good chance to have passed away and lastly for blokes like me it’s “THE END” so to speak and the Boredom will be a killer, especially in the winter. The sense of having very little purpose will be hard to deal with.


Yes if your cannon fodder who works in a factory or some midblowingly boring job I get it a little, however wishing you where closer to death just so you don’t have to work is pretty tragic.

Your 30’s, 40’s and early 50’s are the prime of your working life, if works that bad try and change what you do or grow up a bit and embrace it.

I'm 60 and what I did in my free time in my 30,40 and 50s was way better than work .That's all people are saying
I'd say its tragic if work is the best part of your week ,canny job or not.
3 of my mates retired early ish and are loving it
I'm sitting in Crete with one riding motorbikes around
He's been here a month before I arrived

 

[ShieldsBlackCat2015]

I only finally managed to achieve paid work in about 2015 so I must have been about 39. I fully intend for my lifeless body to be swept up from the shop floor at ASDA. No way can I afford to retire. It took me most of my life, over 20 years from leaving school in 1992, to finally find a paid job (even though it was only agency and not a proper contracted position). No way should I retire. I have too much time in my work life to make up.

I'd say its tragic if work is the best part of your week ,canny job or not.

Work is the only part of my week!

Compare that to my lass. Three days she spends in work and she still puts in for a holiday every time theirs a vowel in the month the lazy mare! She won’t have been back long from her road trip holiday she’s been on this week and she’s away again in November to Chatsworth House! She needs a SatNav to remember where she works! I need a SatNav to remember where I live!

She’s practically retired already and she’s only in her rarity 40s!

 

[douggie]

I’m in process of transferring old DC pots into a DB schemes. The first quote is approx 10 years of the value for a gaurenteed income. Seems like a good deal to me.

 

[Slim999]

I’m in process of transferring old DC pots into a DB schemes. The first quote is approx 10 years of the value for a gaurenteed income. Seems like a good deal to me.

I'm far from a pensions expert , ....but if I had a DC pot of £100k in today's money - that's £10k per annum for 10 years before growth is factored in ....

So what per annum FS would be a good return on thar?

Depends on your age and how long you expect to keep going.

Iyou're r 60 and in good health, then it's likely that you will require 25 years pension.

So at least £5k per annum would sound about right in return for £ 100k. *(Assuming of course that there is an annual inflation boost to that )

Our resident pension experts will now point out how way off beam I am

 

[The Great Soprendo]

I'm far from a pensions expert , ....but if I had a DC pot of £100k in today's money - that's £10k per annum for 10 years before growth is factored in ....

So what per annum FS would be a good return on thar?

Depends on your age and how long you expect to keep going.

Iyou're r 60 and in good health, then it's likely that you will require 25 years pension.

So at least £5k per annum would sound about right in return for £ 100k. *(Assuming of course that there is an annual inflation boost to that )

Our resident pension experts will now point out how way off beam I am

Suggest having a play with this:

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Obviously a bit simplistic as assumes taking the same each year, but gives you a rough idea.

 

[TAD]

This draw down thing is interesting. I've got a couple of final/average pension schemes and will be comfortable at spa. Thinking about how little I can work between 60-67. I'm 50 and in civil service pension scheme.
Is it as simple as me saving 12000 over the next 10 years.
* Will that give me an additional private pension of pot of 120k that I can draw down an income between 60-67?
*If that is an option, will my contributions be tax free if I'm also contributing to company pension?
*When I take an income at 60, can I take occasional temp work if I feel like it?
Sorry if these questions are stupid but my pension knowledge is slim as I've always been in government salary schemes.

 

[The Great Soprendo]

This draw down thing is interesting. I've got a couple of final/average pension schemes and will be comfortable at spa. Thinking about how little I can work between 60-67. I'm 50 and in civil service pension scheme.
Is it as simple as me saving 12000 over the next 10 years.
* Will that give me an additional private pension of pot of 120k that I can draw down an income between 60-67?
*If that is an option, will my contributions be tax free if I'm also contributing to company pension?
*When I take an income at 60, can I take occasional temp work if I feel like it?
Sorry if these questions are stupid but my pension knowledge is slim as I've always been in government salary schemes.

You can certainly have an additional private pension and my understanding is that you can pay up to 100% of your annual salary into it and get tax relief on as much of it that you paid tax on. So in theory you could pay no income tax at all doing that. I don't know how it works in combination with a DB pension but I guess they calculate how much your contributions are worth and then add on anything you contribute privately to work out the tax. You'd need to submit a tax return to get it all sorted out after the end of the financial year.

But certainly see no reason you couldn't put £10K a year into a private pension - and fill in a tax return to make sure you get the tax back. Alternatively, is there a way to pay more into your civil service pension to get a similar benefit? I don't know anything about public sector pensions, having only ever worked in the private sector.

