When and how did you afford to retire? (1 Viewer)

[PeteH]

...And if you're planning on downsizing, once they've left home, you can be in for a long wait. Our son went off to university, lived with his girlfriend for 7 years, then when the relationship broke up, moved back in with us.
Our house and garden are far too big (and old) to be practical, and it's always been the plan to downsize and pocket the surplus. No prospect of that at the moment!

Not Started packing his Sandwiches In map`s Yet Then?, or the "House/Flat for Sale" pages?..

Pete

 

[RowleyBirkinQC]

Reading this thread is pretty depressing TBH. Just turned 41 so aware that if things keep on as they are I will be working well into my late 60s.. What we need is some proper boom and bust to get our pension value up..

You and me both, I'm mid forties and watching the "growth" of my company stakeholder pension is somewhat depressing. The combination of my son at university (now starting a new 3 year course after not liking his first year...), high mortgage costs, Cindy's son and his 2 kids living with us means there isn't much room for major investment elsewhere. May have to open a meth lab or start smuggling immigrants to make decent headway

 

[RowleyBirkinQC]

How very topical - http://www.bbc.co.uk/news/business-37307347

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[mitzimad]

How very topical - http://www.bbc.co.uk/news/business-37307347

that will be me i have to keep working to keep former civil servants in money

 

[Philh]

Actually you need less the annuity rate is higher as you are considered to have an impaired life expectancy!!

Agreed, can I claim thats what I meant to say

 

[bladerunner]

Well I certainly do not feel guilty about retiring. After 33 years of NHS work, many at over 100 hour (SIC) weeks, I feel I have worked more hours than most in their lifetime. That was after 6 years uni training.
2 interesting points:
Firstly I took a major (15%+) hit on the pension to go early, but figured that as well as losing the extra 3 years contribution, the actuarial reduction of pension was because "they" thought I'd live longer. AFAIK I only get one go at this living malarkey, so I figured years living were worth more than £.
Add a few health scares or even deaths of colleagues of same age plus, as I have said, the threat that the final pension would actually be LESS if I worked longer.

Secondly, and rather depressingly, the hospital absolutely refused to reconfigure my work to reduce workload and on call commitment ( despite what I hope would have been useful training potential from me). Neither have they organised an exit interview to discuss my concerns.
It is extraordinary given the value of staff resources and morale in public services that the managers seem to spend most of their time destroying that esprit de corps.

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[kcy]

I grabbed my NHS pension and ran, like blade runner I didn't look back
One thing I picked up on was helping kids with schooling. It never occurred to us to do this, no one asked and except for birthdays and Christmas they didn't ask and didn't get any help. They all worked very hard and managed to get degrees one got an honours in scoical work,
works in Nottingham now. All have never been unemployed.
I certainly wouldn't put my retirement on hold for anyone.
I have four brilliant, loving, supportive children, love em

 

[glenn2926]

all the people moaning about public sector pensions now were laughing at us public sector pensioners in the eighties and nineties when their pension pots were growing at fantastic rates due to investment. saying ours was a crap scheme. why are they now moaning? is it the public sector pensioners fault that public sector pension pots were not allowed to be invested?

 

[The Wino]

all the people moaning about public sector pensions now were laughing at us public sector pensioners in the eighties and nineties when their pension pots were growing at fantastic rates due to investment. saying ours was a crap scheme. why are they now moaning? is it the public sector pensioners fault that public sector pension pots were not allowed to be invested?

I think everyone should have the choice of either gambling on investments or a goverment guarantee (at the true cost)

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[thIOM]

PS pensions should be funded and not reliant on revenue funding. The fact that they have never been funded is not the fault of PS emplyess but successive governments who have not thought ahead and just pocketed whatever contributions were made. I also agree that contributions need to be sufficient to keep the funding at the required level. The schemes are changing and I believe the current scheme in the PS is not final salary but calculated on an average salary. I had to pay increasing contributions in my last few years and was happy to do so to protect what I had. Only IOM taxpayers are paying for my retirement. I am guessing that those of us who are retiring now or in the next few years will be the last who will benefit from a decent pension. The grey pound is fading. One way or another the taxpayer will pay as those that retire on small pensions become more eligible for means tested benefits.

