Retirement

[DaveH]

Sounds a plan Mate.
You have time to think and you would be surprised how important that is. You don’t need as much as you think unless you are a Ferrari, Rolex type.
The 25% tax free option is a game changer and redundancy at 60 a bonus. Don’t let losing a job at your age eat away at you. I did at 58 and realise how daft that was.
That chapter is over and gone and all about what is in front.
Can’t fault my IFA either. Got Mates rates and combining pots has done well.

Equally don’t rule out a part time job and if you can get one you actually like it’s another bonus. No stress is the key and it took me some time to adjust. I could never go back to the job I was doing but equally nobody would want me anymore .


Spot on.
There is no way would I had the knowledge or confidence to invest and combine pots into one.
If you can honestly look at what the charges were and compare against the benefits and if this exceeds your targets and aspiration's then it’s the best decision.
I had a split between final salary and contribution pots.
Final salary pensions are rocking horse shit and don’t touch them or look to combine them.

The "as much as you think" is the key bit.

What I am aiming for in retirement is a fair bit below my salary and that drop makes me a little nervous.

But recently I looked at what my actual take home pay is (after pension and tax), then took off the mortgage, savings and commuting costs. I was not far off my retirement figure.

 

[DrNo!]

If youve got a good head for numbers & have a decent understanding of how it all works & risks involved, then IFA is largely pointless. If youre overwhelmed by the numbers, then paying a professional is probably what you have to do. Its similar to DIY jobs that some people are capable of doing themselves, whilst others have to being in a handyman.

Agreed....I quite enjoy educating myself watching the YT vids. I'm useless with DIY and will get a handyman in for the basics but I'll back myself with financial stuff.

 

[Swindon On Tour]

It was really easy for me to combine 2 dormant workplace pensions into a SIPP myself. I'm not sure what an IFA could have added. Invested into worldwide ETF's and global bond's and money market funds in the ratio my risk tolerance is comfortable with. Watched a shed load of Youtube videos about the plusses and minuses on Flexi access drawdown versus UFPLS for tax relief and run the figures through a compound interest calculator with a a few variables. I'll be saving my cash rather than using an IFA.

I guess it’s the pot you put them into and the performance.

The "as much as you think" is the key bit.

What I am aiming for in retirement is a fair bit below my salary and that drop makes me a little nervous.

But recently I looked at what my actual take home pay is (after pension and tax), then took off the mortgage, savings and commuting costs. I was not far off my retirement figure.

Noting that you don’t need to save money when retired.
It’s spending what you’ve accumulated within reason of course.

 

[SurreyMackem]

Logon or register to see this image

That's how I was feeling this morning when I got up to go for a swim and asked myself why? still went.

 

[archiesdad]

Has anyone created a decent excel or similar cash flow chart that plots pension, isa, other ect all with variable grown rates, drawdown levels and inflation rates? I've done one myself but my numbers look super high, I'm either rich or about to retire on a formula error and eat gruel the rest of my life

 

[Paul3845]

Has anyone created a decent excel or similar cash flow chart that plots pension, isa, other ect all with variable grown rates, drawdown levels and inflation rates? I've done one myself but my numbers look super high, I'm either rich or about to retire on a formula error and eat gruel the rest of my life

I've done a spreadsheet, but what you can't predict is the rate of return on your investment and inflation.

If I assume a rate of return of 8% and inflation of 2% I'm unbelievably rich, but of course both are variable year on year.

A few relatively poor years after retirement can mean you very quickly run out of money. A few good years, the opposite.

The trick - I think - is only draw down what your fund can afford based on growth v inflation.

Unfortunately, in some years this may not be enough to live ... unless you can save more so even a small % drawdown is enough.

 

[Matt Hopkins]

Has anyone created a decent excel or similar cash flow chart that plots pension, isa, other ect all with variable grown rates, drawdown levels and inflation rates? I've done one myself but my numbers look super high, I'm either rich or about to retire on a formula error and eat gruel the rest of my life

You can try Guiide that might give you a better idea? You can piss fart around as much as you want with it

If I assume a rate of return of 8% and inflation of 2% I'm unbelievably rich

Wouldn't we all be

 

[Swindon On Tour]

Has anyone created a decent excel or similar cash flow chart that plots pension, isa, other ect all with variable grown rates, drawdown levels and inflation rates? I've done one myself but my numbers look super high, I'm either rich or about to retire on a formula error and eat gruel the rest of my life

Just be conservative and if it floats trust the numbers and live.

