Retirement

[DaveH]

Very similar to me . I loved getting right into the detail of a problem and sorting why it happened
I became the send it to him man to crack stuff . Made me think maybe Forensics was my
missed vocation
I went from being given a budget and tools and funds as needed for 20 plus years with a hello from above once a month to a take over and a big fat middle chain of people keeping all them selves busy and like you I just answered stupid emails all day and got the autonomy took off me . Business fell through the floor and staff started leaving .
" this how we do things now "
Bye then .

Being able to walk away is a bit step, either walking away from work completely or walking away from a job.

I was at a previous place for 15 years and felt like I had invested a lot of my time and energy in it. But towards the end, I realised that neither party owed each other anything. I put a lot in, but they paid for that and got a good return on their investment. They give me money to do stuff while it suited them and at any point they could decide not to keep paying me or change my duties. I got out after the second restructure in as many years (3 more followed!).

It felt like a huge thing leaving it. But then it was so refreshing starting the next place. But really it was not the place for me and I left after 2 years. I've been where I am now for 6 months. I'm thinking 3 years minimum, 5 years max. If I last 5 then I'll only have another 5 years of career left, so likely just one more job. I feel like any place now, I come to work while it suits me, when it no longer suits I'll find somewhere else.

 

[Ned Land]

Yes sequence of returns risk can knack you up in the first few years that's why just using an average growth or a compound interest calculator can lull you into a false sense of security. Disclaimer alert:- That's all I did
I echo some of the comments on here, although it is a big decision, I personally think you can get too hung up on what you are doing and could spend all your time in retirement worrying about if you've done the right thing, picked the right investments etc.
Also don't log on to check up on the value too frequently it'll do you no good whatsoever, I'm trying to do it once a year but Vanguard cocked up my payment and sent a secure message last month so once logged on I just had to see how things were doing

I tend to rebalance my 3 investment portfolios in January each year then I leave them alone. Well I did until this week but 10 months is quite good going.

I have a SIPP with vanguard so I’ll find out in a few years how capable they are.

 

[Barista]

People have said before build a gilt ladder, but I don't know enough about it and everytime I use a ladder builder it looks far too complicated and only seems to pay as much interest as my cash at the moment so I'll take the risk of lower interest rates.

FWIW I'm coming up to 59 I'm 77% equities 18% cash 5% bonds that's everything I have

I’ve built a gilt ladder (about 8-10k per gilt) for each year to 2031 (mainly because I like tinkering and trying different asset classes, and I also have MMFs). As you say, the interest/coupon is basically the same as in a MMF. It’s a small play on interest rates, if they go down over the next few years then I gain vs MMF/cash, but they could just as easily go up and I would lose out.

I wouldn’t take the inflation/interest rate risk of buying gilts with longer durations of 5-6 yrs, and if you know you will need the money over the next 1, 2 and 3 yrs, then I agree that it’s best to keep it simple and keep it in a MMF.

I would like to build a ladder of Index Linked Gilts, which would protect against inflation, but not necessarily interest rate risk. However my understanding of them is not sufficient to feel comfortable buying them myself.
I have had exposure for many years to Linkers and US TIPs via the Troy Trojan multi-asset fund which also includes gold.

 

[Ned Land]

I'm thinking along similar lines.

My line of work has a lot of incident response in it. It is what I have done most of my career, moving into managing as well as in some cases still doing. I'm calm and just take it in my stride. But then you have people who don't live and breath it. Something happening this week has everyone in a flap, we have found a solution have sent out some comms and will implement it tomorrow. Job done, next. Except I have had 3 meetings or calls about it this morning alone and have a couple more racked up.

Basically there are 3 different self-appointed management groups who keep stressing to me how important the issue is (I know, I'm not stupid) and asking for updates. Well the update is close to fuck all, because over half my time has been spent just answering the same questions with both a morning and afternoon meeting about the same thing, daily. It is not even that big an issue, but people feel they need to be doing something. It would have been solved yesterday if it were not for all the flapping and explaining it slowly over and over again.

The issue itself created an interesting puzzle, we studied it and came to a solution. That bit is interesting. The rest is just bullshit and ultimately why in 9.5 years time I don't think I'll miss it.

That’s similar to where I work. I spend 20% of the week on support issues.

When there’s a usually self inflicted issue then buggerlugs or my colleague will be furiously trying to provide a solution, while multiple managers are asking when it’ll be finished.

I can’t wait until the day when I reply “It’d be done faster if I didn’t have to update 3 people who sit in the same office”.

 

[DaveH]

That’s similar to where I work. I spend 20% of the week on support issues.

When there’s a usually self inflicted issue then buggerlugs or my colleague will be furiously trying to provide a solution, while multiple managers are asking when it’ll be finished.

