WHD
Striker
How much did the FA say you need to go at 57 then?
Edit: how much for the two of you?
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Retirement
- Thread starter Shieldsman
- Start date
Edit: how much for the two of you?
Brother Lee
Full Back
I love this site, I get some cracking advice on many things but there's also lots of scary 'advice' on this thread and other financial threads. Full disclosure I'm a financial adviser and have been for over 30 years.
You pay for a service which happens to be financial advice. You're told what that service will entail and how much it will cost before any work is started. Much like getting a price from a builder or any other tradesmen.
Financial advisers haven't received 'commission' since the retail distribution review was introduced in 2012. They don't receive 'trail commission' as quoted on this thread. You wouldn't ask a builder to give you half his fee because you know what you want him to do. Yet posters on this thread expect a qualified financial adviser to share their 'commission'.
You're also paying for protection for the advice provided, as they're regulated by the FCA unlike the posters on here. 'Stick it in a global tracker with this company' isn't the one size fits all answer. Are you comfortable with the risk of that? Are you comfortable with 25% drop in a bad year? Your capacity for loss probably isn't even the same as your wife's, never mind a random on an internet forum. What if that 25% drop happened the year before you're planning on retiring? There are far too many variables and everyone's circumstances are different.
I could go on but I'll probably start getting pelters. There are some very knowledgeable posters on financial matters on this thread but not all.
You don't have to engage with a financial adviser but if you find a friend or family member who does, that is probably the best way to find one you can respect and deal with. You might even be happy to pay for their advice.
You pay for a service which happens to be financial advice. You're told what that service will entail and how much it will cost before any work is started. Much like getting a price from a builder or any other tradesmen.
Financial advisers haven't received 'commission' since the retail distribution review was introduced in 2012. They don't receive 'trail commission' as quoted on this thread. You wouldn't ask a builder to give you half his fee because you know what you want him to do. Yet posters on this thread expect a qualified financial adviser to share their 'commission'.
You're also paying for protection for the advice provided, as they're regulated by the FCA unlike the posters on here. 'Stick it in a global tracker with this company' isn't the one size fits all answer. Are you comfortable with the risk of that? Are you comfortable with 25% drop in a bad year? Your capacity for loss probably isn't even the same as your wife's, never mind a random on an internet forum. What if that 25% drop happened the year before you're planning on retiring? There are far too many variables and everyone's circumstances are different.
I could go on but I'll probably start getting pelters. There are some very knowledgeable posters on financial matters on this thread but not all.
You don't have to engage with a financial adviser but if you find a friend or family member who does, that is probably the best way to find one you can respect and deal with. You might even be happy to pay for their advice.
Pantomime Mackem
Striker
Employers need to adapt to the fact that there's millions of retirees / part-retirees who would happily work 2-3 days a week
Amokachi
Winger
Been mentioned before, but a lot of the basic/moderate/comfortable lifestyles stuff is ridiculous.
The one by my work pension provider says spending on clothes in a 'moderate' retirement year is £1,500
Who the hell spends that much on clothes?
The amount per year for 'Moderate' is also more than I make in a year now
The one by my work pension provider says spending on clothes in a 'moderate' retirement year is £1,500
Who the hell spends that much on clothes?
The amount per year for 'Moderate' is also more than I make in a year now
Dan..Dan..Dan..Dan
Striker
Pantomime Mackem
Striker
Can I give you some advice? Life is an adventure and your fifties are a great decade. You have a half century of life experience, you've probably paid a massive wedge or all of your mortgage, if you have kids they're probably grown up and while yes you want to help them in life it's not full on 24/7 care like when they were little, AND the chances are you have good health.
In my fifties I have done another degree, published a book, changed from being a paid employee to having a portfolio career and told the OH last night as a result of reading this thread that we need to take more holidays. Much of this (the degree, giving up a secure and interesting full-time job, writing the book) involved risk. Some of the risks I took didn't pay off, some of them paid off in spades.
I understand the logic of keeping your head down for 4-5 years but I also understand the mentality that says 'fuck it, let's go for it and have some adventure/fun/risk, let's chase the dream'.
Not having a go, just giving you my point of view on things and hopefully a bit of food for thought
Tuono
Winger
I'd love to do that anarl but I only get £7200 state pension and being self employed since the age of 20 I've got a shite private pension and a couple of isa's. Looks more like Marsden and Fulwell than Madeira and France for me when I do retire.
They have but I'm on about the perception by workers that the work is 70% rather than 100% when they do the shift
We've had a few who don't last because they didn't grasp that .
Exactly
I'm in the middle , I'm prepared to live quite frugally but get out a bit earlier.
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DaveH
Striker
That £1.5k is also on this site:Been mentioned before, but a lot of the basic/moderate/comfortable lifestyles stuff is ridiculous.
The one by my work pension provider says spending on clothes in a 'moderate' retirement year is £1,500
Who the hell spends that much on clothes?
