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whilst still living at home at ages 19 and 22, are both working, have their own cars and are financially independent. We may think about starting to charge them nominal dig money though
Not really very independent then if they're living rent free and on your goodwill......
I'm also stuck in the "one more year" loop
When I was looking at retirement a wise person said "You'll always be able to find a reason to keep working". I probably spent 18 months longer at work because of this or that project and having a decent handover etc and guess how much satisfaction I now get from having done the honourable thing.
None whatsoever. Once you step away from it you realise how insignificant all those work worries are, but then a couple of years into retirement you or someone you know has a life changing health issue and those extra months at work make even less sense.
TLDR - if you think you can get by financially the time you get by retiring early can never be bought back with any salary.
Not really very independent then if they're living rent free and on your goodwill......
well they are our kids and we don’t grudge any of it
whilst still living at home at ages 19 and 22, are both working, have their own cars and are financially independent. We may think about starting to charge them nominal dig money though
Not really very independent then if they're living rent free and on your goodwill......
new round here but from your 2 posts I’ve seen you seem to be trying to convince yourself that not having kids is the best thing in the world.
Our boys, whilst still living at home at ages 19 and 22, are both working, have their own cars and are financially independent. We may think about starting to charge them nominal dig money though
Got to agree with alpin's main point here. They ain't financially independent.
To be clear I'm not passing any judgement on that, just stating that the two sentences are in contradiction
Our boys, whilst still living at home at ages 19 and 22, are both working, have their own cars and are financially independent. We may think about starting to charge them nominal dig money though
Got to agree with alpin's main point here. They ain't financially independent.
To be clear I'm not passing any judgement on that, just stating that the two sentences are in contradiction
I also feel that there is a contradiction there - I paid rent to my parents but I don't think I was financially independent until I had my own place and had to pay to sort my own repairs/improvements out.
Not criticising what you are doing, as a parent I understand it, but I wouldn't class them as financially independent yet.
Fair enough, they cost us a lot less now than they used to I guess !
You'll know when they are financially independent when they start paying attention to the correlation between the thermostat and the gas bill!
Both my wife and I have retired, me last year at 62. I have a few pensions from various jobs, I cashed one in, taking £25k lump sum, and the rest (about £120k) drawing down monthly to last until the state pension kicks in. My wife is doing roughly the same, so monthly income is about £3k. We also have savings for capital items if needed. (We're mortgage free.)
£36k is plenty for us, we don't do holidays and rarely go out to eat, neither of us drink. Always a good idea to track spending over a few years to be sure what you need.
Am I understanding you correctly – you have a total of £120k, plus the £25k lump sum (does your wife also have her own pension), are mortgage-free, have retired at 62 and are comfortable that will see you through to state-pension and then you will be able to live on just that? Could you also downsize if you need to? Do you have any dependents?
I ask as my pot is around that, my wife has a smaller amount (but for the life of us, we can't find out how much is in her local authority pension). I'm coming up 58 and am starting to eye up early retirement if I can. We could downsize, but we have two daughters who are yet to start 6th form (start in September) so they have at least 5 years of financial dependency on us.
Am I understanding you correctly – you have a total of £120k, plus the £25k lump sum (does your wife also have her own pension), are mortgage-free, have retired at 62 and are comfortable that will see you through to state-pension and then you will be able to live on just that?
No, sorry, my post isn't very clear.
The £25k lump sum was part of the £120k pot. I have 3 other pots which are another £150-200k ish.
Wife has a pension about the same size as mine. The state pension, as it is now, will keep us in food etc. The pensions and savings will allow us to be comfortable and help our son. I fully accept that I've been lucky being able to save, buy a house when they were cheap, and work for companies that put a lot into my pension.
Ahh okay, so I am a million miles away from where you are 🙁
Some people on here are worrying about retiring on an amount that is more than I earn 😆😆😆
Some people on here are worrying about retiring on an amount that is more than I earn
LOL - so true.
I will be drumming into my kids to start to save for their retirement as soon as they can though. I wish I had parents that guided me a bit more than they did (they were lovely, and would do anything for me, but financially, they weren't too astute). Fortunately, we will have a larger than average mortgage-free home by the time I retire, so we could downsize to release some £££££s. I hate to think what will happen to people that weren't able to buy their own home and have little or no pension.
Some people on here are worrying about retiring on an amount that is more than I earn
Yep, I’ve had a giggle over some what I’d say was a good wage to actually get as a worker 🙂
The other thing you should think is where …….
I’m living the dream in Spain and it’s definitely the sort of place to retire to, there’s just no beating the Mediterranean climate.
Whats the fun in having all the time in the world but miserable weather. 🙂
I will be drumming into my kids to start to save for their retirement as soon as they can though.
This, and explain compound interest.