 

[Will e]

AVCs on local government pensions are complicated, depends on lots of things regarding your service and years of contributions

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[T_Bone]

I'm 60 and what I did in my free time in my 30,40 and 50s was way better than work .That's all people are saying
I'd say its tragic if work is the best part of your week ,canny job or not.
3 of my mates retired early ish and are loving it
I'm sitting in Crete with one riding motorbikes around
He's been here a month before I arrived

Where in Crete ?
I know you are an expert but I’ve just come back from a first visit.
Liked it. We were hersonissos area.

 

[TAD]

You can certainly have an additional private pension and my understanding is that you can pay up to 100% of your annual salary into it and get tax relief on as much of it that you paid tax on. So in theory you could pay no income tax at all doing that. I don't know how it works in combination with a DB pension but I guess they calculate how much your contributions are worth and then add on anything you contribute privately to work out the tax. You'd need to submit a tax return to get it all sorted out after the end of the financial year.

But certainly see no reason you couldn't put £10K a year into a private pension - and fill in a tax return to make sure you get the tax back. Alternatively, is there a way to pay more into your civil service pension to get a similar benefit? I don't know anything about public sector pensions, having only ever worked in the private sector.

Thank you. There are three different ways we can put additional money in our pensions but I don't really understand them. I've got a note to self to look at this in November and December so I start doing something in march/April next year. I've just been doing sticks and shares ISA up to now

 

[JAZZMANB]

Where in Crete ?
I know you are an expert but I’ve just come back from a first visit.
Liked it. We were hersonissos area.

My mates the expert
We used to use hersonissos as a base and head out everyday
Last few years we've moved on night after night . Last night tonight in Georgiopolus near Chania . We started here ,headed south to other coast ,anopolis loutro horosvakia
Paliochora, then up to west coast platanos, kissimos, balos
Spell check on all of those
Basically it's got the lot
Beaches ,mountains, gorges , forests and just class people. Well worth scooter or car hire and a map

 

[The Great Soprendo]

Thank you. There are three different ways we can put additional money in our pensions but I don't really understand them. I've got a note to self to look at this in November and December so I start doing something in march/April next year. I've just been doing sticks and shares ISA up to now

I think if you can spare the cash and you definitely won't need access to it until you retire, then for me the tax breaks from piling more into a pension in your 50s makes it more appealing than an ISA, especially if you're a higher rate taxpayer. I suppose in theory you will have to pay tax on some of it when you eventually take it as income once you retire (though 25% is tax free), but for most people that's going to be at the basic rate of tax unless you have a big retirement splurge.

 

[HerdnMulhall]

If you want to have both licences you might need to take a separate test in Italy, I don't know. But from what I have read online, a licence issued in the EU can be used in the UK, so maybe swapping for an Italian one is the way forward.

This link seems to back that up - ie you passed your test in GB but have an EU licence and are a visitor to GB (ie resident in EU)....it suggests you are fine to drive in GB with that licence:

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I think!

That's largely our experience however we havent needed to take a test. American friends who have immigrated have had to though..
M-I-L is now frail so frequent trips back to the UK are regular.
The one thing is that hire companies load on costs big time if you have an EU licence. We had to give up the UK ones to obtain the EU one.
Of course if you are a bit of a geezer you can always imagine you've lost the UK one and apply for a replacement a week or so before you surrender the original one for a Spanish one. Hand in the one you've 'lost' and off you go.
However if you do have an accident you are well strummed.
For our purposes it's been cheaper and less risky to have a cheap runaround in the UK and just drive it on the EU one.
And for everyone that this applies to do your best to load your pension as soon as it's possible. Certainly in your 50's it should be high on the list of priorities if at all possible.
Oh and a wheeze if anyone is considering moving to the EU.
In Spain if you worked for the state, a civil servant, a teacher, a University lecturer, the NHS etc the Spanish Govt don't tax those occupational pensions. Now we moved over pre Brexit so I'm not sure if that is still current so check it out .
But for me I purposefully went and worked for a LA in the two years left before retirement. Transferred the few private pensions into the LA scheme and as such have avoided paying very much tax here each year. Don't know if that applies to other EU countries but worth a heads up.

 

[Slim999]

The best way (it seems to me ) to access a Direct Cont pension pot ... is to use the UFLSP method ( uncrystallised Fund Pension Lump Sum) - whereby you pull out a fixed amount (As a 1-off)...... & leave the rest invested to grow.

People talk about drawdown- but that appears to me (?) to be a fixed , repeat arrangement- whereas UFLSP is a one off .

Perhaps so eone can comment on that ?)

