MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
I'm still a way off retirement, but reach a significant age in 6 months, namely 55. I've been paying into various pensions since I was 18, two of which I've got a combined 27 years in so far, and will be on the way to get 40 years by retirement. These are average salary pensions (one much lower as was in my early career). The other two were private 'money purchase' with employer contributions, which have sat there, mainly losing money the last few years, but more recently, those losses have been recovered in the pot's value.
I'm looking at accessing the tax free amounts from these two 'non-essential' pots. Not looking at more as I'll be hammered on tax.
Why ?
I've seen too many close friends or relatives either not make it much into retirement, or end up with a retirement they weren't expecting soon after retirement - i.e. one of the 'partners' health has deteriorated enough not to be able to do those 'plans' you look towards.
One friend has downsized and retired early with her husband, as he's lost two close relatives the same age before they could 'retire'. My BIL has lost his brother and his brother's wife now has terminal cancer - both recently retired. He's also lost his sister. BIL is in poor health and is yet to retire, and it's restricting what SIL (my wife's sister) can do now, and she's fit and active - their plans are going to pot even before they retire. Two other colleagues retired slightly early, but both their partners are now rather poorly, again restricting plans.
Another colleague has just negotiated severance, a couple of years early, and she can manage on that without drawing on her pension pots.
My plans, get a people carrier van, and do the touring UK/Europe, camping kit in, bikes in, SUP in, possible over night in it and get out and about. I get a lot of holidays, and long weekends are a real possibility - throw everything in and off we go.
The 'dip' into the two pots won't affect my overall pension by much at all, and I really don't know how my spine will be in 12 years time - that will be 20 years after badly breaking it, and it gives problems now.
So the question, have any of you revised your plans as you approach retirement. Seen too many close friends/relatives get to that stage, and then, despite having the money, can't do anything fun with it.
I've just tipped 50, and have been very conscious throughout my working life of the need to save for retirement. The only 'plan' I have currently is, frankly, to pour as much money into pensions as I can so I can retire as soon as possible, and on current calculations that look like 58.
I get the point about "stuff might happen, enjoy it while you can" but, equally, stuff might not happen, and you could well live for another forty years. It's a difficult balance to strike.
its worth noting if you access your pot in any way that you're limited to paying in £10k/year (including employer contributions etc) into pension pots in future. This might not have any impact on your situation, but one to consider
Yes I have revised my plans and in particular my retirement age. I’d always thought, up until the last year or so, I would work through to retirement age but I now plan to stop working next year at 58 and take my civil service pension at 60. The vast majority of my cs pension is in the old scheme which kicked in at 60 and given various issues at work, very low morale and a relocation of my office to the other side of London next year, i can’t see any real point in carrying on. Added to this are a few people I knew who have passed at a young age or suddenly when apparently still in their prime which makes working for the sake of it a bit less desirable.
Mrs kilo and i both went into the workplace straight from school and been continuously employed since then in relatively stressful roles (yes I managed to pick the stressful bits of the civil service) so a few years off while we are fit and mobile and for the first time in eight years or so not burdened with carer responsibilities seems like a good option.
a relocation of my office to the other side of London next year,
it might be worth looking into whether you can negociate redundancy instead of moving (that might already be the case) - you'd at lease get mandatory redundancy pay but your hr policy might force them to top up some more
Having worked in construction for the early part of my career, late 1980's, there was no pension provision at the time.
Starting my own was not on the cards.
For the last 10 years I have worked for an employer who has a workplace pension.
The only way I can look at it was that I did enjoyed doing all the things I wanted to do in my 20's.
My plan is to keep working until retirement age and see how I feel then whether I carry on working or see if the pension pot will be good enough to chuck in the towel.
Starting my plans now - it's only in recent years I've been seeing other people's 'retirement plans' change rather too quickly before they get the time to enjoy it. Happy to carry on where I am (work) until early/mid 60's, as I'm building that pot and you generally can't access that one quite the same, but should an opportunity come, I may go earlier. I'll probably do something part time or volunteer somewhere though.
Won't be thinking about not working until my two adult kids are standing on their own two feet and have moved out, then I really could consider retirement as we won't have the same outgoings supporting them.
I'm not blowing any of it, but the notion of 'working' and waiting until you retire to carry out 'plans' could very quickly be dashed.
