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I don’t worry about filling my time, I worry about funding it all.. 😁🙄
having a dog, running and biking, with a bit of trail building and FE (then FC) volunteer work kept me well out of trouble when i was 'self employed', i think i did about 5 weeks work over the course of a year. cocking about with bikes and all the rest of it. i didn't know where i found time to work. i keep looking at the sums. honestly, look at any of the sites that have income/vs expenditure tables and do your maths, then get out when you can. time cannot be bought.
What to do with my time if I didn't work? Blimey. (Leaving aside parents in their 80s with early signs of dementia...)
£40 a year for membership of 2 cycle clubs gives me options to do group rides 7 days a week, on and off road. That's in addition to having time to train for and ride more audax events.
In the summer I could be marshalling 2-3 times a week.
If it's pissing wet I've a gym membership that gives me access to 2 local leisure centres and at least 50 classes a week.
There's yoga, tai chi and pilates to try at the local village hall. Plus walking groups, history group, a wine tasting group...
There are 3-4 local outdoor volunteering groups that look good round here.
I could take my time gardening and decorating rather than squeeze it in on busy weekends.
There's language learning and box sets I've never got around to.
There's committee work I could go back to.
And I suspect loads of stuff I haven't even thought of!
Operation " getthefarkout" is underway. I am 60 later this year and could get VR - hoping for confirmation soon. Mid week picture thread here i come. I am a little concerned about filling my week after 38 years of working - it will take some adjustment - I just need to give myself time to "pivot" (hate that word in business). Get back to some sadly neglected hobbies, friends and walks with the Mrs.
I have done the maths and I reckon I should probably try and pick up something part time to give some slush funds for extras. It won’t be a tax efficient thing to do in this tax year, but I don’t think not working at all till April would be a wise thing for me mentally..
If you're worrying about "tax efficiency" then you can afford to retire. 😂
What to do with my time if I didn't work?
Plenty would keep me occupied, assuming my health keeps reasonably ok, lots of outdoors stuff, travel, visiting friends and family, going to gigs, the list goes on!
The current VSS scheme at my place was tempting, but the figures didn't add up for us with our outgoings in the next few years being quite high, eg ongoing mortgage, university costs, all this means a few more years' work yet for me :-/
Volunteering, Board memberships, visiting family, reading, cooking, studying, museum visiting, wildlife watching, golfing, lunching with wife / friends, learning instrument, planning trips, organising life admin, language learning, writing.......
Most of this list sounds like a terrible way to spend your hard earned free time, most of it sounds too much like work to me
Retired at 51, so 5 years ago. My advice would be:
- do not even think about using an IFA unless you fully understand their total cost over the years. And when you do, you will realise how poor value they are when most of the info is in the public domain, and they are not independent.
- do not use online simulator. They don't know you. You know you, so build a big old spreadsheet with all the parameters, inflation, growth, tax, IHT, projected expenses etc ... and play with them making safe(ish) assumptions. Update as you go along.
- understand how to NOT pay tax legally, including on the first 25% of your pension pot as draw down. Understand Pension Tax Relief up to 75 without recycling.
- understand how to NOT pay tax legally, including on the first 25% of your pension pot as draw down. Understand Pension Tax Relief up to 75 without recycling.
As good a place as any to ask. But, the 25% you can take tax-free, do you have to do self-assessment for that and declare/detail it ? Then each year after that if you're taking less than the 25% initially ?
I'll be taking some of my 25% but not all of it as soon as 55, however don't know yet if i'll be taking the remainder of the 25% at all.
Re: the 25% - your Pension provider notifies the Inland Revenue - nothing needed there from you. If you draw down then they will usually deduct the tax from the amounts you draw down. If you decide to start having a pot pay out, the necessary tax is deducted at source by your pension provider, and your tax code updated.
Thanks chap.
Still in holiday mode here, a couple of weeks after rather unexpectedly finishing up, and part way through second week of time away from home with my wife and various of the offspring and partners. Having a lovely time with big walks, nice rides, sunshine and beer in Northumberland.
The odd time will be on Monday, when all are back at work bar me…
Current plan is to spend a few hours early in the week updating my professional CV and LinkedIn stuff, then go swim, ride my bike, walk the dog and see what unfolds over the following week or 2.
I am still entirely undecided on what I want to do, and thankfully have a bit of space to work it all out.
some of the input on here has been invaluable, I’m so glad I resurrected the thread, though perhaps somewhat selfish in doing so, but thank you for all the ideas and experiences 👌
Having started fairly late with a pension, I was looking to be set for retirement whenever the government sees fit.
Worked for the same company man and boy for 22 years, took redundancy and set up my own business 15 years ago - 53 now, soon to be 54. Mrs STR is self employed and has no personal pension. We don't have any savings of note and don't have a big expensive house to downsize when we decide to wind it back (we were just very slow at moving up the property ladder - two houses in 30+ years).
Always earned a fairly decent wage and never struggled to have whatever luxuries we fancied - or frittered a load of money we could have saved...