I recently withdrew 16k .... 25% of which ( £4k) is tax free , meaning I am only taxed on£12k of it -

Given that the tax threshold is £12500 k .... this means zero tax ( assuming you have no other income)

The downside of this is that you need to do the paperwork each time - but its pretty easy

This explains UFLSP and drawdown / annuity routes etc.

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[faith brothers]

She was late 40s.

Pics

 

[Matt Hopkins]

The best way (it seems to me ) to access a Direct Cont pension pot ... is to use the UFLSP method ( uncrystallised Fund Pension Lump Sum) - whereby you pull out a fixed amount (As a 1-off)...... & leave the rest invested to grow.

People talk about drawdown- but that appears to me (?) to be a fixed , repeat arrangement- whereas UFLSP is a one off .

Perhaps so eone can comment on that ?)

I recently withdrew 16k .... 25% of which ( £4k) is tax free , meaning I am only taxed on£12k of it -

Given that the tax threshold is £12500 k .... this means zero tax ( assuming you have no other income)

The downside of this is that you need to do the paperwork each time - but its pretty easy

This explains UFLSP and drawdown / annuity routes etc.

You must be logged on to see external links

If you put your pot into drawdown you can alter the payments anytime you want. For instance you could crystallise £40k of your pot, 25% is tax free so you have £30k to draw from, you could draw £1047/month for a year which would cover the £12570 PA then in the following year if a DB starts you could adjust the amount down so you still didn't pay tax, if you wanted.
As you say it seems that with UFPLS with quite a few platforms you have to fill paperwork in everytime you wanted some money seems a bit of a frig on if you want monthly payments. If you planned on UFPLS you would still probably want to split your pot into a couple of different funds as well.
I'm just a retired fitter so all that could be cack

 

[Slim999]

If you put your pot into drawdown you can alter the payments anytime you want. For instance you could crystallise £40k of your pot, 25% is tax free so you have £30k to draw from, you could draw £1047/month for a year which would cover the £12570 PA then in the following year if a DB starts you could adjust the amount down so you still didn't pay tax, if you wanted.
As you say it seems that with UFPLS with quite a few platforms you have to fill paperwork in everytime you wanted some money seems a bit of a frig on if you want monthly payments. If you planned on UFPLS you would still probably want to split your pot into a couple of different funds as well.
I'm just a retired fitter so all that could be cack

Yes that all sounds about right - thanks for explaining that

For simplicity sake I decided to take a one off lump this time around.

My intention now is to let it sit & grow ( hopefully )for a couple of years ( ....ensuring its invested properly in best fund/s !).

In the meantime live off my savings (and a small FS pension of a few hundred per month)

After that I may decide to do a fixed drawdown as you suggest and crystallise a bigger lump

 

[Matt Hopkins]

Yes that all sounds about right - thanks for explaining that

For simplicity sake I decided to take a one off lump this time around.

My intention now is to let it sit & grow ( hopefully )for a couple of years ( ....ensuring its invested properly in best fund/s !).

In the meantime live off my savings (and a small FS pension of a few hundred per month)

After that I may decide to do a fixed drawdown as you suggest and crystallise a bigger lump

What are you calling a "fixed drawdown" ?

 

[jaraarrow]

I’m 55 in march and have acces to a workplace pension
Gonna take the whole lot out ,my question is it beneficial to Take the cash in April at the end of the tax year or will march be ok ?

 

[Slim999]

What are you calling a "fixed drawdown" ?

I'm not sure really - as I'm still finding the options a bit confusing ..(..and the assistance from the pension pot holder ( L&G) is pretty minimal )

.... but what I was thinking was ' crystallising ' a lump ( let's say £40k) - taking the 25% tax free in one go ( £10k) .....and having the remaining £30k draw down over 3 years paid out monthly .

This would still leave me with around £160k in the uncrystallised Fund (hopefully ) growing at around 10% per annum .

Questions I have are :-

1. Would I pay any income tax on the 75% crystallised ( £30k) ( assuming no other income). I presume not as the drawdown would only pay it out to me at around £10k per annum and I'd be taxed on receipt ?

2. Once the £40 k drawdown has been allocated - does the taxable portion ( the £30k) still sit in the fund as Investment and hence still grow ?

I’m 55 in march and have acces to a workplace pension
Gonna take the whole lot out ,my question is it beneficial to Take the cash in April at the end of the tax year or will march be ok ?

I guess if you're still working (?) and paying income tax ( and intend to Continue That way for a while ) ?

In which case it wouldn't really matter whether you did it in March or April.

If you're stopping work soon then you may want to push into April to minimise income tax for this year .

When you say " gonna take the whole lot out " ... there may be tax penalties for you that way - you may want to spread it out over a few years ( depending on how much it is )