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Retirement


SurreyMackem said:
We are in the comfortable bracket but because we don't spend £1500 a year each on clothes and run 2 new cars included in those figures we have lots of disposable "income" which last year allowed us to have 6 holidays to Europe, Canada, Alaska, Greenland and Carribean.
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I pretty sure that comfortable bracket also includes a new kitchen and bathroom every 10 years as well. I mean how many people change these every 10 years. Both of mine are 10 years old and they look as good as the day they were fitted.
 
DaveH said:
That is also a concern.

I'm on a DB pension that does increase relative to inflation and so does the state pension, but that is rarely at a 1:1 ratio. So mine should increase as inflation does but I do think I will be a little worse off each year. That is one reason why I had been thinking £40k per year and I'm now wondering if £45k is the better target, to build myself in a bit of resilience.

The other side of that is the fear factor keeping me working. Someone posted a good video on that a few weeks back. I think when it comes to the time it is very easy to look and think 'one more year'. For me, each year extra is quite significant. It gives me another year of pension payments, another year of savings and one less year of DB early retirement penalties (about 3.5% per year). So every year gives me more regular income, more savings and reduces how wide I have to spread the savings. But I have to work for that. I need to not let fear rule that continuation of working and get out as soon as I can afford it.
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And to counter that gives you one less year of freedom to do what you want when you want (within reason obviously 🤣).
 
Fascinating thread although I struggle with a lot of the terminology.
58 and think I will have to work another 4 years before calling it a day.
My financial advice is through prospera wealth management and investments are on the st James's place platform.

Both parties have contacted me to say that prospera are ending their partnership with st James's place.
St James's place have been in touch again saying a New advisor from another company will make contact.

I'm thinking about staying with prospera as I have found them excellent and have a good relationship.
Anyone in same boat or dealings with either?
 
onionspal said:
Fascinating thread although I struggle with a lot of the terminology.
58 and think I will have to work another 4 years before calling it a day.
My financial advice is through prospera wealth management and investments are on the st James's place platform.

Both parties have contacted me to say that prospera are ending their partnership with st James's place.
St James's place have been in touch again saying a New advisor from another company will make contact.

I'm thinking about staying with prospera as I have found them excellent and have a good relationship.
Anyone in same boat or dealings with either?
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St James Place don't have a very good reputation and their fees are less than transparent and some of the highest in the sector.
 
onionspal said:
Fascinating thread although I struggle with a lot of the terminology.
58 and think I will have to work another 4 years before calling it a day.
My financial advice is through prospera wealth management and investments are on the st James's place platform.

Both parties have contacted me to say that prospera are ending their partnership with st James's place.
St James's place have been in touch again saying a New advisor from another company will make contact.

I'm thinking about staying with prospera as I have found them excellent and have a good relationship.
Anyone in same boat or dealings with either?
Click to expand...

Really depends on whether you want personal advice from a human or you are happy to do the research yourself. There are plenty of cheap execution only platforms available.
 
DaveH said:
That is also a concern.

I'm on a DB pension that does increase relative to inflation and so does the state pension, but that is rarely at a 1:1 ratio. So mine should increase as inflation does but I do think I will be a little worse off each year. That is one reason why I had been thinking £40k per year and I'm now wondering if £45k is the better target, to build myself in a bit of resilience.

The other side of that is the fear factor keeping me working. Someone posted a good video on that a few weeks back. I think when it comes to the time it is very easy to look and think 'one more year'. For me, each year extra is quite significant. It gives me another year of pension payments, another year of savings and one less year of DB early retirement penalties (about 3.5% per year). So every year gives me more regular income, more savings and reduces how wide I have to spread the savings. But I have to work for that. I need to not let fear rule that continuation of working and get out as soon as I can afford it.
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The flip side of ‘one more year’ is that you have one less year of healthy life/retirement and you can’t buy back those years.

I actually left a year earlier than planned (I left just as I was about to turn 55) as due to a merger I was going to have to learn a whole new set of processes just to do exactly the same job. I just did not have the motivation, enthusiasm or energy to do this, so resigned. I am so glad I did this, as whatever happens in the future, I have had an extra year of retirement when fit and active.

This was over 2 years ago, and I can honestly say that the extra year’s salary/one less year that I would have needed to drawdown my SIPP has made no practical financial difference.
Appreciate that you have DB considerations. Can you not just defer the DB until you are 60 to avoid penalties and live off ISAs until then?

We spend around £40k per year for the 2 of us which fits in with my pre-retirement forecasts and don’t miss out on anything that we really want to do.
We’ve just returned last week from 10 days island hopping in the Azores, went almost straight to the Lake District for a couple of days hiking, then off to watch the tennis at Queen’s next week. So your forecast of needing £40-45k pa to cover your lifestyle seems very reasonable to me.
 
DaveH said:
That is also a concern.

I'm on a DB pension that does increase relative to inflation and so does the state pension, but that is rarely at a 1:1 ratio. So mine should increase as inflation does but I do think I will be a little worse off each year. That is one reason why I had been thinking £40k per year and I'm now wondering if £45k is the better target, to build myself in a bit of resilience.

The other side of that is the fear factor keeping me working. Someone posted a good video on that a few weeks back. I think when it comes to the time it is very easy to look and think 'one more year'. For me, each year extra is quite significant. It gives me another year of pension payments, another year of savings and one less year of DB early retirement penalties (about 3.5% per year). So every year gives me more regular income, more savings and reduces how wide I have to spread the savings. But I have to work for that. I need to not let fear rule that continuation of working and get out as soon as I can afford it.
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My DB projections for if I retired at 60, combined with SIPP, would provide a monthly income that’s equivalent to my current net salary.

If i clear the mortgage by then, I’d be better off then than I am now.

Which is appealing/nicely shocking, but I don’t really want or need any more money. I’m quite happy with my standard of living. I’d prefer 3-5 fewer years of working and to retain my health and sanity.
 
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Ned Land said:
My DB projections for if I retired at 60, combined with SIPP, would provide a monthly income that’s equivalent to my current net salary.

If i clear the mortgage by then, I’d be better off then than I am now.

Which is appealing/nicely shocking, but I don’t really want or need any more money. I’m quite happy with my standard of living. I’d prefer 3-5 fewer years of working and to retain my health and sanity.
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My pension is less than 50% of my previous net, and combined with what I anticipate drawing from savings/lump sum will take me to around 75% of that. Given I was saving a minimum of 25% of my net each month, often more, i think I'll be ok
 
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