Retirement

[Slim999]

Our group are counting down the days to retirement, some nearer than others.
Had a discussion in the pub last night about how much you need to live a ‘very comfortable’ lifestyle when retired. Nice international holiday, couple of smaller jollies, restaurant once a week etc, no mortgage to pay, kids self-sufficient.
Figures ranged from £20k-£30k or £45k+ if in a couple.

What do you reckon and any lads/lasses out there living the dream already who are in the know?

If you've paid off your mortgage then I reckon £20k does it. For a couple maybe £30k bearing in mind you're sharing bills.

I'm currently doing fine spending around £20k per annum.. As long as you mind the gap up to 67 you'll be fine

 

[SPUFF]

Uni is one thing I have not factored in. We have been putting stuff away for the kids since they were born and by the time they hit Uni age, they should have a fair amount - enough to fund their first year.

When it comes to the crunch, do I say get on with it with student loans, I’m not working until I’m 67 when you can pay off a loan gradually. Or will I look at the amount of debt they will rack up, look at the state of the housing market , cave in and work longer? Only time will tell.

A friend, and also a poster off here, despite privately schooling kids, want them properties each before they retire.

Blows my mind that. Wiping their arse. Each to their own though.

 

[Fletch]

Used to be able to take them at 50. Think it must've been about 15 years back it got changed to 55. Think there might even still be a few legacy schemes where you can still get out earlier than 55 like fire & police

Some final salary schemes you can access once 50

 

[Ned Land]

I agree, hence saying it's about balance. There are benefits to giving them something they can't access for decades too. And of course you don't really want to be renting in retirement, but it's also worth thinking about the likely value of 40 years of compound interest and stock market growth....which has managed more than 10% a year on average over that timescale.

Assuming 10% growth pa, £10K turns into about £450K after 40 years.

I started to invest when I was in my 30s.

I didn’t have anyone to explain the practicalities to me, and as I had enrolled into a defined benefit pension scheme when I started working, I didn’t consider the need to invest.

When I had more knowledge and surplus cash, I started a junior SIPP for our youngest child. The implications of compound interest over a long timescale are staggering.

Kids are rarely taught about investing, or their eyes glaze over with boredom.

 

[The Great Soprendo]

A friend, and also a poster off here, despite privately schooling kids, want them properties each before they retire.

Blows my mind that. Wiping their arse. Each to their own though.

That's excessive IMO. I'm all for helping them as much as I can, and hopefully can leave them something too, but I'm not killing myself to work longer to fund the children to that extent. And they need to learn to live for themselves. We've already spent too much of our lives looking after ageing parents too, we have to look after ourselves at some point.

 

[ChrisK]

Think I said this much earlier in the thread but, bears repeating, I am enjoying the cooking. Seriously the millions of new recipes I try. Everything from scratch, who knew pastry was so easy to make and their were so many pie fillings. Scones, easy. All the different curries and pasta sauces. Come Autumn I am going to be experimenting with stews and different dumplings. And more soups.

Cheesecakes....easy

Other half thinks he's died and gone to 1950's land. Tea is always on the table for him coming in.

Make sure you get plenty walks in keep the timber off.
But can`t beat home made grub so much better than ready meal crap.

 

[Shack]

I think the word retirement conjures up different images for different people. I like to look it as being financially independent (you may have heard of the FIRE movement). Once you achieve this you can make decisions and have choices in whether you want to work, do something different (change jobs, reduce hours/days etc) or pack in altogether. Having the ability to make choices is very liberating.

The biggest issue is knowing when you have enough in the pot to not have to work. That is the main reason people keep working (if they want to retire). I've found you never truly know you have enough and at some point you have to just bite the bullet.

My mindset was to enjoy summers doing what I want and take a short term job over winter. The issue is I now begrudge working full time so I'd prefer part time! There's no jobs out there doing what I used to do with part time hours though, so I need to make compromises. I ended up taking a permanent job last November but ended up leaving by April as I got fed up being stuck at a desk again 5 days a week. I missed going out on the walks with my dog and being able to do what I wanted. Once you have a taste of that it's difficult to give it up. I do feel that I need something to occupy my mind alongside the hobbies and interests I have but perhaps that's because it's only been a few years since I stopped working properly full time. I think it takes a while to get that work ethic out of your system or maybe it never leaves some people?

 

[ChrisK]

Some final salary schemes you can access once 50

Anyone done service in the military and forgot about the pension like i did ?
I done 6 years straight from school starting as a junior soldier at 16.
Forgot about the pension until a mate mentioned it.
Requested a pension statement few months back and considering I only done 6 years and on a very low wage back in 80`s its currently around £200 per month, with a lump sum of 10K and increases with inflation each year, I got 5 years till I can take it.
Better in my pocket than there`s

Bet there be a few people forget to claim it as seems like a lifetime ago.

 

[Ned Land]

… I think it takes a while to get that work ethic out of your system or maybe it never leaves some people?

I always considered myself to have been raised with the ‘Protestant work ethic’ but as I’ve aged I’ve found it more difficult to motivate myself.

After working full time for 30+ years I have seen people who take the piss in our work environment, so I often wonder why I’m working flat out.

I don’t feel mentally exhausted (yet) but I would like to step back and absolve myself of professional responsibilities.

 

[Tuono]

I might be way off but I remember hearing that professional footballers could start drawing their pension at 35. It was a long time ago I heard this but it stuck for some reason. Anyone know if it was true.

looks like I was right. Well there's always a first time.

Since the 1980s, registered contract players of Premier League and Football League clubs automtically become members of the Professional Footballers’ Pension Scheme (“the Scheme”) and accrue benefits under the Scheme, unless they opt out. Benefits under the Scheme are payable at age 35 or 55, depending on when the player became a member.

