Retirement – Evaluation of Your Plans

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.

This thread has prompted me to stick a request into my current work pension provider to consolidate an old work pension into that pot.

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.

Absolutely no-one on their dead bed said “I wish I worked more”

51, been paying in 50% of my salary for quite some time,FIRE follower, aim to finish asap.

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.

@kilo

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.

Money and things you can re-aquire…. Time, you cannot.

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.