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Retirement

Brother Lee said:
A lot of us are of a similar age on this thread for obvious reasons. It seems a lot of people think they'll just take some part time job with no responsibilities. The issue with these types of job, is that your manager has a target, as does his and his above. Invariably whatever you're doing, it won't be stress free. You might be able to switch off when you get home but it's the same shit the next day.

I've been self employed for 22 years but every now and then I have dreams (nightmares) waking me up of the Friday morning manager meeting reviewing that weeks performance. I did 8 years in middle management and don't miss it one bit.

I might wind down my hours or days before I finish but I can't see me going employed again. Volunteering yes but not employed. I'll go when I know we can afford it.
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I disagree. Once you are at a point of everything you own is paid for, no debt and a nest egg for old age, any time a job like that is getting stressy you can just say "fuck this" and walk out. At the stage where your wages are just beer money, you are a free man.
 

NYMackem said:
I disagree. Once you are at a point of everything you own is paid for, no debt and a nest egg for old age, any time a job like that is getting stressy you can just say "fuck this" and walk out. At the stage where your wages are just beer money, you are a free man.
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It’s my way of thinking now. 62 is the plan (3 years away) but I keep saying as soon as I’ve had enough. I’m gone…
Matt Hopkins said:
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 👍
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Still is isn’t there?
Capped will be a figure you cannot change.
Flexi you can take differing amounts.
 
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Paul3845 said:
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.
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I get that, mine is just a model to show different scenarios. I've used very conservative growth rates inc zero to show best and worst cases. I had our accountant at work check it out as he's an excel nerd, it's bang on for what I wanted.
 
archiesdad said:
I get that, mine is just a model to show different scenarios. I've used very conservative growth rates inc zero to show best and worst cases. I had our accountant at work check it out as he's an excel nerd, it's bang on for what I wanted.
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I do all my financial planning on excel.
Just add in a few formulas and inflation / growth estimates and it’s fairly easy to track.
This is the key to it all.
Copacabana said:
Wouldn't mind a work from home part time number when i pack in. Do these types of job even exist?
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Just don’t rush and take your time. I wanted to find a small part time job but couldn’t find one that interested me as I didn’t want to have stress.
Ultimately the perfect one would involve doing something that I enjoy, a hobby thus football, fishing, dog walking, gardening etc.

The perfect one literally fell onto my lap. I bailiff a large fishing reservoir 7 miles from home at least 4 days a week. Collect ticket money, sort out the matches etc.
It pays for my beer money, football and fishing.

I never thought a job like this would exist thus the same to you. Just drift, keep talking and I’m sure one that fits will come along 🤞
 
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Tuono said:
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.
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It is always worth reminding people that if your pension company rings you, don't trust them. Call them back on the number from their website, or challenge them. Login to your account and ask them how much interest was earned in July and obscure questions like that.

A few pension companies have had data leaks, including NI number, your name, address and policy number. Never trust people who know these details.
Copacabana said:
Wouldn't mind a work from home part time number when i pack in. Do these types of job even exist?
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Yes. It just depends on what area you work in and what skills you have.

Also look at various jobs that offer WFH and hybrid and consider applying but as a part time role, or ask them if they would accept someone part time. I have known a few roles filled by two part time people applying rather than one full time.

Another option is to work full time somewhere for a year and then request to drop to part time. If you are good and they face either losing you or allowing this, they may allow it to keep you. Again I have known a few people who have done this.

If my career progresses as planned, I was planning on doing a 9 day fortnight from 50, dropping to a 4 day week at 55, and if I can't retire at 58, take a couple of weeks off and return at 2.5 days per week.
 
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Fletch said:
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
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TBH until fairly recently retirement was something that was still in the distant future so I've been happy to take big risks knowing theres time for the markets to recover, thats changed now. My biggest fear is a crash just after retirement, if its before then I can delay and wait to see how things recover, but if its after then I'm pretty much just living with the consequences.

Its not quite as bad as my post suggested, I do also have about 2 years living expenses in a cash ISA, and 10% of my SIPP is in property which is relatively low risk. But I am going to look at what other changes I should make given how unstable everything feels right now.

DrNo! said:
I would say seek an IFA.
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I agree, I probably should, and might. I'm reluctant because I dont feel like I've had good advice in the past, although that was arranged through work and free. Then theres a hassle of finding someone good, who will charge a reasonable fixed price. I've done a fair bit of research in the last few months and modelled out various scenarios and I reckon I've got a 20-25% buffer with just a very small drop in expenditure.

Fact Hunt said:
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.
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Yeah I am. But I'm keeping options open. Depending on market conditions when the time comes I might go for a blend (assuming thats possible) and get a 12 year annuity to give some guaranteed income until stage pension. I've thought about taking a second lifetime annuity using a portion of my pension to give a guaranteed minimum lifestyle, but based on family history I'd rather gamble and leave more money to the kids.
 
kladum said:
TBH until fairly recently retirement was something that was still in the distant future so I've been happy to take big risks knowing theres time for the markets to recover, thats changed now. My biggest fear is a crash just after retirement, if its before then I can delay and wait to see how things recover, but if its after then I'm pretty much just living with the consequences.

Its not quite as bad as my post suggested, I do also have about 2 years living expenses in a cash ISA, and 10% of my SIPP is in property which is relatively low risk. But I am going to look at what other changes I should make given how unstable everything feels right now.


I agree, I probably should, and might. I'm reluctant because I dont feel like I've had good advice in the past, although that was arranged through work and free. Then theres a hassle of finding someone good, who will charge a reasonable fixed price. I've done a fair bit of research in the last few months and modelled out various scenarios and I reckon I've got a 20-25% buffer with just a very small drop in expenditure.


Yeah I am. But I'm keeping options open. Depending on market conditions when the time comes I might go for a blend (assuming thats possible) and get a 12 year annuity to give some guaranteed income until stage pension. I've thought about taking a second lifetime annuity using a portion of my pension to give a guaranteed minimum lifestyle, but based on family history I'd rather gamble and leave more money to the kids.
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A crash is less of an issue if you're going down the drawdown route rather than annuity, and you have a couple of year living expenses in a cash ISA.

I'd keep it rolling along those lines personally. If shit hits the fan in the markets, you've got 2 years to ride it out.
 
Edinburgh Black Cat said:
A crash is less of an issue if you're going down the drawdown route rather than annuity, and you have a couple of year living expenses in a cash ISA.

I'd keep it rolling along those lines personally. If shit hits the fan in the markets, you've got 2 years to ride it out.
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Yes but personally if retiring early I'd have at least a couple of years of PA in cash (£35k if no other income) in the SIPP then top the rest up out of the cash savings elsewhere
 
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