Retirement

[WashFTM]

For those whom have some spare!

I had a messy divorce in my mid 50's, once sorted #1 priority was to get my own house (again) and pay it off in 6 years. Managed it and nice feeling going into building society asking what outstanding mortgage was and cutting a cheque for it. I have no idea how those coming up to retirement now will manage if they don't own their home unless they have a great pension. Those on interest only mortgages may be in for a surprise as well.

Paid mortgage off, less than three months later had a stroke. Paying off mortgage was an inspired thing to do.

Retirement is overrated... take a step back remove all responsibility and stress of work load and just bring out in the world doing a job you enjoy, meeting people and enjoying achieving things.
I’ve been retired, much happier semi retired but pleasing myself

That's for you, everyone is different, what suits you certainly won't suit everyone

 

[3.142]

My final salary pension has been crushed by inflation. I am a deferred member and the increase is capped at 3.5% pa IIRC. Valuation down by about 40% in the last 2 years.

 

[Kent_Mackem]

My final salary pension has been crushed by inflation. I am a deferred member and the increase is capped at 3.5% pa IIRC. Valuation down by about 40% in the last 2 years.

Are you drawing from it now or do you have time for it to recover?

 

[3.142]

Are you drawing from it now or do you have time for it to recover?

Not for a while yet, but it can't really recover. The price inflation has already happened, and will continue to happen, and my pension hasn't kept pace. The amount of the reduction in valuation could fall if inflation flattens out in the next year or two, but almost impossible to not be 20% or so down from where I was in real terms as far as I can see.

 

[Matt Hopkins]

My final salary pension has been crushed by inflation. I am a deferred member and the increase is capped at 3.5% pa IIRC. Valuation down by about 40% in the last 2 years.

You don't have a pot of money in a final salary pension, what figure are you looking at ? The CETV?
How could it go down by 40% chances are it's based on 1/60th's or 1/80th's so lets say it's the former and you had 30 years service in you'd still get 30/60th's of your final salary if you took it at normal pension age

That's for you, everyone is different, what suits you certainly won't suit everyone

!00% this

 

[ChrisK]

Retirement is overrated... take a step back remove all responsibility and stress of work load and just bring out in the world doing a job you enjoy, meeting people and enjoying achieving things.
I’ve been retired, much happier semi retired but pleasing myself

Got to take your word that retirement is overrated, and you have found what works for you.
What I can say having worked for 40 years time off is valuable and I plan to use it wisely.
I am due to take early retirement soon and have no plans to work again atm.
Have load of plans what I would like to do in retirement and thankfully I am still fit enough to do them.
Anyone used a company called True Potential Wealth Management ?
Appreciate any experiences or feedback you have on them.

 

[Chewit]

Got to take your word that retirement is overrated, and you have found what works for you.
What I can say having worked for 40 years time off is valuable and I plan to use it wisely.
I am due to take early retirement soon and have no plans to work again atm.
Have load of plans what I would like to do in retirement and thankfully I am still fit enough to do them.
Anyone used a company called True Potential Wealth Management ?
Appreciate any experiences or feedback you have on them.

I planned not to work when I retired but I found I was just more complete (if that makes sense ) as a person if I had something that gave me a purpose and used the wealth of experience I have. It’s not about the money, it’s about an identity.
I don’t work hard or have any stress or responsibility, I’ve come to understand that I’ve retired from those things but not from altogether living and contributing.
No two peoples backgrounds or careers are the same and some people have such deep interest in other things that once work has gone it just allows them to concentrate on those things.
Others like me had their identity through their work and to still having the satisfaction of being a little involved helps them enjoy life more.

So I would caveat what I said by saying full time retirement is over rated

 

[JJH]

Got to take your word that retirement is overrated, and you have found what works for you.
What I can say having worked for 40 years time off is valuable and I plan to use it wisely.
I am due to take early retirement soon and have no plans to work again atm.
Have load of plans what I would like to do in retirement and thankfully I am still fit enough to do them.
Anyone used a company called True Potential Wealth Management ?
Appreciate any experiences or feedback you have on them.

I use them for the small pension I have. Never kept an eye on them tbh, decent APP.

Saw a new FA last week and he reckons they are one of the better ones.
Due to have a follow up this week so will see what he recommends as need to dump 3 yrs worth of cash in the pension .
Interesting to see if he recommends staying with TP

 

[ChrisK]

I use them for the small pension I have. Never kept an eye on them tbh, decent APP.

