Slippery Jim
Striker
See above.The new State Pension paid in full is £168.60 per week or £8,767 p.a. Your life expectancy statistics were wrong as well.
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See above.The new State Pension paid in full is £168.60 per week or £8,767 p.a. Your life expectancy statistics were wrong as well.
You're correct about the amount of state pension. I was wrong and had looked at the old state pension figure.
The life expectancy is a little out too but not as much as you're saying. Life expectancy for men is now 79 and for women it's 82.
National life tables, UK - Office for National Statistics
Trends in the average number of years people will live beyond their current age measured by period life expectancy, analysed by age and sex for the UK and its constituent countries.www.ons.gov.uk
Personally my state pension age is now 67 so the maths is still valid and you can take more money from your pension by taking it early than leaving it and taking it in full at retirement age.
Life expectancy is higher than that though.When I left my job of 23 years my employer brought in a financial advisor to talk to us about pensions. He couldn't stress enough that it makes more sense to take your pension early at 55 if it's allowed by the scheme.
The rather morbid reason given is that you'll take a 24% hit on the monthly return but life expectancy is only about 75. Take it at 55 and you have 76% for 20 years as opposed to 100% for 10 (less if you're a bloke and can only retire at 68.) Do the maths; you earn more by taking it early.
It is nice to have a figure to aim for. My rough life plan is to pay off mortgage ASAP (which will take years), invest money that had been used for mortgage payments into something else, retire at 60, use that money plus pension and lump sum, to see me through, then get the boost of the state pension at 67.Yeah mate, the general advice now is a household income of c£27k a year is a good platform for retirement. If you want a more of a luxury retirement, £39k a year is the figure to aim for.
Yeah but I'm saying that on average it's better to take it early. Hopefully I'll live long enough to be proved wrong and at 85 be sitting on my sun-lounger wishing I'd waited until I was 67 to take 100%.Life expectancy is really dependent on your social status and job tbh mate. Most pension schemes, DB ones anyway, will look at more detailed analysis when estimating mortality during the valuation process.
Yeah, in the last job I had there was a young lad aged 18 who I tried talking to about the importance of starting to think about pensions even at his age. Of course he wasn't going to live past 30 so what was the point of wasting money on something he'd never see, there were much better things he could spend his money on here and now etc.Worked in the public sector for 37 years. It's then you appreciate pensions.
About to increase from 2.5 days a week to 3 days a week, which is good. So the retirement date edges closer to the present day again. But I'm not doing more than 3 days again if I can possibly avoid it, I'm having too much of a lovely time.Am now six months into working part time. It was a decision I thought a lot about as it's probably pushed back retirement by a few years. All good so far though.
I retire in 7 year 363 days.I have no plans to ever retire and I don't have a pension I opted out from day 1 and have continued to do so.
What are your retirement plans?
It depends what type of pension you have. If you take some final salary pensions 10 years early you can lose 5% per year early that would be actuarily reduced 50% to take it 10 years early. I know people who have done this to pay debts and stayed in work and are paying tax on the income too.Yeah but I'm saying that on average it's better to take it early. Hopefully I'll live long enough to be proved wrong and at 85 be sitting on my sun-lounger wishing I'd waited until I was 67 to take 100%.
You're correct about the amount of state pension. I was wrong and had looked at the old state pension figure.
The life expectancy is a little out too but not as much as you're saying. Life expectancy for men is now 79 and for women it's 82.
National life tables, UK - Office for National Statistics
Trends in the average number of years people will live beyond their current age measured by period life expectancy, analysed by age and sex for the UK and its constituent countries.www.ons.gov.uk
Personally my state pension age is now 67 so the maths is still valid and you can take more money from your pension by taking it early than leaving it and taking it in full at retirement age.
PMed you.As I retire in March next year I’d like to see an independent advisor, has anyone used one that they can recommend ?
I live in Sunderland.
Wise wordsI can't stress just how bloody important it is to get your pension sorted now or you'll spend the rest of your life kicking yourself for being so short sighted.
Off to Portugal? They’ll let you take your private pension tax free for 10 year; as a sweetener to attract folk in.
Me and the Mrs have an offset mortgage and are fortunate enough to be earning decent money to be saving quite aggressively.
We could probably make more investing it but the idea of being mortgage free is appealing - we are trying to get mortgage free within 3 years (I’ll be 40).
We’ll then have a decade to maximise our savings - via the savings in outgoings and hopefully continuing to deliver work wise. I’ve always been of the view that the state pension will not exist in its present form and it will end up means tested, by the time we get there - so we need to provide for ourselves.
If we can do that at 50 should be able to either slow down or do less; the kids will have a nice lumper in their ISAs to get them started and we can downsize and either access the capital (fund us to 57 when we can get at our pensions) or split time between the U.K. and somewhere warmer.
Plenty of golf, learn a language, travel. Happy days.