 

[ABZSteve]

Always planned to retire at 55 but didn't know how apart from putting lots of money into pensions. However that is easier said than done for most. Anyway, an opportunity came along 12 years ago that would potentially allow me to retire at 50 (last year, oops, missed it ) but the oil industry crash bu99ered that up. Not all bad though because what I did receive will allow me to retire at 55 if I wish but I will probably carry on to 58 (maybe). My wife will retire in 3 years time at 53, so she says. We will sell our house in around 10-12 years time then move around the corner to a two bedroom flat we own mortgage free. Plan is to spend 3-4 months over the winter in sunnier climes. Good luck to all with there plans, hope it works for you

 

[rrusty]

So I do not have a public sector pension or eligible for one, so if I was in the public sector and I paid a % into the fund and come retirement time and I collect my pension does the cash come out of the fund without any top up from the tax payer? I don't think so.
Come on then - one that is in the public sector tell us what you have paid into the fund over your term of employment, what pension you get now before tax.

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[The Wino]

I wouldn't be so confrontational I don't blame the public sector workers for getting a good deal I would grab it if I could but why are the politicians letting it continue......apart from the fact they are on an even better deal themselves!!!!

 

[Yorick]

So I do not have a public sector pension or eligible for one, so if I was in the public sector and I paid a % into the fund and come retirement time and I collect my pension does the cash come out of the fund without any top up from the tax payer? I don't think so.
Come on then - one that is in the public sector tell us what you have paid into the fund over your term of employment, what pension you get now before tax.

This is a polite discussion thread. You can't demand we do as you ask.

 

[big bertha]

Gave up work in mid thirties when kids came along, we could afford me being stay at home mum. OH retired at 58 2 years early when opportunity presented itself, he had a very good final salary pension. Now we are downsizing even more loaded if girls don't pinch it.

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[spitfire]

Over the last few months I seem to find there are more and more discontented people on the forum who seem to be obsessed with ' being right ' or unhappy about what others have , others are doing, or are saying which doesn't fit with their perceptions. Everyone is entitled to spend as they wish, think as they wish ,even if I don't agree with them they are entitled to their opinions. Reference this thread as I said I retired as a JC Plus manager and my pension is 666.50 per month so all PS pensions are not that generous .

But think carefully there are much more important things to do and see in life than constantly be complaining at your lot. Not all but many of us on this site are very lucky to have health and time in retirement to travel and enjoy life . Remember our friends here who are battling illness including cancer with amazing strength .

OK sermon over ))

 

[bellabee]

@spitfire, I agree with you entirely. It's far better to count your own blessings, than envy others theirs. By and large, life is what you make it. It's a waste of precious time to spend your life looking over your shoulder at others.

 

[glenn2926]

So I do not have a public sector pension or eligible for one, so if I was in the public sector and I paid a % into the fund and come retirement time and I collect my pension does the cash come out of the fund without any top up from the tax payer? I don't think so.
Come on then - one that is in the public sector tell us what you have paid into the fund over your term of employment, what pension you get now before tax.

So you don't have a public sector pension. Why not? what stopped you working in the public sector? Maybe the low wages, maybe the having to deal with sights most people never see, maybe the working weekends? nights, bank holidays Christmas new years. I can't really think of any reason you did not work in the public sector. lots of us on here did and would do it all over again. So instead of moaning about us that did work in some of the most demanding jobs around you should be thank full that some of us looked after people in their time of need.

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[The Wino]

So you don't have a public sector pension. Why not? what stopped you working in the public sector? Maybe the low wages, maybe the having to deal with sights most people never see, maybe the working weekends? nights, bank holidays Christmas new years. I can't really think of any reason you did not work in the public sector. lots of us on here did and would do it all over again. So instead of moaning about us that did work in some of the most demanding jobs around you should be thank full that some of us looked after people in their time of need.

Pleanty of people do that in the private sector as well I don't think there are many carers on a fortune they work ant-social hours shifts etc for min wage in many cases I don't blame those who are getting way more out than they paid in now hindsight is a marvelous thing but why is it continuing?. I think its either the politicians are afraid of the unions or want to keep the same deal themselves

 

[spitfire]

Oh my God do u folks never give up !

 

[rrusty]

So you don't have a public sector pension. Why not? what stopped you working in the public sector? Maybe the low wages, maybe the having to deal with sights most people never see, maybe the working weekends? nights, bank holidays Christmas new years. I can't really think of any reason you did not work in the public sector. lots of us on here did and would do it all over again. So instead of moaning about us that did work in some of the most demanding jobs around you should be thank full that some of us looked after people in their time of need.

I don't begrudge anyone having a public sector pension I would just like to find out what it is costing the tax payer.

