Am hoping we have £3m in SIPPs by age 60 - so allowing for £90k per annum to live off on with a reserve being built up by however long we carry on working. Any remainder of mortgage covered by AirBnBing the house for a year or two.
Would be interested to know how many people have £1m+ in their pension fund, as that is basically what you need to replicate an old school 60% final salary for someone on £50k. My dad's pension is up to £45k from index linking having probably retired from a salary that would be lucky to have every breached £40k.
Yes shocking. You don't have to go and do some dead-end job in some tax free shithole to save your money tax free (as long as you are intelligent enough to realise people get old).
a) I was still allowed to pay money into my and my family’ sipps for five years after I left the uk; and
b) can access my jersey pension at 50 and take a tax free 30pc lump sum; and
c) although perhaps less relevant now, if o return to the uk, my pension wealth froM my time here are not included in a test against the lifetime allowance
oh and I can buy extra years in the uk state scheme for at the self- employed rates. Lol
flogging the gaff definitely part of the plan, although now there’s a vacancy at the top of the equity at kirkland & ellis; who are in need of exactly my skill set, you never know
Have one investment which should provide a really good return in the next five to ten years. Will also sell up and invest the surplus which should generate a reasonable income to survive on without really touching the capital. Will also take on some kind of part-time work that’s reasonably unstressful to top things up. Hope to be done by 55 or so.
I also have £600k in my SIPP (aged 41) but my wife has almost nothing. I'm hoping magically at some point we can switch salaries or somehow get her earning enough because I assume the lifetime allowance will have been reintroduced by the time we retire.
I have a bit of old CC final salary scheme that isnt index linked above 5%. I doubt it will be worth much.
DC schemes worth about 200K and goinf up maybe £10k a year.
So I dont really see any prospect of retiring.
It’s not a problem though as Im going to get rich with my carcass ventilating company. Basically boomers near death are put on a ventilator and kept technically alive for a few extra decades in return for a share of their index linked pensions. I expect the economics of these businesses will start to work for those on index linked DB schemes in the next few years.
Not really thought about it but will probably sell some property, buy a boat and sail the world
Aiming to get out of London law at about 45, few years either in house or slacking in the regions, then call it quits at 50. Then a few days a week doing charity work
And many of you may not realise the LA effectively lives on through the fixing of the tax free lump sum at its current cash amount, which will now get inflated away to zero.
Love the sound of people retiring at 55. With decent healthcare and lifestyle you have a life expectancy of 90. Will you have saved up 35 years worth of cash? Allowing for inflation and disasters? And your current tastes in coffee, holidays and fancy restos? I suspect not. Will you find God? Or will God find you?
Yes because I have very simple tastes and will be paid for some of my holidays. I plan to have enough to be able to get through 30 years just spending the capital.
Would like to be financially ready at 50-55, hopefully with a taper period of doing v little.
Doubt I’ll stay in central London so house would go or (ideally) be let out with a cottage somewhere in the countryside plus a small flat somewhere in the Med.
Have investments but not in a pension - I’m so ignorant about this, is there any benefit to a higher rate taxpayer having a pension pot? Sorry if a really stupid question.
Each year I put a chunk of my pay rise towards increasing the amount going into my pension but I started late so it won’t be enough to fully fund my life at all.
Love the sound of people retiring at 55. With decent healthcare and lifestyle you have a life expectancy of 90. Will you have saved up 35 years worth of cash? Allowing for inflation and disasters? And your current tastes in coffee, holidays and fancy restos? I suspect not. Will you find God? Or will God find you?
I'm counting on finding Dignitas when the money runs out.
max out isa as saving but then buy income producing assets without debt To create passive income
I’m where I want to be - my ‘number’ is probably £4m plus house and kids moved on. I’m hoping I’ll be there by 55 but I don’t plant to stop working if I still enjoy it. I’d be bored
- Do you have pensions or investments that you will retire on or will you flog your house and live in a smaller one?
pension and investments - have always put what I could in pension pot to take up free money from tax relief - start early: compounding growth is key - ISAs - all facilitated I have to admit by lucky “family money” investment in London property in the early 90s - haven’t sold yet but bought a small easy to mantain “cost effective” house outside London as long term home.
- when do you expect to retire? 55
- how much £ do you expect you will need in retirement?
how long is a piece of string? I have (relatively) modest tastes so cash burn will be (relatively) low - capital available for health stuff, to help family with important stuff, pay for eventual decrepitude care, and some left I hope for child to inherit and a few decent chunks to charidee.