Have been putting £500/month into the personal pension for a few years now and that was set to mature at circa £250k, so not a huge pot - dented recently by various world events and most recently Mr Trump. Have a lot of work on at the moment, so upped that to £1k/month to lift it to a £500k pot if the input is sustainable for the term. The plan was to work full tilt to 60, then maybe scale it back a bit with easier work for a few years, closer to home - not working away, get a dog, be a bit more chilled until I could actually pack up altogether
The business has taken an upturn over the past few years - with a bit of a set back a couple of years ago, but this year has seen it really go mental. A lot of hard work and a good dose of luck tbf. This year we are set to turn over £2.5 million, with profit projected at £500k. Next year will be potentially similar and the company I contract to has (at this moment) a 7 year portfolio. Mrs STR and I are sole directors/employees of our company
So, the outlook has now changed considerably - maybe now a 3-5 year plan to comfortably put my feet up/travel a lot/whatever. If the work continues indefinitely, will put someone in place to run it all and take a wage to live a nice lifestyle - is the plan, but as ever, always waiting for something to go tits up. Next installment of this story will probably involve me working until I'm 80, or die, whichever comes sooner
Sounds like things are aligning very well for you, great it’s working out in your favour 👍
will put someone in place to run it all
Why not sell the business at the peak - then you have a lump sum with no worries about a future downturn
will put someone in place to run it allWhy not sell the business at the peak - then you have a lump sum with no worries about a future downturn
Because the business as it stands probably has little saleable value. Fixed assets are small and there are no secured contracts for the business on a long term basis. Each contract is won on tender and typically lasts 3-6 months. My personal confidence for future work rests on the fact that 90% of my work over the 15 years in business has been for the same company (a big multi national). I've built a reputation, have a good relationship with the directors and know where I need to be pricing wise.
But, it could all end after the next job for whatever reason, there are unfortunately no guarantees. I'm an electrician by trade though, so will always have work.
There is the possibility of tying the company into a framework agreement which would possibly add a saleable value
If you are making 500K profit then why isn't the business putting 60K a year into you and your wife's pension. Add in counting back unused contributions and the reduction in corporation tax and it seems the obvious thing to do
If you are making 500K profit then why isn't the business putting 60K a year into you and your wife's pension. Add in counting back unused contributions and the reduction in corporation tax and it seems the obvious thing to do
Because this is the first year of making big profit and the bank balance has only looked very good for a few months so far. I generally spend something prior to year end anyway - a couple of vehicles year end just past. At some point this year, it's definitely a discussion I'll be having with my pension adviser. I was going to make a £20k lump sum contribution a couple of years ago, but needed the cash in the bank for cash flow - I like to make sure there's a big cushion before disposing of big amounts. Was £50k into the overdraft paying wages 6 months ago (knowing that the money was coming in though).
Actually at my last pension review, my adviser was pushing towards putting cash into property rather than upping the pension massively. A conversation will be had with a proper financial adviser at some point.
I think you really do need to get some advice. As company directors having even one year of shovelling money into a pension x2 as higher rate taxpayers is huge in terms of uplift through tax efficiency and huge in compounding interest over a few years.
Congratulations on the business success. I'd second the maxing out pension contributions for you both - with countback for previous years. If you are likely to be a taxpayer when drawing your pension (and most will be with the full state pension at the personal threshold), pension saving is tax deferred not tax avoided. BUT... you will get compound growth before that tax has to be paid (and may pay tax at a lower marginal rate than you claimed when paying in), so pensions are the most effective savings scheme. If you are very close to retirement age, then this is moot and an ISA or property might be a better option. But IANAFA, but I do save everything I can into my pension at the expense of other things for that tax deferral. I originally planned for this to be IHT free to the kids, but now I will be spending it instead. Probably on them 😉
One point, don't pay yourself too much, because once your threshold income exceeds £200,000, your allowance reduces by £1 for every £2 your adjusted income rises above £260,000. The minimum this can taper to is £10,000
Bear in mind that pension/ISA reform is prime target for Reeves this autumn, so unless you want to fund the freeloaders to an even greater extent, then I would be getting it sorted ASAP.
So unless you want to fund the freeloaders to an even greater extent, then I would be getting it sorted ASAP
Unfortunately if you want to invest in a pension some of it will inevitably end up in the pockets of bankers and the like.
I saw nickjb's reply before jamz's, and thought it odd. Reading jamz's afterwards made me realise Nick's was excellent.
but I do save everything I can into my pension at the expense of other things for that tax deferral.
I always have been and will probably continue to be in the live for the moment camp.
If I want something now, I'll have it, rather than saving it for a day when I might be dead.
Obviously I want to have a bit put away and with the way things are panning out that could be a bit more than I'd planned for - and for that, I will take advice
Well, that’s first week of not working, after 2 weeks of planned holiday, just about completed.
still not really decided what I want to do but am feeling like the idea of something part time, interesting and keeping the mind challenged may be the way to go. Have had a look at a few non exec board type things, government, police, health service, charities etc, generally 3-5 days per month and well rewarded, am thinking a couple of those types of things could work, and help supplement the funds a bit…
Part time jobs are tricky for me... It's mostly bar work or cleaning work I can see.. And I couldn't do that as I'd end up chinning the customers, lol.