I also appreciate that some provided a 24 hour service.

I was on the tools as a tradesman for 25 years before I started my own business and I was not getting anywhere near a decent wage, I served a 4 years apprenticeship on low wages and not getting paid sick pay throughout my entire employment (that's a whole new thread on its own) I was also on call 24 hours a day- 1 week on 2 weeks off so I could provide a service on bank holidays and Christmas - New Years.

So I am not moaning as you say, I just want to find out the facts.

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[Teuchter]

As I said I think it ought to be possible for everyone to have the same benefit so there is some transparency what contributions there are and what the benefits are if I want an index linked annuity at age 60 with the same benefits as a public sector pension I suspect it would be 2.5% or so. If someone retiring now on 45K final salary and expecting to get a 30k pension given they have spent a lot of their working life on lower salaries what do you think they might have contributed to their in effect 1.2million pound pension pot or to put it another way if they are retiring on a low pension of 7.5k what are the odds they have contributed significantly to a 300k pension pot. The figures don't stack up the way interest rates are now that's why all the private pensions have become average wage pensions or defined contribution (no guaranteed payout) pensions only in the public sector do the old schemes remain (including MP's) why should the rest of the taxpayers make up the difference.My hostility is to being expected to pay for someone elses pension when there is no possibility of those outside the public sector having that sort of guarantee or perhaps you have a vested interest in it staying that way!!

Thanks for your informative and well constructed reply Wino - no I have no vested interest in it staying that way - as I said my private sector pension far exceeds my public sector one (as did my private sector salary) and I am only an electrical engineer/technician with few qualifications.

My main gripe is that the public sector has become synonymous with greedy well helled high up government advisors etc - people forget that the vast majority of the so called "public sector" are in fact relatively low paid people who make our life in this pretty good Country safe, clean and look after us when we are ill!

In my private sector scheme I contributed the maximum possible to enhance my pension- something that was not allowed in my public sector one - additionally all my increases in salary went to paying off my mortgage early (in those days interest rates were between 8% and 15% )

My point is I benefited far more from my private sector pension scheme than I did from my public sector one!

However We are on common ground being against "final contribution" schemes as to "final salary" schemes!! - I do believe that in todays economic climate with interest rates approaching zero then final contribution schemes are so unfair and an absolute travesty!! all as a direct result of government policy!!! - Having said that if interest rates were still 10% plus then final contribution schemes would be "the bees knees"

No doubt if interest rates ever reach double figures again the government of the day will then change the rules again!!

 

[PeteH]

The thing I most remember about Pensions, was at one time being Co-opted onto a "negotiating committee", by default. In that was silly enough to put my head above the parapet!.

So we where all sat around the Table in HO Manchester. "talking" (as you do) about the next round of Salary/benefits increases. So her in charge of the "our" side says what about the next increase being Pensionable?. Oh No was reply, the pension contributions are not regarded as part of Salary. So why (she says) are they currently regarded as part of Salary for the purpose of negotiating?. IF they don`t figure AS Salary?. (there follows a silence). Then some Bright Brain (management) says, well because it never has!. So (she says) can we then change the status and include it as Salary?. Oh No! that would create a precedent, and the Shareholders would never stand for it!!. And thereby, one has the Bottom line. It`s all about shareholder profit, and the market being able to show increase YEAR ON YEAR. Capitalism at work?.

Hey Ho. I am not exactly complaining, I stuffed them it the end I have only one more year and then I am actually ahead of the game viz the reduction I took for Early retirement, I have "outlived" the Actuary`s assessment!. Not only that just after I left (escaped?) they changed all the rules, but my pension was in Payment so unaffected!. AND I escaped the "Brown Attack" on pension Funds for the same reason.

Pete

 

[Feltwell]

Good luck to all you lot already retired with final salary pensions, wherever they come from, enjoy them.

The days of comfortable retirement for pensioners are numbered. There are a hell of a lot of people out there now, in their 20's, 30's 40's & 50's, who do not have FS pensions and who only pay the minimum into their defined contribution occupational schemes, who are going to get a shock in a few years when they realise they can't retire as their parents did. I managed a quite large team of mostly 20-somethings when the automatic pension enrolment came in at work, it was the only reason most of them started a pension at all. The default contribution rates for employee and employer were very modest.

Who will buy all those shiny new motorhomes in future?

The days of companies offering great deals to retire early when they want to downsize are well & truly over! There are still some out there but they are much more modest than they used to be.