I can’t wait until the day when I reply “It’d be done faster if I didn’t have to update 3 people who sit in the same office”.

At my old place, we started locking the door.

We were the IT operations team and something would go wrong, so we would start investigating and fixing it. Except 4 different managers would come in the room to "help things along" and so would the entire development team. None were actually helping solve the problem, so they would perch on the edge of desks ask lots of unhelpful questions about the issue, run out of things so either watch for their entertainment or just start a general chitchat. Quite often with the large issues, people could not work so they would pile into the Ops office out of boredom.

One day I stood up and announced "Can I have your attention please? This is an 8 person office with 4 people working on the problem, there are currently 31 people in here. The 27 not working on the problem are part of the problem. Knowing where you are going this weekend is not useful so please fuck off and hold your social gatherings in the cafe next door". It was after that the locked door policy came in. Basically someone not part of the investigation team would have the role of bouncer to keep fuckwits out.

At least that is a big win in the WFH era.

 

[Ned Land]

… “knowing where you are going this weekend is not useful so please fuck off and hold your social gatherings in the cafe next door". …

At least that is a big win in the WFH era.

I’ve toned down over the past 10 years but that’s similar to what I’d have said.

There are fewer annoying 55-65 year old middle managers now in HE as they’ve taken mutually agreed resignations.

 

[Copacabana]

Yes, a payment called National Insurance is taken from every pay check during your working life. You need 35 years of payments to qualify for what is called a full state pension which is around £12000 per year. If you have less than 35 yrs then you get proportionately less. Can’t start receiving this state pension until you reach 67yrs.

People who for whatever reason haven’t worked/paid national insurance will also get social security/welfare benefits.

This state pension is meant as a minimum baseline amount, so you definitely need a private pension/employer pension to supplement this.

We do need less income than you in the States as all healthcare in England is generally free of charge (excluding dental/opticians) and prescriptions are free for over 60 yr olds, so health insurance is not necessary for retirees (or seniors as you call them). However, for non-acute care, e.g for a hip replacement etc. access to treatment is usually quicker if you do have insurance.

If i,m not mistaken your payment from uncle Sam is earnings based? Here we all get the same no matter how much or how little you have put in over the required 35 years!

 

[Tuono]

Fair observation.

I guess we all go through phases, assuming I have planned well for retirement, the phases of my life are probably:
<18 - Only pocket money, not a care in the world and loads of free time
18-22 - Student. Fair amount of free time, 22 weeks of holiday per year, but skint and having to pack up and move regularly. Looking back, I didn't seem to make use of the free time I had or appreciate it.
22-30 - Early work, getting on my feet financially but skint with student loans, buying a house, wedding, furniture etc. Did manage a few good holidays though. Free time on evenings, didn't make good use of it.
30-40 - Financially comfortable, not a lot of disposable income, but kids under the age of 10 leaving me knackered
40-50 (now) - Financially ok, trying to build towards retirement but seemingly no time to do anything. Work is 100% concentration at the minute, no brain capacity to do anything useful on a evening and sluggish on a Saturday morning.
50-58 - Mortgage paid off, can have more disposable income and could create more free time reducing hours. The kids will hopefully be through university and in the world of work by the end of this
58 - Done. Financially comfortable (hopefully) and never had this much free time since I was a bairn.
90+ - Time up!

For me,
16-19 apprenticeship, living at home, loads of cash.
20 working in Holland earning 4x more than I did in the UK. Spunked the lot.
21-30 work about 3-6 months in the winter in that there London. Earn enough to take the next 6-9 months off working for free in Norway and biking around Europe. Long holidays in Kenya and Brazil.
30-37 married to a Brazilian multi millionaire. House, mortgage, start a small pension.
37-40 bin off the Brazilian, remarry, sell house in London.
40-60 buy a house in Pompey, small mortgage, settle down, holidays work etc usual boring shite.
60-67 try semi retirement, find out I spend too much so go back to full time work. Wife dies, thinking of retiring yet again.

You could say I retired when I was young enough to enjoy it. Retirement is wasted on the old.

 

[Swindon On Tour]

For me,
16-19 apprenticeship, living at home, loads of cash.
20 working in Holland earning 4x more than I did in the UK. Spunked the lot.
21-30 work about 3-6 months in the winter in that there London. Earn enough to take the next 6-9 months off working for free in Norway and biking around Europe. Long holidays in Kenya and Brazil.
30-37 married to a Brazilian multi millionaire. House, mortgage, start a small pension.
37-40 bin off the Brazilian, remarry, sell house in London.
40-60 buy a house in Pompey, small mortgage, settle down, holidays work etc usual boring shite.
60-67 try semi retirement, find out I spend too much so go back to full time work. Wife dies, thinking of retiring yet again.

