Retirement

[Fletch]

What you have to remember is that when you reach your 80's & health starts to go, you won't spend anywhere near as much. In fact you'd probably get by with not much more than state pension. When you drawdown, front load it to your earlier years.

Aye I already know that mate

 

[ChrisK]

What you have to remember is that when you reach your 80's & health starts to go, you won't spend anywhere near as much. In fact you'd probably get by with not much more than state pension. When you drawdown, front load it to your earlier years.

If you reach 80, sure the average life expectancy for a UK male is around 79.
Definitely plan to use up as much of my pot on the good life long before i get to mid 70’s.
It would boil my piss if I ended up paying some shit care home thousands per week too look after me when my next door neighbour who been on dole all there life get the care free free.
Enjoy it while you can

 

[42]

If you reach 80, sure the average life expectancy for a UK male is around 79.
Definitely plan to use up as much of my pot on the good life long before i get to mid 70’s.
It would boil my piss if I ended up paying some shit care home thousands per week too look after me when my next door neighbour who been on dole all there life get the care free free.
Enjoy it while you can

Didn't realise it was that low. I think for my works pension scheme its about 86, but that's cos we're all lower middleclass pen pushers who have a longer life expectancy.

 

[moanjam]

This indeed !!
I’m on track to have a £500k pot at 55/56 and I’m planning on having virtually nowt left after 20 years. My hope is that whilst I’m ‘young’ in retirement ie the first 15 years or so I’m going to work my way through the majority of it. I’ll then let the state pension top me up when I’m too old to wipe my own arse…

This is me, anything over 70 will be treat as a bonus.

 

[houghton cut head]

This indeed !!
I’m on track to have a £500k pot at 55/56 and I’m planning on having virtually nowt left after 20 years. My hope is that whilst I’m ‘young’ in retirement ie the first 15 years or so I’m going to work my way through the majority of it. I’ll then let the state pension top me up when I’m too old to wipe my own arse…

My plans exactly also mate, but i also have the comfort that at todays rates, our various db and state pension will be a canny amount at 67,

So are you saying you have £20k in DB pension then a DC pot as well?

Yes, 75 I think,yes Surprised you work at all if you're that lazy

yes mate, but the £20k db Is mine and the Mrs combined, hers being the biggest chunk, then on target for a drawdown pot of about £430k by next June, assuming we are not at war by then

 

[Matt Hopkins]

My plans exactly also mate, but i also have the comfort that at todays rates, our various db and state pension will be a canny amount at 67,

yes mate, but the £20k db Is mine and the Mrs combined, hers being the biggest chunk, then on target for a drawdown pot of about £430k by next June, assuming we are not at war by then

Nice one

 

[Select coaches]

Is it enough though? 500k and retire on that at 55.
Depends if single or a couple and if a couple if his partner has any pension .
Using that 4% rule it would only be 20k pa which while still active at only 55 may not be enough , it depends how much salary he is use to having and what he still owes out (mortgage free? ).
Plus many think it should be 3% not 4%. My idea was to use 4% then reduce it accordingly when get state pension . Would rather have more when earlier years of retirement but I’m not fully clued up on all this . Disclaimer

So you would still have over quarter of a million when your state pension kicks in. That’s without any growth or dividends. You could have it in a savings account and you wouldn’t even be spending the interest. 4% is a bit on the conservative side.

 

[houghton cut head]

If you reach 80, sure the average life expectancy for a UK male is around 79.
Definitely plan to use up as much of my pot on the good life long before i get to mid 70’s.
It would boil my piss if I ended up paying some shit care home thousands per week too look after me when my next door neighbour who been on dole all there life get the care free free.
Enjoy it while you can

over £24K savings then you pay 100% care charges, and only if it is less than £14K then you dont pay currently

So you would still have over quarter of a million when your state pension kicks in. That’s without any growth or dividends. You could have it in a savings account and you wouldn’t even be spending the interest. 4% is a bit on the conservative side.

I think the 4% figure is often used as the amount you can draw out without your pension pot decreasing, or looked at a different way, living frugally and when you die your kids can party like its 1999 doing all of the things you should have done with the money yourself

 

[Joe Baker]

If you reach 80, sure the average life expectancy for a UK male is around 79.

No, if you're a male aged 55 now, your life expectancy is 84

You must be logged on to see external links

 

[CW7]

Certainly a nice problem to have and whatever way i go been able to finish graft at 55 is a nice feeling.
Got to give credit to the Army training as a junior soldier at 16 year old we were advised about savings and pensions we were more or less told by the paymaster to put 20% of our monthly wages into a savings account.
Didn’t argue back then, but set me on a decent path to always live within ur means.

Same advice here, bought first house when 24 and second one at 30! Both now paid off and me and our lass (ex squaddie also (no)), get lumpers and pension at 60! I’m 52 now and only doing 3 days a week! Vodafone pension at 55 also, John Killoran (Royal Army Pay Corps), wherever you are mate, owe u a few scoops

 

[stan]

Not really an option any more, unfortunately. Or certainly far more difficult since brexit.

