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Retirement


SurreyMackem said:
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.
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I pretty sure that comfortable bracket also includes a new kitchen and bathroom every 10 years as well. I mean how many people change these every 10 years. Both of mine are 10 years old and they look as good as the day they were fitted.
 
DaveH said:
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.
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And to counter that gives you one less year of freedom to do what you want when you want (within reason obviously 🤣).
 
Fascinating thread although I struggle with a lot of the terminology.
58 and think I will have to work another 4 years before calling it a day.
My financial advice is through prospera wealth management and investments are on the st James's place platform.

Both parties have contacted me to say that prospera are ending their partnership with st James's place.
St James's place have been in touch again saying a New advisor from another company will make contact.

I'm thinking about staying with prospera as I have found them excellent and have a good relationship.
Anyone in same boat or dealings with either?
 
onionspal said:
Fascinating thread although I struggle with a lot of the terminology.
58 and think I will have to work another 4 years before calling it a day.
My financial advice is through prospera wealth management and investments are on the st James's place platform.

Both parties have contacted me to say that prospera are ending their partnership with st James's place.
St James's place have been in touch again saying a New advisor from another company will make contact.

I'm thinking about staying with prospera as I have found them excellent and have a good relationship.
Anyone in same boat or dealings with either?
Click to expand...
St James Place don't have a very good reputation and their fees are less than transparent and some of the highest in the sector.
 
onionspal said:
Fascinating thread although I struggle with a lot of the terminology.
58 and think I will have to work another 4 years before calling it a day.
My financial advice is through prospera wealth management and investments are on the st James's place platform.

Both parties have contacted me to say that prospera are ending their partnership with st James's place.
St James's place have been in touch again saying a New advisor from another company will make contact.

I'm thinking about staying with prospera as I have found them excellent and have a good relationship.
Anyone in same boat or dealings with either?
Click to expand...

Really depends on whether you want personal advice from a human or you are happy to do the research yourself. There are plenty of cheap execution only platforms available.
 
DaveH said:
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.
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The flip side of ‘one more year’ is that you have one less year of healthy life/retirement and you can’t buy back those years.

I actually left a year earlier than planned (I left just as I was about to turn 55) as due to a merger I was going to have to learn a whole new set of processes just to do exactly the same job. I just did not have the motivation, enthusiasm or energy to do this, so resigned. I am so glad I did this, as whatever happens in the future, I have had an extra year of retirement when fit and active.

This was over 2 years ago, and I can honestly say that the extra year’s salary/one less year that I would have needed to drawdown my SIPP has made no practical financial difference.
Appreciate that you have DB considerations. Can you not just defer the DB until you are 60 to avoid penalties and live off ISAs until then?

We spend around £40k per year for the 2 of us which fits in with my pre-retirement forecasts and don’t miss out on anything that we really want to do.
We’ve just returned last week from 10 days island hopping in the Azores, went almost straight to the Lake District for a couple of days hiking, then off to watch the tennis at Queen’s next week. So your forecast of needing £40-45k pa to cover your lifestyle seems very reasonable to me.
 
DaveH said:
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.
Click to expand...
My DB projections for if I retired at 60, combined with SIPP, would provide a monthly income that’s equivalent to my current net salary.

If i clear the mortgage by then, I’d be better off then than I am now.

Which is appealing/nicely shocking, but I don’t really want or need any more money. I’m quite happy with my standard of living. I’d prefer 3-5 fewer years of working and to retain my health and sanity.
 
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Ned Land said:
My DB projections for if I retired at 60, combined with SIPP, would provide a monthly income that’s equivalent to my current net salary.

If i clear the mortgage by then, I’d be better off then than I am now.

Which is appealing/nicely shocking, but I don’t really want or need any more money. I’m quite happy with my standard of living. I’d prefer 3-5 fewer years of working and to retain my health and sanity.
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My pension is less than 50% of my previous net, and combined with what I anticipate drawing from savings/lump sum will take me to around 75% of that. Given I was saving a minimum of 25% of my net each month, often more, i think I'll be ok
 
Barista said:
The flip side of ‘one more year’ is that you have one less year of healthy life/retirement and you can’t buy back those years.