Unfortunately my journey will just be a bit of a pain rather than impossible (from 25 -35 minutes each way on the bike to an hour and a halfish on the tube) so no dice with redundancy.
About a decade ago I decided that instead of aiming for retirement I was aiming to have a quality of life now.
I'm not sure that early retirement is quite as fulfilling as many people think it is. There are only so many rounds of golf and cruises that you can go on.
Pffft, retirement. I’m 55 and I don’t think I’ll ever be able to retire. I have saved into a private pension since my 20s but it’s effectively worthless. Decades of self employment mean nobody else is contributing so all I can blame is myself and the UK for having pretty much the worst pension provision in Europe.
Work till I drop, then live in poverty, crying into my gruel. That’s my plan. Will be the same for many, many Gen Xers and Millenials I’m sure.
Accessing only the tax free amount doesn't trigger the Money Purchase Annual Allowance. Plus I'm contributing to a Local Government Scheme. If I took more than the tax free then the MPAA would be triggered.
Hoping that the French push through easy Visa's for UK nationals who own a property over there so I can split time 50/50.
Plenty of bits and bobs jobs over there to keep a bit coming in and I can work remotely on the stuff I do over here.
Need another 10 years of contributions into pension before it can happen though
I'm only 38 and started seriously planning a couple of years ago. I've always had a pension to pay into, and overpaid into it as much as possible. But decided that while I was working 2 jobs I was going to max out my ISA contributions as much as possible (as well as overpaying earnings over the 40% threshold into my actual pension). I figured that the ISA is probably the more tax efficient way to do it in reality because any future pension is likely to be taxed at the ~20% rate anyway.
The plan (economy permitting) is to be able to quit or substantially scale back the need to work by 55-57 (i.e I should be mortgage free, I can draw down the 25% of my workplace pension to put into an ISA so it's tax free, and leave the rest for another ~10 years, and the ISA should be enough to live off in the meantime). Depends how the stock market does though, I'll hopefully time it for whatever bubble occurs in the 2040's. So far it's a bit of an emotional rollercoaster as 20 years out the projected value has already halved since I started, crossing my fingers it rallies again at some point ?.
The aim is to be retired a decade before my parents reach the point where they need care so there's time to enjoy all those retirement things before it comes to juggling hospital appointments, care homes, etc.
About a decade ago I decided that instead of aiming for retirement I was aiming to have a quality of life now.
I’m not sure that early retirement is quite as fulfilling as many people think it is. There are only so many rounds of golf and cruises that you can go on.
This is my view. In my case, quality of life is less work, so I am basically part time but spread over the year IE blocks of work followed by blocks of non work
"It's all a gamble, the only thing you can be sure of is that life won't turn out the way you expect" - Euthymol
. There are only so many rounds of golf and cruises that you can go on.
For defo but I’ve already been told I’m not having a life of sitting on my fat arse watching people fixing tractors on youtube 🙁
We have plans to travel and some actual tasks to do (refurbishing bits of our place in ireland for example and living there half the year or so), can probably justify having a dog or two, etc.
On the other side when my dad stopped labouring on building sites at 68 he pretty much did f all from then on and was happy.
I think that if you have a heavy physical job then retirement is a completely different kettle of fish.
I'm 62 soon and I'll probably never retire - but luckily my business [although a very modest income] pretty much runs itself and I can work anywhere in the world.
I have a smallish pension that was limited by large outgoings on kids (had one, went for another and got twins!) but we are mortgage free and pretty capital rich frankly. MrsSB has recenly had a sizeable inheritance and we're now living some of the life we couldn't afford over the last 20 years.
We're finding it harder to put up with the miserable UK winters and are considering spending more time away over the winters esp as we can get some cheap Emirates flights via daughter #3.
I've seen too many people either become ill or simply die far too early - we've got to make the most of what we've got now.
I can draw down the 25% of my workplace pension to put into an ISA so it’s tax free, and leave the rest for another ~10 years, and the ISA should be enough to live off in the meantime).
Double check whether that is more efficient than just taking the pension and tax free lump in parallel. According to STW's favourite financial adviser taking the tax free sum in a lump is one of the biggest mistakes people make as it means they pay much more income tax overall.
I'm currently paying far more into my pension each month than I actually get in my salary " cheque", which is kinda weird. Weirdly enough my COVID share options will be a significant make or break for my retirement fund. They're currently trading at almost three times the option price. Only 16 months, two weeks, one day and 7 hours to go...
