Retirement

[Slatz63]

Exactly ,its done to your clock ,no one else's.
Save the indoor stuff for winter

I'm enjoying being on my own clock.

I've spent the last three weeks clearing up around my beehives and preparing the area for the Summer.

Just a couple of hours every other day, when it was warm and sunny. During my working days I'd have tried to cram it all into a weekend, whatever the weather.
I'd have been knackered and would have been frustrated by it. Stuff that used to seem like a real chore is now a joy to just potter along.

 

[DaveH]

Not long after I started work on the buildings, I still remember an old bloke retiring at 65, not many got to that age especially then, we were working on a site opposite wearmouth pit. On his last day was took to the colliery tavern.
Come the Monday after, he appeared all dressed suit, waistcoat, tie etc he was nearly in tears, as you say (and plenty of others have) he simply didn't know what to do with himself, I still remember the look on his face.
We moved site a week or so later but he came around the job every day until we moved. Poor f***er.

I think it is a sign of how society was and hopefully is changing. But that may still be a split between WFH office workers and manual workers.

People appear to have more leisure time how and hopefully that is being used by people to have more interests, beyond going to work, watching crap on the TV on an evening and getting all the jobs done on a weekend. Even things like the weekly shop or bigger shopping are less work now if you buy online. I can't imagine spending the best part of a Saturday trapsing around the Metro Centre looking for a new washing machine. We used to do stuff like that not so long ago.

An old bloke who lived in my street surprised me. He was in the building and groundswork trade, so spent most of his time digging holes and trenches. When he retired he got interested in researching his family tree. But he didn't have any very good computers, had some old stuff from his son, but was running into licence and compatibility issues. So then he discovered linux and started learning all about that. We used to chat while walking our dogs each morning, and he would start quizzing me about kernel configurations and setting permissions. That also led into hardware repairs like replacing cracked iPad screens for his grandchildren.

 

[Shambo]

You must be logged on to see media items

 

[Nearly there]

Sandra Appleby at Advanced IFA is really good

Thank you for that ,going to book an appointment now, I'm also looking at Key Wealth Management in Sunderland ,anybody have any dealings with them ? Get great reviews, but reviews don't always tell the true picture .
Most on here have said they would take the annuity with a lumper and the first financial advisor I spoke to said the same ,I just want a 3rd opinion ,which may seem overboard but the decision I take determines my living standards / lifestyle till I die and I do not want to make the wrong decision .

 

[Petesafc]

Thank you for that ,going to book an appointment now, I'm also looking at Key Wealth Management in Sunderland ,anybody have any dealings with them ? Get great reviews, but reviews don't always tell the true picture .
Most on here have said they would take the annuity with a lumper and the first financial advisor I spoke to said the same ,I just want a 3rd opinion ,which may seem overboard but the decision I take determines my living standards / lifestyle till I die and I do not want to make the wrong decision .

No problem, hope you get sorted

 

[a1970man]

I may be wrong but annuities just worry me.

They do have the benefit of set and go and need no further interaction and a guaranteed income for life, however the downside worries me.
What if I die younger than expected and the wife soon after, the money just goes to the annuity company.
What if I realise that I've underestimated and the amount I get is too low and I struggle.
What if I overestimate and I take too much and I could have taken less and invested more.
What if I need more money when I retire for the nicer things and less in later life when I'm not as active, there's no changing it.

For me I plan on a flexible draw down that allows me to take more earlier and less later so I can go the trips and activities earlier and just pays the bills when I can't get around as much.

This is just me though and I'm not saying I'm right or wrong.

 

[Dr Feelgood]

I may be wrong but annuities just worry me.

They do have the benefit of set and go and need no further interaction and a guaranteed income for life, however the downside worries me.
What if I die younger than expected and the wife soon after, the money just goes to the annuity company.
What if I realise that I've underestimated and the amount I get is too low and I struggle.
What if I overestimate and I take too much and I could have taken less and invested more.
What if I need more money when I retire for the nicer things and less in later life when I'm not as active, there's no changing it.

