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Retirement

DaveH said:
So you are saying that if a FA makes me sit and do forms where I make up figures for micromanging my spending, then it takes up a lot of time for which I pay an FA? Are you saying they give you these pointless exercises to drag it all out?

I'm not expecting anything for free, I just don't want to waste my time and money making up numbers then basing decisions on them. I'm only interested in the bigger picture stuff - what my income will be with each option. I can work out if that is enough myself.
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These forms on spending etc are just the thin edge of the wedge to build a relationship with your IFA for him to get to know you your attitude to risk and your disposable income etc etc.
I’m pretty sure no one wants to waste anyone’s time and money but a relationship has got to start somewhere. I seem to remember doing all of this when I first started with the guy I use and with hindsight I’m sure it’s just to get to know you.
If you haven’t got much to invest he’s not gonna waste his or your time, as everything he will suggest or come to you with there will be a fair bit of behind the scenes work (it’s probably just pressing a button and getting it off but he has to do it and prepare it to present it c/w options)
all fees are all set out and transparent these days as well.
Yes they make a decent screw but they “normally” make for you as well.
My opinion is too many people get hung up on what they pay out (which you never actually pay out) and not the level of service and advice you get.
Horses for courses but I feel a bit more secure knowing I have someone at the end of the line to answer or reassure me or be able to go on my phone app to get an instant over view.
 

archiesdad said:
It's not a generic number, my number may be different to yours based on what you realistically want retirement to look like. We plan to start cica 50k pa and reduce from there as age increases and need reduces.
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Is that 50k pa for two of you?
 
DaveH said:
Cheers.

One of my key decisions is when to tell the pension company I retire. I get the full pension at 67, and then there is a reduction for every year before that I retire. Recently they changed the deal wish harsher penalties for early retirement.

My original plan was have the mortgage paid off by 50, put those payments into saving and investments for 10 years, retire at 60, immediately draw pension and top it up with the savings and investments for 7 years and they will be running out by the time the state pension kicks in.

Now it is looking like it will make more sense to retire at 60, live entirely off savings and investments then officially retire 2-3 years later and avoid the penalties.
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I done exactly that - hit 60.

Good luck to you Mate👍
 
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Town End Farmer Giles said:
It's almost as if it's in their interest for people to panic and put more into their pension than they need to.

I reckon £24k a year will do me fine. Combination of annual pension and drawing money down from my lump sum until state pension age. Missus has no pension so just using her savings for stuff like holidays, small day to day expenses,etc
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That’s what I’m working on from 55 , £1k a month from DB schemes which will cover all the house expenses , groceries etc and then up to £1k a month from savings / PIP to use for non essentials to 67 when state pension will kick in. Got a few DC pensions I will just leave til I need them but only about £50k in them (once merged).
 
Nookie Bear said:
That’s what I’m working on from 55 , £1k a month from DB schemes which will cover all the house expenses , groceries etc and then up to £1k a month from savings / PIP to use for non essentials to 67 when state pension will kick in. Got a few DC pensions I will just leave til I need them but only about £50k in them (once merged).
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Yep. Some months a few hundred quid on non essentials some, holidays etc, a lot more. I reckon if I run out before 67 it's because I've had a bloody good few years!
 
Brother Lee said:
I love this site, I get some cracking advice on many things but there's also lots of scary 'advice' on this thread and other financial threads. Full disclosure I'm a financial adviser and have been for over 30 years.

You pay for a service which happens to be financial advice. You're told what that service will entail and how much it will cost before any work is started. Much like getting a price from a builder or any other tradesmen.

Financial advisers haven't received 'commission' since the retail distribution review was introduced in 2012. They don't receive 'trail commission' as quoted on this thread. You wouldn't ask a builder to give you half his fee because you know what you want him to do. Yet posters on this thread expect a qualified financial adviser to share their 'commission'.

You're also paying for protection for the advice provided, as they're regulated by the FCA unlike the posters on here. 'Stick it in a global tracker with this company' isn't the one size fits all answer. Are you comfortable with the risk of that? Are you comfortable with 25% drop in a bad year? Your capacity for loss probably isn't even the same as your wife's, never mind a random on an internet forum. What if that 25% drop happened the year before you're planning on retiring? There are far too many variables and everyone's circumstances are different.

