When You Retire ? (1 Viewer)

bringbackrattles

Well-Known Member
I reckon I've another year on the window round before I call it a day.
Then I'll spend my days writing, especially football and finally get a book published. I love the outdoors so plenty of long hikes, and short breaks. Obviously none of us can guarantee good health or what's around the corner, but I reckon it's good to have some plans. Anybody else got things planned ?
 

Rusty Trombone

Well-Known Member
My dad retired yesterday at 75, I didn't think he ever would, but he decided he'd had enough. He's been working 3 days for the last couple of years to get used to being at home without anything that he has to do. Maybe consider reducing the day's first, rather than going from full time to nothing (assuming you haven't already). I don't have any plans myself, of course the main problem when you don't know when you're going to die, is that you don't know how much money you'll need to last on.
 

skybluetony176

Well-Known Member
Between Spain and the U.K.. I have shit joints and I’m not fifty yet. The damp makes it ten times worse so having a bolt hole to spend the colder damp months makes old age and retirement less scary and something to look forward too.
 

bringbackrattles

Well-Known Member
My dad retired yesterday at 75, I didn't think he ever would, but he decided he'd had enough. He's been working 3 days for the last couple of years to get used to being at home without anything that he has to do. Maybe consider reducing the day's first, rather than going from full time to nothing (assuming you haven't already). I don't have any plans myself, of course the main problem when you don't know when you're going to die, is that you don't know how much money you'll need to last on.
A customer said to me yesterday I don't look 65 as I'm up and down the ladders etc. That's it though, you only ache when you stop ! What does your dad do ?
 

Rusty Trombone

Well-Known Member
A customer said to me yesterday I don't look 65 as I'm up and down the ladders etc. That's it though, you only ache when you stop ! What does your dad do ?
It was engineering, so a lot of time standing at the machines, and also working in the office, only a small place so it's not like he'll miss all the people. I guess you're used to chatting to a lot of people, which I imagine is harder to replace once you stop working.
 

Rusty Trombone

Well-Known Member
I dread to think how old I will be when I can retire, probably about 70 at least.

Probably should look at pensions and all that :(
If you can get in a work pension where they contribute a decent % then do that, but otherwise I've always thought pensions are a bit of a con, you can pay in all your working life then if you die early they get to keep most of it, but it's a gamble really. Investing in property used to be a decent approach, but the tax benefits are being cut a lot.
 

Nick

Administrator
If you can get in a work pension where they contribute a decent % then do that, but otherwise I've always thought pensions are a bit of a con, you can pay in all your working life then if you die early they get to keep most of it, but it's a gamble really. Investing in property used to be a decent approach, but the tax benefits are being cut a lot.

I used to know a bloke who was adamant the future was in gold. He got a safe in his house and he would just buy gold bars.

No idea how it worked out, especially not as he never shut up about it trying to convert people so every man and his dog knew he had gold bars in his house.
 

Astute

Well-Known Member
If you can get in a work pension where they contribute a decent % then do that, but otherwise I've always thought pensions are a bit of a con, you can pay in all your working life then if you die early they get to keep most of it, but it's a gamble really. Investing in property used to be a decent approach, but the tax benefits are being cut a lot.
Pensions have changed a lot. You don't have to buy an annuity anymore. So it isn't lost. And you put the money away before paying tax. And you will also get contributions off your employer. Forget the scare stories. The earlier you start the more affordable it is.

Too complex for a quick post but it can even be given to your children tax free when you die. It depends on circumstances and more.

I have 8 years 9 months maximum left. It is when my youngest is 18. I have frozen my final salary and now piling my money into a.pot that I am investing tax free. Expecting it to be worth 100k by the time I retire. It is to pay my state pension until I get my state pension. It will be a drawdown.

I have always planned to tour for the rest of my days. Was going to turn right at Calais and follow the coast. Stay a night if we didn't like the place and up to a month or two if we love the place. But now we are waiting for the word of Brexit not happening next month. Then I am moving my family to France and staying here. Will visit family for nearly 3 weeks every 2 months. Might just work unti 55 and then join family permanently. Depends on if we can afford for us both never to have to work again.
 

Captain Dart

Well-Known Member
Martin Lewis has calculator that shows contribution to fund from entering salary and % employer and employee contributions.

Personal pension need-to-knows

If you want to get a basic understanding of pensions his site is a good place to start.
 

bringbackrattles

Well-Known Member
It was engineering, so a lot of time standing at the machines, and also working in the office, only a small place so it's not like he'll miss all the people. I guess you're used to chatting to a lot of people, which I imagine is harder to replace once you stop working.
A mate of mine retired at 58. He hated his job and workmates,so couldn't wait to go. I've got some great customers and I enjoy the outdoors. So it will be hard at first, but life is full of change.
 

Rusty Trombone

Well-Known Member
Pensions have changed a lot. You don't have to buy an annuity anymore. So it isn't lost. And you put the money away before paying tax. And you will also get contributions off your employer. Forget the scare stories. The earlier you start the more affordable it is.

