Retirement

[42]

So I'm a lower rate tax payer and was advised by FA in a free consultation to go SIPP rather than S&S.
Was beginning to doubt this but doing a simple calculation of putting in 10k a year for 5 years and assuming 4% growth and only calculating the 25% of sipp being tax free, then I've worked out I'll be about 4.5k better off in a sipp. Over 10years that would be 9k better. That was quite quick working out but does it sound about right to you knowledgeable folks
Thinking that with hopefully more growth and possibly able to offset some of the remaining 75% of the sipp with my tax allowance then I'm thinking for me sipp is definitely financially better. We do have about money in S&S already as that was my original plan till speaking to the FA.
Hoping to go in between 8-10 years somewhere around 60 and bridging gap till I get state and civil service pension at 67. Could take working pension early but would like to plan on having option not to as you loose quite a bit (although this is a calculation I'll do nearer the time.)

It depends on what your annual civil service pension will be & how much you'll draw down from other pension, and where it all fits in with tax. If you're taking SIPP first & deferring CS pension until SPA then you probably won't pay any or very little tax on the SIPP as you get you're 12,570 personal allowance as well as the 25% tax free. However if you do this, you will then pay a lot more tax on your CS pension, so it's swings & roundabouts.

 

[DaveH]

I updated my pension spreadsheet yesterday to account for all the rule changes the provider put in last year, and a change in wages coming up in a few months. I'm on a defined benefit so it makes it easy to predict what I'll get.

I worked out I would be crazy to work until I'm 67. Going until 62 I'd definitely be comfortable, 60 looks fine. 58 (my target) will at least need a discussion at the time. I'm close to being able to do it, but it would not need much unforeseen stuff to throw that out. On the other hand, if I have another jump up the wage ladder in the future, that might seal it. At the very least I think approaching 58 I'll have a choice, retire and risk it, go part time (possibly to a low skilled job) to pay my way but nowt else until I'm 60, or work full time for another year.

That is still 10.5 years away, but nice to feel the end is in sight.

Then my wife reminded me that our boiler is on it's last legs, the windows are shit and need replacing and the garage roof is not looking great, and we have two teenagers......

 

[OldNewtown]

I updated my pension spreadsheet yesterday to account for all the rule changes the provider put in last year, and a change in wages coming up in a few months. I'm on a defined benefit so it makes it easy to predict what I'll get.

I worked out I would be crazy to work until I'm 67. Going until 62 I'd definitely be comfortable, 60 looks fine. 58 (my target) will at least need a discussion at the time. I'm close to being able to do it, but it would not need much unforeseen stuff to throw that out. On the other hand, if I have another jump up the wage ladder in the future, that might seal it. At the very least I think approaching 58 I'll have a choice, retire and risk it, go part time (possibly to a low skilled job) to pay my way but nowt else until I'm 60, or work full time for another year.

That is still 10.5 years away, but nice to feel the end is in sight.

Then my wife reminded me that our boiler is on it's last legs, the windows are shit and need replacing and the garage roof is not looking great, and we have two teenagers......

Lovely dream then life comes along and kicks you in the bollocks.
Like all things, you can plan all you like but you can't prepare for the unexpected, or is it the Spanish Inquisition? One or the other

 

[TAD]

Similar to you but age ranging 60-62. I don't mind doing a bit of temp work for extra money but don't want to go part time as still tied and restricted on holiday length etc. however I bet biting the bullet and deciding you do have enough can be difficult.
Sister in law has terminal cancer in her 40s and that's a bleak reminder that life is short and (more) money isn't everything.

 

[DaveH]

Lovely dream then life comes along and kicks you in the bollocks.
Like all things, you can plan all you like but you can't prepare for the unexpected, or is it the Spanish Inquisition? One or the other

True. The best you can do is plan based on what you currently know. With a pension you can't really build in a contingency, you will either have the money of you will not. If that doesn't work out (10 years is a long time for my retirement) then be prepared to adjust. The date will get clearer and clearer as I get closer. I'm just not going to bank all my hopes on going at 58, because of the disappointment impact of missing that.

 

[YorkMackem]

Similar to you but age ranging 60-62. I don't mind doing a bit of temp work for extra money but don't want to go part time as still tied and restricted on holiday length etc. however I bet biting the bullet and deciding you do have enough can be difficult.
Sister in law has terminal cancer in her 40s and that's a bleak reminder that life is short and (more) money isn't everything.

That's what I've ended up doing and I'm seriously regretting it. I do 4 shifts a week, but they're 3 evenings and 1 full day, so I never have 2 days off together. It also means that I cannot get to any games.

