Retirement

[Rammstein]

I mean, this is obvious bollocks from people whose job it is to get people investing more in pensions.

The "comfortable" figures are greater than the equivalent working medians. Out of the working money comes the pension contributions and the mortgage. In retirement, the former will have stopped for anyone drawing that kind of money. The latter will have stopped for most people. Then there are all the expenses associated with work or being to tired to do much else.

It's like the £300K to raise a child stories pumped out on slow news days. Yeah, but when you dig down, £250K is for private schools. It's unrepresentative cobblers.

People need to focus on their expenses. The lower your expenses, the more you can save,  and the longer what you save will last.

£40/£60K to be "comfortable" probably means consistently spaffing money up the wall chasing "lifestyle".

£40-60k? It's total nonsense.

I've been retired for 11 years ( left at 62 ).
Decent pension fund plus government pension.

We have two decent cars, one holiday in Italy and one in Scotland each year.

We live well enough, couple of takeaways a week and occasional meal out.

Obviously no mortgage and no outstanding loans etc which helps, and kids long since left home.

We do that on circa £24/25k a year and don't ' scrimp ' or cut corners.

I never earned £45k to £60k p.a. in my working life, so why would we need that now when our outgoings are way less ?

 

[Darlo1973]

James Shack has some good videos, basically keep 2-3 years of spending in cash to ride out any market downturn early in retirement.

I have endless scenarios on spreadsheets etc. but I doubt that any plan will be perfect.

I need to concentrate on building up the cash as I'm mostly in S&S and property equity especially as the car will need replacing soon and there are some house repairs I have been putting off for a few years.

 

[Matt Hopkins]

£40-60k? It's total nonsense.

I've been retired for 11 years ( left at 62 ).
Decent pension fund plus government pension.

We have two decent cars, one holiday in Italy and one in Scotland each year.

We live well enough, couple of takeaways a week and occasional meal out.

Obviously no mortgage and no outstanding loans etc which helps, and kids long since left home.

We do that on circa £24/25k a year and don't ' scrimp ' or cut corners.

I never earned £45k to £60k p.a. in my working life, so why would we need that now when our outgoings are way less ?

Not being nosey, well I am, is your other half retired? If so what are you doing with the rest of your money? Two full state pensions will give you £25k/year

 

[stapler]

I won’t get there so haven’t looked into it but if you do it is something like 55% tax. I could be miles out though on this reply it is just what I was told but not arsed in looking into it.

James Shack is a great watch.

I think that was abolished:

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[You can call me Al]

I think that was abolished:

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Didn’t know, I’ll not get there so not arsed. Just said to the wife it might not be 2 years and 10 months now it might be 10 months and she said get the fuck in. Need to get the financial advice sorted.

 

[JAZZMANB]

So is it fair to say you are spending about 2k a month ( including putting away £500 a month towards a holiday) my biggest concern is if I retired, I would be spending more during the day doing things I would like to do then when I’m at work where I take my own sandwich’s for dinner and basically don’t spend anything during the week.

I thought I may but I tend to skip anything to eat during the day ,whereas at work I was starving by 11.30 . I dont even think about eating after a light breakfast . The power bills haven't really rose either . I'm not strict on daytime treats but don't want to spoil my tea which I cook around 5.30 . Walks ,cycling , etc are free.
I even sometimes make a sandwich and a flask for trips .

 

[stapler]

I thought I may but I tend to skip anything to eat during the day ,whereas at work I was starving by 11.30 . I dont even think about eating after a light breakfast . The power bills haven't really rose either . I'm not strict on daytime treats but don't want to spoil my tea which I cook around 5.30 . Walks ,cycling , etc are free.
I even sometimes make a sandwich and a flask for trips .

I look forward to getting through my Kindle and Audible libraries. That should see me through a couple of decades the way I buy them now.

 

[Ned Land]

I look forward to getting through my Kindle and Audible libraries. That should see me through a couple of decades the way I buy them now.

I’m going to rifle through charity shops and the local library for books when I’m retired, then perhaps treat myself and buy those that I can’t borrow or find.

I’d do it now if I had the time! When you work FT it’s more convenient to order something on your phone.