The amount per year for 'Moderate' is also more than I make in a year now
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I guess everyone is different and that is going on the average person. Some people seems to spend a lot more than others. I generally don't seem to spend a lot day to day, but do make some big purchases (usually thinks like power tools or computer stuff). I just took my salary after tax, took away the monthly mortgage payment and multiplied that by 12. That give me a figure below moderate and I feel I'm doing pretty well at the minute.
What I didn't consider is my wife's earnings, but also I was not considering her pension in our retirement either. I have 13 and 17 year old kids and they are expensive to run.
As a very quick estimate, it feels like the low end of moderate could give me the same lifestyle I have now. That almost looks like it is there to scare people into working longer and then having a very big pension.
Darlo1973
Striker
Thanks - that's an interesting perspective.
I'm not saying that I would be devastated to be made redundant now. I'm financially comfortable not to have to panic and take the first job available so I could easily take a year or so out as a "grey gap year".
The first issue is that I wouldn't have a clue what to do with myself. I wouldn't want to be one of those people whose retirement turns into waiting for the pub to open each morning. I need to come up with a hobby which would keep me busy for a few hours a week.
While things are financially OK now, I've still got 3-4 years left on the mortgage so once that is done I will be in a better position to make some decisions about financial freedom whether it means staying here, moving back to the NE or abroad.
The
Striker
my WPP is via L&G, on one part of the site it says moderate £31,000, when you go into the retirement planner its advising £35,900, and that's using lowest impacts, i.e. single, outside of London.
I'm sure they've done their homework in some way, but the figure does seem to be plucked from someone's arse.
I'm sure they've done their homework in some way, but the figure does seem to be plucked from someone's arse.
sounds absolutely spot on that. Certainly better than doing a job you hate.I have been asked to become a fishing bailiff around a large reservoir.
4 days on and 4 days off.
Collect money, walk around, chat, get commission (cash in hand) and can take the dog.
Never thought I would become a jobsworth in my life
Ohh and free fishing.
Might as well give it a go.
Just never know what is around the corner but you are spot on.
Retirement gives you that choice, if you don’t like it you can walk away without thinking about the consequences.
42
Striker
Especially when you consider those figures are about average full time salaries, and you'd be no longer paying pension contributions, NI, mortgage, childcare, work commute costs etc.
The clothes example further up is a similar thing, when you're older, you don't really care about what you look like, and perfectly happy with supermarket & primark clothing. So £1,500 a year is just silly, could imagine some younger ones paying that on designer gear etc
BILLY BUS PASS
Winger
Find one you can trust and one you can work with, remember time is money so this easy churned out question/answer games aren’t too time taking for him but to sit down and do proper projections takes time and he isn’t gonna do it if there’s nowt in it for him, he’s running a business not there to he ya best mate.
Also most funds or companies won’t touch an unregistered person so ya kind of need them if you want to invest.
DaveH
Striker
So you are saying that if a FA makes me sit and do forms where I make up figures for micromanging my spending, then it takes up a lot of time for which I pay an FA? Are you saying they give you these pointless exercises to drag it all out?
I'm not expecting anything for free, I just don't want to waste my time and money making up numbers then basing decisions on them. I'm only interested in the bigger picture stuff - what my income will be with each option. I can work out if that is enough myself.
Hooky
Midfield
This is virtually identical to me, I'm 48 and have a spreadsheet with the pensions, ISA's and other savings in it. Know virtually to the penny where everything goes. Prioritise Pension>Max out ISA>high rate savings. Pensions are employer matched one so I cannot move them at the moment.
I'm mortgage free and I'm starting to get a decent pot so I started looking at IFA's and they all wanted a big chunk up front and full control of my money then 3% each year. Well they cannot do anything with the pension, ISA is vanguard which is doing better than I hoped and the high rate savings is the rainy day pot. I cannot see what I IFA would get me over what I can do myself.
DaveH
Striker
Your own spreadsheet is the way forward.
My pension company (USS) had a projection tool. But when I looked at it they calculated projections based on a day to day basis. Looks like they took your annual salary, broke that down into a daily salary, applied their rules to it, made a significant rounding down, and then accumulated that over the years to retirement. As a result, what they had on their projection site was significantly lower than reality. The pension rules were complicated so it took a while to make sure I had the right stuff in there.
I messaged them and they replied pretty much to say "so what". They said it was an indicator and you should never make a decision on it, but the difference was hugely significant. Part of me thinks they want people to remain in the scheme longer than they need to be, in the hope they will make more money.
Just make sure if you do your own spreadsheet, the model is correct.
It's almost as if it's in their interest for people to panic and put more into their pension than they need to.
I reckon £24k a year will do me fine. Combination of annual pension and drawing money down from my lump sum until state pension age. Missus has no pension so just using her savings for stuff like holidays, small day to day expenses,etc
42
Striker
And probably the same reason these moderate, comfortable retirement required incomes are canny bit overstated
