Retirement

[JAZZMANB]

When you retire early, many look at the headline figures & are put off by how much less you get each year. The reality is that all youre doing is spreading the pot (i know there isnt an actual pot for DB) over a longer period so you get less annually, but same over expected average lifetime

Then because pension (and state pension) is taxable, if you wait until state pension age, youll pay more tax on your works pension as you wont have had the years were youre only earning your works pension

Once I forgot about " per month " scenario we all occupy ourselves with .Which is never that impressive .I just saw it as a lump of money to use wisely for the future. I had a windfall away from my pension so between the two amounts I thought I'll give it a go .Picked my tax free lump up ,rest is in drawdown. Look for good % on isa accounts etc . Put a bit in pensions for free top up before finishing work etc . So main focus is living income tax free until its inevitable. Part time work etc is always a possibility but I wanted to be off the treadmill .

 

[42]

Well you can by taking more lump sum at the start of retirement and less month in future years and means less tax to pay when SP kicks in too

True there is that, but I guess much of that is a personal thing that will depend on how much value you see in the (usual) 12x commutation rate v life expectancy. For me, I have to also factor in that wife is a few years younger than me, which in turn will affect widows pension.

 

[Derby Mackem]

Can't with a DB as its a set annual amount regardless of age. But this is one of the few good things the last government did in making pensions more flexible & allowing flexible drawdowns with DC pots where previously you had to buy an annuity.

Some DB schemes allow you a stepped option which means you can take a greater sum (the extra equating to the state pension) from when you retire and then your DB pension drops down when the state pension actually kicks in.
So effectively your overall pension will be fixed from day 1 ( going up with inflation etc + this triple lock malarkey on the state pension)

 

[Darlo1973]

Default schemes are cautious because the vast majority of people don't really understand pensions & aren't engaged with them. So the providers dont want to then be accused of over risking their money in the event of a crash.

The more awareness is made, and the more people understand how they work, the better chance you have to push for change.

Default schemes often have the highest fees/commissions

We changed our pension provider a few months ago and there were a couple of meetings to explain the changes. It was amazing how few people were actually interested and just shrugged when I mentioned that the default scheme wasn't very good over the long term or thought that "lower risk" was actually a good thing.

 

[SurreyMackem]

I get the impression that the more adventurous retirees on here are not married. How do married retirees think this effects there retirement decisions and what they do in retirement.

I think it limits the things I can do but on the other hand if I had to run my life on my own as opposed to sharing responsibilities I would spend a lot of my retirement on mundane domestic chores.

 

[Nookie Bear]

I get the impression that the more adventurous retirees on here are not married. How do married retirees think this effects there retirement decisions and what they do in retirement.

I think it limits the things I can do but on the other hand if I had to run my life on my own as opposed to sharing responsibilities I would spend a lot of my retirement on mundane domestic chores.

I’m going to be in a position to retire 5 years before my husband , I’ve got no guilt around that as I’ve had poor health for 25 years and frankly after what I’ve been through I deserve it. I’m supporting his as much as possible to come up with a plan to get there particularly as our mortgage is almost cleared but it won’t hold me back from any plans like travelling as my health issues will limit that aspect anyway.

 

[42]

I get the impression that the more adventurous retirees on here are not married. How do married retirees think this effects there retirement decisions and what they do in retirement.

I think it limits the things I can do but on the other hand if I had to run my life on my own as opposed to sharing responsibilities I would spend a lot of my retirement on mundane domestic chores.

Im a few years older than my wife, but being quite financially savvy, I have a plan to get us both out early at the same time (with her being younger than she can draw pension). If I was single, I probably could get out even earlier, but then I'd not have anyone to do stuff with & also end up just doing mundane stuff around house, so would need less to live off anyway.

 

[Edinburgh Black Cat]

Sorry @Edinburgh Black Cat but everything you just said there went rocketing over my head…. I’ve got a toy monkey bashing cymbals in my head

42 described it well.

Essentially what I'm saying is that financially imo, taking £18k per year from 62 is better than taking £23k from 67. To me, it is a better deal.

Obviously I can't comment on whether that is affordable for you or whether it is the right decision based on your lifestyle / desire to work.

 

[Shieldsman]

Does anyone have a public sector pension with benefits both in the final salary and career average schemes? At the moment, the earliest you can access early retirement benefits is 55. This is going up to 57 on the 6th April 2028. Basically, if you' were under 52 on 6th April this year you're going to be affected by this if you have final salary and career average benefits.

However, there is an ongoing discussion within government as to whether members who were in their pension scheme prior to 2010 can take their benefits at 55 regardless of their current age. Essentially, there was a loophole no-one was nformed about that if you withdrew from your pension before a certain date (think it's 2018) then you can access your final salary benefits at 55 regardless of age. No-one was informed of this, hence there will very likely be a legal wrangling a la McCloud judgement to ratify this.

My pension states this: 'As current scheme regulations require members to take all their benefits if retiring early, it means there is an issue between the way the Scheme regulations work and future minimum retirement age, as in some instances final salary benefits can be taken at age 55 but career average not be available until age 57. We await further guidance in respect of members who have both final salary and career average benefits from the Department for Education in due course.'

They really could do with getting a shift on regarding getting this guidance from the Department of Education. 6th April 2028 is only 32 months away. People in this situation (and there'll be 10s of thousands) could do with some clarity now to make informed retirement planning decisions.