 

[Matt Hopkins]

I’m going to rifle through charity shops for auld wimmins knickers when I’m retired, then perhaps treat myself and buy those that I can’t borrow or find.

I’d do it now if I had the time! When you work FT it’s more convenient to order something on your phone.

Disgusting

 

[JAZZMANB]

I look forward to getting through my Kindle and Audible libraries. That should see me through a couple of decades the way I buy them now.

I've never been a big reader . I invested in stuff to kick start dormant hobbies. Art , song writing etc but haven't really done much with it. Still enjoying just having an open diary with the odd event . My clear heads certainly enjoying it . I did make a point of saving all internal stuff for the winter .

 

[stapler]

I've never been a big reader . I invested in stuff to kick start dormant hobbies. Art , song writing etc but haven't really done much with it. Still enjoying just having an open diary with the odd event . My clear heads certainly enjoying it . I did make a point of saving all internal stuff for the winter .

Aye, I've got all the things I'd love to do but get shifted to the bottom of the pile and forgotten when there's a fire to put out.

I'd love to get good at the guitar. I was a decent player in my youth, but there is always something more pressing.

Same with keys. l fancy getting beyond a few chords, but every time I get the scales under my belt, something gets in the way until all the practice has dissipated.

I started learning to draw and got some nice results. Then something came along... etc

All this stuff costs little beyond an initial investment in kit.

You don't need to spend big to live well. A lot of the expensive stuff doesn't really add much value and plenty actually gets in the way of a fulfilling life.

And decent holidays are pretty cheap if you avoid school vacation periods.

 

[Swindon On Tour]

I've never been a big reader . I invested in stuff to kick start dormant hobbies. Art , song writing etc but haven't really done much with it. Still enjoying just having an open diary with the odd event . My clear heads certainly enjoying it . I did make a point of saving all internal stuff for the winter .

You just have that time. I for one definitely needed the adjustment as was trying to complete so many tasks into small time windows and was unnecessary. That was because I still had that work head on.

As above that is sound advice. I regretted painting the interior of the house when it was warm outside. The problem I have now is that the Pike fishing season is predominantly Winter. I have two rooms that need shelving put up and just can’t get motivated to do it despite getting nagged.
If I start a job I always finish it as opposed to my Wife (no) who I refer to as half a job

 

[DaveH]

The way I'm trying to think about it is in three phases (assuming no early grave):

1. early retirement, before state pension - this is likely the most expensive section. All funded from private pension.
2. from SP age to maybe 80 - still wanting to do stuff etc - split between SP and private
3. 80 onwards - no need for much at all - can probably reduce what you actually need for this period

Assuming SP continues to increase it's a big chunk of that 40-45K in phase 2 if you are both getting a full one.

Probably suggests many of us don't really need as much as we think in a private pension.

That is roughly what I'm thinking, except the way things are working out I think our private pensions plus state pension is going to give us a decent income. So my early retirement phase is hopefully just going to be private pensions and making up the state pension amount from savings and lump sum.

 

[EiffelTower]

The way I'm trying to think about it is in three phases (assuming no early grave):

1. early retirement, before state pension - this is likely the most expensive section. All funded from private pension.
2. from SP age to maybe 80 - still wanting to do stuff etc - split between SP and private
3. 80 onwards - no need for much at all - can probably reduce what you actually need for this period

Assuming SP continues to increase it's a big chunk of that 40-45K in phase 2 if you are both getting a full one.

Probably suggests many of us don't really need as much as we think in a private pension.

Does number 3 scare anyone? I am years away from retirement but still have a lump in my throat realising that will come around (well hopefully anyway!)

 

[DaveH]

Does number 3 scare anyone? I am years away from retirement but still have a lump in my throat realising that will come around (well hopefully anyway!)

Not really.

Either we will die before then or reach that age. I know quite a few in their 80s who are doing pretty well but are limited in what they do and that reduces spending.

Probably the biggest worry for me is some form of dementia. I'm fit, healthy, active, a decent weight, so if I keep that up then I should still be physically strong into my 80s. But that probably does mean that dementia is more likely. It is just a consequence of people living longer. Our bodies are lasting longer but our minds are not. But it is all unknown so it feels like wasted energy worrying about it. Deal with it if and when it comes. There are plenty of reasons why I might not make that age and why my demise might be relatively sudden.

