Retirement

[42]

My Mam used to say quite a lot, once her and Dad were claiming state pension combined with Dad’s small work pension, they were both better off financially than they ever had been when they were both fit and working. They too had to leave work earlier than planned because of health issues. Both in their late 50s I think.

Mam used to look at their bank balance and say that her younger self would have had a fit if she saw the money they both had now.

I remember as a young un in the late 70s/early 80, Dad bringing in his pay packet, and they’d both be sitting at the dinner table working out what needed paying, what needed for food and then Mam putting a bit aside for holiday money, before giving Dad his pocket money. He used to look down at his hand and I could almost see him thinking “WTF is this?!?”

My inlaws are similar. He's generally flitted between low paid jobs & benefits, and she's never really worked. They're now both got full state pension (zero private pension) and i know loads on here twist that state pension is shite but theyre now like pigs in shit cos they've never been so well off in their lives.

I think if I carried on until 68, my works pension plus state pension, I'd be getting about £5k a year gross more than I'm currently on. Then add in that you're not paying NI & making pension contributions, I'll be over £10k a year better off. More reason to get out early.

 

[Darlo1973]

What has grown by 10% pa for the past 40 years? I’ve missed out!

Between 1984 (when it was launched) and 2022 the FTSE 100 had an annualised return of 7.4%

Trouble is that over the past few years (apart from the big Covid dip) it has been fairly flat.

 

[Fletch]

Between 1984 (when it was launched) and 2022 the FTSE 100 had an annualised return of 7.4%

Trouble is that over the past few years (apart from the big Covid dip) it has been fairly flat.

Which is why nobody can predict the future, including market returns

 

[The Great Soprendo]

Between 1984 (when it was launched) and 2022 the FTSE 100 had an annualised return of 7.4%

Trouble is that over the past few years (apart from the big Covid dip) it has been fairly flat.

S&P500 grew 11.6% pa 1982-2022. A mixed portfolio might not be far off 10%, especially if invested over the long term with higher risk/reward than just tracking the index of big companies.

 

[DaveH]

Mam used to look at their bank balance and say that her younger self would have had a fit if she saw the money they both had now.

It is amazing how perspective changes over the years. I remember my first pay packet after graduating. Being able to pay back my parents the few hundred quid I had loaned for rent. Then 5 weeks later I got more money. I could start paying off student debt, get my credit card functional again, I could take the girlfriend out for a meal, happy days.

Now I'm closer to the end of my career than I am at the start, I'm looking at what I want my retirement wage to be and it is more than that first graduate job. I'll not have any debt, not be saving up for anything and I'm thinking, 'will that really be enough?'. I'll not be going out drinking as much. Though these days, 4 pints in my local is more than a really pissed up night out as a student in the 90s.

 

[Hair Flick]

S&P500 grew 11.6% pa 1982-2022. A mixed portfolio might not be far off 10%, especially if invested over the long term with higher risk/reward than just tracking the index of big companies.

Would you have chosen to invest in the S&P500 in 1982? These things are always great with hindsight but for every outlier giving this level of returns, there’s any number of funds that return nowhere near as much, charge exorbitant fees and make the FAs a nice little earner.

 

[Zidane]

51 soon. Eldest son just gone to uni and assuming youngest does I'm not going to be retiring until 58 at absolute earliest.

Devestating every time I think about it.

 

[Hair Flick]

Total 6 months / 90 days per stretch I think

It’s 90 days in a rolling 180 days so if you did 90 days in a single stretch, you’d have to wait another 90 before you could go back.

We totted up our 90 days going back & forwards between February and mid August but the older dates are starting to drop off now so planning on heading back out in October.

 

[ChrisK]

II'm self employed and have been since aged 21. I always paid into a private pension but after about 10 years when I looked it was paying not much more than if I stuck it in a bank so I just carried on with the same payment and stopped increasing it each year. About 7 years ago one of my sisters died and I thought what's the point of grafting so I semi retired, that was when I realised how crap my pension was. I never touched my pension but after about 18 months I went back to full time work and bumped up my pension with lump sums and higher contributions, something I should have done years ago. My private pension is still shite but it's more than enough to live on combined with the state pension. One of the main reasons I'm still working is to keep fit.

Hey respect mate you still grafting but private v company pension speaks for itself company pension its a great benefit especially when you get into your 50`s with a good few years service.
All this wanting to carry on working because i enjoy it stuff sounds a bit naff to me but hey everyone to their own, good reason for keeping fit but i much prefer the gym or a nice walk out in the countryside compared to graft.