About a decade ago I decided that instead of aiming for retirement I was aiming to have a quality of life now.
I’m not sure that early retirement is quite as fulfilling as many people think it is. There are only so many rounds of golf and cruises that you can go on.
OTOH I've never been "expensive". I enjoy mountain bikes, classic cars, motorbikes, sailing, and other expensive hobbies.
But the bikes are Vitus and/or 2nd hand.
The car is an MG Midget (the entry level of old cars)
The motorbike is a 20 year old Harley Davidson (not the absolute cheapest, but won't depreciate)
Dingy sailing is no more costly than cycling
etc.
I don't feel like I'm missing out on the income I'm saving, in fact I still have some leftover in my current account most months which I spend on the here and now. I think about it more like "I'm in the demographic that could buy a T5 and a Santa Cruz, but I'd rather the Vitus and not have a car," and all that money not-spent is years cut from my working life. A £30k campervan is 2 years net income after housing costs now, or more like 8 years with 20 years compound interest. Do I want a cup of tea in a car park now, or 8 years earlier retirement .......
I think that if you have a heavy physical job then retirement is a completely different kettle of fish
For sure, but I think that if you have a job you enjoy then partial retirement is a completely different kettle of fish. I used to enjoy mine, now not really at all.
I'm 55. A few slightly older friends are already retired, but realistically, I've got 5 years before I can access private and initial Civil Service pension without penalty. 60 is also the point youngest will hopefully be through uni. MrsMC is 2 years younger.
Plan is I retire at 60, she does 2 more years part time and then retires, we then downsize and do the travel thing.
There's a few volunteer groups I'm keen to get involved with when I retire, and I've no problem with taking a part time job if necessary to see me through to state pension age if necessary.
I've started actively tracking mine in the last couple of years. Check the fees on your pensions, one of my older workplace pensions had been transferred to reassure who, the robbing bastards, were taking 5% a year in fees for doing absolutely nothing and having a frankly terrible user platform. Took 6 months to transfer to vanguard. Appears I have some money 'stuck' in suspended funds due to Russia (Eastern European UT) - not that I knew the underlying assest were russian (russia isn't eastern europe in my view) any way I'm having to write that off.
I can't access my main pension to 65, and my current civil service pension is NRA 'normal retirement age' so if they decide in the next 25 years to up the national retirement age it will instant devalue that pot to the tune of approx 4% per year increased. Really really screws with the planning.
Anyway I have a massive mortgage, so the plan is to use a lump sum to pay it off and hopefully be able to retire earlier than 68. I honestly don't think I could work that long, I struggle to think if I can make another decade let alone 25 years....
Without kids retirement in late 50s would be very achievable
I’m currently paying far more into my pension each month than I actually get in my salary ” cheque”, which is kinda weird.
@thegeneralist I'm sure you are, but just checking you are aware of the annual allowance? Tax on your private pension contributions: Annual allowance - GOV.UK (www.gov.uk)
I nearly fell foul of this a few years ago and had to pause my contributions mid-year.
Probably at the age now I need to think about it - but as i too was self-employed on building sites then a student I haven't benefited from compound interest in my lowly pension pot. Didn't own my own home until 4 years ago! But very low mortgage due to high deposit.
But I like my job and I’m well paid and now shoving as much as I can into a pension, so I’ll be able to retire at 78.
Plus, i'm a euro passport holder so i can go live somewhere cheaper like Portugal.
if you have a job you enjoy then partial retirement is a completely different kettle of fish. I used to enjoy mine, now not really at all.
There's also the option of doing something completely different once you've retired from your "career". That's what I did. I had enough of a pension that, with my wife's wages, we could cope. I ended up doing some voluntary work and also working in a bike shop part time.The latter changed my life significantly in terms of skills, outlook and, particularly, friendships. It led on to other jobs, all of which I feel enriched by.
For defo but I’ve already been told I’m not having a life of sitting on my fat arse watching people fixing tractors on youtube 🙁
The bloody cheek of it!
I get the point about “stuff might happen, enjoy it while you can” but, equally, stuff might not happen, and you could well live for another forty years. It’s a difficult balance to strike.
Both sets of parents still going in their 80s....
I'd quite like a Blade Runner style fixed termination date, would make planning so much easier...
My dad is 98 next month and my mum was also in her 90's. Living well too - fully mobile and sharp as a tick.
