Retirement

[DaveH]

This is me! 58 now with redundancies coming, no cap on the value so after 19yrs I'd get 2 1/2 yrs salary. Currently staying awake at night thinking of ways to ensure they mould the criteria to fit me.....

Is it worth a quiet word with a few people? Often they are keen to get rid of people who might retire in a couple of years if it means keeping some younger people who will be around for longer.

I take it there is no chance of voluntary?

It was annoying at my last place where I had 15 years of service. There were a few rounds of voluntary redundancy, then they kept saying they were skint and would have to look at doing something. I pushed for information to see if they were likely to consider another round of redundancies, was told no. Got a new job, resigned and 3 weeks later more voluntary redundancies announced which were not open to people working their notice.

Everyone I knew who applied for that got it. Would have been about 14 months of wages in the bank and then move to a new job.

 

[Fletch]

Tbf, £20k out of £250k is 8% which is about the historical average of market returns, so there is half a chance that he could make it. However, the big thing he seems to have forgotten about is inflation, and the £20k will need to be increased year in year. That being the case then keeping the full £250k after 10 years is way more difficult.

If you google it 4% seems to be the norm withdrawal rate for pension pots , even then some say that is high for the UK , but 4% is pretty common. anything above 4 and you start taking a risk though , if the market dips , which it may well from time to time and the lad is still drawing 8%….
Disclaimer alert though as I’m just your average man on street not an advisor growth isn’t always guaranteed

There are a couple of IFAs who post on here I think

 

[Slim999]

I never said that at all.
I'm saying your assumptions are massively optimistic. You won't be able to take £20k per year out of a £250k pot for 10 years and still have £250k in the pot.

Well I realise that

I am prepared to see the pot dimish somewhat as my future time on this Mortal coil also diminishes

I think a lot of folks forget this important fact - we're all going to die . Some sooner than others .

Is it worth dragging yourself into a drab office or factory in your 60s so that you can see your account / pot numbers maximised ?

Or is it worth enjoying the (little ) time you have left with your family & friends?

 

[42]

If you google it 4% seems to be the norm withdrawal rate for pension pots , even then some say that is high for the UK , but 4% is pretty common. anything above 4 and you start taking a risk though , if the market dips , which it may well from time to time and the lad is still drawing 8%….
Disclaimer alert though as I’m just your average man on street not an advisor growth isn’t always guaranteed

There are a couple of IFAs who post on here I think

I've no idea why it's that low, as the idea is to take a decent chunk in the first 10 years. Then reduce your drawdown when state pension kicks in, then can reduce further when you get into 80's & health fails. Unless of course its average investment gains plus 4%, as you want your capital to reduce year on year otherwise you're just going to be a wealthy corpse in the end.

 

[JJH]

Is it worth a quiet word with a few people? Often they are keen to get rid of people who might retire in a couple of years if it means keeping some younger people who will be around for longer.

I take it there is no chance of voluntary?

It was annoying at my last place where I had 15 years of service. There were a few rounds of voluntary redundancy, then they kept saying they were skint and would have to look at doing something. I pushed for information to see if they were likely to consider another round of redundancies, was told no. Got a new job, resigned and 3 weeks later more voluntary redundancies announced which were not open to people working their notice.

Everyone I knew who applied for that got it. Would have been about 14 months of wages in the bank and then move to a new job.

That leaves a bitter taste mate

 

[Matt Hopkins]

Well I realise that

I am prepared to see the pot dimish somewhat as my future time on this Mortal coil also diminishes

I think a lot of folks forget this important fact - we're all going to die . Some sooner than others .

Is it worth dragging yourself into a drab office or factory in your 60s so that you can see your account / pot numbers maximised ?

Or is it worth enjoying the (little ) time you have left with your family & friends?

You say you realise that but that wasn't what you said.
As for the rest of it, each to their own. I'm 56 and retired

 

[Slim999]

You say you realise that but that wasn't what you said.
As for the rest of it, each to their own. I'm 56 and retired

I may not have clarified exactly what I meant ..... but it definitely wasn't that the pot would stay at £250k after 10 years!

That'd be a tad optimistic

I'd expect the pot to diminish by 50% or so by 67 if everything else stayed the same and growth was reasonable

But then the State Pension kicks in ...

For what it's worth I retired at 57 - I'm now 61 and the pot has diminished in size by about 15%

However there've been a whole lot of other things going on from property sales/ buys & inheritance inputs etc

 

[Matt Hopkins]

I may not have clarified exactly what I meant ..... but it definitely wasn't that the pot would stay at £250k after 10 years!

Not wanting to get into an argument but that is what you said

So £250k - it acquires even a modest 5% Growth per annum - that is £12.5k. More likely growth would be closer to £20k.

So you take £20k out and the total is undiminished

 

[Slim999]

Not wanting to get into an argument but that is what you said

I meant that on that 1 particular year the total could be undiminished if growth were high .

....Which of course is possible ( it's happened in my case )

I didnt say that the pot would be undiminished over the longer term ( say 10 years)

You'd be pretty naive to expect this to be the case

The point was that the Total of £250k could be made to support someone over a decade - and still have a decent lump left -

so long as decent growth was maintained and draw down limited somewhat

 

[ontap]

Well I realise that

I am prepared to see the pot dimish somewhat as my future time on this Mortal coil also diminishes

I think a lot of folks forget this important fact - we're all going to die . Some sooner than others .