 

[Swindon On Tour]

Does number 3 scare anyone? I am years away from retirement but still have a lump in my throat realising that will come around (well hopefully anyway!)

Kind of but snap out of it as quick as I can.
One thing i have noticed personally is time feels like it’s going even faster.
Health is everything, life is precious. You can’t take wealth with you although taking family responsibility has no rules only self respect.
Your body cannot do the things it did when you were younger although you can still think as you did.

Don’t write off your life mate and retirement will wait for you. Until that time bloody enjoy yourself and make sure that later in life you don’t look back with a big list of regrets.

 

[EiffelTower]

Kind of but snap out of it as quick as I can.
One thing i have noticed personally is time feels like it’s going even faster.
Health is everything, life is precious. You can’t take wealth with you although taking family responsibility has no rules only self respect.
Your body cannot do the things it did when you were younger although you can still think as you did.

Don’t write off your life mate and retirement will wait for you. Until that time bloody enjoy yourself and make sure that later in life you don’t look back with a big list of regrets.

Agreed with the last sentence massively mate. Been something I have been thinking about a lot lately due to some MH struggles (I won't go into detail in here don't worry and in a good place atm). Trying to savour every minute with the kids atm and still find a month has gone by in the blink of an eye every time I stop and think, got to enjoy every moment when you can!

 

[The Great Soprendo]

That is roughly what I'm thinking, except the way things are working out I think our private pensions plus state pension is going to give us a decent income. So my early retirement phase is hopefully just going to be private pensions and making up the state pension amount from savings and lump sum.

One thing I think is underestimated (by me too) when you are 5-10 years out from retirement is the idea that you need (let's say for argument) £40k a year, without considering inflation. The reality is that in 10 years time inflation at 3% will turn needing £40K into needing £54k, in terms of comparative value.

By the same token of course, we should also consider the impact of increases to the state pension, especially if the triple lock persist for a few years longer. From 2017/18 to 2026/27 (10 years) it has gone up from £8.3K to £12.5K. If it does the same over the next 10 years it will be something like £18.7k, and obviously for a couple that becomes £37.5k. Quite a big chunk of what you'll need beyond SP age.

 

[SurreyMackem]

Three quarters of people arent on track for moderate retirement

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However when you consider average salary & wages, then deduct NI, other retirement related savings, mortgage, childcare (expenses you wont have in retirement) then why do you need anywhere near that for what they consider moderate. People on average arent on track for that because they dont earn enough. Its just ridiculous their numbers.

We are in the comfortable bracket but because we don't spend £1500 a year each on clothes and run 2 new cars included in those figures we have lots of disposable "income" which last year allowed us to have 6 holidays to Europe, Canada, Alaska, Greenland and Carribean.

 

[DaveH]

One thing I think is underestimated (by me too) when you are 5-10 years out from retirement is the idea that you need (let's say for argument) £40k a year, without considering inflation. The reality is that in 10 years time inflation at 3% will turn needing £40K into needing £54k, in terms of comparative value.

By the same token of course, we should also consider the impact of increases to the state pension, especially if the triple lock persist for a few years longer. From 2017/18 to 2026/27 (10 years) it has gone up from £8.3K to £12.5K. If it does the same over the next 10 years it will be something like £18.7k, and obviously for a couple that becomes £37.5k. Quite a big chunk of what you'll need beyond SP age.

That is also a concern.

I'm on a DB pension that does increase relative to inflation and so does the state pension, but that is rarely at a 1:1 ratio. So mine should increase as inflation does but I do think I will be a little worse off each year. That is one reason why I had been thinking £40k per year and I'm now wondering if £45k is the better target, to build myself in a bit of resilience.

The other side of that is the fear factor keeping me working. Someone posted a good video on that a few weeks back. I think when it comes to the time it is very easy to look and think 'one more year'. For me, each year extra is quite significant. It gives me another year of pension payments, another year of savings and one less year of DB early retirement penalties (about 3.5% per year). So every year gives me more regular income, more savings and reduces how wide I have to spread the savings. But I have to work for that. I need to not let fear rule that continuation of working and get out as soon as I can afford it.