If you hang up yer boots at 55, you’re in all likelihood a very long time retired.
I think most people in good health need to feel they have a ‘purpose’ in life, so unless you have some grandchildren to look after or some all-consuming hobby/passion, life could get pretty dull quite quickly.
Surely the answer is to find a job/career/business that you actually enjoy doing, so you can be happy motoring onwards into your 60’s, and maybe then gradually cut down your hours/days?
Thankfully I’ve never felt the need for a purpose and quite happy just pottering about doing house and garden maintenance and wasting entire days doing nothing.
Agree I’m slightly concerned an early retirement and pottering would be tremendously ageing. Doesn’t mean I want to continue reading SPAs until I’m 83 but hoping some form of career coaching or mentorship could help give some purpose.
i would probably feel the same, but why? all the work shit i do is gigantically pointless, would immediately be picked up someone else, and is forgotten within 5 minutes of it being completed.
there is zero reason to get any more validation from that than from noodling about in the garden for 25 years
I see so many people online looking for crew for the odd day of sailing here and there and would love to just be able to go at short notice. Just looking forward to that degree of freedom while I'm still in decent physical shape and able to enjoy it.
I have to say the thing that will grate is that small expenses such as coffees out and the like are disproportionately more expensive if you don’t spend much in toto. So you save for decades then are still spending it on Julian Metcalfe. Only more so. You can see why your aged ps seem so tight on occasion?
I had an idea today which was starting a business organising working holidays for all types of people but mainly retired people. You just pay for the flight and then you get board and lodging in rustic places. Easyish jobs in nice parts of Europe. What do you think?
Maybe it's not so much "purpose" but a sense of "accountability" that would be lacking? I can see that without anyone counting on you to show up somewhere or deliver something by a certain time, all the well-intentioned plans to learn quantum field theory, Ukrainian or read Proust in French may end up falling by the wayside.
This thread sums up how the govts since the 80s have fooked up pensions, letting Equitable Life etc and all their tinkering make people think it is a waste of time. Clergs post above sums it up - if you have a family then if you die before the min drawdown date they get the whole lot tax free, but most people prob don't know this.
Yes if you want to blow it all on smashed avocado and weekend trips people are free to do so, but an entire generation have been encouraged to think there will be something there at the end when there is fook all and £1m is prob the minimum they should be targetting for a DC fund for the life they have in their head if they are a higher rate taxpayer. Another huge slice of people in the public sector think we should foot the bill for them getting that deal.
As ever it comes back to financial education. Most people seem to think it's basically a savings account with some interest and have no idea that the money is invested and to some extent keeps the economy churning over.
I love noodling about in the garden - that and a bit of cooking, cinema occasionally, see friends occasionally, swim in the sea occasionally, walking in wild places occasionally and I’m happy. the need for “purpose/accountability” is just ego
Mr G had to retire at 54 because he developed MS. I had to "unretire" very rapidly to care for him and Young G. I'm still a full time carer when I should be spending my time lunching with my mates and buying expensive shoes. Tbh money is the least of our problems; without good health (mental and physical), money is a side issue.
Work a couple of days a week but about to have a four week break inc two weeks overseas. Bit worried about when husband retires as I’m better with money than him. He’s not particularly profligate but he wants to do more travelling and it will cost.
Gwen - your posts are sobering and put my woes into perspective. I don’t really have any idea but from what I read on here you are a strong and good person and your family are very lucky to have you!
"I love noodling about in the garden - that and a bit of cooking, cinema occasionally, see friends occasionally, swim in the sea occasionally, walking in wild places occasionally and I’m happy."
Similar here. Am enjoying getting out of the habit of assigning every task or diversion a monetary value and going more by instinct for whether something is worth doing.
Thank you Bullace and Cookie for your kind comments. It just hasn't turned out as I thought it would. Still, it is what it is and things could be worse. Onwards and sideways, if so fatso etc
I have been good at maxing my ISA since I moved here, which is hard going with a house.
I figure if I max ISA and get the full DC pension match, throw some at the mortgage extra each year, that's all I can hope for in terms of financial retirement readiness. Have to live some for today as well, life can be cruelly short. And even if you live to retire, your quality of life can be severely compromised by health issues. Not much point luxury travelling if you're dependent on a career or immobile or in chronic pain.
the ISA limit in the UK is so generous. Kind of surprising when you look at the low limits at the US and Canada equivalent
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Inflation will have forced a rethink for a lot of ppl. Anyone under 60 got a DB pension index linked? I v much doubt it.