 

[Forty]

Cheers
Breakfast
Frasier
Coffee
Homes Under The Hammer
Bargain Hunt
Lunch
News
Escape To The Country/A Place In The Sun
Afternoon Nap
Bridge of Lies
Flog it
Richard Osmans House of Games
Tea
Netflix/ITVX/BBC iplayer
Bed
Read
Zzzzzzzzz

…. and finally… death.

This exciting lifestyle has to be funded. So I had to work an entire lifetime to create a pension that’ll support it.

There is no way the tele is going on during the day when I retire. It addles the brain. Didnt watch a single minute of day time tele during lock down. felt so much better for not viewing the day time dross.

 

[BiG]

There is no way the tele is going on during the day when I retire. It addles the brain. Didnt watch a single minute of day time tele during lock down. felt so much better for not viewing the day time dross.

I’d agree (and I was joking to a very large extent) but it’s not so much ‘retirement’ per se that dictates what you do with your day.

It’s health.

So my advice is when you retire, do what you can, as soon as you can, because you suddenly (or not so suddenly) one day, discover… that… you can’t

 

[Paddy O'Dors]

There is no way the tele is going on during the day when I retire. It addles the brain. Didnt watch a single minute of day time tele during lock down. felt so much better for not viewing the day time dross.

I don't watch it religiously. I just find a few things I like (travel shows and documentaries mainly), record them and watch them when I get a bit of time.

I did watch a lot of the recent England v India test series. That's why you worked all your life for, to enjoy stuff like that.

 

[Dark Traveller]

42 described it well.

Essentially what I'm saying is that financially imo, taking £18k per year from 62 is better than taking £23k from 67. To me, it is a better deal.

Obviously I can't comment on whether that is affordable for you or whether it is the right decision based on your lifestyle / desire to work.

Thank you.

When I get to 62, (if I manage to avoid redundancy cuts, etc) I’ll have thirty five years service in. I think it could be affordable for me, having no mortgage is a big help. Will just need to tighten belt some and maybe dip into savings. I certainly hope I will still have a desire to work, so part time working is definitely a consideration.

I’ve got seven years to go before that marker point, so pension pot will have a bit more in hopefully raising the key date amount slightly.

 

[42]

Thank you.

When I get to 62, (if I manage to avoid redundancy cuts, etc) I’ll have thirty five years service in. I think it could be affordable for me, having no mortgage is a big help. Will just need to tighten belt some and maybe dip into savings. I certainly hope I will still have a desire to work, so part time working is definitely a consideration.

I’ve got seven years to go before that marker point, so pension pot will have a bit more in hopefully raising the key date amount slightly.

If youre over 55, redundancy is something you dont want to avoid, as youll get your pension paid up without reductions, and a nice lumper to go with it.

 

[Paddy O'Dors]

Thank you.

When I get to 62, (if I manage to avoid redundancy cuts, etc) I’ll have thirty five years service in. I think it could be affordable for me, having no mortgage is a big help. Will just need to tighten belt some and maybe dip into savings. I certainly hope I will still have a desire to work, so part time working is definitely a consideration.

I’ve got seven years to go before that marker point, so pension pot will have a bit more in hopefully raising the key date amount slightly.

I got made redundant at 56 with a big lumper. One of the best things that's ever happened to me. I've got enough investments to get me by til I start getting a DB pension at 60 (18 months away) in addition to the redundancy money. There's always the option of a bit of temp p/t work if you need it.

 

[Darlo1973]

I don't watch it religiously. I just find a few things I like (travel shows and documentaries mainly), record them and watch them when I get a bit of time.

I did watch a lot of the recent England v India test series. That's why you worked all your life for, to enjoy stuff like that.

I've never done an overseas Test so that's top of my retirement to do list. The next Ashes down under after this winter (29/30?) would be fun.

 

[Paddy O'Dors]

I've never done an overseas Test so that's top of my retirement to do list. The next Ashes down under after this winter (29/30?) would be fun.

I've not done Oz for the cricket and it's not at the top of my list tbh. Of the places I've done, CT was the best, SL next, Barbados then India. NZ next but I want to go there for at least a month so have to wait for the missus to wrap up working so will be a few years. Pakistan too, would love to go there.

 

[BILLY BUS PASS]

I get the impression that the more adventurous retirees on here are not married. How do married retirees think this effects there retirement decisions and what they do in retirement.

I think it limits the things I can do but on the other hand if I had to run my life on my own as opposed to sharing responsibilities I would spend a lot of my retirement on mundane domestic chores.

I think you”ve got a point I’m not married and hopefully retired but have a few mates who are married and from them I get the impression it’s not all thorntons continentals and b*m secs.

 

[Darlo1973]

I've not done Oz for the cricket and it's not at the top of my list tbh. Of the places I've done, CT was the best, SL next, Barbados then India. NZ next but I want to go there for at least a month so have to wait for the missus to wrap up working so will be a few years. Pakistan too, would love to go there.

I have a some friends who have done Sri Lanka for a Test match followed by tour of the country and said it was the best trip ever.

I got talking to some Aussies at the recent India test at The Oval who said that the Gabba was the best Test to go to in Oz.

 

[Paddy O'Dors]

I have a some friends who have done Sri Lanka for a Test match followed by tour of the country and said it was the best trip ever.

I got talking to some Aussies at the recent India test at The Oval who said that the Gabba was the best Test to go to in Oz.

The Gabba is getting demolished and they're moving out of town. The 2029 Ashes will be your last chance to go.

I did two tests in SL, Galle and Kandy. Travelled around the south of the island for two weeks and was brilliant. Probably my second favourite country after Vietnam.

Newlands the best ground I've ever been to though. Easy to plan for too in advance and get cheap flights, it's always the test just after New Year's day.