As I said above, I've been lucky to work for companies that paid into my pension from the age of 21. Added my contribution and it all adds up. But with the cost of everything now I know how lucky I was.
hate to think what will happen to people that weren't able to buy their own home and have little or no pension.
They'll be working till they're nigh on dead.....or they'll have inherited.
I think there's going to be a big gap in the coming years between those who have little more than a pot to piss in and those who inherited.
Much of the wealth is currently tied up in relatively few people's pockets. Those pockets are generally in the older end of society and they make it harder for the younger generations to acquire wealth.
So much property is tied up with baby boomers who live in houses much bigger than they need whilst their offspring are making do with an overpriced flat (likely bought by other boomers on a buy-to-let mortgage and using the income to find their retirement) and putting off starting a family as they can't afford it.
Tbh the best lesson I learnt from my parents was to not to be poor 🙂
you seem to be trying to convince yourself that not having kids is the best thing in the world.
No convincing needed.
Seen friends and family have kids and few of them seem happier with kids than they did before. Majority stop at one so it can't be that great...
Bikes n+1.
Doesn't seem to be the case with kids.
The other thing you should think is where …….
I’m living the dream in Spain and it’s definitely the sort of place to retire to, there’s just no beating the Mediterranean climate.
Whats the fun in having all the time in the world but miserable weather. 🙂
What can you do in blistering 38C with never ending, mind numbing, irritating sun that you can't do in a civilised 15C, overcast and a lovely refreshing moderate breeze? The only thing I can think of that's better in Spain is sitting on a beach and surely that gets boring after about two hours?
The other thing you should think is where …….
I’m living the dream in Spain and it’s definitely the sort of place to retire to, there’s just no beating the Mediterranean climate.
Whats the fun in having all the time in the world but miserable weather. 🙂
What can you do in blistering 38C with never ending, mind numbing, irritating sun that you can't do in a civilised 15C, overcast and a lovely refreshing moderate breeze? The only thing I can think of that's better in Spain is sitting on a beach and surely that gets boring after about two hours?
For me it's the food... It's almost impossible to have a bad diet unless you make a concerted effort.
Where as in the UK it's the opposite.
And yes the sun is almost unbearable this time of year on the south coast, so you just do as the Spanish do.. Most activities take place before lunch or in the evenings... It's a different way of life for sure, but a better one, IMO
I think alot depends on what you are used to earning and spending.
If you take home £3000 pcm , and at the end of the.monthalmost all of it has been used without a chunk being invested then clearly £300 a aeekis going to be a test.
If you're used to taking home £2000 month, Nd saving say a quarter of that , then surviving on £300 a week will seem easy.
Always remember that most posters on here are the e lucky ones with good income and savings. Whilst around 1/4 of people are looking down the barrel of state support as their only income in retirement.
there’s just no beating the Mediterranean climate.
In winter perhaps. But from May to October it's bloody horrendous.
Always remember that most posters on here are the e lucky ones with good income and savings.
I'll always be grateful for the opportunities I was given but it's not all luck. Some of took, sometimes difficult, decisions that have put us where we are today.
there’s just no beating the Mediterranean climate.
In winter perhaps. But from May to October it's bloody horrendous.
Nah.. july and august, I agree, the best months are march-may and september-november, IMO... nice and hot without being too mad.
Always remember that most posters on here are the e lucky ones with good income and savings.
I'll always be grateful for the opportunities I was given but it's not all luck. Some of took, sometimes difficult, decisions that have put us where we are today.
We are fortunate to have retired early. The how much question is a big one. The most useful tool I have found is the snoop app ( others are available e.g Emma) Snoop gives accurate info on your spending and how to budget.
I'll always be grateful for the opportunities I was given but it's not all luck. Some of took, sometimes difficult, decisions that have put us where we are today.
Very much this. I've taken a few big gambles with jobs and relocations, a couple paid off, a couple didn't. Yes my boomer parents moved themselves up the social/income scale but I fully expect the care sector (quite rightly) to see the benefits of that rather than me.
For me - luck or circumstance - buying property 35 years ago and maxing out what we could afford to pay and then not moving- at times it was taking a large % of our income and it felt like a real gamble at the time. Because of complex circumstance we ended up with a small flat each next door to each other in a rough area that gentrified
Working in public service with decent pension provision would be the other. The trade off is low salary but decent pensions
Decisions - not having kids was the biggest one. I would not have been able to retire at 60 had we had kids because I would have needed to buy a more expensive property and kids are expensive. Not owning a car would be second to that I guess
I never earned more than £35000 pa and our joint income never exceeded £60 000pa and usually significantly less
It’s all very well talking about Spanish climate and sitting in a hammock in the Alps… but didn’t Brexit kinda mess that dream up for those with the wrong passport?
