Can we retire please? How much money do you really need need? (1 Viewer)

[Garfields]

In my case I had originally planned to go part time for a couple of years or so.
To get approval from employer involved loads of hoop jumping and had took a year to get anywhere
In the meantime I had found that if a chose to retire fully they could not stop it.
It did cost me a whack on my pension though
I spent more time on being sure it was time to go than on the numbers
With hindsight of all that's happened with covid and also personally it was the right time to go.
There are things I mis about my work but most have gone due to things being changed to work around covid anyway and I can't see it going back to the way it was

 

[Mr Rusty]

I took a 6 month sabbatical in 2017 (worked for a global IT company at the time) and spent the time touring Europe. We managed comfortably on £1k a month (that is touring money not the upkeep of the house as well), BUT I am a tight fisted Yorkshireman and so we use the aires system a lot so no big campsite fees, and we do not eat out a lot. Since then we have looked at figures and discussed the thoughts with friends and the consensus is £20 to 24K a year is what you need.

 

[pxh38257]

You must do what is right for you. I was very lucky and had worked for a couple of large multi national companies with final salary pensions so retired at 56. I had a substantial pension pot but also I’ll health so cashed my pension in and set up a SIPP with a major company. As per the rules I took out a percentage and each year I withdraw the max I can without paying tax. Having worked out what we need it was a lot less than I thought but if we need more I just use some of our savings. If we plan to purchase an expensive item I just take more out of my pension. As somebody once said to me it’s no use being the richest man in the grave yard and life is for living. Enjoy yourselves it’s your time.

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[kevenh]

At 54 I've already paid my 'full stamp'. I won't get any more from the state than the £175.20 a week (+ inflation) and yet, I'm still paying in the same amounts of National Insurance. I could carry on, for the next 14 years, paying NI for no personal gain.

I’m seeing the same summary.
That inability of future NI payments to improve the pension isn’t very encouraging for our next ~14yrs is it?
There’s a message/warning that the contributions are used for other things but not enough info to keep me interested in full time work

 

[Deneb]

I was looking at someone else's defined benefit pension recently. A public sector one. Always worth reading the fine print.

Under this DB scheme rules, the annual inflation uprating of deferred benefits is based on CPI. Whereas at least for the next few years the annual uprating for a pension in payment is based on RPI (which is normally 1% better than CPI).

Unless you really like working longer on the same salary for the same employer, taking early retirement under this scheme would be a no-brainer. Other pension scheme rules may be different.

Are you sure they have the most current copy of the pension rules?

All public sector schemes still using RPI to calculate annual pension increases were switched to CPI with effect from 6th April 2011 under an amendment to the Pensions (Increase) Act.

 

[Fragle]

I took a 6 month sabbatical in 2017 (worked for a global IT company at the time) and spent the time touring Europe. We managed comfortably on £1k a month (that is touring money not the upkeep of the house as well), BUT I am a tight fisted Yorkshireman and so we use the aires system a lot so no big campsite fees, and we do not eat out a lot. Since then we have looked at figures and discussed the thoughts with friends and the consensus is £20 to 24K a year is what you need.

I've just spent a quiet morning going through our bank account looking at our real expenses for the last 2 years.
The way I looked at it for the past 2 years we have spent what we want without thinking we have to save. Bills have come out of this and it covers nearly all of our spends.
My first look at our finances says on paper we need a minimum of £13k food fuel and all bills (£100 pw food and fuel included). Anything else would be extra.

The reality of 2 years not thinking about cost cutting is an average of £18k per year for us and this does include a year with 3 individual trips to the South of France with more expensive Brittany Ferries crossings. Last year 3 trips to Scotland mostly campsites and paying for this years holiday as well (deferred).

Looking forward I've looked at 20 years of income we will get So savings we have, State Pension we will get, and our pension pots all with no increase in value.

For the next 20 years we can have £30k per year to spend.

All we have to do is live that long.

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[The Wino]

I've just spent a quiet morning going through our bank account looking at our real expenses for the last 2 years.
The way I looked at it for the past 2 years we have spent what we want without thinking we have to save. Bills have come out of this and it covers nearly all of our spends.
My first look at our finances says on paper we need a minimum of £13k food fuel and all bills (£100 pw food and fuel included). Anything else would be extra.

