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Retirement
- Thread starter Shieldsman
- Start date
archiesdad
Midfield
We spent most of 2024 getting our shit together financially speaking. We sorted some pension consolidation, I found a pension I forgot I had as part of the process! We reviewed isas and bonds, some had just been left in under performing accounts for ages and shuffled those around to make them work harder. Finally we had a free assessment from an FA and got some ideas on what we need to do for the next 18-24 mths ahead of jacking it all in(57) We've gone from being apprehensive to excited. One of the best things I think we've ever done, wish we'd done it 10 yrs ago but let's look forward not back!
Ned Land
Winger
That’s similar to what happens where I work.
We’re onto attempt 3 or 4 to implement an agile software development process - the aim was first set about 8 years ago.
We spend more time discussing how to do the tasks than actually working on the tasks!
When you’re in your 50s you either switch off and agree for an easy life, or become more open about what could/should be done differently. I just find it very tedious but will speak up if I think that something’s wrong.
I've a steady away company pension which I have the option to draw as I please when I'm ready so in these final years I'm chucking lumps into it and a fresh sipp for free tax relief
Then it's a game of drawing as much up to my tax free allowance as I can and using bits of isa' s etc to top up to get by . Also taking my tax free allowance on the main pension when I'm ready
TheWanderer
Striker
I think some of the figures mentioned here would see you house bound most of the time and not being able to afford the things retirement is for, to really enjoy yourself.
Mad if you think about it, graft your arse off for years, f***ing your body (for those with physical jobs) and then just scrape by on enough money to heat your homes and pay your bills when in your 60’s!
If mortgage isn’t a consideration at an age to retire, then I’d recon an income after any tax of around £36k, around £3000 a month should be a nice target. £1000 for bills and around £500 a week disposable income, but more importantly your body needs to be in a state to actually enjoy it.
Mad if you think about it, graft your arse off for years, f***ing your body (for those with physical jobs) and then just scrape by on enough money to heat your homes and pay your bills when in your 60’s!
If mortgage isn’t a consideration at an age to retire, then I’d recon an income after any tax of around £36k, around £3000 a month should be a nice target. £1000 for bills and around £500 a week disposable income, but more importantly your body needs to be in a state to actually enjoy it.
JOEJA
Winger
How/where did you get a free assessment. I have just over a year to 55 and have pensions all over the place. Really need to sort something out as looking at rappin in at 55 or at least do contracting.
42
Striker
Presumably that £36k is a joint income?
As currently once mortgage & kids are factored in, most working people will have way less disposable income than that.
I was the one that spoke openly about how things could be better, it didn’t work so I now do 2 days per week , occasional ambulance shift and my lumper is starting a few building projects in the spring. Once they are done, so am I
Select coaches
Striker
worth looking at the tax you pay on your income. You can earn £16,760 tax free from your pension, if you defer your lump sum, then at that level you have £6k tax free interest, plus £500 dividends.
I know you can’t work everything perfectly but that’s a decent chunk tax free, especially if you double it for a couple.
I know you can’t work everything perfectly but that’s a decent chunk tax free, especially if you double it for a couple.
archiesdad
Midfield
The Mrs works for BT, they have links to a company that provides a free assessment once you turn 50 (I think it's age restricted) we just never bothered until last year.
This is the final bit of the puzzle for me. I need to figure out the best, maybe a mean most tax efficient, way to access the various pots we have and in what order ect. It's a bit of a midfield at the min but I've a bit time to figure it.
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I should probably get professional advice anarl. I now have 3 pensions giving me a healthy monthly income where I've taken the full lump sum and cash just sat in a current account deeing bugger all.
I'm a renter though, as i was in the army for ever and ended up too old to get a mortgage at the 2nd attempt. Rent is pretty eye watering, but manageable.
archiesdad
Midfield
We had 9 between us, 2 it turned out were DB pensions so was a bit of a nightmare figuring out what to do for the best. I think you can do it all yourself but it needs you to invest some time to investigate the detail of what you have.
I'm thinking that it need to max out on ISAs, but I'm tempted by exploring higher risk investments.
42
Striker
By ISA, I assume you mean cash ISA?
As there are higher risk ISA investments (stocks & shares, p2p lending etc)
Binternet
Striker
I was born in the 80s and will have a retirement age of 68 at least. My workplace pension is linked to national retirement age as well so it can't just be taken at 60 without a massive reduction.
Life expectancy for a male living in Sunderland is 76 and isnt increasing. Which starts to beg the question how much money do I actually need to live for 8 years. The stats show that as you reach 70yo your spending decreases dramatically as you are generally not as fit as you are in your 60s, meaning less holidays and less trips out. It's highly likely that cash will simply become generational wealth that will potentially be hit by huge inheritance taxes or be swallowed up by care costs.
At which point you start to consider if this actually represents real value. If the retirement age was 60 and I had 16 years to play with then it absolutely would be worth it. But I'm not sure the maths works out for my generation.
Life expectancy for a male living in Sunderland is 76 and isnt increasing. Which starts to beg the question how much money do I actually need to live for 8 years. The stats show that as you reach 70yo your spending decreases dramatically as you are generally not as fit as you are in your 60s, meaning less holidays and less trips out. It's highly likely that cash will simply become generational wealth that will potentially be hit by huge inheritance taxes or be swallowed up by care costs.
At which point you start to consider if this actually represents real value. If the retirement age was 60 and I had 16 years to play with then it absolutely would be worth it. But I'm not sure the maths works out for my generation.
42
Striker
Yeah, cash ISA being the safe bet but only 4-5% and investments maybe getting 6% +
Maybe I should buy a farm
Stocks & shares is usually the way to go, but prices are currently quite high, and many think there'll be a crash round the corner. So it's a bit of a gamble either way as if theyre wrong & you miss out, or hold out to buy cheap in the event of a downturn. Over a longer period (10+ years) you should do better than cash.
Another to consider is p2p lending which is a middle ground between investing & cash. LoanPad, Kuflink & Unbolted are ones I've got a few quid with. Can get between 6-10% but as usual the higher the return the higher the risk.
3.142
Striker
It's a bit morbid, but for the first time we have a combination of retirement age increasing but life expectancy decreasing. It means the value of your retirement is less and the amount people need to have set aside is also lower.
It also means the state can just about afford state pension and actuaries are going to be kept busy. As always.
(Semi) Retirement can't come soon enough for me.
Darlo1973
Striker
I agree, retiring early just to spend the next 25-30 years penny pinching and not doing anything in order to survive is no fun. May as well be working.
Amokachi
Winger
There's a lot of early retirements planned based on this thread!
I say get out as early as you can, congrats to anyone who can.
But I wouldn't be for working flat out in your 40s etc. and sacrificing enjoying life.
Just lost an old schoolmate yesterday morning. Heart attack at 39, younger than me. He's the third out our primary school to go. (Tragic accident at 21 & cancer at 35 the other two)
I'm from a small village and we're all still in shock will take a long time to process it.
I say get out as early as you can, congrats to anyone who can.
But I wouldn't be for working flat out in your 40s etc. and sacrificing enjoying life.
Just lost an old schoolmate yesterday morning. Heart attack at 39, younger than me. He's the third out our primary school to go. (Tragic accident at 21 & cancer at 35 the other two)
I'm from a small village and we're all still in shock will take a long time to process it.