Too complex for a quick post but it can even be given to your children tax free when you die. It depends on circumstances and more.

I have 8 years 9 months maximum left. It is when my youngest is 18. I have frozen my final salary and now piling my money into a.pot that I am investing tax free. Expecting it to be worth 100k by the time I retire. It is to pay my state pension until I get my state pension. It will be a drawdown.

I have always planned to tour for the rest of my days. Was going to turn right at Calais and follow the coast. Stay a night if we didn't like the place and up to a month or two if we love the place. But now we are waiting for the word of Brexit not happening next month. Then I am moving my family to France and staying here. Will visit family for nearly 3 weeks every 2 months. Might just work unti 55 and then join family permanently. Depends on if we can afford for us both never to have to work again.
I agree with you that pensions have changed a lot, and there are better choices for people now. I'm in no way recommending that they should be ignored, it's just that they are not always great on their own, and if you can afford to have a mix of options then that is better, just my view though. As you say, it's too complex for quick posts, and really any advice needs tailoring for people's individual circumstances. Doing nothing really is a poor idea though.
 

dutchman

Well-Known Member
We'll be lucky to get to retirement age!
Very true!

There's a belief among people who've already reached retirement age that everyone else can retire when they reach the same age. The truth is the government raises the offical retirement age by three months every two months so many people will never reach it.

It will end up like Japan where ninety-year-old married couples are forced to help railway travellers with their luggage in exchange for tips.
 

Astute

Well-Known Member
I agree with you that pensions have changed a lot, and there are better choices for people now. I'm in no way recommending that they should be ignored, it's just that they are not always great on their own, and if you can afford to have a mix of options then that is better, just my view though. As you say, it's too complex for quick posts, and really any advice needs tailoring for people's individual circumstances. Doing nothing really is a poor idea though.
If you don't have a pension or lots if money you will either never able to retire or you will have a poor retirement.

When you are younger you want minimum medium risk on your investments. I split mine 70% medium and 30% medium/high. I am now 40% medium and the rest lower. My high risk part did well. But it is a gamble you can only take when younger. Once it is gone it is gone.

The present state pension is a good base to work off. If you are entitled to a full one and there is two of you that is about 16k a year. If you only manage to secure a way of getting 8k a year you will have 2k a month to live off. A drawdown pot of only £160k will make it happen for at least 20 years if done wisely. Share the tax burden and you won't pay tax. If you don't take the tax free 25% you won't pay tax on 25% of what you take out. By then you will be old and sitting in the corner dribbling all over yourself.

The money you put in while in your 20's will be invested for about 40 years. It will be worth many multiples of what you put in. And remember that every £100 You put in only cost you £80. Then you have employer contributions.

For those who can afford it the choice is lifestyle or finish work years early. We only have two cars on the road now. The family car which is a 2008 and a fun car that is 2003. Both very reliable. Not having new cars pays for my pension. We don't do expensive holidays where you just sit next to a pool or on the beach. This saving stays in my bank account. It has been hard at times but when I am 55 I could afford to retire. But just staying at work until 59 would make a massive difference. Over 4k a year plus over 30k more minimum in my drawdown pot.

It can be a complex subject. But once you get the basics the rest becomes easy. And never forget the state pension is a good start. Top priority is owning somewhere to live when you retire. It doesn't even have to be a house.
 

Astute

Well-Known Member
My dream would be to own some land in Sicily and grow fruit and vegetables and have some animals and live a simple life.
I still want to spend a few years touring around Italy when retired. I still have the aim of turning right at Calais and following the coast for as long as one of us is fit enough to drive. Downsize as we get older. The plan is a night if we don't like where we are and an extended stay if we love the place. It will most probably take years to get as far as Italy though.

104 paydays maximum until I retire :smuggrin:
 

Sky_Blue_Daz

Well-Known Member
My wife’s been a nurse for 20 years she’s retiring in at 50 so 7 years to go and she’s already making plans , her theory is that her parents worked till they were both 65 and have had nothing but ill health since so she wants to be young enough to enjoy her self, mortgage will be paid off when we are both 50 . I decided to get stay in my job but reduce hours / go term time when that happens Then at 55 knock it all in the head

Life’s for living
 

Astute

Well-Known Member
My wife’s been a nurse for 20 years she’s retiring in at 50 so 7 years to go and she’s already making plans , her theory is that her parents worked till they were both 65 and have had nothing but ill health since so she wants to be young enough to enjoy her self, mortgage will be paid off when we are both 50 . I decided to get stay in my job but reduce hours / go term time when that happens Then at 55 knock it all in the head

Life’s for living
A few years ago I lost 5 relatives in less than a year. Only one was old. One had just retired at 62. It made my mind up for me. We are seriously considering the wife and younger kids moving to France and the wife retiring this year. She is 52. I will stay here and continue to work. In just over 4 years I can retire but want to keep going for another 8 years 8 months. That is when I know our future will be financially secure. And my youngest will be 18. I will join them every 2 months for nearly 3 weeks. My shifts also allow me to go for a few days every week if I wanted to. I would keep it up until I have had enough of it. But I also have the idea of a few gites as income if I find it difficult. But I think I would have the best of both worlds.
 