The reality of 2 years not thinking about cost cutting is an average of £18k per year for us and this does include a year with 3 individual trips to the South of France with more expensive Brittany Ferries crossings. Last year 3 trips to Scotland mostly campsites and paying for this years holiday as well (deferred).

Looking forward I've looked at 20 years of income we will get So savings we have, State Pension we will get, and our pension pots all with no increase in value.

For the next 20 years we can have £30k per year to spend.

All we have to do is live that long.

Have you included the cost of vehicle renewals as they age and unexpected house bills like new boiler roof repairs etc?. I don't know how old you are but why over 20 years I'm 60 but the adviser said to plan for another 40. That being said I probably was over cautious as I planned a flat level of expediture but even though optimistic don't think we'll be skiing then!

 

[Nasher]

That being said I probably was over cautious as I planned a flat level of expediture but even though optimistic don't think we'll be skiing then!

Only because you would have seen the light and taken up Snowboarding

 

[SpeedyDux]

Are you sure they have the most current copy of the pension rules?

All public sector schemes still using RPI to calculate annual pension increases were switched to CPI with effect from 6th April 2011 under an amendment to the Pensions (Increase) Act.

My error. I looked at 2 pension schemes with different rules. The one referred to in my earlier post was in fact the private sector scheme. Anyway the private one will be switching to CPI in a few years time as well as having put new entrants on the defined contribution basis. Paraphrasing the infamous advert, It isn't an equitable world, Henry.

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[Deneb]

My error. I looked at 2 pension schemes with different rules. The one referred to in my earlier post was in fact the private sector scheme. Anyway the private one will be switching to CPI in a few years time as well as having put new entrants on the defined contribution basis. Paraphrasing the infamous advert, It isn't an equitable world, Henry.

From my point of view, with both of us having public sector DB pensions, there is a certain irony in the more recent protestations at forthcoming adjustments to the private sector, when many of the same people positively squealed with delight at news of the earlier enforced public sector switch

 

[Fragle]

Have you included the cost of vehicle renewals as they age and unexpected house bills like new boiler roof repairs etc?. I don't know how old you are but why over 20 years I'm 60 but the adviser said to plan for another 40. That being said I probably was over cautious as I planned a flat level of expediture but even though optimistic don't think we'll be skiing then!

Well that's the million dollar question. How long do you plan for.?....... Why 40 years? I personally have a family history that long lifespan was not in the equation

I'm 60 in May and 20 years would be fine by me. after that its state pension plus anything I don't spend, and atm that's 10k a year given that we only spend 18k a year now

Fortunately the property is in fine fettle new boiler going in now I'm also gas safe registered and do most jobs myself.
Motorhome is new and will not be replaced. Its the 3rd and last one for us it should last 10 years we want. As for cars it will hardly get used.
We have a 11 plate focus from new owes us nothing very reliable excellent mpg why waste money changing and spending when it sits on the drive. I have to say the biggest waste of money I've had is cars.

I remember talking to an adviser who said I need to put so much away for retirement I would not have been able to pay the bills I had at the time and then gave bad advice. Hence the mistrust

If it all goes wrong after 25 years we are going to rob a bank. Get caught and locked up at her majesty's pleasure.
Warm cell 3 meals a day and sky tv. should see us out

 

[The Wino]

Well that's the million dollar question. How long do you plan for.?....... Why 40 years? I personally have a family history that long lifespan was not in the equation

I'm 60 in May and 20 years would be fine by me. after that its state pension plus anything I don't spend, and atm that's 10k a year given that we only spend 18k a year now

Fortunately the property is in fine fettle new boiler going in now I'm also gas safe registered and do most jobs myself.
Motorhome is new and will not be replaced. Its the 3rd and last one for us it should last 10 years we want. As for cars it will hardly get used.
We have a 11 plate focus from new owes us nothing very reliable excellent mpg why waste money changing and spending when it sits on the drive. I have to say the biggest waste of money I've had is cars.

