gazza.1990
Striker
More than likely but hopefully DC Pension & S&S can get me out the rat race way before then!
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Retirement
- Thread starter Shieldsman
- Start date
More than likely but hopefully DC Pension & S&S can get me out the rat race way before then!
Thats alot less than I thought. Frightening to think what annuity that will get you .
faith brothers
Striker
Aye put what you can in just hope unlike me it's not to a firm like Equitable Life which went tits up and lost me loads
Fletch
Striker
when couples are retired- say if you have a mix of DC pension / S+S ISA / Cash - do you treat each person as their own "pot" or do you see yourselves as a combined pot
if this makes sense ?
Missus has too much cash in her portfolio, and my portfolio has No cash , hence the question , do i try build up a cash buffer for myself or not worry about it as know if we combined theres more than enough cash there
if this makes sense ?
Missus has too much cash in her portfolio, and my portfolio has No cash , hence the question , do i try build up a cash buffer for myself or not worry about it as know if we combined theres more than enough cash there
Matt Hopkins
Winger
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Sorry, but this jumped into my head for some reason 
Matt Hopkins
Winger
Did you ask this question on MSE? If not someone has asked the same question, maybe have a look there
archiesdad
Midfield
We class it as one pot overall although when working out our mthly funds we separate the pensions due to personal tax implications. She has a pretty big pension but not much in isa or cash. I've kind of got the opposite. Seems to be working although very early days.
42
Striker
Probably will also depend the age difference in terms of when each of you can take it. Im building up funds in my ISA to bridge the SPA gap which are effectively joint funds but in my name. Then because im a few years older, me getting state pension will also coincide with her accessing works pension pots (which ill add to by recycling £240 pcm to get the tax kickback in the build up)
DaveH
Striker
I have a spreadsheet for work where I track how many days on site, sick days, how much I spend on trains etc. I stuck another tab on there counting down to retirement
This morning I noticed that my number of working days (accounting for holidays etc) has just dropped below 2,000. I also have less than 400 Mondays to do. Still a long way (over 9 years), but it feels like a threshold has been crossed.
This morning I noticed that my number of working days (accounting for holidays etc) has just dropped below 2,000. I also have less than 400 Mondays to do. Still a long way (over 9 years), but it feels like a threshold has been crossed.
Ned Land
Winger
I’m trying not to look at my spreadsheets too often as I get grumpy thinking about working for 1, 3 or 5 more years (depending on circumstances).
It doesn’t help that I watched fight club for about the 5th time recently and I’m close to abandoning materialism again. I could easily retire to a shack on the coast with a £1500/month income.
When I’m 67 I could upgrade to a coastal shed.
DaveH
Striker
I do and I don't. 1998 days work is still a lot to do. At times (usually bored in meetings) I have thrown the extra line or calculation in there, and have found that I still have 25% of my entire career to go. That feels like a lot.I’m trying not to look at my spreadsheets too often as I get grumpy thinking about working for 1, 3 or 5 more years (depending on circumstances).
It doesn’t help that I watched fight club for about the 5th time recently and I’m close to abandoning materialism again. I could easily retire to a shack on the coast with a £1500/month income.
When I’m 67 I could upgrade to a coastal shed.
But the plus side I have, is that I have spent the last few years looking at my career and possible job changes in the future, and that breaks the whole thing down into reasonable milestones. A year ago I started a job, said 3-5 years. That first year has gone really quickly, so I am already a third of the way through the expected minimum time.
Really for me, the next big milestone is paying off the mortgage, where I have around two years to go.
archiesdad
Midfield
About 6yrs before we retired we created and escape plan spreadsheet and updated it weekly good or bad. I found it really useful yo concentrate the mind. I dare say we'd not be retired today at 56 if we hadn't done it.
Nearly there
Reserve Squad
Just an update on my situation/ choices.
And thank you for your replys a few pages back.
Basically it was take either a CETV worth 214k ,take 25% out tax free and get someone to manage what's left (roughly around 157k)
Or a Annuity of 67k tax free and 10,200 p.a linked to inflation for life.
@Shack @kladum @Matt Hopkins All said the annuity was the way to go .( thank you for your informative replys)
I've since seen 3 different financial/ pension advisors and they all say annuity is my best option ,with 2 of them stating it would be doubtful whether I would get my 214k transferred and if I did by the time I paid transfer fees and took my 25% tax free out they would only have around 155 k to invest .
I'm going to go with the annuity but just for the sake of argument let's say I could transfer my Cetv how is that the wrong option if I was getting 5% back on 157k ?.
I'd have 52k tax free and around a 157k pot invested hoping for around a 5% return p.a.
CETV...... I would need to take 12k a year out of my Cetv to be on 18k a year or..
ANINUITY ......I would need to take out 3k a year out of my 67k pot and I'd be on 18k per year
( both figures include 20% tax on the 6k over the 12k allowance)
As it stands I'm roughly on 18k a year
At the end of every month I have around £350 disposable income but some months this gets sucked up ,car repairs ,insurance ,boiler servicing ,xmas etc.