I could go on but I'll probably start getting pelters. There are some very knowledgeable posters on financial matters on this thread but not all.

You don't have to engage with a financial adviser but if you find a friend or family member who does, that is probably the best way to find one you can respect and deal with. You might even be happy to pay for their advice.
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Very balanced post - I recently had a pension review with a provider and they asked if I had any other pension "pots" which I do, they looked at the value and wanted an urgent meeting with a "top" advisor to review (I ain't a millionaire btw) and for the princely sum of 5K they would do a full review and provide advice. This wasn't an independent but also didnt feel particularly bespoke and felt more like a sales grab opportunity. I wont say the name of the company but it sounds like AFIFA.
 
BILLY BUS PASS said:
These forms on spending etc are just the thin edge of the wedge to build a relationship with your IFA for him to get to know you your attitude to risk and your disposable income etc etc.
I’m pretty sure no one wants to waste anyone’s time and money but a relationship has got to start somewhere. I seem to remember doing all of this when I first started with the guy I use and with hindsight I’m sure it’s just to get to know you.
If you haven’t got much to invest he’s not gonna waste his or your time, as everything he will suggest or come to you with there will be a fair bit of behind the scenes work (it’s probably just pressing a button and getting it off but he has to do it and prepare it to present it c/w options)
all fees are all set out and transparent these days as well.
Yes they make a decent screw but they “normally” make for you as well.
My opinion is too many people get hung up on what they pay out (which you never actually pay out) and not the level of service and advice you get.
Horses for courses but I feel a bit more secure knowing I have someone at the end of the line to answer or reassure me or be able to go on my phone app to get an instant over view.
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I want one where I say, this is my pension scheme, these are my savings, this is how much I have to put in between now and retirement, this is how much I want when retired, let's use these numbers and talk options.
 
DaveH said:
I want one where I say, this is my pension scheme, these are my savings, this is how much I have to put in between now and retirement, this is how much I want when retired, let's use these numbers and talk options.
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I went to see one in the summer via Newcastle Building Society free of charge , she went through the various pensions I have and went to them for info on things like death benefits , costs etc and put together a plan for merging a few small DC ones into a merged product with them and assessed risk appetite etc . Then went through the plan I’d pulled together in terms of outgoings / savings etc and confirmed I was ok to retire at 55 if that’s what I decided. I haven’t done the merge yet as got some new health stuff going on but no pressure to do anything from their side - she is salaried so I think that changes things.
 
Flip said:
Very balanced post - I recently had a pension review with a provider and they asked if I had any other pension "pots" which I do, they looked at the value and wanted an urgent meeting with a "top" advisor to review (I ain't a millionaire btw) and for the princely sum of 5K they would do a full review and provide advice. This wasn't an independent but also didnt feel particularly bespoke and felt more like a sales grab opportunity. I wont say the name of the company but it sounds like AFIFA.
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At least they quoted you upfront and you could turn them down. That sounds high without knowing the values of the plans and work involved. There'll always be advisers out there charging more than others. That's why it's always best to go with someone family or friends have recommended to you.
 
Can anyone point me in the right direction to sign house over to the kids as I don’t want it sold beneath us to pay for care? Haven’t any health issues at present but recently friend of ours has put her mother into 24 hour care £1400 a week using her savings but that’s due to run out and they are being told they must sell house to pay for any future care
 
safcgun said:
Can anyone point me in the right direction to sign house over to the kids as I don’t want it sold beneath us to pay for care? Haven’t any health issues at present but recently friend of ours has put her mother into 24 hour care £1400 a week using her savings but that’s due to run out and they are being told they must sell house to pay for any future care
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Ticking timebomb all this with an ageing population . Not sure if there is a legally solid way of doing this now but others with more knowledge in this area may post and tell us differently
cjt said:
Hoping to sell up and semi retire at 58
Kids will be 18
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You were a late bucker mate
 
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