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Retirement

It often comes back to …. How much do I/We need ? Everyone be different but that’s almost always the issue
Darlo1973 said:
We have a chap who retired in November last year. He's back already as a "consultant".
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Every chance he got his sums wrong and didn’t have enough in his pot
 
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Shieldsman said:
Our group are counting down the days to retirement, some nearer than others.
Had a discussion in the pub last night about how much you need to live a ‘very comfortable’ lifestyle when retired. Nice international holiday, couple of smaller jollies, restaurant once a week etc, no mortgage to pay, kids self-sufficient.
Figures ranged from £20k-£30k or £45k+ if in a couple.

What do you reckon and any lads/lasses out there living the dream already who are in the know?
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That sounds a bit short, I reckon you would need 100k+
 
Sunlun79 said:
I’m absolutely clueless when it comes to pensions,I have three, is it best to put them all together?
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Same as me marra and I also work part time. My tax code and personal allowance is spread all over the place.

Last year I got a £3k tax bill because I'd earned over the 40% threshold and it turns out that it was up to me to tell Inland Revenue about some increased earnings, despite them having full sight of my pensions and wages etc. Modern technology should be tracking earnings and pinging out emails to individuals when this happens Shirley!
 
FootballFan said:
would run out quick
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£100k every year would run out quickly if retired, is that really what you are saying?

Is that for your average couple or people who have been used to a £250k+ annual income?
Fletch said:
We’re in similar boat , I’m 55 later this year , wife self employed and realised 6-7 year back shit … pensions 😆😆… she’s now hoping to retire in the next 12-18 months , I’m thinking 2-3yr max for me . I want to retire while still fit n healthy and not just chasing £££
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A bit like that for me. My wife went self employed and had not really been doing anything about pension while she built her business up. She is paying in now but this far out, I'm planning retirement based on what I earn and my pension.

Who knows what will happen at retirement time. I'm still 10 years out, so hopefully she will have built up something a bit more by then. But she is 2 years younger than me and currently loves what she does. I'm not convinced she will retire at 56 when I do, so if she is still earning I can live a live of leisure at her expense and off savings.

My pension does have harsh penalties for retiring early. I can draw it from 67 for the full amount or less each year before that, from the age of 57. When I stop working, I'll need to make the decision, do I live off savings and investments and delay drawing my pension, so I get a larger amount. Or because the larger amount will be subject to income tax, am I better off taking it early for a lower amount and therefore lower tax each year, and topping up with savings earlier. I'll probably go to an IFA when I'm 55 and start the planning.
 
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Fletch said:
Not necessarily , you get 25% of your withdrawal (drawdown), tax free , then the rest is classed as if getting a salary so how much tax you pay depends on how much you take out , some may pay no tax , some could be 40%

We’re in similar boat , I’m 55 later this year , wife self employed and realised 6-7 year back shit … pensions 😆😆… she’s now hoping to retire in the next 12-18 months , I’m thinking 2-3yr max for me . I want to retire while still fit n healthy and not just chasing £££
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I covered the 25% tax free bit, and yes if you're a higher rate tax payer then the tax kick backs are far more favourable, but the poster I was replying to was just standard rate who seems to think they're getting more than they really are.
 
FootballFan said:
nope 100k plus pension as backup
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I think you misread the poster mate , he wasn’t on about having a 100k pot


Hopefully when retired you are mortgage free, kids are independent and don’t need your help any more , no NI , no Pebsion contributions to make , no savings for a rainy day … just enjoy it or what was the point
I reckon if a couple can have joint annual pension of £40k they will be fine to retire in 50s

Must be nowt worse that being in mid 50s and still having a big mortgage
 
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Fletch said:
I think you misread the poster mate , he wasn’t on about having a 100k pot


Hopefully when retired you are mortgage free, kids are independent and don’t need your help any more , no NI , no Pebsion contributions to make , no savings for a rainy day … just enjoy it or what was the point
I reckon if a couple can have joint annual pension of £40k they will be fine to retire in 50s

Must be nowt worse that being in mid 50s and still having a big mortgage
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ah looking at it again the op isnt clear and assumes you are going the pension pot route rather than outside investments
 
One other major factor that needs to be taken into consideration here is whether you are happy in your job.
If you are happy then the incentive may be to carry on (although at what point do you retire or take a part time job, less hours etc).
If you can’t perform it anymore, absolutely detest it then getting out has health benefits as well. Stress is not good at any age even more so when you hit late 50’s early 60’s.

I miss a few of the people but the thought of that Corporate bollocks still haunts me now. Don’t miss a second of it.
 
42 said:
I covered the 25% tax free bit, and yes if you're a higher rate tax payer then the tax kick backs are far more favourable, but the poster I was replying to was just standard rate who seems to think they're getting more than they really are.
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But that assumes they're in the standard rate band when drawing the SIPP. If they're using the SIPP for a few years between retiring and drawing other pension income then a larger part of it would tax free against their personal allowance, so could reasonably see a decent amount of the 25% contribution benefit retained
 
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