Retirement

[42]

You can't fiddle national insurance.

Working cash in hand you can, or paying yourself bare minimum & then using dividends

 

[Darlo1973]

You can't fiddle national insurance.

You can if you don't pay it.

 

[Tuono]

Not sure to what degree, but I remember 3 out of the 4 didn’t qualify for the same help during Covid as the other 3

That's 6 not 4.

Working cash in hand you can, or paying yourself bare minimum & then using dividends

I don't know anyone self employed who works cash in hand, the only blokes I know who do it are working on the cards.

 

[Select coaches]

Working cash in hand you can, or paying yourself bare minimum & then using dividends

Paying dividends is not fiddling, it’s basic tax planning

 

[Tuono]

You can if you don't pay it.

Class 2 NI was abolished for the self employed so obviously no one pays it anymore. Class 4 you have no choice, you have to pay it.

 

[Matt Hopkins]

Aren't they sponsored by insurers, pensions providers etc? Who have a vested interest in telling us we need more?

Don't be so cynical Why would companies who look after billions of pounds encourage you to give them more
The figure for moderate retirement for a single person is £31700, that's net as well so is the equivalent of a gross wage of £41500 with a 5% pension contribution. It's a complete load of bollocks in my opinion, but as ever other opinions are available

These figures are complete bollocks. £1548 a year on clothing and footwear for a single person ? How did they work that out?

That's about 5 years for me

 

[42]

Paying dividends is not fiddling, it’s basic tax planning

And it came back to bite a lot on the arse during covid.

 

[Tuono]

And it came back to bite a lot on the arse during covid.

Did it? I know about 20 lads who are self employed and every one of them earned more during covid with the Government pay out.
Actually one lad I know didn't claim anything so he probably earned less during covid but that was his choice as he worked right through.

 

[John Byrne 92Crew]

Ah, Greenwoods. My dad wouldn't go anywhere else.

Obviously a man of fine taste! Them and Dunn & Co. were the dons of older gents' clobber weren't they. Tbf Greenwoods was pretty decent all round, I remember my mate getting a class Harrington style jacket from there, he was only about 19

 

[42]

Did it? I know about 20 lads who are self employed and every one of them earned more during covid with the Government pay out.
Actually one lad I know didn't claim anything so he probably earned less during covid but that was his choice as he worked right through.

Furlough was based on NI conts. I know my BiL fell foul of it.

 

[Tuono]

Furlough was based on NI conts. I know my BiL fell foul of it.

The self employed didn't qualify for furlough, NI contributions had no bearing on what the self employed could claim.

 

[Ned Land]

Statistically you need to be budgeting for the expectation that you’ll be around well into your mid-to-late 80s.

Do you spend much time with people of that age?

My dad’s in his mid 80s and could easily live on a state pension only, even though he also has an occupational one and a hefty amount of cash savings. He is basically now mainly sitting on his sofa watching TV and reliant on his family for food shopping. It’s existing, not living. Obviously people might be lucky and be both mentally and physically healthy at that age.

It’d be interesting to see statistics for quality of life when people are 75+.

I read recently about the retirement income ‘smile’ model, where you need more at the start, less in the middle and more at the end to cover potential care home fees.

 

[John Byrne 92Crew]

Do you spend much time with people of that age?

My dad’s in his mid 80s and could easily live on a state pension only, even though he also has an occupational one and a hefty amount of cash savings. He is basically now mainly sitting on his sofa watching TV and reliant on his family for food shopping. It’s existing, not living. Obviously people might be lucky and be both mentally and physically healthy at that age.

It’d be interesting to see statistics for quality of life when people are 75+.

I read recently about the retirement income ‘smile’ model, where you need more at the start, less in the middle and more at the end to cover potential care home fees.

My mam is around the same age and is the same mate

 

[Ned Land]

My mam is around the same age and is the same mate

Do you manage to get her out anywhere? It’s a struggle but sometimes our dad will go to social events.

Part of the problem is that he often looks and smells like Swampy when he goes out … he’s too proud/stubborn to have anyone help him though.

 

[DaveH]

Just out of interest, what do people think is a minimum they`d need to retire in annual and monthly terms after tax assuming the mortgage is paid off and there's no kids uni fees to pay for. What do you think a single person needs to get by and what would a couple need.

Just a rough idea as obviously there`s loads of variables (holidays, cars, entertainment costs are all different for different people).

Hopefully I have 18 months mx to go but could go earlier and may drop to 3 days first if I can as a lead in to that.

A few reports say that £40-£45k for a couple gives a comfortable living with some luxuries. But back through the thread we have done a closer look at some of these claims, and they talk about a high spend for clothes as a few just pointed out, then daft stuff like a new kitchen every 8-10 years.