Grendel

Well-Known Member
If you can get in a work pension where they contribute a decent % then do that, but otherwise I've always thought pensions are a bit of a con, you can pay in all your working life then if you die early they get to keep most of it, but it's a gamble really. Investing in property used to be a decent approach, but the tax benefits are being cut a lot.

Ridiculous
 

bezzer

Well-Known Member
If you can get in a work pension where they contribute a decent % then do that, but otherwise I've always thought pensions are a bit of a con, you can pay in all your working life then if you die early they get to keep most of it, but it's a gamble really. Investing in property used to be a decent approach, but the tax benefits are being cut a lot.

That's not completely true. If your pension is in a SIPP and you die before you're 75, your wife/partner gets the whole pot, tax free.
I'm 55 next year and have just moved a final salary pension into a SIPP. I intend to drop a day a week next year and retire completely when I'm 60.
I've been contributing to a pension since I was 18 and have built up a nice pot.
 

Rusty Trombone

Well-Known Member
That's not completely true. If your pension is in a SIPP and you die before you're 75, your wife/partner gets the whole pot, tax free.
I'm 55 next year and have just moved a final salary pension into a SIPP. I intend to drop a day a week next year and retire completely when I'm 60.
I've been contributing to a pension since I was 18 and have built up a nice pot.
Yeah, I did say it can happen, rather than it always does, and there are some good pensions out there. The days of final salary ones are numbered, certainly for new starters, and a lot of older ones are being frozen. If people can get a good one through work I think they should put in as much as they can afford. I think a mixture of pension, cash, and property would suit most people, but people have different circumstances, and different priorities. Start things early is good advice I think.
I'm tempted to buy some grazing/pasture land and just keep it for 30 years, leave it for the kids, eventually i think the chances are it could be built on, and then they could cash in.
 

rob9872

Well-Known Member
It's never too late to start a pension, but the earlier it's in the more it makes. I didn't start mine until I was 27 and I'm now 46, but have in excess of £100k in the pot and the later years (hopefully) that will help boost that to something nice as it's a minimum 67 before I receive state pension (if any left at all then) so need a tidy sum now. Ok no mortgage etc then, only one car necessary and no commute to work costs, but there will always be something to spend - daughters wedding, university fees etc. Whatever you can spare however small, it will soon grow and you'll be grateful - think of it a as couple of pints a week and it goes in tax free too.
 

Gazolba

Well-Known Member
I reckon I've another year on the window round before I call it a day.
Then I'll spend my days writing, especially football and finally get a book published. <snip>?
"The confessions of a window-cleaner" has a nice ring to it.
If the script's good enough, it could even be a movie.
 

Gazolba

Well-Known Member
I'm beyond retirement age but had to work a bit longer as my divorce awarded my ex 50% of my pension.
But I feel continuing working has kept my mind more alive than retirement would have.
I work in IT so its pretty much all brain work, no physical labour.
I won't be writing a book when I retire, "Confessions of a computer programmer" holds little interest on the bookshelves. I'll be reading lots of books instead.
 

Astute

Well-Known Member
That's not completely true. If your pension is in a SIPP and you die before you're 75, your wife/partner gets the whole pot, tax free.
I'm 55 next year and have just moved a final salary pension into a SIPP. I intend to drop a day a week next year and retire completely when I'm 60.
I've been contributing to a pension since I was 18 and have built up a nice pot.
Just be careful what you do with your pot. Go low risk only. Once it is gone it is gone. The stock market is not the place to be. A 25% drop would take a 400k pot to 300k. Then take out 20k a year a few times and you only have 240k.

I considered taking my FS out. But all the risk is on yourself. And it costs you money each year. That is why I am now building a separate pot.

One more thing. Watch how you take your money out. Do too much in a year and you will get hammered with tax.
 

rob9872

Well-Known Member
Always take your full tax free quota though. Even if you don't need it all at that point and the plan is to reinvest, take what you can ;)
 

shmmeee

Well-Known Member
Don’t expect to get there.

Either the current madness will continue and pensions will be gutted by the “boo benefits” crowd.

Or the planet will be so fucked well all be scratting around bins for food.

Got a small teachers pension plus whatever I can stick in now. Fully expect to be working until I drop though.
 

Terry Gibson's perm

Well-Known Member
Would like to get a membership at Edgbaston and go over on the train each day to watch the cricket.

More realistically I will work until the day I die.
 

Captain Dart

Well-Known Member
Would like to get a membership at Edgbaston and go over on the train each day to watch the cricket.

More realistically I will work until the day I die.
You made the right choice. :)
 

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