 

[Tuono]

Honestly work keeps me fit, I've just had 5 weeks off and I must have put on half a stone, gym's do nowt for me like. I wouldn't mind another dog, I loved the long walks in the countryside especially when it's freezing cold and you have to get a move on to keep warm, maybe when I retire I'll get another.

 

[42]

51 soon. Eldest son just gone to uni and assuming youngest does I'm not going to be retiring until 58 at absolute earliest.

Devestating every time I think about it.

I'll be in my 60's when mine gets to 18. The way I think about it is that since I'll be retired, I'll then be on low income so that he'd qualify for all the extra financial support he wouldn't of otherwise got if I'm still working.

 

[ChrisK]

Honestly work keeps me fit, I've just had 5 weeks off and I must have put on half a stone, gym's do nowt for me like. I wouldn't mind another dog, I loved the long walks in the countryside especially when it's freezing cold and you have to get a move on to keep warm, maybe when I retire I'll get another.

I never had time for gyms but now its more a social thing bit of a workout then a swim and finish off with sauna and steam good bit crack on with lads in there all before dinner great

 

[42]

Honestly work keeps me fit, I've just had 5 weeks off and I must have put on half a stone, gym's do nowt for me like. I wouldn't mind another dog, I loved the long walks in the countryside especially when it's freezing cold and you have to get a move on to keep warm, maybe when I retire I'll get another.

When I look at my dad, he's lost a decent amount of weight since retiring. As working behind a desk you're sedentary most of the day. Now not working has the time to go out on walks & get jobs done around the house etc

 

[Deleted member 55162]

I think a lot of people will be surprised at how little you need to live comfortably in retirement - the natural thing is to base it on how you live now and project that forward, but that's not necessarily an accurate representation.

My Dad retired at 57 - it wasn't voluntary, he just couldn't do the type of work he was used to because of long-standing back and knee issues (no pun intended). He had a couple of small work pensions and State Pension when he reached 65. My Mam had been retired through ill-health for many years prior to him retiring and she got her pension (at a reduced rate) from the date she actually left work.

They had no mortgage, no major bills other than utilities and SKY TV and they still managed a night out every week, a meal somewhere nice once a month or so, and between 2 and 3 foreign holidays a year - nowhere flash, mind. Just somewhere relatively cheap with a lot of sunshine. They drove a small hatchback.

My Dad always used to tell me that I'd be shocked at how well you could live on what was a relatively small annual income (I wasn't - I'd seen it in practice with them) once there were no major bills to pay, no kids to look after and no cost of going to work to factor in.

Retire as soon as you can, folks. As someone stated earlier, you're a long time dead and you can't take it with you. Plus you'll be freeing up employment for someone younger than you who needs it more.

To a point yes. You have to ensure people are achieving their retirement goals which ultimately might be being able to live on one or two state pensions. The triple lock is certainly helping at this moment in time.

 

[Tuono]

When I look at my dad, he's lost a decent amount of weight since retiring. As working behind a desk you're sedentary most of the day. Now not working has the time to go out on walks & get jobs done around the house etc

Sounds about right, I work in construction and love the exercise and crack with the lads.

 

[ChrisK]

Can never understand this, been self employed most my working life and find pension contributions are a great way of getting the tax down in the good years.

Exactly its a great tax advantage to pay into a pension or AVC
Have you managed to retire at a decent age

 

[The Great Soprendo]

Would you have chosen to invest in the S&P500 in 1982? These things are always great with hindsight but for every outlier giving this level of returns, there’s any number of funds that return nowhere near as much, charge exorbitant fees and make the FAs a nice little earner.

Yeah, you're right, but then my point is that if you're investing over a long time you can afford to go for a riskier portfolio. The S&P500 seen as a whole is not even close to what might be considered risky, and even that got 11% YOY.

 

[Select coaches]

Exactly its a great tax advantage to pay into a pension or AVC
Have you managed to retire at a decent age

50 now and starting to slow down. Will be happy doing 2-3 days a week and having holidays when I feel like it for the next few years.

 

[ChrisK]

50 now and starting to slow down. Will be happy doing 2-3 days a week and having holidays when I feel like it for the next few years.

Nice one
we enjoying the long weekends,
Belter walk today good 8 miler along river up to Cauldren Snout and back too pub for beer dog flat out in front of a real pub fire

 

[Select coaches]

Nice one
we enjoying the long weekends,
Belter walk today good 8 miler along river up to Cauldren Snout and back too pub for beer dog flat out in front of a real pub fire

Enjoy it, I like the idea of working less rather that keeping going full whack then a sudden stop. Will pack in all together at some point though.