 

[DaveH]

Similar to you but age ranging 60-62. I don't mind doing a bit of temp work for extra money but don't want to go part time as still tied and restricted on holiday length etc. however I bet biting the bullet and deciding you do have enough can be difficult.
Sister in law has terminal cancer in her 40s and that's a bleak reminder that life is short and (more) money isn't everything.

Part time would suit me. When I do retire, I'd quite like to make sure I set aside at least one day a week for cycling. So I can see myself working a couple of days, then having a cycling day, perhaps work another day, have a gardening or hobby day, then the weekend. Use holiday for longer breaks.

Or if that part time job is working from home, that could be 2-3 days working from a holiday cottage, but out for short morning walks, country pub for tea and save the longer days for the non-working days.

 

[JAZZMANB]

Similar to you but age ranging 60-62. I don't mind doing a bit of temp work for extra money but don't want to go part time as still tied and restricted on holiday length etc. however I bet biting the bullet and deciding you do have enough can be difficult.
Sister in law has terminal cancer in her 40s and that's a bleak reminder that life is short and (more) money isn't everything.

I'm just calling it soft retirement
62
Pack in completely, break the work cycle , have a year off ,try and get my funds working for me
Years time I'll know next step
Planning the the rest of your life stops you moving

 

[OldNewtown]

True. The best you can do is plan based on what you currently know. With a pension you can't really build in a contingency, you will either have the money of you will not. If that doesn't work out (10 years is a long time for my retirement) then be prepared to adjust. The date will get clearer and clearer as I get closer. I'm just not going to bank all my hopes on going at 58, because of the disappointment impact of missing that.

I went at 60 with the view that I could pick up a daft job for beer money. Wife gave me 3 months to do nothing before making a decision. I realised that we could manage with a few adjustments to our lifestyle. Once that realisation hit all thoughts of working went out the window. Decided life was far more important than work.

 

[DaveH]

Planning the the rest of your life stops you moving

For me it has done the opposite.

I had been in my previous job for 5 years, was not being challenged on an intellectual level, but was working like a dog after they restructured to roll at least 3 jobs into mine. But where I was at was in financial trouble, had frozen pay rises and what they were paying staff had fallen way behind everyone else. That was when I started my retirement plan spreadsheet and the realisation came that I was going to be well short of my target retirement age. So I looked for other work and left, for a lower stress job on more money.

It helped me look constructively at my career and also think about what I wanted longer term. I had an idea of the role and pay bracket I wanted, what skills and experience I needed to gain and the feeling that 3-4 years in the new role I could be in a good place for that move. Exactly what I was looking for fell in my lap without really looking, the Friday before Christmas. Hopefully they will have the contract sorted next week and I'll hand in my notice 2 years into that job, ahead of schedule.

The older job was close to home, I'd cycle to work, the people were really nice, and there were perks such as a really good gym and 5-a-side twice a week. It would have been easy to sit comfortable and sleepwalk into a much later retirement. Mapping out rest of my life was the kick and motivation to improve it.

 

[Darlo1973]

I went at 60 with the view that I could pick up a daft job for beer money. Wife gave me 3 months to do nothing before making a decision. I realised that we could manage with a few adjustments to our lifestyle. Once that realisation hit all thoughts of working went out the window. Decided life was far more important than work.

Having a part-time job for beer money sounds like a good idea to keep you occupied but the problem is that it does limit you in terms of doing things on the spur of the moment such as going away for a few days because you feel like it. Maybe better to have some kind of hobby or small business which you can make some money out of but only work when you want to.

 

[OldNewtown]

Having a part-time job for beer money sounds like a good idea to keep you occupied but the problem is that it does limit you in terms of doing things on the spur of the moment such as going away for a few days because you feel like it. Maybe it would be better to have some kind of hobby or small business which you can make some money out of but only work when you want to.

In my case, we preferred the flexibility of popping away for a night or two. That might have taken a little more organisation if I had a part time job. Not impossible I agree but it's quite nice to be spontaneous.
As to filling my days, I have no problem with that and quite often its the simplest thing that can give the greatest pleasure. A walk through the Dene, spotting a deer and just watching it for a while. Simple pleasures.

 

[pfoz88]

I think you misread the poster mate , he wasn’t on about having a 100k pot


Hopefully when retired you are mortgage free, kids are independent and don’t need your help any more , no NI , no Pebsion contributions to make , no savings for a rainy day … just enjoy it or what was the point
I reckon if a couple can have joint annual pension of £40k they will be fine to retire in 50s

Must be nowt worse that being in mid 50s and still having a big mortgage

Divorce can often mean this is the case.