I'm looking into van driving but I don't really want to go self employed like Uber or Amazon as I don't want to be pratting about with tax declarations and all that crap.
Just refreshing to bring onto same page as the ‘redundansized’ thread…
week 2 here, still pondering part time options.
Get back to work you lazy slackers, early retirement is a selfish indulgence according to the Grauniad! Work till you croak of stress or exhaustion, it's what your country expects 🙄
Get back to work you lazy slackers, early retirement is a selfish indulgence according to the Grauniad! Work till you croak of stress or exhaustion, it's what your country expects 🙄
Having had my updated civil service forecast last week, croaking of stress is looking the most likely option
Having had my updated civil service forecast last week, croaking of stress is looking the most likely option
☹️
Because this is the first year of making big profit and the bank balance has only looked very good for a few months so far
NP. You can make pension contributions and take advantage of past underused years. This has been a great boon.
Only 180 paydays to go before I retire! And that'll only happen if I get my act together now. I'll report back next year when I'll have 180 paydays till retirement!
There might be a jump at some point in the future where the remaining paydays his 120 and hopefully it'll be in less than 5 years and no more than 7 🤔
If we all worked longer, what are the youngsters going to do. Nah, certainly planning on going in my early 60's
The youngsters can do other things. It's not like there is some limited number of things to be done.
Four months in and loving every minute.
Back in the UK for a month and then back out to Europe for another MTB trip.
60 months to go. My pension has been so beaten up that it is a shadow of what was promised when I started. Galling to know folk leaving now with enough of a lump sum to buy a house and I'll be going with enough to buy a second hand mid sized Korean family car with high mileage and a few dings.
60 months to go. My pension has been so beaten up that it is a shadow of what was promised when I started.
If you’re unhappy with your pension provider, or a financial adviser has given you poor advice, you might be able to claim compensation for any money you’ve lost and the stress it’s caused. Here’s how to do it, step-by-step.
Get back to work you lazy slackers, early retirement is a selfish indulgence according to the Grauniad! Work till you croak of stress or exhaustion, it's what your country expects 🙄
great letter in response!
I agree that the original article was a load of rubbish and asking people to carry on working isn't the answer. I do take exception to part of that letter though:
"It’s true to recognise that we’re in an advantageous position that others aren’t, but few of us have the luxurious boardroom pensions he suggests we have. Rather, many of us reached the position by long working hours, and saving for such a retirement. Putting money into saving for a future, rather than buying a new car each year, doesn’t make me responsible for low growth of the UK economy. "
All my parents/step parents retired early and trot this out as though:
a. We don't work long hours.
b. We all constantly buy new cars (insert luxury item of the moment, flat screen telly, mobile phone, avocado on toast, blah blah) - we don't, because we can't afford it.
c. They did any financial planning whatsoever rather than just getting to the age where they could press the 'take final salary pension' button.
d. They conveniently brush over the fact they all hit the jackpot on property.
When I explained to my dad that to achieve what he describes as a modest final salary pension of £1200/month whould have needed to save at least £300k on top of paying off the mortgage his mind was blown. Absolutely no way he would have got anywhere near that with the job he had. It might not be a boardroom pension but it is still luxurious compared to what will be achiebvable for many in similar careers.
Agreed, and I think combining the misconceptions therein, along with the utopia pushed by the pension companies that retiring with a pot under 500k, and not kicking close to 1M, is going to leave you well short, is causing a load of worry, much of which has no solution other than taking the leap of faith.
Agreed, and I think combining the misconceptions therein, along with the utopia pushed by the pension companies that retiring with a pot under 500k, and not kicking close to 1M, is going to leave you well short, is causing a load of worry, much of which has no solution other than taking the leap of faith.
I think having a mortgage is one of the biggest factors in when you can or cannot retire. If i didn't have one, the day i turn 55 i could retire without too much in the way of worries, but sadly i do, so i'll work until viable to not have one. Moving to a smaller home could make that work, but arguably next year we're moving to a bigger one 😀
Companies closed final salary pensions because the contributions per employee were about 3x that required* for defined contribution pensions. When I explained this to friends when they closed ours a couple of years ago, they were shocked at just how valuable their pensions were. The combination of increased housing costs and lower pension contributions is the timebomb for this working generation. The government are hoping to take a tax cut (see IHT on pension pots), rather than intergenerational wealth transfer. Retire early if you can. Downsize. Transfer wealth to help the kids early. Live relatively modestly.
*Typical final salary pension accumulation is 1/60th - 1/80th of salary per year and HMRC valuation for annuity tax purposes is a factor of 20x hence the constribution is 1/3 to 1/4 of annual salary. To be compared with 5-8% that most companies will pay, the savings to the company are obvious.