As usual baby boomers get the blame for everything. Most of my friends (born in the 60's and 70's) are women, most did not have the luxury of a pension or well paid jobs, most will still be working into their late 60's. Luckily my savvy father told me at the age of 25 to start a pension (self employed), thank goodness for his sage advice.
I'm still working at the age of 66 (part time) and have only just received my first state pension. Obviously I'll be taxed on this, but can't see me being able to take out my own small pension for at least 4 years. Although I was lucky enough to use some of a tax free lump sum for some house maintenance.
And just be careful about relying on inheritance for the future. It may be gobbled up by care fees or as time passes you may be disinherited by a family fall out. As a friend once said you can't miss what you never had in the first place.
You'll know when they are financially independent when they start paying attention to the correlation between the thermostat and the gas bill!
Son2 is financially independent - except he pays me monthly a huge amount for a Type Rating loan (when he can, there is no rush for him). But his attention to the electricity bill in his rented flat was remarkable! Son1 is not really independent on a modest PhD stipend, with a large student loan. But he will have a flat deposit coming to balance Son2's past expenses!
I'm lucky as I enjoy what I do, feel lucky and would miss the science immensely. That I am well rewarded is an added bonus. I took some hard decisions on pension savings over 20 years ago, and probably over-payed into AVCs at the expense of other niceties. Now in a DC pension, I am doing the same and doubling down (34% of salary for tax effciency) for the home stretch. Ten years from state pension, I expect it will be means tested at some point so have planned not to need it or Mrs Tired's. Retirement at 60 and something else like uni teaching looks an attractive option.
Bikes n+1.
Doesn't seem to be the case with kids.
You can take your bike to the pub, but it's not going to buy you a drink. Eventually your kids might 😉
It’s all very well talking about Spanish climate and sitting in a hammock in the Alps… but didn’t Brexit kinda mess that dream up for those with the wrong passport?
Nah, it messed it for a couples who can’t show they have a yearly income of €36k. (Or a big pile of money)
The only issue is you wouldn’t be able to take that part time delivery job to top up your pension 🙂 (non-lucrative visa)
Always remember that most posters on here are the e lucky ones with good income and savings.
Sounds a bit trite but sometimes I think you have to make your own luck but it’s a fair enough comment.
What can you do in blistering 38C with never ending, mind numbing, irritating sun that you can't do in a civilised 15C,
TBH it’s not that all year round, the roads and the amount of gravel trails that can be on your doorstep is amazing, they are also more used to cyclists and usually more courteous in the car towards you.
Looks like you're going to need a bigger pension pot.
Luck has certainly played a part in the relative positions on the housing ladder that my 3 sons have ended up (purely down to the wealth of their partners parents) and as a result will determine how much they can put into any pensions for their futures. Knock on effects of financial benefits are an easy thing to overlook as are the added expenses of being poor.
Sounds a bit trite but sometimes I think you have to make your own luck
Given that the biggest driver of how affordable your house is likely to be, and the likelihood of having t'awsumz pension policy are your year of birth, could you advise please on the best way to make this luck....
Knock on effects of financial benefits are an easy thing to overlook
Very much this.
The whole idea that we as a society all have the same chances it absolute bollocks.
Generational wealth is going to be one of the bigger influences on if/when someone gets to own a house or retire in the future more so than it currently contributes.
for me its both a combination of luck ( and my age) and decisions I have made as detailed above
I do feel very sorry tho for folk wanting to buy a house now tho. Its basically unaffordable for public servants in most of the UK. My flat was 2.5 times my salary, now its worth ten times the salary for that same job
Bad luck is my parents are still alive - im 64 they are 90. No generational wealth has come my way yet 🙂
I'm a long way short of this magical £500k figure (less than half) but I think I'll be fine, mortgage free with no dependants.
I'm 60 next year & dropping to 4 day 0800 to 1500hrs working times for two years max. then retiring fully.
To bridge the 5 years from 62 to state pension I'll buy an annuity with the largest of my 3 private pensions, this should give me an income of just over £900 a month which will cover all my bills & living expenses including £50 to run a car & £50 socialising money a week.
I'm going to leave the other pensions to grow for a year or two.
The whole idea that we as a society all have the same chances it absolute bollocks.
correct. We are a more unequal and less socially mobile country than we were
I do feel very sorry tho for folk wanting to buy a house now tho. It’s basically unaffordable for public servants in most of the UK. My flat was 2.5 times my salary, now its worth ten times the salary for that same job
like him or not, but that is exactly Gary’s Economics’ point. And will get worse not better.
Given that the biggest driver of how affordable your house is likely to be, and the likelihood of having t'awsumz pension policy are your year of birth, could you advise please on the best way to make this luck....
No 🙂
Game of life first rule, you have to work it out yourself 🙂
like him or not, but that is exactly Gary’s Economics’ point. And will get worse not better.
Yep,he’s very marmite but worth listening to.