I remember talking to an adviser who said I need to put so much away for retirement I would not have been able to pay the bills I had at the time and then gave bad advice. Hence the mistrust

If it all goes wrong after 25 years we are going to rob a bank. Get caught and locked up at her majesty's pleasure.
Warm cell 3 meals a day and sky tv. should see us out

A lot does depend on whether you try to match your savings to your needs or match your spending to what money you have. I'm pretty certain there are quite a few older cars that you could buy in pretty good condition for not much these days especially unfashionable makes.
We planned to 100 as that's what the financial advisers recommend and it did take years but we have found one we trust and doesn't give that feeling their hands are grasping your wallet!

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[Fragle]

A lot does depend on whether you try to match your savings to your needs or match your spending to what money you have. I'm pretty certain there are quite a few older cars that you could buy in pretty good condition for not much these days especially unfashionable makes.
We planned to 100 as that's what the financial advisers recommend and it did take years but we have found one we trust and doesn't give that feeling their hands are grasping your wallet!

Wow, that's a long time.

The point is if I planned to live to 100 I'd never be able to retire at 60.

What is forgotten in planning for a good retirement and Financial planners won't take into account is exactly what others on here have said.

"You have no idea if you'll even make tomorrow."

Lets hope we all enjoy a long and happy retirement however long

 

[Rosemary1]

Well that's the million dollar question. How long do you plan for.?....... Why 40 years? I personally have a family history that long lifespan was not in the equation

I'm 60 in May and 20 years would be fine by me. after that its state pension plus anything I don't spend, and atm that's 10k a year given that we only spend 18k a year now

Fortunately the property is in fine fettle new boiler going in now I'm also gas safe registered and do most jobs myself.
Motorhome is new and will not be replaced. Its the 3rd and last one for us it should last 10 years we want. As for cars it will hardly get used.
We have a 11 plate focus from new owes us nothing very reliable excellent mpg why waste money changing and spending when it sits on the drive. I have to say the biggest waste of money I've had is cars.

I remember talking to an adviser who said I need to put so much away for retirement I would not have been able to pay the bills I had at the time and then gave bad advice. Hence the mistrust

If it all goes wrong after 25 years we are going to rob a bank. Get caught and locked up at her majesty's pleasure.
Warm cell 3 meals a day and sky tv. should see us out

I have calculated up to my hubby being 90 so me late 80’s. If we are still around after that I will be so chuffed I wont be worried about the money. My parents were early 70 and mid 80 so want to beat that

 

[CazPaul]

Oh yes forgot to mention.. make sure you've paid your 'full stamp' to ensure you get the full 'state pension' at 68.
At 54 I've already paid my 'full stamp'. I won't get any more from the state than the £175.20 a week (+ inflation) and yet, I'm still paying in the same amounts of National Insurance. I could carry on, for the next 14 years, paying NI for no personal gain.

Yes but you can’t just opt out of paying can you if you have already paid for the required number of years?

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[gus-lopez]

Yes but you can’t just opt out of paying can you if you have already paid for the required number of years?

No.

 

[CazPaul]

No.

Thanks, it had me really excited for a few minutes.

 

[Tombola]

If you dont have any private pension to speak of, and want to retire early

Yes but you can’t just opt out of paying can you if you have already paid for the required number of years?

Im the same as you age wise and was looking at the same thing.
But thats the idea of the national insurance we continue to pay to keep the fund going for NHS , pensions etc etc.
Got to be honest the more I read this thread the more I think about packing in sooner rather than later

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[Chris]

My MIL is loaded, so I am thinking of keeping my current wife

 

[Nasher]

Got to be honest the more I read this thread the more I think about packing in sooner rather than later

Retirement is not all it's cracked up to be

Firstly, you no longer get bank holidays - it's just another day to us pensioners

There's no point in looking forward to the weekend, it's just another day

Now, when you're working you know what you're going to do on (say) a Monday - get up, go to work, have lunch, etc - no proper decisions required

I get up (doesn't matter what day it is) then I have to decide what to do. Shall I go unicycling, skateboarding, paragliding, mountain biking, to the beach, motorcycling, etc, etc
So, after the big decision, if I decide to go motorcycling I've the got to decide on which motorbike to ride and where to go for a ride
My life is just decision making after decision making - it's just so difficult - I think I may go back to the simple working life

 

[Tombola]

Retirement is not all it's cracked up to be

Firstly, you no longer get bank holidays - it's just another day to us pensioners

There's no point in looking forward to the weekend, it's just another day

Now, when you're working you know what you're going to do on (say) a Monday - get up, go to work, have lunch, etc - no proper decisions required