I actually left a year earlier than planned (I left just as I was about to turn 55) as due to a merger I was going to have to learn a whole new set of processes just to do exactly the same job. I just did not have the motivation, enthusiasm or energy to do this, so resigned. I am so glad I did this, as whatever happens in the future, I have had an extra year of retirement when fit and active.

This was over 2 years ago, and I can honestly say that the extra year’s salary/one less year that I would have needed to drawdown my SIPP has made no practical financial difference.
Appreciate that you have DB considerations. Can you not just defer the DB until you are 60 to avoid penalties and live off ISAs until then?

We spend around £40k per year for the 2 of us which fits in with my pre-retirement forecasts and don’t miss out on anything that we really want to do.
We’ve just returned last week from 10 days island hopping in the Azores, went almost straight to the Lake District for a couple of days hiking, then off to watch the tennis at Queen’s next week. So your forecast of needing £40-45k pa to cover your lifestyle seems very reasonable to me.
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I think a lot of people would be better off easing themselves out of work and into retirement.

It doesn't have to be one or the other. When the mortgage is paid off and the pension pot is looking good enough to stop paying in, many people could halve their working year, maintain the same standard of living, and not have to draw anything down.

A full on retirement is not for everyone. So many people become what they do. Plenty more get immense satisfaction solving the kind of puzzles that stimulating work provides.

All these "and he dropped dead the next week" stories about retirement are used to persuade people that they need to retire earlier. But they never take into account that the person might have dropped dead because he retired, and no longer had the thing that defined him, got him up in the morning, and got him revved up.

Everybody is different.

I hope to taper off. I'm lucky enough so that, provided I keep my marbles, I'll be able to work 6 months a year and still make more than I spend.
 
stapler said:
I think a lot of people would be better off easing themselves out of work and into retirement.

It doesn't have to be one or the other. When the mortgage is paid off and the pension pot is looking good enough to stop paying in, many people could halve their working year, maintain the same standard of living, and not have to draw anything down.

A full on retirement is not for everyone. So many people become what they do. Plenty more get immense satisfaction solving the kind of puzzles that stimulating work provides.

All these "and he dropped dead the next week" stories about retirement are used to persuade people that they need to retire earlier. But they never take into account that the person might have dropped dead because he retired, and no longer had the thing that defined him, got him up in the morning, and got him revved up.

Everybody is different.

I hope to taper off. I'm lucky enough so that, provided I keep my marbles, I'll be able to work 6 months a year and still make more than I spend.
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I'm looking at August next year (I'll be 50) when I hit the top of my pay grade. Take a 10% reduction, be better off than I was 15 months ago but have a day off every 2 weeks. Then sometime between 53 and 55, consider dropping that to 4 day weeks. I think going lower than that will need a year or two adding to my career to make up for the loss in earnings.
 
big bill said:
I pretty sure that comfortable bracket also includes a new kitchen and bathroom every 10 years as well. I mean how many people change these every 10 years. Both of mine are 10 years old and they look as good as the day they were fitted.
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Do you know my wife
Our kitchen and en suite 😉😉 are 10 year old
I mentioned a few months ago I was going to retire and managed to get out with 3 months pay PILON and holiday pay that would of covered us for about 6
Months if took it easy
Champion we can get the kitchen done and en suite with that
Erhhh we’ll have to fund daily living out of that. Oh man you and money
Oh 6 weeks later WE need to think where we are going to get out monthly cash flow from. Doh
Not scrambling around getting quotes annuity terms etc
 
I want out asap, 55 and stuck my numbers into the Guiide calculator and it reckons in one year and 10 months I can get in today’s money £1.5k less than I get now. It also calculated that on me living to 93! Not going to miss out on 2 years of life but reassuring I’m nearly there.
 
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