One exercise I plan to do at some point (and definitely do it again before retirement), is not to look at my salary but look at my take home wage. Then knock off mortgage payments from that, then take off what I put in savings, what I pay commuting, what we give to the kids etc. Basically remove all the spends that are either investing for the future or that I will not have any more.

Once I have that, there is a good starting figure to think that losing all those outgoings, I could live exactly the same life on that lower wage. Anything else and you are starting to talk about what lifestyle changes you want.

There is also the consideration of front loading your retirement. Mine will be a mixture of savings & investments, state pension and private pension. At 80+ the two pensions will easily be enough, so blowing the savings and investments earlier and enjoying myself is probably the best way to do it.

 

[mickb2112]

A few reports say that £40-£45k for a couple gives a comfortable living with some luxuries. But back through the thread we have done a closer look at some of these claims, and they talk about a high spend for clothes as a few just pointed out, then daft stuff like a new kitchen every 8-10 years.

One exercise I plan to do at some point (and definitely do it again before retirement), is not to look at my salary but look at my take home wage. Then knock off mortgage payments from that, then take off what I put in savings, what I pay commuting, what we give to the kids etc. Basically remove all the spends that are either investing for the future or that I will not have any more.

Once I have that, there is a good starting figure to think that losing all those outgoings, I could live exactly the same life on that lower wage. Anything else and you are starting to talk about what lifestyle changes you want.

There is also the consideration of front loading your retirement. Mine will be a mixture of savings & investments, state pension and private pension. At 80+ the two pensions will easily be enough, so blowing the savings and investments earlier and enjoying myself is probably the best way to do it.

I`ve done exactly this - also take off union subs, professional membership fees and any regular long term savings for retirement etc. If I take out my monthly mortgage payment and the other stuff I won`t be that much worse off in terms of disposable income than I am working full time. Just got to make sure I use any lump sum wisely to see me through the 7 years until I get my state pension.

 

[Keyser Soze]

Just out of interest, what do people think is a minimum they`d need to retire in annual and monthly terms after tax assuming the mortgage is paid off and there's no kids uni fees to pay for. What do you think a single person needs to get by and what would a couple need.

Just a rough idea as obviously there`s loads of variables (holidays, cars, entertainment costs are all different for different people).

Hopefully I have 18 months mx to go but could go earlier and may drop to 3 days first if I can as a lead in to that.

Me and Mrs Soze have around £4.5k pm forecasted when we retire next year - think we'll be fine on this to do all the stuff we have planned?

I'm 56 and hate my job but have an opportunity to get out now.....so planning a 'year off' prior to retirement, whilst er indoors will keep working (she does love her job which helps)

 

[geordiemushroomheid]

Do you spend much time with people of that age?

My dad’s in his mid 80s and could easily live on a state pension only, even though he also has an occupational one and a hefty amount of cash savings. He is basically now mainly sitting on his sofa watching TV and reliant on his family for food shopping. It’s existing, not living. Obviously people might be lucky and be both mentally and physically healthy at that age.

It’d be interesting to see statistics for quality of life when people are 75+.

I read recently about the retirement income ‘smile’ model, where you need more at the start, less in the middle and more at the end to cover potential care home fees.

Or spend it before you need to pay the care home fees

 

[John Byrne 92Crew]

Do you manage to get her out anywhere? It’s a struggle but sometimes our dad will go to social events.

Part of the problem is that he often looks and smells like Swampy when he goes out … he’s too proud/stubborn to have anyone help him though.

Not that much personally mate, now and again, she goes out with my sister every other week though. She used to flee around on her own on the bus which was great but lockdown plus getting that bit older made a real difference. Yeah, v stubborn too heh heh. Hope your dad's ok, that's great that he still gets to social events sometimes, I've probably turned up to a few smelling like swampy tbf

 

[Swindon On Tour]

Do you manage to get her out anywhere? It’s a struggle but sometimes our dad will go to social events.

Part of the problem is that he often looks and smells like Swampy when he goes out … he’s too proud/stubborn to have anyone help him though.

My Mum (Mam) is 88 and still jumps on the bus to go shopping.
Needs to bloody slow down. Suffers from anxiety, gets lonely has to be doing something (bloody moved that to me).
Call her a few times a day which drives me nuts but I know She lives for the calls. My Brother luckily is local thus sees her regularly.

Back to the retirement theme. She lives like She is still in the war.
Only yesterday all worried that her washing machine is packing up. Then She states as bright as a button, “I bought it on the 23rd of June 1999.”
Easily survives on the state pension and a very small private one.