My wife's taken a break from her usual 'role' after being treated badly in the last few jobs, and walking away with decent settlement agreements. She's now just working a day a week, so me going 'early' isn't on the cards now, but a major shift in what we do for leisure time is.
I'd not really paid much attention to retirement, or pre-retirement plans until more recent years. When talking to an ex-colleague recently, he said retirement wasn't what they had hoped. He's still fit and active, just hit 70, does loads of hiking, but his wife has a minor fall in the garden, but ended up with some bad breaks - thats when they found osteoporosis, and her hip hasn't healed well and she can't do the walking etc, and her mobility is severely limited. He's a higher rate tax paying pensioner, but can't spend it on holidays and travelling.
I've seen other colleagues go 'early' on packages, and are having a whale of a time, accessing their pensions a little early or managing for a few years off severance pay.
There are only so many rounds of golf and cruises that you can go on.
If those are your retirement ambitions, then yeah, stay working pal!
My retirement plans are very much like the OP. Drop a lump sum into a camper van, and f. off around Europe with bikes and paddle equipment for 2-3 years. Following that, S. America and the weirder parts of Asia. I'm planning on 60, with my OH retiring at the same time at 55. Bring it!
Yes. I'm 50 and decided to go part time. To be honest I probably have 'enough' but not ready to stop altogether. Maybe that will change and I will decide to stop altogether. My wifes health has really pushed the thinking. She may not be around in 10 years time, so more time together now is important over more money in my pension in 10 years.
The challenge right now is most of my money is tied up in my pensions which I can't access for 7 years. So the last few years it's been about us maximising ISA's and other investments we can use between now and when I'm 57.
Must add we've just done 10 years of looking after MIL and FIL, and I'm hoping my folks are still going to keep on going OK as they are at the age FIL died at now. I don't want another 10 years of looking after elderly parents (it will happen though).
I turned 50 last week.
Having worked for charities all my life, my pension pot is woeful compared to many.
That said, I am pouring in what I can to savings, pension and mortgage being paid off.
Beyond that, an acceptance that I will be working to an older age, likely part time and in easier jobs than I currently do.
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Mrs S and I were just discussing this the other day. I’m 46 and being paying into pensions since I was 18, mostly local government pension scheme. Mrs S is 50 and a GP and has been maxing out her NHS pension contributions. We have also been saving well into ISAs. There is no way she can carry on in her job for another 10 years but there must be enough in our combined pensions to manage an earlier retirement. I think we’ll pay for some proper scenario planning advice in the next few months to get a plan in place for her to retire, or semi retire, within 5 years, me within 8 years of possible.
Next year .aged 55 I aim to reduce my working hours to 30hrs a week , average .
Then try to drop to 21 hours the year after.
Aim is to try to get used to living on a reduced income, then maintain that by slow draw down of my ppp, rental income plus a few investments maturing.
Last year I amalgamatied all my individual pensions into vanguard which I should have done years ago . The fund performance and charges for the bad investments has probably cost me £100k over the last 15 years.
I don't want to be stuck at work in my 60s whilst I'm still able to cycle , ski , windsurf, sup , golf etc. when I'm unable to do those I think I will start fishing again.
we’ve got to make the most of what we’ve got now.
Everyone is different,but since a young age ^^that^^ has been my mind set.
So retirement was a piece of urine.
IMO,by far the most valuable thing you can take to retirement is good health,because as said above,I have had too many friends and family that were ambushed before they got to that field of dreams.
We are going to downsize, move back north and then dirtbag it around Europe as much as possible. Bivvy/ cheap campsites, minimum cost climbing/biking. Crack on like we are 20 again, and on the same shoestring budget.... hopefully. Pensions, hmmm ...not so good. Might look at what singletrackmind has done re vanguard or similar.
As i said in this thread https://singletrackworld.com/forum/topic/advice-for-someone-with-no-pension/
'I have purchased property and land.
The main pension plan is to open a horse livery yard when I get a bit older as i have a small farm (purchased, not inherited).
This passive livery yard income with a bit of sideline farming and working part time should provide enough income.
I will develop some land as i get older and liquidate assets for income.'
I have actually just went part time now (semi retirement?) at 52.
Longevity doesnt feature in my family.
IMO,by far the most valuable thing you can take to retirement is good health,because as said above,I have had too many friends and family that were ambushed before they got to that field of dreams.