For me I plan on a flexible draw down that allows me to take more earlier and less later so I can go the trips and activities earlier and just pays the bills when I can't get around as much.

This is just me though and I'm not saying I'm right or wrong.

Have you considered a fixed term annuity? I retired at 56 and used part of my DC pots to buy an annuity to see me through to state pensions age. Used more of pot to set up a drawdown for access as and when I want / need.
Alternatively if you are thinking whole life annuity have you got a "minimum required" amount to cover needs, leaving the rest for drawdown?
Apologies if stating the obvious but I was a bit dubious of an annuity but I'm pleased I did it ( particularly bearing in mind that since I took it out it's been immune to COVID, Truss, Putin and Trump x 2)

 

[Select coaches]

Annuity rates are about 2 - 2.5% above what you can get on a good savings account. Don’t see the point myself, I’m not a financial advisor though.

 

[Shack]

I may be wrong but annuities just worry me.

They do have the benefit of set and go and need no further interaction and a guaranteed income for life, however the downside worries me.
What if I die younger than expected and the wife soon after, the money just goes to the annuity company.
What if I realise that I've underestimated and the amount I get is too low and I struggle.
What if I overestimate and I take too much and I could have taken less and invested more.
What if I need more money when I retire for the nicer things and less in later life when I'm not as active, there's no changing it.

For me I plan on a flexible draw down that allows me to take more earlier and less later so I can go the trips and activities earlier and just pays the bills when I can't get around as much.

This is just me though and I'm not saying I'm right or wrong.

That's what I do. Two years in and it's worked well. Only problem has been the emergency tax applied when you first start drawing down (you can't avoid it, which is ridiculous). I've now setup a monthly drawdown to start next financial year but initially I just took a lump sum every few months. HMRC must assume that's your monthly amount and you're hit with a canny tax hit. Got it back at end of the year but something to think about.

 

[42]

I may be wrong but annuities just worry me.

They do have the benefit of set and go and need no further interaction and a guaranteed income for life, however the downside worries me.
What if I die younger than expected and the wife soon after, the money just goes to the annuity company.
What if I realise that I've underestimated and the amount I get is too low and I struggle.
What if I overestimate and I take too much and I could have taken less and invested more.
What if I need more money when I retire for the nicer things and less in later life when I'm not as active, there's no changing it.

For me I plan on a flexible draw down that allows me to take more earlier and less later so I can go the trips and activities earlier and just pays the bills when I can't get around as much.

This is just me though and I'm not saying I'm right or wrong.

Ultimately theyre an insurance policy. If you die young you'll lose out. If you live to 115 youll benefit. Which is no different to the so called gold plated DB pensions.

Theres also the option to split pot into part drawdown & part annuity, which gives a bit more security against running out of money

 

[a1970man]

Ultimately theyre an insurance policy. If you die young you'll lose out. If you live to 115 youll benefit. Which is no different to the so called gold plated DB pensions.

Theres also the option to split pot into part drawdown & part annuity, which gives a bit more security against running out of money

With my schoolboy maths, I worked out that if I retire at 60 a 7% annuity beats 3% savings at 85.
Now that's just savings, not calculating investment growth.
I don't think that I'll be leaping for joy if I hit my 86th birthday that I've beaten the system with an annuity.
Also I would have had a lower income just after retirement so I couldn't do as much, but at 86 I'm quids in with nothing to spend it on.

It's still a big decision that I think I'll need some help with when the time comes.

 

[archiesdad]

I may be wrong but annuities just worry me.

They do have the benefit of set and go and need no further interaction and a guaranteed income for life, however the downside worries me.
What if I die younger than expected and the wife soon after, the money just goes to the annuity company.
What if I realise that I've underestimated and the amount I get is too low and I struggle.
What if I overestimate and I take too much and I could have taken less and invested more.
What if I need more money when I retire for the nicer things and less in later life when I'm not as active, there's no changing it.