 

[Paul3845]

Wouldn't we all be

So currently inflation is about 3% and I'm seeing growth at about 12%, so the ratio at x4 is similar.

 

[SurreyMackem]

A friend of mine in his early 60s with very little savings or private pension has just sold his parental home, his share of the proceeds is probably 300k+ and he is now planning to retire.

 

[Chalks]

A friend of mine in his early 60s with very little savings or private pension has just sold his parental home, his share of the proceeds is probably 300k+ and he is now planning to retire.

30K pa until early 70s.. not bad is it

 

[kladum]

Posters who have DC pension pots (not final salary ), what sort of % mix do you have equity/bonds
Cheers

I checked mine earlier, its 94% equities, and I'm considering retirement in 18 months at 55. I'm also now considering whether I need to move some funds into bonds before the almost inevitable AI crash

 

[Ned Land]

I've done a spreadsheet, but what you can't predict is the rate of return on your investment and inflation.

If I assume a rate of return of 8% and inflation of 2% I'm unbelievably rich, but of course both are variable year on year.

A few relatively poor years after retirement can mean you very quickly run out of money. A few good years, the opposite.

The trick - I think - is only draw down what your fund can afford based on growth v inflation.

Unfortunately, in some years this may not be enough to live ... unless you can save more so even a small % drawdown is enough.

You need to have a cash reserve to cover up to 3 years?

If shares have done well then sell some.
If they’re in a slump then use cash.

 

[DrNo!]

You need to have a cash reserve to cover up to 3 years?

If shares have done well then sell some.
If they’re in a slump then use cash.

Agreed..I think having a stash in things like short term bonds and money markets inside your pension to cover at least 3 years running costs is a wise move.

 

[Tuono]

I've had a bit of a sweat on the past couple of days. I hoyed £8,000 out of my savings account into my pension pot on Saturday, usually it shows up the same day but this time it didn't. Ah I though, it's Saturday, it'll probably show up on Monday. Monday night I checked again and nowt in my pension pot, not even the usual "pending". Checked again at work today and still nothing, soon as I got home I was ready to phone the pension provider but there it was "pending". Thank fck, I was beginning to think I'd been scammed somehow. Panic over.

 

[Fletch]

I checked mine earlier, its 94% equities, and I'm considering retirement in 18 months at 55. I'm also now considering whether I need to move some funds into bonds before the almost inevitable AI crash

94% seems high mind if considering retirement so soon … IMO anyway , guess depends on appetite to risk but how would you feel if was a crash just before you retire as you would be pretty exposed

 

[DrNo!]

I checked mine earlier, its 94% equities, and I'm considering retirement in 18 months at 55. I'm also now considering whether I need to move some funds into bonds before the almost inevitable AI crash

I would say seek an IFA.

 

[Fact Hunt]

94% seems high mind if considering retirement so soon … IMO anyway , guess depends on appetite to risk but how would you feel if was a crash just before you retire as you would be pretty exposed

It depends on how he is going to take money out of his pension pot, if he’s going to use flexi-access drawdown then you need to stay heavily invested.

 

[Fletch]

It depends on how he is going to take money out of his pension pot, if he’s going to use flexi-access drawdown then you need to stay heavily invested.

What mean ? That’s not sarky BTW … what’s flexi access drawdown compared to normal drawdown
I may well be wrong then just stuff I’ve read before made out should de-risk slightly as approach and when in retirement , agree you still need to be invested to see some growth just unsure if should be that high %

 

[Matt Hopkins]

What mean ? That’s not sarky BTW … what’s flexi access drawdown compared to normal drawdown
I may well be wrong then just stuff I’ve read before made out should de-risk slightly as approach and when in retirement , agree you still need to be invested to see some growth just unsure if should be that high %

I reckon he's talking about the same thing although there did used to be a capped drawdown often called normal
94% does seem high but each to their own