You could say I retired when I was young enough to enjoy it. Retirement is wasted on the old.

You only live once Mate.

 

[comfyshoes]

For me,
16-19 apprenticeship, living at home, loads of cash.
20 working in Holland earning 4x more than I did in the UK. Spunked the lot.
21-30 work about 3-6 months in the winter in that there London. Earn enough to take the next 6-9 months off working for free in Norway and biking around Europe. Long holidays in Kenya and Brazil.
30-37 married to a Brazilian multi millionaire. House, mortgage, start a small pension.
37-40 bin off the Brazilian, remarry, sell house in London.
40-60 buy a house in Pompey, small mortgage, settle down, holidays work etc usual boring shite.
60-67 try semi retirement, find out I spend too much so go back to full time work. Wife dies, thinking of retiring yet again.

You could say I retired when I was young enough to enjoy it. Retirement is wasted on the old.

Sounds like a life well lived mate. I retire in less than three years having always lived and worked locally and sometimes question if I’ve actually achieved anything cos I never bothered climbing the ladder. But I’ll have a decent pension, sons doing amazing at sixth form pending uni so I know he’ll be well looked after and that’s when I know I’ve done ok.

 

[Ned Land]

Sounds like a life well lived mate. I retire in less than three years having always lived and worked locally and sometimes question if I’ve actually achieved anything cos I never bothered climbing the ladder. But I’ll have a decent pension, sons doing amazing at sixth form pending uni so I know he’ll be well looked after and that’s when I know I’ve done ok.

I’m similar, apart from 2 years I have lived in the same postal area. I’ve never held a management role. I haven’t had to work away while the kids grew up. Boring, average etc. but that’s what most people are.

Plus who’s the real winner? Average Joe who retires early or the weekend millionaire who actually owns nothing and will work until 70?

 

[JAZZMANB]

Being able to walk away is a bit step, either walking away from work completely or walking away from a job.

I was at a previous place for 15 years and felt like I had invested a lot of my time and energy in it. But towards the end, I realised that neither party owed each other anything. I put a lot in, but they paid for that and got a good return on their investment. They give me money to do stuff while it suited them and at any point they could decide not to keep paying me or change my duties. I got out after the second restructure in as many years (3 more followed!).

It felt like a huge thing leaving it. But then it was so refreshing starting the next place. But really it was not the place for me and I left after 2 years. I've been where I am now for 6 months. I'm thinking 3 years minimum, 5 years max. If I last 5 then I'll only have another 5 years of career left, so likely just one more job. I feel like any place now, I come to work while it suits me, when it no longer suits I'll find somewhere else.

I never even looked for other jobs ,my second job was just with different bosses and the same work mates after the first job abruptly ended . So same game 40 plus years
I slowly progressed within and it was always just a means to fund my life and hobbies . Yeah I got sick of it now and then but saw loads of grass is greener people jump and it wasn't. Also some clever lads who left and really did well.
The younger people here shouldn't be wishing the days away at 50 or whatever . You have to live your life while working hard .

I’m similar, apart from 2 years I have lived in the same postal area. I’ve never held a management role. I haven’t had to work away while the kids grew up. Boring, average etc. but that’s what most people are.

Plus who’s the real winner? Average Joe who retires early or the weekend millionaire who actually owns nothing and will work until 70?

I never under estimated the importance of commute and mon to fri 9to5
Phil and kirstys " it's only 2 hours commute " ?!?
And mates on 70k but working 70 hour a week on salary etc .
I worked to live
In my 20s ,I did some thing every night . Most weekends left on motorbikes or in cars for lakes or borders etc on Friday night back Sunday pm . I didn't do settled, kids etc ,I lived a great selfish life until I felt like changing it . Always got by on my average wage,no big ambitions or flash stuff or debt .

 

[TAD]

Just thinking out loud. Our pensions are all defined benefit. At pension age we are absolutely fine financially. My wife also has a pension of £12.5k at 60. With this in mind, to retire early I'm thinking about starting one sipp in my name as she'll pay tax on anything (above the 25% fee). Does this sound sensible.
We don't have long to save so I'm thinking of a fund (possibly vanguard, but also looking at HL &AJB). Is it possible to have higher risk for about 4 years then moving all or some to lower risk options on the same platform.
I have little idea on how private pensions work.

 

[Shambo]

I’m similar, apart from 2 years I have lived in the same postal area. I’ve never held a management role. I haven’t had to work away while the kids grew up. Boring, average etc. but that’s what most people are.

Plus who’s the real winner? Average Joe who retires early or the weekend millionaire who actually owns nothing and will work until 70?

same here. I had a disagreement with one my brothers when both our kids were young. He has always been something of a high flyer, done very well in business and has a big house, fancy car etc, and he really went for it when his kids were young as his role was to provide. he told me he never saw his kids Mon-Fri as he was working so hard for them. he said it with pride as he felt good giving his kids a good life etc. he was, and is still is, so stressed with work all the time.