This is a lovely sentiment, but you're still going to be smacked in the face by the cold hard fact that your good health won't pay the bills.
60 this year but with no great pension provision, however have already gone down to 4 days a week & worked out that if I work to 70 I'll have worked same amount of days as working to 67 but by earning less now, working longer & delaying drawing pension it would be overall less tax paid & greater pension received. Lost a couple of good friends & family in their fifties so know life doesn't go on for ever, but my wife wants me to live to 134 and I think more than 65yrs being retired would just be silly.
I’m sure you are, but just checking you are aware of the annual allowance?
Cheers, yes. Unfortunately it won't affect me as it's above my pay grade ( though it might have done before it increased). Also, I seem to recall that you can carry over allowances from previous years, so that's another factor
I wish I knew when I'd die so I could plan around that 🙁 I'm 51 and starting to think more about retirement but although, thanks to a recent inheritance, I'm doing OK financially I still don't know whether I should be planning based on living to 60, 70 or 80+ As my mortgage is paid off I just switched to paying the same into my pension but I'm going to be mad if I die at 55 with decent savings but never having taken the time to enjoy retirement life (I have no dependents to worry about either)... Currently aiming to retire late 50's but to do that I'd have to do a couple of years of IT contracting first but haven't yet convinced myself that's a good idea.
About a decade ago I decided that instead of aiming for retirement I was aiming to have a quality of life now.
I’m not sure that early retirement is quite as fulfilling as many people think it is. There are only so many rounds of golf and cruises that you can go on.
Totally the opposite of my experience, and that of all the other retired people I know. We quit work in our early fifties (taking a fair old financial hit admittedly) however have never been busier and never been happier. There are a zillion things to do when you retire, all you need is some imagination. And we haven't played a single round of golf or ever been on a cruise. Retirement has been totally fulfilling. Doesn't require a lot of money either, once your mortgage is paid off.
Yeah, we won't pay off our mortgage so definitely downsizing/ relocating is needed for us to retire. Somewhere hilly with access to trails and crags.
I’d quite like a Blade Runner style fixed termination date, would make planning so much easier…
I'd always thought this; still do. People in the modern world seem to live too long: they suffer crumbling joints, failing faculties and a million and one other problems. Many don't seem happy, they use up a lot of resources and clog up the housing system. What's the point?! There are the lucky few who live healthily and happily into their nineties, but we can't all have that: 18 years of being a sponge, 40 years of working, then 40 years of leisure just doesn't add up.
Despite having a couple of private pensions and my NHS pension, I always thought I'd end up working until I dropped. Being issued my "Blade Runner" style termination date at 53 was a total life-changer... (Stage 4 prostate cancer... "maybe 5 years"). Life-changing in a positive way: Now 55, I'm retired and generally feel quite well at the moment. My termination date has made me focus and re-evaluate. I'm genuinely happier now than I've ever been. Obviously I'd prefer not to have the symptoms and side-effects, but I now have a better understanding of what is important to me and I appreciate life so much more. Everything IS amazing 🙂
Sorry, slight tangent, but what I'd suggest is don't worry, over-plan or wait for retirement. Try and enjoy life now. If you don't enjoy your job then try and change it or work a little less. If that's not possible then try and learn to love what you do.
This will all be over very soon; don't wait for a future day that may never come.
you’re still going to be smacked in the face by the cold hard fact that your good health won’t pay the bills.
However, if you still have your health, you can do a bit of work here and there to pay the bills.
If you run out of money, you can earn some more. If you run out of time, all the money in the world won't buy you any more.
My mum died a few years back aged 68. Good friend died last year aged 54.
My old man is now knocking on for 80. Has more money coming in each month than he knows what to do with, but his health means he enjoy it. He can't walk more than 10 steps without oxygen. He basically lives in the house.
It's scary. Work during your best years only to squander your time in retirement due to ill health.
No thanks.
I'm 41 and am kinda semi retired. Worked a little last year. Have a job lined up for September and October. GF works part time and brings in more than enough. I've got a fair bit in various investments that should be enough to buy a small house at some point and cover my retirement.
Admittedly we made a decision a few years ago that we didn't want to work 40-60 hours a week for the next 25 years in a place we didn't really want to be in. Sold everything we didn't need, self converted a van and buggered off.
Been on the road for two years now and have no plans to buy a place yet. Can easily see us living this lifestyle for a good few years, yet.
If and when we eventually settle in a place I'll have a small carpentry workshop/business and potter about.