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Every single person in the public sector cookie
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Am hoping we have £3m in SIPPs by age 60 - so allowing for £90k per annum to live off on with a reserve being built up by however long we carry on working. Any remainder of mortgage covered by AirBnBing the house for a year or two.
Would be interested to know how many people have £1m+ in their pension fund, as that is basically what you need to replicate an old school 60% final salary for someone on £50k. My dad's pension is up to £45k from index linking having probably retired from a salary that would be lucky to have every breached £40k.
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Shocking. We can only hope banana man is taxed to the hilt
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Yes shocking. You don't have to go and do some dead-end job in some tax free shithole to save your money tax free (as long as you are intelligent enough to realise people get old).
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Those public sector pensions Horace won’t actually buy much even 40/60
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They’ll buy plenty if interest rates are low and you can get a 20x payout
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You’ll be glad to know banana:
a) I was still allowed to pay money into my and my family’ sipps for five years after I left the uk; and
b) can access my jersey pension at 50 and take a tax free 30pc lump sum; and
c) although perhaps less relevant now, if o return to the uk, my pension wealth froM my time here are not included in a test against the lifetime allowance
oh and I can buy extra years in the uk state scheme for at the self- employed rates. Lol
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Heh at risky admitting the family money
we could tell sun
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flogging the gaff definitely part of the plan, although now there’s a vacancy at the top of the equity at kirkland & ellis; who are in need of exactly my skill set, you never know
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Have one investment which should provide a really good return in the next five to ten years. Will also sell up and invest the surplus which should generate a reasonable income to survive on without really touching the capital. Will also take on some kind of part-time work that’s reasonably unstressful to top things up. Hope to be done by 55 or so.
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Banana man your £3m sip gives you more annual income than 90k
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currently my pension pot (stand alone ie ex housing equity) is about 600k. Retirement in 20yrs
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basically planning to write books and build and sell a business to make heavy heavy dolla however
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You'd be drawing down v conservatively if you only took £90k off a £3m pension pot. Rule of thumb is 4%.
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I also have £600k in my SIPP (aged 41) but my wife has almost nothing. I'm hoping magically at some point we can switch salaries or somehow get her earning enough because I assume the lifetime allowance will have been reintroduced by the time we retire.
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Yes
I did but then stayed on as a consultant
As much as possible
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I have a bit of old CC final salary scheme that isnt index linked above 5%. I doubt it will be worth much.
DC schemes worth about 200K and goinf up maybe £10k a year.
So I dont really see any prospect of retiring.
It’s not a problem though as Im going to get rich with my carcass ventilating company. Basically boomers near death are put on a ventilator and kept technically alive for a few extra decades in return for a share of their index linked pensions. I expect the economics of these businesses will start to work for those on index linked DB schemes in the next few years.
IHT planning is so 19th century.
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Also there’s no iht or cgt here
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All planning assumes health etc
All going to plan I'll go pt at 55 then retire completely c.65
But i know enough to know that saying about mice and men
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What lifetime allowance ?
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Indeed
Although surely keir will reinstate
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Quite my full sentence eeyore
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*quote
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*throbber
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Yeah, got that one wrong didn’t you eeyore
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Not really thought about it but will probably sell some property, buy a boat and sail the world
Aiming to get out of London law at about 45, few years either in house or slacking in the regions, then call it quits at 50. Then a few days a week doing charity work
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And many of you may not realise the LA effectively lives on through the fixing of the tax free lump sum at its current cash amount, which will now get inflated away to zero.
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I was never keen on the tax free lump sum anyway
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Love the sound of people retiring at 55. With decent healthcare and lifestyle you have a life expectancy of 90. Will you have saved up 35 years worth of cash? Allowing for inflation and disasters? And your current tastes in coffee, holidays and fancy restos? I suspect not. Will you find God? Or will God find you?
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Some people have really amazing pensions 🤷 obviously people can get sick before retirement age etc which would fook things up.
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Yes because I have very simple tastes and will be paid for some of my holidays. I plan to have enough to be able to get through 30 years just spending the capital.