I get up (doesn't matter what day it is) then I have to decide what to do. Shall I go unicycling, skateboarding, paragliding, mountain biking, to the beach, motorcycling, etc, etc
So, after the big decision, if I decide to go motorcycling I've the got to decide on which motorbike to ride and where to go for a ride
My life is just decision making after decision making - it's just so difficult - I think I may go back to the simple working life

I feel for you nasher

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[Fragle]

If you dont have any private pension to speak of, and want to retire early

Im the same as you age wise and was looking at the same thing.
But thats the idea of the national insurance we continue to pay to keep the fund going for NHS , pensions etc etc.
Got to be honest the more I read this thread the more I think about packing in sooner rather than later

My grandfather worked all his life retired and died straight away 65. My father died at 59 both paid full NI never on the sick.
Ive already paid in above and beyond what is required time to enjoy life

 

[Odd job]

I've just spent a quiet morning going through our bank account looking at our real expenses for the last 2 years.
The way I looked at it for the past 2 years we have spent what we want without thinking we have to save. Bills have come out of this and it covers nearly all of our spends.
My first look at our finances says on paper we need a minimum of £13k food fuel and all bills (£100 pw food and fuel included). Anything else would be extra.

The reality of 2 years not thinking about cost cutting is an average of £18k per year for us and this does include a year with 3 individual trips to the South of France with more expensive Brittany Ferries crossings. Last year 3 trips to Scotland mostly campsites and paying for this years holiday as well (deferred).

Looking forward I've looked at 20 years of income we will get So savings we have, State Pension we will get, and our pension pots all with no increase in value.

For the next 20 years we can have £30k per year to spend.

All we have to do is live that long.

We are in a similar situation, if we live longer we will take equity release from our home

 

[CazPaul]

If you dont have any private pension to speak of, and want to retire early

Im the same as you age wise and was looking at the same thing.
But thats the idea of the national insurance we continue to pay to keep the fund going for NHS , pensions etc etc.
Got to be honest the more I read this thread the more I think about packing in sooner rather than later

Yes but where do you get the income from in the meantime if you don’t have a private pension and want to retire early?

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[Garfields]

If it all goes wrong after 25 years we are going to rob a bank. Get caught and locked up at her majesty's pleasure.
Warm cell 3 meals a day and sky tv. should see us out

I think your plan has a flaw
Where do you think you will be able to find a bank in 25 years

 

[Tombola]

Yes but where do you get the income from in the meantime if you don’t have a private pension and want to retire early?

Im not too bad, I have some decent savings no mortgages and a business Im thinking of flogging. I have 2 houses I rent out.
The thing is, how much of that do I want to spend/give up and how soon ?

 

[Nasher]

Im not too bad, I have some decent savings no mortgages and a business Im thinking of flogging. I have 2 houses I rent out.
The thing is, how much of that do I want to spend/give up and how soon ?

See post #644 on this very thread

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[Tombola]

See post #644 on this very thread

felt a shiver down my spine reading that there Nasher

Uncanny that is, and I think I agree,
thanks

 

[Minxy]

Yes but where do you get the income from in the meantime if you don’t have a private pension and want to retire early?

Unfortunately if people are getting close to retirement age then they've left it a bit late unless they can a manage on any savings etc they've got. In order retire early we saved, saved and saved some more over a long period of time as we had planned to be able to retire early thus we'd done what we could to allow us to do so and along the way we did without some stuff.

When we made the decision that my hubby would leave work we had some income from our rental bungalow but no where near enough to survive on and although we could have just used savings I decided to keep working for the next year whilst hubby settled into his new role as a 'house husband'; in the end due to circumstances at work it ended up being 2 years (I was doing about 80% of full-time). When I left we had no regular 'salaried' income at all for 5 years so lived off what we had, then we we bought the lodges in late 2016 and started getting a small amount of income off one of them that December but it wasn't until hubby took his reduced work pension from Spring 2018 that we had any more 'salaried' type income.

 

[Minxy]

Im not too bad, I have some decent savings no mortgages and a business Im thinking of flogging. I have 2 houses I rent out.
The thing is, how much of that do I want to spend/give up and how soon ?

It's not so much about what you want to give up of what you do now but what you want to do with your life from now on ...

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