For me I plan on a flexible draw down that allows me to take more earlier and less later so I can go the trips and activities earlier and just pays the bills when I can't get around as much.

This is just me though and I'm not saying I'm right or wrong.

A combination of both may be an option.

 

[Ned Land]

I am having another rethink about retirement and life in general. I’ve been reappraising quite a few things as a close relative’s currently in hospital (they are on the road to recovery)

I might take a reduced pension at 55. As I am 54 in October I could avoid the increase to minimum age 57 in 2028.

Our employer is offering mutually agreed resignation (again) which is different to voluntary redundancy (I get reprimanded for using the ‘R’ word) so I’ll see if I can get a payoff.

I’ve also been reading how pensions assets can be split during a divorce. I don’t see the point in me scrimping and saving into SIPP, AVC, DB schemes and potentially handing 50% over to someone who works part time and buys nice new things! Not that it’s imminent but you never know….

 

[Matt Hopkins]

I’ve also been reading how pensions assets can be split during a divorce. I don’t see the point in me scrimping and saving into SIPP, AVC, DB schemes and potentially handing 50% over to someone who works part time and buys nice new things! Not that it’s imminent but you never know….

that's the spirit he/she would probably be entitled to half of everything anyway so does it matter if it was in a pension? If he never leaves you you'd be better off with the money in a pension imo

 

[The Great Soprendo]

With my schoolboy maths, I worked out that if I retire at 60 a 7% annuity beats 3% savings at 85.
Now that's just savings, not calculating investment growth.
I don't think that I'll be leaping for joy if I hit my 86th birthday that I've beaten the system with an annuity.
Also I would have had a lower income just after retirement so I couldn't do as much, but at 86 I'm quids in with nothing to spend it on.

It's still a big decision that I think I'll need some help with when the time comes.

Something I've wondered about is using drawdown for the initial years, then at some point later (70+) buying an annuity (maybe with some of what remains) for when money needs are arguably more stable, and when I may not want the hassle of managing drawdown carefully. Assumes I have enough then to make it work of course. But I guess the point is that you don't need to decide immediately when you retire.

 

[Tuono]

I retired in December but did 3 days work in February to help out and enjoyed it. Last week I got a phone call asking if I'd do a weeks work setting out a roof as the client asked for me specifically to do it. I agreed but to be honest the thought of going in to work on Monday has ruined my weekend and I've been trying to come up with excuses to get out of it. A promise is a promise so I'll do it but I think this might be the last time I help out, I don't need the money or the stress.

 

[JAZZMANB]

Ultimately theyre an insurance policy. If you die young you'll lose out. If you live to 115 youll benefit. Which is no different to the so called gold plated DB pensions.

Theres also the option to split pot into part drawdown & part annuity, which gives a bit more security against running out of money

You'll have nothing to spend money on from 90 though really ,probably earlier. It just becomes a worry for old people .

 

[Ned Land]

that's the spirit he/she would probably be entitled to half of everything anyway so does it matter if it was in a pension? If he never leaves you you'd be better off with the money in a pension imo

Yes they have a pension too, so if they were going to be roughly equivalent, I assume that we’d just keep our own.

We’ll have paid roughly the same towards the mortgage too.

I still plan to deplete my SIPP anyway so there’d be nothing to share. Any other lump sums could be gifted to our kids.

Instead of me being the main breadwinner I’m going to be a kept man.

 

[Joe Baker]

You'll have nothing to spend money on from 90 though really ,probably earlier. It just becomes a worry for old people .

Not sure that's true.
Spending patterns change over time but don't neccessarily decrease.
I dont want to be old(er) and not have the money to make my life easier at that age.

 

[Woodman Boy]

Instead of me being the main breadwinner I’m going to be a kept man.

It’s nearly 4 years since I retired at 60 and my other half was working full time until we moved a year ago. She now does a few part time jobs, so I keep thinking I’m a kept man, until I realise my pension (not massive) is still more than she earns.
And I even do all the laundry, gardening and cook some of the meals! She is so lucky!