Would rather use my current good health now instead of dreaming about what I could have done when I'm old and decrepit.
However, if you still have your health, you can do a bit of work here and there to pay the bills.
But there's quite a large difference between being healthy enough to work and being healthy enough to, well, not be dead.
If you run out of money, you can earn some more
Oh, well that's alright then. I wonder why all the people of 'normal' working age who don't have enough money to live on have never thought of this.
Try and enjoy life now
This is THE best advice one could give.
Having been poor in my 20's and finding that quite grim enough already, I wouldn't wish being poor in old age on anyone.
On the other hand I can't think of many situations where having more money in old age will lead to a particularly bad outcome.
For those reasons, while I think I've found a sensible balance, I am saving quite aggressively for old age.
I can't help but suspect a lot of the "jam today" postings are made from a position of unrevealed security, often inheritance, enough at least to keep the poverty wolf from the door.
For those of us without that luxury, the risk is much sharper.
I think having had a very active life, retirement will just mean more, with work not getting in the way. I'll have time to properly sort the garden, rather than just doing the essentials to keep it nice, have time to go out for leisurely rides rather than hammer it commuting to work each day, time to ride all my bikes.
It's a generational thing as neither my folks or my wife's folks did much exercise, so it plays a massive impact. When we got married, I saw my in-laws as old. They weren't much older than I am now, but they weren't chucking themselves down mountains, riding too fast, falling off and getting up again. They weren't jumping on the bike for a 10 hour ride.
My plan is to be tipped into my coffin with all the broken bones I've had (bike related of course). 'Retiring' just means time for stuff I love doing.
I'm seeing the impact of not exercising in friends and family not much older to me. I'm not perfect, I drink more than I should, but getting old and being active is really important. I don't think I would have recovered from breaking my spine if I wasn't fit. The recovery relied heavily on the strength of my muscles in my legs, core and back - you don't get that sitting still.
Exercise is the key to a reasonable old age.
I could save more into my pension or i can go racing DH with the boy.
I can leave my money in my pension, or i can go racing Europe when i hit 55 with the boy.
There's a pattern here 😀 Mrs Weeksy isn't a masive fan of the plan... but she accepts that's what's happening 🙂
No setb plans but I'm hoping I'll be able to retire before state pension age. I've recently started dumping more money into my pension to try and up the chances, we shall see how that lasts and what life throws at me, but going 3.5 days a week from 60 and completely by 63 ish would be nice if I can achieve it
One of my reasons for stopping working down south was moving back to Scotland to become a teacher giving me reasonable pay, decent holidays and a reasonable pension. Pension has been degraded but I still have a reasonable amount in the old scheme. I plan to go at 60 because I can't see how you can go to 67 (which is what new staff will be going to). We've got 2 members of staff who have gone past 62 and both have had serious health issues (relatively healthy lifestyles) one heart attack one stroke.
I'm slightly annoyed that, compared to the pension I joined, it'll be quite a paltry amount, which will almost double when I'm 67.
There's a lump sum element which if I held in to 67 more than quadruples. I'm taking that as proof positive that the actuaries don't think I'd make it those extra few years.
I can’t help but suspect a lot of the “jam today” postings are made from a position of unrevealed security, often inheritance, enough at least to keep the poverty wolf from the door.
Not picking on you, but taking the point generally:
It's an accelerating sliding scale - the longer you work, the more money you will have, but the less you will need. At some point, this crosses over into having "enough", at which point you no longer 'have' to work if you don't want to.
"Enough" is heavily dependent on things like whether you own your own home; whether you have ever been divorced; what you want to do for any kids; what sort of lifestyle expectations you have and for how long. The tricky thing is to decide when you have "enough" - everybody has a different number.
It won't happen in your 20's or 30's except for a tiny number of people, but for people who have been employed for most of their working life and have any sort of pension, it is likely to happen in your 50's or 60's.
I opted for sooner rather than later after major surgery for cancer changed my outlook on life a bit. We own our own home (we've lived here for 30 years), and have a modest lifestyle and a £14k PA pension. If I run out of money before the state pension kicks in, then I'll need to go back to work. I will never have enough money to make a meaningful provision for my care in old age, so I'll throw myself on the mercy of the State (or a ticket to Switzerland) if/when the need arises.