You can no longer just buy somewhere over here, up sticks and move here. You have to apply for a tarjeta de identidad de extranjero (basically, a foreigner id card) and apply for a non lucrative visa, which shows that you have sufficient funds in the bank to support yourselves, without working. I believe it's around €38k per couple. You aren't allowed to work in any way, shape or form for 12 months, after which, you can apply for a work visa, though a visa isn't guaranteed unless you can offer a service that a native can't offer.

Brexit has turned emigrating to Spain into a minefield, unfortunately.

Thanks for that mate, pretty much my understanding of it. I know it has got more difficult but the plan isn't to work so my understanding is like you say, get a foreigners ID card but can't work which is the plan. My pension and other incomes will cover off the amount needed (I think i read £34k per couple). Any other info you have would be great though, like I say I plan to pack in and enjoy the rest of my life!

 

[safccfas]

Thanks for that mate, pretty much my understanding of it. I know it has got more difficult but the plan isn't to work so my understanding is like you say, get a foreigners ID card but can't work which is the plan. My pension and other incomes will cover off the amount needed (I think i read £34k per couple). Any other info you have would be great though, like I say I plan to pack in and enjoy the rest of my life!

Does the ID card allow you to stay for more than the 180 days per year ?

 

[stan]

Does the ID card allow you to stay for more than the 180 days per year ?

If you get the foreigners ID card, I believe that is residency so full time but happy to be corrected.

 

[DaveH]

It’s obviously different for different people, and at first the extra free time takes an adjustment.
However, you have more time to devote to your existing hobbies and the ability to take on more interests, particularly those that take time and may have been difficult when doing 9-5, like walking, golf, art etc .
You have the chance to do a it of voluntary work, that can be rewarding.
DIY becomes an interest rather than a chore, same with cooking. We all have “projects” in mind that we never had time for.
The ability to book appointments anytime can lead to getting more things done that you may have “not had time for” in the past. No just tradesmen etc but health appointments too.
You can accept invitations readily without worrying about work, means more trips and events.
Free bus and metro (£12 a year) travel helps.
All this can be done during the day time which frees up the evenings, and never have to worry about “drinking on a school night” etc

There is no weekly routine for me, but some folk like routines and they can be created. I’ve taken on an allotment which creates a routine of sorts.

Sadly the down side is you are obviously getting old if retired, so sometimes it nice to have the ability to do absolutely nothing should you wish, whenever you want

Great post and you seem to have done what I have been thinking.

I'm 46 and want to go at 60, but 58 may be possible. At least dropping to a low stress, part time role at 58 feels doable. We should have the mortgage paid off in just under 5 years, at which point all the money that would have gone into mortgage can be invested towards retirement, and that will be anywhere between 7-10 years of a sizable monthly amount.

I feel like I'm busy all the time, stuff in the garden, DIY jobs I never get done, pet projects etc. I look around my desk at the minute and I've cleared a space to work from home for the day. On one side I've got some plans drawn up for some wooden storage boxes my son wants, and on the floor some new running shoes that I've not had a chance to get out and use (partly due to the heat). On the other side I've got a big To Do list, some daily guitar practice exercises I drew up yesterday and some electronics stuff I need to get soldered up. And I need to find some time over the next 2 weeks to install a drip irrigation system for when I'm on holiday, as we have a hosepipe ban and can't use sprinklers. If I got all that done, I've got a list of other stuff but would love to learn to sail. I need to get out cycling more. My weekends are generally full of me doing stuff and I'm already mapping out my week of what I might fit into the evenings.

Basically I don't have time for work.

My feeling is that there are three parts to retirement. The financial side, and that comes down to some planning, perhaps a spreadsheet or talking to an expert. Either you can afford it or you can't. Then there is the occupy your time and mind. If you live for work and don't do much outside it, then you will struggle (I've seen this happen and it is not easy to watch). If you are way off retirement, start carving out time to pick up those things you think you might be interested in, before you retire and get stuck in a rut.

The third is the social side. Will you have enough social interaction? But there are loads of oldies in volunteering groups, walking groups etc.

If you think you can cope with all three, then my feeling is get out of there.

I think I'm going to drop down to a 9 day fortnight in 18-24 months when a pay rise should kick in. I'll just use that to balance out as same pay, hours reduction.

 

[Wearson]

Great post and you seem to have done what I have been thinking.

I'm 46 and want to go at 60, but 58 may be possible. At least dropping to a low stress, part time role at 58 feels doable. We should have the mortgage paid off in just under 5 years, at which point all the money that would have gone into mortgage can be invested towards retirement, and that will be anywhere between 7-10 years of a sizable monthly amount.

I feel like I'm busy all the time, stuff in the garden, DIY jobs I never get done, pet projects etc. I look around my desk at the minute and I've cleared a space to work from home for the day. On one side I've got some plans drawn up for some wooden storage boxes my son wants, and on the floor some new running shoes that I've not had a chance to get out and use (partly due to the heat). On the other side I've got a big To Do list, some daily guitar practice exercises I drew up yesterday and some electronics stuff I need to get soldered up. And I need to find some time over the next 2 weeks to install a drip irrigation system for when I'm on holiday, as we have a hosepipe ban and can't use sprinklers. If I got all that done, I've got a list of other stuff but would love to learn to sail. I need to get out cycling more. My weekends are generally full of me doing stuff and I'm already mapping out my week of what I might fit into the evenings.