No debts ,mortgage free,live a simple life not a" flash Harry " if you know what I mean.
In 7yrs time my full state pension clicks in.
And thank you for your replys a few pages back.
Basically it was take either a CETV worth 214k ,take 25% out tax free and get someone to manage what's left (roughly around 157k)
Or a Annuity of 67k tax free and 10,200 p.a linked to inflation for life.
@Shack @kladum @Matt Hopkins All said the annuity was the way to go .( thank you for your informative replys)
I've since seen 3 different financial/ pension advisors and they all say annuity is my best option ,with 2 of them stating it would be doubtful whether I would get my 214k transferred and if I did by the time I paid transfer fees and took my 25% tax free out they would only have around 155 k to invest .
I'm going to go with the annuity but just for the sake of argument let's say I could transfer my Cetv how is that the wrong option if I was getting 5% back on 157k ?.
I'd have 52k tax free and around a 157k pot invested hoping for around a 5% return p.a.
CETV...... I would need to take 12k a year out of my Cetv to be on 18k a year or..
ANINUITY ......I would need to take out 3k a year out of my 67k pot and I'd be on 18k per year
( both figures include 20% tax on the 6k over the 12k allowance)
As it stands I'm roughly on 18k a year
At the end of every month I have around £350 disposable income but some months this gets sucked up ,car repairs ,insurance ,boiler servicing ,xmas etc.
No debts ,mortgage free,live a simple life not a" flash Harry " if you know what I mean.
In 7yrs time my full state pension clicks in.
DaveH
Striker
I have another one for the financial planning side of it and I agree, it is vital.
I went from not even thinking that early retirement would be possible, to realising that going at 60 would be if I made a career step I had been considering anyway, so that was a big motivator. Then with some more consideration and a jump in pay when a different job came up, I have gone from thinking 62 was a pipe dream to being nervously confident that 58 is possible.
Never planned anything, was always thinking 60-62 but then after a heart attack at 55 decided to go sooner. Did my first pension estimates when I was probably 57, retired at 58.
Matt Hopkins
Winger
The problem here is the 'if' I'm sure the FA will have explained sequence of return risk. Your £155k that you said you'd have after fees (I'd be surprised if it was as high as that, but that's another story) could lose 20/30/40% in the first year on top of taking £12500 out. Say it fell 30% just as you start taking money out, you still take £12500 out and increase it by 2.5%/ year, the fund then grows at 5% per year. You would have no money left by the time you are 70.
Remember your state pension and DB, under current rules, will be the equivalent of £23k pa index linked, about £1700/ month not to be sniffed at IMO
I'm not saying you are doing this, but don't second guess yourself
Nearly there
Reserve Squad
**This is exactly what I'm doing ,second guessing myself***am i missing out on the big pot?........you and other posters plus 3 financial advisors are all advising 100% to take the Annuity ,but the devil on my shoulder is saying look at the" big pot " .The problem here is the 'if' I'm sure the FA will have explained sequence of return risk. Your £155k that you said you'd have after fees (I'd be surprised if it was as high as that, but that's another story) could lose 20/30/40% in the first year on top of taking £12500 out. Say it fell 30% just as you start taking money out, you still take £12500 out and increase it by 2.5%/ year, the fund then grows at 5% per year. You would have no money left by the time you are 70.
Remember your state pension and DB, under current rules, will be the equivalent of £23k pa index linked, about £1700/ month not to be sniffed at IMO
***I'm not saying you are doing this, but don't second guess yourself
But you make total sense what youshave posted.
1. The fees for transferring over will probably be around 6k ? Then fees every year of a few grand for whoever is handling it.
2. The way the world is atm ,another big crash or war ( and we've had a few) and the pot diminishes by 30 /40k ,yes we know the golden rule is if you don't touch the pot it will recover but I won't have that luxury as I have to take out every year to live so the pot value will be decreasing every year .
3. Take the annuity and I'll know where I am at for the rest of my life ,wars ,stock market crashes won't affect it.Inflation proof as well.
Matt Hopkins
Winger
You need to try and forget about it, if it helps just tell yourself that you couldn't switch it anyway. To be honest I'm 99.99% that you really couldn't do it anyway.
Everyone is different but if I had that DB and lumper I'd be laughing my back off
Remember you could pay in excess of £6k and still be told you can't do it.
Everyone is different but if I had that DB and lumper I'd be laughing my back off
Remember you could pay in excess of £6k and still be told you can't do it.
Nearly there
Reserve Squad
Thanks for that ,I am 100% overthinking it ,just out of interest why would firms not touch it and let me transfer it over ?Is it because the value of the Cetv Pot is too small, so risky straight away for them to invest ?.You need to try and forget about it, if it helps just tell yourself that you couldn't switch it anyway. To be honest I'm 99.99% that you really couldn't do it anyway.
Everyone is different but if I had that DB and lumper I'd be laughing my back off
Remember you could pay in excess of £6k and still be told you can't do it.