Coming to this decision was not a quick process, and not without worry, but at the moment, I don't have any regrets. My point is to err on the side of more time / less money rather than the opposite, as it's much easier to correct if you get it wrong.
I can’t help but suspect a lot of the “jam today” postings are made from a position of unrevealed security, often inheritance, enough at least to keep the poverty wolf from the door.
A fair point. Part of the reason that I've decided to concentrate on quality of life now is that working too hard made me unwell in the past. It's also that by working for longer, I'm less likely to be impoverished when I'm older.
I am lucky. I can afford to work reduced hours, and I have a job that I enjoy. Not everyone is so fortunate.
One thing I've seen is that my Dad, grandparents and in-laws all ran out of time before they ran out of money.
Yes, they "cut their cloth" but still, none really died poor.
My Mum is the last one, 85 now and still going strong - drives and lives next door in a barn we converted; financially solid.
For us, my OH retired a few months ago at 57 - she'd had stressful job running teams across time-zones and had had a couple of health scares. When she got the all-clear, she resigned the next day.
I'm 59 and was going to retire at 55, and what happened 4 years ago... Long story sort, I'm now waiting to get laid off as the business is closing, and then I'll retire.
Life won't change much when I retire, having to work isn't stopping me or the OH doing anything we want to do and 40 years of pensions means financial security (and especially once the State Pension kicks in).
Try and enjoy life now
Damn straight.
As someone with a chronically ill wife, who's future life is likely being shortened by what she has, this is absolutely where I am at. I am more worried about a future alone, unable to be active and out in nature at some point, than I am about my finances if I am honest.
I’m currently paying far more into my pension each month than I actually get in my salary ” cheque”, which is kinda weird.
@finbar via salary sacrifice presumably?
Retired at 51 but other people dying had no influence. In fact statistically OP you're very unlikely to die early.
On the other hand, excess frugality is as bad as excess profligacy IMO.
All about balance.
@beargrease that was me quoting another poster, I've been in some odd pension situations but not that one!
I can’t help but suspect a lot of the “jam today” postings are made from a position of unrevealed security, often inheritance, enough at least to keep the poverty wolf from the door.
I think there's also an element of wants and needs.
I said I have a 'cheap' lifestyle and hobbies. But there's be someone somewhere earning the median income wishing they had motorbikes, classic cars, boats, mountain bikes, etc. So despite my mentality being "save hard, retire early", that's a luxury I have on top of having more luxuries than a lot of people.
If I was earning the median wage I'd be spending a greater proportion of it on living for today, even if that was actually less hobbies than I enjoy now.
In reality all I'm doing is living on a median income and dumping everything else into pensions.
still worth checking your contract - within mine they can move my place of work 15 miles - which from the sounds of it would be further than they're making you go. Even if you just end up with statutory, it allows you to claim JSA from day 1 (I think) which is a small additional amount to have.
If you're public sector, check with your union, they should know..
https://www.gov.uk/employer-relocation-your-rights
It's such a tough thing to work out, will you live to a ripe old age, or die within a few years of retirement. How much of that time will you want £X per year and when will that taper off. What unexpected costs will crop up, who knows.
Given my Dad made it into his 70's despite smoking and drinking an un-healthy amount all his adult life and my Mum's still doing well in her 70's now as well I *should* be ok genetically. My wife similarly has both her parents still and her nan lived well into her 90's.
Financially though, we funded things ourselves and stand to inherit very little if anything (in my case), so our pensions took a back seat, hammering mine now and trying to get my wife to focus on hers (we are 46 and 47 respectively), but realistically I expect to work at least until pension age, probably beyond.
My Mum's partner passed last year, his son hits 60 in January and was made redundant at 59, he was well set to retire early, sold off the sports cars (Jag project 7 and 8) and the James Bond edition Disco, then found he has an aggressive brain tumour, seems unlikely he'll see 61. So I'm no clearer on the save well vs live while you can approach to life!
My dad at 82, but with dementia, and having had a stroke at 62, is the longest lived member of my paternal bloodline by 20 years.
Mother's side is doing better but 3 strokes out of 5 siblings.
I'm cutting and running as soon as I can at 60. No inheritance, no massive savings, no winning lottery, not much jam. Just part of the pension that partly informed the choice of career when I switched.
via salary sacrifice presumably
Yep, I think so. Though I don't specifically call it that. All I know is that I can either get £580 ( per grand ) in my bank account or £1138 in my pension.