Basically I don't have time for work.

My feeling is that there are three parts to retirement. The financial side, and that comes down to some planning, perhaps a spreadsheet or talking to an expert. Either you can afford it or you can't. Then there is the occupy your time and mind. If you live for work and don't do much outside it, then you will struggle (I've seen this happen and it is not easy to watch). If you are way off retirement, start carving out time to pick up those things you think you might be interested in, before you retire and get stuck in a rut.

The third is the social side. Will you have enough social interaction? But there are loads of oldies in volunteering groups, walking groups etc.

If you think you can cope with all three, then my feeling is get out of there.

I think I'm going to drop down to a 9 day fortnight in 18-24 months when a pay rise should kick in. I'll just use that to balance out as same pay, hours reduction.

The one aspect that needs factoring in is the mental side of retirement.
There is a definite “loss of identity” that occurs when you are no longer working in a role or position or profession.
Those that downscale towards retirement like you won’t be affected so much tho.
A lot of social conversations revolve around work, your status is often judged by what you do. You suddenly feel your identity has gone. It is a hollow feeling of uselessness ( exaggeration there but…)

However, adjustment is quick once you come to terms with it, look back on your career with pride and recall your worth.
Then enjoy the rewards and wave to the workers as you go off to enjoy yourself

 

[DaveH]

The one aspect that needs factoring in is the mental side of retirement.
There is a definite “loss of identity” that occurs when you are no longer working in a role or position or profession.
Those that downscale towards retirement like you won’t be affected so much tho.
A lot of social conversations revolve around work, your status is often judged by what you do. You suddenly feel your identity has gone. It is a hollow feeling of uselessness ( exaggeration there but…)

However, adjustment is quick once you come to terms with it, look back on your career with pride and recall your worth.
Then enjoy the rewards and wave to the workers as you go off to enjoy yourself

I wonder if some of that comes from the shock factor in retirement. I've been seriously planning for a few years and still have about 14 to go, which is a fair time to adjust. I know what I want to do with my time and my only concern is having the energy and interests I do now and making sure they are still alive in years to come.

I recently changed jobs from somewhere I'd been for 15 years. They merged 3 jobs into mine and then went on a spree of only appointing externals into more senior positions. Basically started grinding everyone down and said "know your place, you are not moving". I moved on to a more senior role elsewhere with relative ease and it has been like a breath of fresh air to largely define my role (this morning it is pissing about on the SMB when I should be doing something else!).

I'm now thinking if I move on about every 4 years, that should keep that freshness but also means less of a work identity to shake off. Along with reducing hours that eases me towards the end of work.

At the minute I think I'd be quite happy to say I'm retired, then chat about the interesting stuff I've been doing with my time.

 

[42]

The one aspect that needs factoring in is the mental side of retirement.
There is a definite “loss of identity” that occurs when you are no longer working in a role or position or profession.
Those that downscale towards retirement like you won’t be affected so much tho.
A lot of social conversations revolve around work, your status is often judged by what you do. You suddenly feel your identity has gone. It is a hollow feeling of uselessness ( exaggeration there but…)

However, adjustment is quick once you come to terms with it, look back on your career with pride and recall your worth.
Then enjoy the rewards and wave to the workers as you go off to enjoy yourself

Does it? Can't say I really talk about work, outside of work

 

[Wearson]

Does it? Can't say I really talk about work, outside of work

Then you will be fine
It was a general observation.

 

[Feed the Monster]

If you reach 80, sure the average life expectancy for a UK male is around 79.
Definitely plan to use up as much of my pot on the good life long before i get to mid 70’s.
It would boil my piss if I ended up paying some shit care home thousands per week too look after me when my next door neighbour who been on dole all there life get the care free free.
Enjoy it while you can

this.

situation my ma and we are in. She’s always been a saver and with my da’s final salary pension didn’t spend much. Now paying 4k a month out of savings for a rank average care home which also subsidises the care of those who saved nowt.

 

[DaveH]

this.

situation my ma and we are in. She’s always been a saver and with my da’s final salary pension didn’t spend much. Now paying 4k a month out of savings for a rank average care home which also subsidises the care of those who saved nowt.

It sounds very cheesy but this is true. Two sisters in my extended family (didn't really know them well). One very hard working at school, successful career, saved, sensible, had a nice house, good holidays and plenty in the bank. The other one didn't do well at school, was always a bit flighty, drifted from one low paid job to the other, frittered away what money she had. The end result was both were in the same care home together, I think it may have even been a twin room. One the state paid for, the other the family/savings/inheritance paid for.

You can't be bitter and the two sisters were close, so being together was absolutely the best scenario for their health and support. But there is a lesson there on achieving a balance for life. Balance fun now with being able to retire in good time, make sure you are comfortable in later life but not too comfortable as your health deteriorates or the government will just take it.

My gran signed her house over to my mam and uncle years before she needed state care. They sold the house when she moved to sheltered housing and sat on the money as an emergency fund. It didn't get taken away.