 

[ChrisK]

I'm 66 years old and self employed so don't get any employers contributions, I already get the state pension and still pay into my private pension. Sticking money into an ISA means I have access to money if and when I need it without paying tax on it. I just don't trust this or any government to not move the goal posts.

If you had your time again or offering advice too younguns, would you go Self employed or take a company job with the benefits it comes with like holiday/sick pay and of course a company funded pension?
Fair play too you for still grafting at 66.
I went the company job route was lucky got a good pension so retired early, but got a few mates like yourself who will be working till 67 at least, they all regret going SE.

 

[JAZZMANB]

For me it has done the opposite.

I had been in my previous job for 5 years, was not being challenged on an intellectual level, but was working like a dog after they restructured to roll at least 3 jobs into mine. But where I was at was in financial trouble, had frozen pay rises and what they were paying staff had fallen way behind everyone else. That was when I started my retirement plan spreadsheet and the realisation came that I was going to be well short of my target retirement age. So I looked for other work and left, for a lower stress job on more money.

It helped me look constructively at my career and also think about what I wanted longer term. I had an idea of the role and pay bracket I wanted, what skills and experience I needed to gain and the feeling that 3-4 years in the new role I could be in a good place for that move. Exactly what I was looking for fell in my lap without really looking, the Friday before Christmas. Hopefully they will have the contract sorted next week and I'll hand in my notice 2 years into that job, ahead of schedule.

The older job was close to home, I'd cycle to work, the people were really nice, and there were perks such as a really good gym and 5-a-side twice a week. It would have been easy to sit comfortable and sleepwalk into a much later retirement. Mapping out rest of my life was the kick and motivation to improve it.

Good stuff ,I meant more so the last years before the official retirement age
Making the jump is a big step
I think we all question our future at a younger age

 

[Tuono]

The only thing I regret is not putting more into my private pension when I was younger. I used to work in London in the winter then as soon as it got a bit warmer I'd be off to travel around Europe and further for about 6 months then back to London to work in the winter. I did this from the age of 20 to about 32 when I married a multi millionaire Brazilian so had to settle down. So you could say I retired in my 20's rather than my 50's. No way would I go paye even though I'd be better off financially in later life. The marriage didn't work out btw and we divorced which cost me a few bob.

 

[Fletch]

The only thing I regret is not putting more into my private pension when I was younger. I used to work in London in the winter then as soon as it got a bit warmer I'd be off to travel around Europe and further for about 6 months then back to London to work in the winter. I did this from the age of 20 to about 32 when I married a multi millionaire Brazilian so had to settle down. So you could say I retired in my 20's rather than my 50's. No way would I go paye even though I'd be better off financially in later life. The marriage didn't work out btw and we divorced which cost me a few bob.

Pics

 

[ChrisK]

That sounds very similar to what a few of lads I grew up with done.
Spent a lot of there younger years working in London on buildings sites, earning good money often cash in hand.
Like weekend millionaires when they came home splashing the cash
They were bit daft tho as they let there NI contributions slip, they now a bit gutted to find that there state pension will be short, unless they make up the years of NI missed.

 

[Paddy O'Dors]

If you had your time again or offering advice too younguns, would you go Self employed or take a company job with the benefits it comes with like holiday/sick pay and of course a company funded pension?
Fair play too you for still grafting at 66.
I went the company job route was lucky got a good pension so retired early, but got a few mates like yourself who will be working till 67 at least, they all regret going SE.

Most jobs don't come with owt but SSP nowadays, and they only partially fund your pension, usually with as little as possible. You're still obliged to contribute yourself which in turn leads to a lower standard of living in the present.

 

[BILLY BUS PASS]

If you had your time again or offering advice too younguns, would you go Self employed or take a company job with the benefits it comes with like holiday/sick pay and of course a company funded pension?
Fair play too you for still grafting at 66.
I went the company job route was lucky got a good pension so retired early, but got a few mates like yourself who will be working till 67 at least, they all regret going SE.

Yards closed in 1988 I was 24 I’ve never had a staff job since then. All the money is in the same pot it’s how you decide to spend it. You will get extra cash by being self employed or Ltd Company it’s how you handle it.
If ya just spunk the extra then the regret isn’t having a company job it’s “I wish I’d made proper provision for my retirement “

For balance I tried retirement at 55 and I was too young I’m 59 next month and gonna have another go when this job finishes.