 

[Shack]

I always considered myself to have been raised with the ‘Protestant work ethic’ but as I’ve aged I’ve found it more difficult to motivate myself.

After working full time for 30+ years I have seen people who take the piss in our work environment, so I often wonder why I’m working flat out.

I don’t feel mentally exhausted (yet) but I would like to step back and absolve myself of professional responsibilities.

Yeah, slackers used to piss me off but I had the mentality of doing something to the best of my ability to the detriment of life outside of work at times. I'd see them flying out the door when the day finished and I'd be sitting there determined to sort something out before leaving. I eventually realised they probably had the right idea though and it was me being daft! I contracted the last 10+ years and whilst I still worked hard I wasn't involved in office politics and I didn't care what the staff did (in fact the worse they were the more it made me look great and needed!). Not sure what line of work you're in but maybe contracting would be an option if you feel financially secure to give it a go? Just go in, do your job and leave!

 

[ChrisK]

looks like I was right. Well there's always a first time.

Not that long ago before the crazy money footballers had to get real jobs once they finished playing in there 30`s, sure Barry Siddall was a copper and loads went onto to run pubs or sports shops.
Nowadays 1 premier league contract will set you up for life.

 

[Derbla]

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?!?”

Same

Good advice i got in life
there are more work days than rest days so make ur choice

Sudden stop is not a good idea imho

 

[Vauxie]

Deferred till im 71, signed up on this project till end of 24.
Not sure what to do next, been watching homes under the hammer like.

 

[Tuono]

Not that long ago before the crazy money footballers had to get real jobs once they finished playing in there 30`s, sure Barry Siddall was a copper and loads went onto to run pubs or sports shops.
Nowadays 1 premier league contract will set you up for life.

Billy's Shoes, owned and ran by Billy Hughes when he retired. Imagine players having to do it these days.
Lukes Onions, fruit and veg.
Kevin Fillups petrol station.
Hendersons Hostelry.
Shearers Milliners.
Beardsley's beauty shop.

 

[GillytheGilf]

With respect It’s not important what I do is it ? I’d rather not say but I really enjoy it as does my Missus and we are very happy. Her business is different to mine but we both chose to do things we like.
This time last week we were in Crete. We go away when we want, we help the kids.
Some woukd say we are lucky but we both paid into private pensions for over 30 years when we could have done with the money when we were younger with kids and thankfully we are now reaping the benefits.
The money we received from our private pensions enabled us to invest in the small businesses we now have.

I’ve only read the 1st paragraph and my guess is you and the wife are Strippers

A friend, and also a poster off here, despite privately schooling kids, want them properties each before they retire.

Blows my mind that. Wiping their arse. Each to their own though.

Is it Dave ?

 

[Ned Land]

Yeah, slackers used to piss me off but I had the mentality of doing something to the best of my ability to the detriment of life outside of work at times. I'd see them flying out the door when the day finished and I'd be sitting there determined to sort something out before leaving. I eventually realised they probably had the right idea though and it was me being daft! I contracted the last 10+ years and whilst I still worked hard I wasn't involved in office politics and I didn't care what the staff did (in fact the worse they were the more it made me look great and needed!). Not sure what line of work you're in but maybe contracting would be an option if you feel financially secure to give it a go? Just go in, do your job and leave!

I work in IT, I’d consider contracting or short term contracts when the kids are older.

My current working situation is probably the optimal for my needs - DB pension, 30 days annual leave, 4 day compressed week, minimal visits to the office.

My aim is to be able to decide if I want to work or not. I’d be happy to take a reduced pension at 60 and supplement it with part-time work if I need to.

 

[SPUFF]

That's excessive IMO. I'm all for helping them as much as I can, and hopefully can leave them something too, but I'm not killing myself to work longer to fund the children to that extent. And they need to learn to live for themselves. We've already spent too much of our lives looking after ageing parents too, we have to look after ourselves at some point.

Its mental imho.

Heres a lumper for your first car, help with uni etc maybe a small help with house deposit. All fine imo and in hsnd for my 3.

To give them a fecking home on top of that is mental imo and sends out all the wrong signals. Bastards are spoilt enough now n need a few life lessons.

 

[TAD]

Anyone done service in the military and forgot about the pension like i did ?
I done 6 years straight from school starting as a junior soldier at 16.
Forgot about the pension until a mate mentioned it.
Requested a pension statement few months back and considering I only done 6 years and on a very low wage back in 80`s its currently around £200 per month, with a lump sum of 10K and increases with inflation each year, I got 5 years till I can take it.
Better in my pocket than there`s

Bet there be a few people forget to claim it as seems like a lifetime ago.

I've got this. Been planning on it being a little bonus top up but going to some seminars at work, it appears that if you draw their frozen sceme at 60 you have to reduce your wage by either reducing hours or dropping a grade. I don't know if this just applies to the civil service or if drawing my navy pension will mean the same thing.

 

[Deleted member 53903]

I've got this. Been planning on it being a little bonus top up but going to some seminars at work, it appears that if you draw their frozen sceme at 60 you have to reduce your wage by either reducing hours or dropping a grade. I don't know if this just applies to the civil service or if drawing my navy pension will mean the same thing.

Wonderful… everyone MUST check their pensions from previous employers.

The amount of wasted money is criminal. Even if it is a little, get in touch. They are obliged to provide the information, even if the pension scheme has been moved. If the business is no longer going, there are still ways to trace it. There are companies set up to do this.

I feel particularly strongly about those who are brave enough to have served and forget about their pensions - which as we see are very healthy and thoroughly earned.