Is it worth dragging yourself into a drab office or factory in your 60s so that you can see your account / pot numbers maximised ?

Or is it worth enjoying the (little ) time you have left with your family & friends?

I was fortunate enough to be able to retire at 56. It is without doubt the best decision I ever made. I could have carried on working would be a lot better off financially now. But all the things we did , the trips we took etc was well worth it. Am 70 now and even though am in decent health. I couldn't do or see a fraction of what I did , if I had waited until 67 to retire. The amount of people who work until its too late to enjoy a decent retirement is depressing.

 

[Slim999]

I was fortunate enough to be able to retire at 56. It is without doubt the best decision I ever made. I could have carried on working would be a lot better off financially now. But all the things we did , the trips we took etc was well worth it. Am 70 now and even though am in decent health. I couldn't do or see a fraction of what I did , if I had waited until 67 to retire. The amount of people who work until its too late to enjoy a decent retirement is depressing.

It's true. The best years of your life are those before you reach state retirement age .

Most are probably too paggered to really enjoy it if they wait that long .

Although for many many folks it us the only viable option- and we should be thankful that we were able to enjoy early retirement.

For my group of close friends ( half a dozen ) the average has been about 56

 

[Keb]

Keep receipts for all the work you do on the property. You can deduct that from your capital gains tax bill.

Hoping not to pay CGT as I own one of the 2 houses (it's in my name only) and my wife owns the other (her mother left it just to her). Not sure if we still pay CGT if one of us sells. My wife has never listed my house as her main residence as she has a very cheap rented flat & shop by the beach. One day we hope to live together somewhere, but we've only been married 9 years.

 

[Mackem00]

Is it worth a quiet word with a few people? Often they are keen to get rid of people who might retire in a couple of years if it means keeping some younger people who will be around for longer.

I take it there is no chance of voluntary?

It was annoying at my last place where I had 15 years of service. There were a few rounds of voluntary redundancy, then they kept saying they were skint and would have to look at doing something. I pushed for information to see if they were likely to consider another round of redundancies, was told no. Got a new job, resigned and 3 weeks later more voluntary redundancies announced which were not open to people working their notice.

Everyone I knew who applied for that got it. Would have been about 14 months of wages in the bank and then move to a new job.

Ouch.

 

[admwil]

Good luck Marra, if you can go for it, it’s the best thing i ever did getting out at 55, every day i have is like nectar. Was in a similar position, saw through the corporate bullshit and hated having to sit biting my lip while we were literally getting the emperors new clothes presented to us. I think it’s an age thing tbh, certainly was in my case, i started to see things for what they were and struggled to keep my mouth shut, only to have these f@ckwits look at me as though i was the mad one .
it’s not for everyone as i said earlier in this thread, but i have no issue blissfully filling my days.

Feeling this and I am only 42

 

[Deleted member 55793]

The system in America is a bit different.

My work matches my own contributions and I retain a greater percentage of that the longer I stay. It promotes loyalty - in theory - but then if you're offered a big wage elsewhere it makes sense to jump.

I'm playing catch-up a bit having moved over later, but I'm happy with the progress I've made.

 

[Darlo1973]

I may not have clarified exactly what I meant ..... but it definitely wasn't that the pot would stay at £250k after 10 years!

That'd be a tad optimistic

I'd expect the pot to diminish by 50% or so by 67 if everything else stayed the same and growth was reasonable

But then the State Pension kicks in ...

For what it's worth I retired at 57 - I'm now 61 and the pot has diminished in size by about 15%

However there've been a whole lot of other things going on from property sales/ buys & inheritance inputs etc

I've tried building different models in Excel to cover the first 10 years of retirement but there are just too many factors to consider. You don't want to overspend in those first few years but at the same time you want to be able to enjoy yourself and tick off some bucket list items while you are still healthy enough to able to do them.

Not expecting much from inheritance. My mam is still around but her estate will be split 4 ways so isn't going to be a significant factor - plus, obviously, the later I get any money the better.

House equity is one factor to consider. If I was to move back to the NE I could sell my overpriced southern house and get somewhere for £150-200k less depending on location.

 

[elder]

anyone heard of this...??? I assume they won't be able to look at a non UK based bank account.

You must be logged on to see media items

 

[Slim999]

anyone heard of this...??? I assume they won't be able to look at a non UK based bank account.

You must be logged on to see media items

Imagine if they announced that the state pension would be means tested .....

Payments into millions of private or work based pension schemes would be cut back by £ billions

Sounds like another stonking Tory plan to sink UK

 

[Fletch]

Imagine if they announced that the state pension would be means tested .....

Payments into millions of private or work based pension schemes would be cut back by £ billions

Sounds like another stonking Tory plan to sink UK

Any party that decided to means test the state pension would certainly lose the next election .
more likely to keep raising the age to 70

 

[Tuono]

Maybe they want to check on those claiming pension credit. I know one woman who deposited her money with her children when she sold up in Spain and returned home so that she could claim pension credit.