I've a SIPP and also a workplace pension from my current job (17 years) the SIPP was just something I opened before I started this job and also transferred in a previous jobs pension and put a few quid in, its dumb to keep it separate right? 2 lots of charges from funds and also 2 lots of platform fees? 5 years left on mortgage then hopefully do what others have suggested and re route that mortgage money into pension (aged 47 3/4)
I can’t help but suspect a lot of the “jam today” postings are made from a position of unrevealed security, often inheritance, enough at least to keep the poverty wolf from the door.For those of us without that luxury, the risk is much sharper.
Indeed. The bank of inheritance is now the defining feature of a persons financial security and income these days, more than earned income.
And close family have shown that 'pre inheritance' financial support adds up and adds up. From free childcare, to paid for holiday annually, hand me down cars, cash gifts at any opportunity. This means they can now afford more to save, a larger house etc. That is before the proper inheritance arrives. Not a complaint, more an observation.
its dumb to keep it separate right? 2 lots of charges from funds
Hmmm. Members of that famous fund/ pension provider that went bust a while back would beg to differ. I'm keeping my eggs in a few different baskets.
Also 0.25% of ( x +y) is just the same as 0.25%x + 0.25%y
I can either get £580 ( per grand ) in my bank account or £1138 in my pension.
Pardon my ignorance, but where's the extra £138 coming from?
A bit of a side-step, but has anyone had any experience with the money-chasing litigation companies that are going after St James' Place pension holders? I had, until very recently, a very modest pot with them that I had for some 25+ years but I have now moved to a recommended local independent financial advisors (and it has increased in value by approx 12% in seven months, something I never once saw with SJP).
Timely. I'll be pulling the plug on work in the next couple of weeks, a few weeks shy of 61.
I've an old modest defined benefit pension which kicked in recently which just about covers all my basic outgoings (mortgage has been paid off and I've no kids). I've lead a fairly modest lifestyle for my income and a huge chunk of my salary has been saved/invested over the last 15 or so years.
I went to see my financial advisor a couple of days ago who assured me I had enough saved for me to afford a campervan and still have a comfortable life.
Weird thing is, though, mentally I'm not quite committed to jacking in work. Work isn't the slightest bit stressful (knowing I can tell the boss to **** off and just walk away is liberating!) but it's not particularly rewarding either.
I'm also struggling with the concept of switching lifestyle modes from "saving" to "spending" - it's an easy decision in the meantime to keep working and accumulating more capital than switch 15 years of thinking.
My health is good and I have no reason to believe I'll die "early" so, being cautious, my financial planning assumes I've got to support myself for 30+ years, which is frightening.
OTOH, my mum died at 65 (leukemia) and my dad died at 64 (massive stroke) so neither had a "retirement" (mum was sick on and off for about 5 years and briefly returned to work, dad was self-employed as a taxi driver before becoming mums carer)
I'm also somewhat concerned that I'll be bored when I retire. I only have a small circle of friends and I'm the oldest (and Mrs Vlad won't retire for another 2.5 years minimum) so I'll have no play buddies to keep me occupied during the days I'm not out and about in the campervan....
When I hit 55 a year ago I took out all of my tax free 25%, in fact some of it was 38% because I am so old my first pension was under different tax rules and would rather use it now than when I am 65.
As long as you only take out tax free amount (or even taxable amount under £10K) you can still fully contribute to your pension as the £10K per year does not count.
Probably retire at around 62 especially if I can pull of a nice redundancy at same time. If I ever run out of money when retired I will just draw down on my house.
£1138 in my pension
its always worth remembering that you'll get taxed on 75% of that later on, and if you've enough in your pension you could (unlikely) even be taxed at a higher rate than you are now (I've seen an instance of somoene salary sacrificing well below the 40% threshold, but then claiming a pension which was above the 40% threshold once an old defined benefits pension was included)
By luck rather than design Ive a decent pension pot - not massive but enough for decent quality of life and very shortly no mortgage at 52. Just got a whole load of mid-life crisis and decor off my chest and will now be using the “mortgage” monies to save hard and top up the tax free / pension options annually.
I start a new job September which has a share of the company allocated to it which should amount to another decent “pot” at the end of a 3-5 year tenure, ill then move on to less stressful work with an aim to stop at 60.
The aim is to see the kids to self sufficiency (as much as thats possible) then retreat to a “quiet, pleasant and possibly sunny” location.