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I have simple needs
Few lagers on a weekend and some sports TV subscriptions
Never really extended myself financially so it's very easy to build stuff up quickly
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Would like to be financially ready at 50-55, hopefully with a taper period of doing v little.
Doubt I’ll stay in central London so house would go or (ideally) be let out with a cottage somewhere in the countryside plus a small flat somewhere in the Med.
Have investments but not in a pension - I’m so ignorant about this, is there any benefit to a higher rate taxpayer having a pension pot? Sorry if a really stupid question.
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Yeah about 45% benefits lol
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Each year I put a chunk of my pay rise towards increasing the amount going into my pension but I started late so it won’t be enough to fully fund my life at all.
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I'm counting on finding Dignitas when the money runs out.
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They’ll charge you a chunk.
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Pay gidge quick
max out pension
max out isa as saving but then buy income producing assets without debt To create passive income
I’m where I want to be - my ‘number’ is probably £4m plus house and kids moved on. I’m hoping I’ll be there by 55 but I don’t plant to stop working if I still enjoy it. I’d be bored
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I retired at 55.
I totally love it.
You think you are going to love the City for ever? Nope. Doesn't happen. You think you need millions to live on? Nope. No need.
Gaff paid for years ago. No kids. We are not extravagent people. Pensions generous. A couple of inheritances.
What do I do? I indulge my hobbies.
Working life is my past.
Indulge in the future. It's worth it.
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- Do you have pensions or investments that you will retire on or will you flog your house and live in a smaller one?
pension and investments - have always put what I could in pension pot to take up free money from tax relief - start early: compounding growth is key - ISAs - all facilitated I have to admit by lucky “family money” investment in London property in the early 90s - haven’t sold yet but bought a small easy to mantain “cost effective” house outside London as long term home.
- when do you expect to retire?
55
- how much £ do you expect you will need in retirement?
how long is a piece of string? I have (relatively) modest tastes so cash burn will be (relatively) low - capital available for health stuff, to help family with important stuff, pay for eventual decrepitude care, and some left I hope for child to inherit and a few decent chunks to charidee.
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- Have relatively modest needs.
- Be financially independent.
It's that easy. I should write a book.
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Retiring early for Roffers?
Just inherit money
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Heh, those that haven’t already. But but but somebody wants to take it away from me.
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yes
from law? in 2010. I do other stuff for beer money some years.
not much; no kids and we’ve never lived khuntstyle so no expectations on that front.
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also good to see riskyknee isn’t denying it
give chill his other account back risky you penis
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I'm utterly fúcked having never seriously considered I would even live as long as I have.
might knock out another kid in the hope they wipe my arse while I 'throat some more docs at 80
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I’ve just realised that my youngest will be 18 when I am 60 - so perhaps 60 would be more appropriate.
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If you hang up yer boots at 55, you’re in all likelihood a very long time retired.
I think most people in good health need to feel they have a ‘purpose’ in life, so unless you have some grandchildren to look after or some all-consuming hobby/passion, life could get pretty dull quite quickly.
Surely the answer is to find a job/career/business that you actually enjoy doing, so you can be happy motoring onwards into your 60’s, and maybe then gradually cut down your hours/days?
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Thankfully I’ve never felt the need for a purpose and quite happy just pottering about doing house and garden maintenance and wasting entire days doing nothing.
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Agree I’m slightly concerned an early retirement and pottering would be tremendously ageing. Doesn’t mean I want to continue reading SPAs until I’m 83 but hoping some form of career coaching or mentorship could help give some purpose.
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Question for those who have retired already — do you need more or less money in retirement than you thought you would?
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the sense of purpose thing is weird
i would probably feel the same, but why? all the work shit i do is gigantically pointless, would immediately be picked up someone else, and is forgotten within 5 minutes of it being completed.
there is zero reason to get any more validation from that than from noodling about in the garden for 25 years
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Runnersknee - we find we need less money than we thought.
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I see so many people online looking for crew for the odd day of sailing here and there and would love to just be able to go at short notice. Just looking forward to that degree of freedom while I'm still in decent physical shape and able to enjoy it.
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Pensions are good but imagine getting full tax relief on every pound you earn. Welcome to patland. It’s where the flava is.
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I have to say the thing that will grate is that small expenses such as coffees out and the like are disproportionately more expensive if you don’t spend much in toto. So you save for decades then are still spending it on Julian Metcalfe. Only more so. You can see why your aged ps seem so tight on occasion?