At the same time I switched jobs to work on the Middle East market, and took a basic pay cut, so that my office hours were 6:00am-2:30pm and it was 20 minutes from home. I was back home before 3pm each day, took my daughter out each day for an 'adventure' (walking in the woods etc), picked her up from school, went out swimming in the afternoons etc.

Fingers crossed some unexciting yet sensible financial decisions now can help me get out of work in 10-12 years time

 

[DaveH]

I never even looked for other jobs ,my second job was just with different bosses and the same work mates after the first job abruptly ended . So same game 40 plus years
I slowly progressed within and it was always just a means to fund my life and hobbies . Yeah I got sick of it now and then but saw loads of grass is greener people jump and it wasn't. Also some clever lads who left and really did well.
The younger people here shouldn't be wishing the days away at 50 or whatever . You have to live your life while working hard .

I generally have not been a job hopper.

I had a temporary job after graduating then started on a IT helpdesk after a few weeks. 18 months later I got promoted to network manager and stopped there for 6.5 years. The main reason I left was we were living in the city I met my missus when were students and just stopped. When we looked at raising a family we were 90 mile from my family and 200 miles from hers. So I left that job to move south.

I got a job down there that I thought was a new career shift, but it was a nightmare. I vowed to stick it out for 12 months before applying for anything, but then applied for lots of things and was out 3 months later. The job I was going to I only ever saw as a stop-gap and did 15 months there while waiting for my ideal job to come up. Then did 15 years.

So graduating, through to the age of about 46, I mainly had two jobs with over 21 years between them. But since then I feel happy to spend my last decade of career doing 3-5 years before moving on, having a refresh and hopefully a pay rise each time.

 

[Matt Hopkins]

Just thinking out loud. Our pensions are all defined benefit. At pension age we are absolutely fine financially. My wife also has a pension of £12.5k at 60. With this in mind, to retire early I'm thinking about starting one sipp in my name as she'll pay tax on anything (above the 25% fee). Does this sound sensible.
We don't have long to save so I'm thinking of a fund (possibly vanguard, but also looking at HL &AJB). Is it possible to have higher risk for about 4 years then moving all or some to lower risk options on the same platform.
I have little idea on how private pensions work.

Not sure what you are saying here.
Is it when you get to 65/67 you'll both have enough DB pension to live on but you want to retire early say 60 and use a SIPP to bridge the gap to 65?

 

[TAD]

Not sure what you are saying here.
Is it when you get to 65/67 you'll both have enough DB pension to live on but you want to retire early say 60 and use a SIPP to bridge the gap to 65?

Yep pretty much that. We'll have a starter with her getting £12k from one of her DBs at 60.

 

[Matt Hopkins]

Yep pretty much that. We'll have a starter with her getting £12k from one of her DBs at 60.

I suppose you really need to look at how much the "reduction" would be for taking taking the DB early as well.
If you were dead set on taking the DB at 65 but definitely wanted to go earlier then, if it was me and it's not advice, I would use a SIPP to fund the gap. As I've said before if the SIPP was to be your ONLY income you can get the equivalent of £1400/month tax free out of it and top the rest up, if needed from ISA, cash savings etc.
If it's just a few years and you have nothing in the SIPP don't go berserk and exceed the annual contribution amount

 

[Petesafc]

Sorry if already mentioned.

I am aiming to retire in 4 years at the age of 57. I’ve spoken with an IFA as I would like an opinion re: my strategy.

He is arranging a free initial meeting with my wife and I, then if we go ahead with a strategy plan/simulations/official advice then it would be a £1800 one-off fee including VAT.

Is this a typical fee? It isn’t based on the value of assets.

I suppose that it’s money well spent if it results in an optimal retirement strategy? I need advice and opinion regarding which money is withdrawn first and I hadn’t really considered my wife’s retirement plans before. He mentioned that we could be more tax efficient if there’s a joint plan.

I paid just over 2k 7 month ago, the IFA advised on a few strategies, they combined several pensions into a single pension, they were very old so needed a bit of work, that seems to be doing very well, I’ll not be taking anything for 2 year so time to make up my mind, but from a personal point of view it was money well spent. Just checked and pot has increased significantly,I know it could also go down so looks like I’ve had good advice.

 

[Iguana]

Woke up this morning dreaming of a system just about designed in my head. GUID as the primary key, asynchronous updating. I always love it in those first stages of design decisions. Lots of work to do though.

Then I remembered that I retired 4 years ago and the alarm was so I got up to go down to Brighton for the Mutations festival. It is great when your waking life is better than your dreams.