Saw a new FA last week and he reckons they are one of the better ones.
Due to have a follow up this week so will see what he recommends as need to dump 3 yrs worth of cash in the pension .
Interesting to see if he recommends staying with TP

Yeah TP seem decent and all online reviews look good
Obviously they all out to make money but they make more money by keeping your investments in good order

 

[DaveH]

He just said the average was an £80k pension. I suppose there'll be loads with a lot more and some with very little, I was surprised at how low the figure was. He definitely meant in total rather than per pot as I was talking about mine as a total (there's three added together).

What does an £80k pension actually mean though, in terms of payout either as a lump sum or a monthly/annual payout?

 

[richest]

What does an £80k pension actually mean though, in terms of payout either as a lump sum or a monthly/annual payout?

Is that not just a pot size, paying 7 or 8 k per year?

Many private pensions even in public sector can be quite small. See,

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Long read sorry.

 

[cfg]

What does an £80k pension actually mean though, in terms of payout either as a lump sum or a monthly/annual payout?

Depends on your age and what you want but around £3,500pa should be achievable at age 60 for the rest of your life.

 

[WHD]

Working with my FA over the last year or so I asked him where my pension pot was at, i.e. low, average, above average etc. He told me the average pot is only £80k, thankfully mine is higher.

Is that the average pot at retirement age?

 

[Tuono]

I paid into a pension for about 3 or 4 years when I was an aprentice. I think it was called something like the BATCIC Scheme but that was closed down and the pension passed on to another company. It's now worth a grand total of about £18, that's £18 in total not £18 a week, a month or a year, that's £18 in total. The only reason I haven't combined it with my main pension is I hope it costs them more to administer it than it's worth. I can't wait to take my £4.50p lump sum and then 1p a month draw down.

 

[cfg]

I paid into a pension for about 3 or 4 years when I was an aprentice. I think it was called something like the BATCIC Scheme but that was closed down and the pension passed on to another company. It's now worth a grand total of about £18, that's £18 in total not £18 a week, a month or a year, that's £18 in total. The only reason I haven't combined it with my main pension is I hope it costs them more to administer it than it's worth. I can't wait to take my £4.50p lump sum and then 1p a month draw down.

Why not just withdraw it all?

 

[Shandy drinker]

I paid into a pension for about 3 or 4 years when I was an aprentice. I think it was called something like the BATCIC Scheme but that was closed down and the pension passed on to another company. It's now worth a grand total of about £18, that's £18 in total not £18 a week, a month or a year, that's £18 in total. The only reason I haven't combined it with my main pension is I hope it costs them more to administer it than it's worth. I can't wait to take my £4.50p lump sum and then 1p a month draw down.

if you paid into it for 4 years it should be worth more than that. How long ago?

 

[halfpast3]

I paid into a pension for about 3 or 4 years when I was an aprentice. I think it was called something like the BATCIC Scheme but that was closed down and the pension passed on to another company. It's now worth a grand total of about £18, that's £18 in total not £18 a week, a month or a year, that's £18 in total. The only reason I haven't combined it with my main pension is I hope it costs them more to administer it than it's worth. I can't wait to take my £4.50p lump sum and then 1p a month draw down.

How has a pension that you paid into for 3/4 years performed that poorly?

 

[Hair Flick]

How has a pension that you paid into for 3/4 years performed that poorly?

Management fees eating into the pot?

 

[3.142]

You don't have a pot of money in a final salary pension, what figure are you looking at ? The CETV?
How could it go down by 40% chances are it's based on 1/60th's or 1/80th's so lets say it's the former and you had 30 years service in you'd still get 30/60th's of your final salary if you took it at normal pension age

!00% this

Yes, CETV.

In real terms, 12% inflation for 2 years vs 3.5% increase, then compounded over the remaining time until retirement, and I'm over 30% down.

 

[WHD]

Yes, CETV.

In real terms, 12% inflation for 2 years vs 3.5% increase, then compounded over the remaining time until retirement, and I'm over 30% down.

Why didn't you transfer it when you got it valued?

I got mine valued and needed an independent financial adviser to sign the transfer documents, and he talked me out of it. I would have been early 40s at the time and he said I was too young and leaving it where it was leaves the risk on the company, while if it was transferred it would be at my risk with it being on the stock market. He said if I was near retirement and I wanted a large sum of money immediately it would make sense, but not when it would be 15 years at least before I could get it.