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Yeah but you spend 50% of your income on hookers and 40% on booze and rent
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I had an idea today which was starting a business organising working holidays for all types of people but mainly retired people. You just pay for the flight and then you get board and lodging in rustic places. Easyish jobs in nice parts of Europe. What do you think?
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Maybe it's not so much "purpose" but a sense of "accountability" that would be lacking? I can see that without anyone counting on you to show up somewhere or deliver something by a certain time, all the well-intentioned plans to learn quantum field theory, Ukrainian or read Proust in French may end up falling by the wayside.
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My ideal would be:
-semi-retire at 55ish
-keep doing some arbitrator/mediator work for a bit of cash and to keep my brain active
-do loads of photography and yoga and travel
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This thread sums up how the govts since the 80s have fooked up pensions, letting Equitable Life etc and all their tinkering make people think it is a waste of time. Clergs post above sums it up - if you have a family then if you die before the min drawdown date they get the whole lot tax free, but most people prob don't know this.
Yes if you want to blow it all on smashed avocado and weekend trips people are free to do so, but an entire generation have been encouraged to think there will be something there at the end when there is fook all and £1m is prob the minimum they should be targetting for a DC fund for the life they have in their head if they are a higher rate taxpayer. Another huge slice of people in the public sector think we should foot the bill for them getting that deal.
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As ever it comes back to financial education. Most people seem to think it's basically a savings account with some interest and have no idea that the money is invested and to some extent keeps the economy churning over.
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Wot nana said. There are going to be a lot of poor people doing menial jobs in their dotage just to eat.
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heh semi
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Should be able to retire whenever the boy gets his big move to LFC. Not otherwise.
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Runnersknee - meet Workaway - the business that you plan to set up. https://www.workaway.info/
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Thanks for trashing my dreams
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I love noodling about in the garden - that and a bit of cooking, cinema occasionally, see friends occasionally, swim in the sea occasionally, walking in wild places occasionally and I’m happy. the need for “purpose/accountability” is just ego
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Mr G had to retire at 54 because he developed MS. I had to "unretire" very rapidly to care for him and Young G. I'm still a full time carer when I should be spending my time lunching with my mates and buying expensive shoes. Tbh money is the least of our problems; without good health (mental and physical), money is a side issue.
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My only decision would be whether to move somewhere rural. Don’t know how people do it without being permastewed tbh.
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Poss a barn conversion, studio and library. But food ffs.
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Work a couple of days a week but about to have a four week break inc two weeks overseas. Bit worried about when husband retires as I’m better with money than him. He’s not particularly profligate but he wants to do more travelling and it will cost.
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Gwen - your posts are sobering and put my woes into perspective. I don’t really have any idea but from what I read on here you are a strong and good person and your family are very lucky to have you!
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Yes, bravo Gwen, you deserve a secure and happy retirement, if I may say so.
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Snippers m88 let me know if you find yourself in the Toon and I’ll buy you a few pints for trashing risky’s dreams
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What are you blathering on about now?
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"I love noodling about in the garden - that and a bit of cooking, cinema occasionally, see friends occasionally, swim in the sea occasionally, walking in wild places occasionally and I’m happy."
Similar here. Am enjoying getting out of the habit of assigning every task or diversion a monetary value and going more by instinct for whether something is worth doing.
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aren’t there rapey sex pests you should be defending on the internet risky m1?
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Thank you Bullace and Cookie for your kind comments. It just hasn't turned out as I thought it would. Still, it is what it is and things could be worse. Onwards and sideways, if so fatso etc
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Made another mistake eh Merkz. And another one too.
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Can anyone hear a high pitched whining noise ?
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Prob time to change your hearing aid battery old man
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I have been good at maxing my ISA since I moved here, which is hard going with a house.
I figure if I max ISA and get the full DC pension match, throw some at the mortgage extra each year, that's all I can hope for in terms of financial retirement readiness. Have to live some for today as well, life can be cruelly short. And even if you live to retire, your quality of life can be severely compromised by health issues. Not much point luxury travelling if you're dependent on a career or immobile or in chronic pain.
the ISA limit in the UK is so generous. Kind of surprising when you look at the low limits at the US and Canada equivalent
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another rake in the face for riskyknee …
sux 2 b u doesn’t it?
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Which rake is this? The one that means I get far more generous pension treatment than you?
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Some of us work for our pensions though, we didn't get them from our parents
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