As for me? Age 44. Healthy. Damned if I want to work to 67 as the Government wishes. Small final salary pensions from early in career. Putting as much into (non-FS) occupational scheme as I can and working the tax advantage as hard as (legally!) possible, manipulating my taxable income to keep below a certain threshold . Would love to go at 55. Can't see it happening. Maybe 60, who knows.

Not as well off as some, better off than others. Counting my blessings really, and at least I'm thinking about the future and trying to plan now.

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[spitfire]

Good luck to all you lot already retired with final salary pensions, wherever they come from, enjoy them.

The days of comfortable retirement for pensioners are numbered. There are a hell of a lot of people out there now, in their 20's, 30's 40's & 50's, who do not have FS pensions and who only pay the minimum into their defined contribution occupational schemes, who are going to get a shock in a few years when they realise they can't retire as their parents did. I managed a quite large team of mostly 20-somethings when the automatic pension enrolment came in at work, it was the only reason most of them started a pension at all. The default contribution rates for employee and employer were very modest.

Who will buy all those shiny new motorhomes in future?

The days of companies offering great deals to retire early when they want to downsize are well & truly over! There are still some out there but they are much more modest than they used to be.

As for me? Age 44. Healthy. Damned if I want to work to 67 as the Government wishes. Small final salary pensions from early in career. Putting as much into (non-FS) occupational scheme as I can and working the tax advantage as hard as (legally!) possible, manipulating my taxable income to keep below a certain threshold . Would love to go at 55. Can't see it happening. Maybe 60, who knows.

Not as well off as some, better off than others. Counting my blessings really, and at least I'm thinking about the future and trying to plan now.

Well done for making the best provision you can . All you say is exactly right and I have a son your age who is doing exactly like you as he doesn't want to work forever either . He is a pharmacist and guess us lucky as could do the odd locum work for extra in retirement .
My generation are indeed lucky in retirement and although we did work hard it is nothing like the working situation your age is in

 

[ABZSteve]

Always planned to retire at 55 but didn't know how apart from putting lots of money into pensions. However that is easier said than done for most. Anyway, an opportunity came along 12 years ago that would potentially allow me to retire at 50 (last year, oops, missed it ) but the oil industry crash bu99ered that up. Not all bad though because what I did receive will allow me to retire at 55 if I wish but I will probably carry on to 58 (maybe). My wife will retire in 3 years time at 53, so she says. We will sell our house in around 10-12 years time then move around the corner to a two bedroom flat we own mortgage free. Plan is to spend 3-4 months over the winter in sunnier climes. Good luck to all with there plans, hope it works for you

Note to self, it's their plans not there plans

 

[rrusty]

Oh my God do u folks never give up !

Ditto

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[Langtoftlad]

Ye gods people - its not about grass is greener.
Its about making the choice about when to retire... About making the best with what you have.
Without a doubt, public services pension provision was one of the advertised benefits which went along with the role.

But who knew 30 or 40 years ago that government raids on private pension funds would make final salary schemes untenable.

In my case:
I joined a private company (BA) 30 years ago which had a fully funded contributory pension scheme but mandatory retirement age of 55.
Decades pass
Governments raid the schemes, change the accounting rules & abolish mandatory retirement ages.
Result is that the company can no longer afford the pension scheme but is legally obliged to provide what it agreed to.
I was able to work a further 3 years beyond 55 which added 50% to my pension = result .
However my pension is not a benefit - it is deferred salary. The employer & the employees both contributed.

And before anyone thinks lucky you - or jammy git or smug bastard...
2 months after I voluntarily chose to 'retire', the company offered a severance package - had I waited 6 months I'd be £40+k better off .

Luck plays the biggest part, despite our life choices but it doesn't matter...
Retirement is like taking another job - in a different country - until you sign up, you never know if it will be right.

For me, its about adjustment to the life I can comfortably afford, not necessarily the one I envy.
Many motorhomers have better newer shinier vans than me but that doesn't matter because we all enjoy the lifestyle best we can.

Retirement used to be enforced - now its a choice.
Having free will is more difficult.

[apologies for the rambling ramble... got to do something whilst my freezer defrosts].

 

[mikebeaches]

...However We are on common ground being against "final contribution" schemes as to "final salary" schemes!!...

I think what you're referring to is actually described as: 'defined contribution'.

 

[The Wino]

I think what you're referring to is actually described as: 'defined contribution'.

Or "unfortunately dissapointing"!!!!

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