What is this nonsense you speak about..
Did you not know the whole financial services industry are all crooks, out for fat fees and will rip you off.....
Kidding - nice to hear some positives for once about it!!
How much do you need for comfortable existence in retirement.
- Thread starter newbiejim
- Start date
What is this nonsense you speak about..
Did you not know the whole financial services industry are all crooks, out for fat fees and will rip you off.....
Kidding - nice to hear some positives for once about it!!
Soldato
Agreed on both counts.
My opinion on the public pension is it should be at the same level as the basic rate of income tax. If the government are setting the level to £12,570 (currently) before you pay income tax as a means to lift people out of poverty then how can they justify paying less to pensioners?
Too low and you need to be close to dead to claim it. Poor financial education about how to create your own future wealth. Boomers cashing out pensions to buy up property to rent it back to youngsters compounding the problem.
Soldato
I think they had it easier in certain areas and more difficult in others TBH.
Agreed on both counts.
My opinion on the public pension is it should be at the same level as the basic rate of income tax. If the government are setting the level to £12,570 (currently) before you pay income tax as a means to lift people out of poverty then how can they justify paying less to pensioners?
Shouldn't people take some personal responsibility in saving for their own retirement too? Or is that idea too far out there?
I reckon I could live a reasonably comfortable, yet basic life on the current state pension once my mortgage has finished. The state retirement age (and number of people stuck renting) is a bigger problem imo.
You could live on £174 / week for the rest of your life? My utility bills alone (council tax, gas, elec, broadband) would easily swallow 75% of that in winter.
Soldato
I think i probably could too. The main issues that'd have to be cut are things that're nice to have like holidays etc but i'd argue that's not really what the pension should be for.
The above bills in my house would be
Council tax - £195 (Cut down to £150 if i lived alone)
Broadband - £30
Utilities - £ ~120 (Although that's currently for 3 of us, again as a pensioner on a single pension i'd imagine that'd reduce a decent amount and not including any grants i'd be eligible for)
Other bills - £100 (Home insurance and other sundries)
So that's ~£400 a month. Leaving £350 a month left over for food/other stuff.
Given travel passes are free for the elderly, it's certainly do-able. The main issue is for people who don't have their mortgage paid off and need to include rent into that.
The above bills in my house would be
Council tax - £195 (Cut down to £150 if i lived alone)
Broadband - £30
Utilities - £ ~120 (Although that's currently for 3 of us, again as a pensioner on a single pension i'd imagine that'd reduce a decent amount and not including any grants i'd be eligible for)
Other bills - £100 (Home insurance and other sundries)
So that's ~£400 a month. Leaving £350 a month left over for food/other stuff.
Given travel passes are free for the elderly, it's certainly do-able. The main issue is for people who don't have their mortgage paid off and need to include rent into that.
You retire at 67, that's not elderly. You haven't included the running cost of cars, fuel, home maintenance etc. Food and groceries alone is probably £50 / week (if you included cleaning stuff, washing powder etc).
Soldato
Yeah but the passes are free when you hit retirement age so therefore it's a valid factor. You don't need to run a car because public transport is free.
I'm not saying you're having a brilliant life on a state pension, but it allows you to live and survive. If you then want to have luxuries like a car and stuff then you need to prepare for it yourself.
I'm not saying you're having a brilliant life on a state pension, but it allows you to live and survive. If you then want to have luxuries like a car and stuff then you need to prepare for it yourself.
Soldato
I'm aiming for retirement at 60. I'm maxing pension contribution so assuming rules remain static I have £600,000 available (15 years left) have £130K in my pension thus far. Hoping to get as close to £1m as I can. I have two BTLs which are currently £1000 (gross) income a month and their mortgages end when I'm 60. Assuming I don't move, my home mortgage ends at 60 too. £200K savings which I'm hoping will be closer to £375-400K by age 60.
I'd be stunned if state pension isn't means tested in some way by the time I get to state age.
I'd be stunned if state pension isn't means tested in some way by the time I get to state age.
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Soldato
It's one of those weird things that i'm shocked isn't already to be honest.
Both my parents and my mother in law claim it, but i would say that neither of them need to with >100k in savings and no mortgage.
I can only assume that the costs involved in means testing are greater than the cost of what they pay out to the point they have decided it's not needed.
For the current generation of pensioners / Government, means testing the pension would be political suicide for whichever Government implemented it. The grey vote is what currently wins or loses an election.
easy to state but harder to achieve with current house prices vs income. My first mortage was around 75% of my wages so there was no luxuries never mind savings.
That's curious - I guess it depends on the job/profession, I'm not sure I'd see the appeal of early retirement, when you're older you're pretty well established (perhaps well respected) in your field, have people interested in your work etc.. maybe some ongoing projects etc.. that can bring plenty of satisfaction and enjoyment - with some people they decline when they retire, they go from being busy doing stuff they enjoy, having a big social network via their work etc.. through to suddenly having too much free time - can't spend all day at the squash club etc.. that's still a once or twice a week thing.
My dad maxed out his pension a few years ago, had already paid off the mortgage years before that, he had absolutely no need to carry on working through his late 60s but still did. He's in his early 70s now and has only recently "retired" but not quite... still wants to work 2-3 days a week.
Well, I guess it's kinda moot if you're not spending money on luxuries, the fact you even had a mortgage separates you somewhat from them already.
Women with ridiculous shopping habits and credit card bills to match, guys who want the latest German car they can't really afford so have to buy it on credit all while renting and spending the rest of their salary on nights out... particularly at the start of the month when they've just had their latest paycheque but less so towards the end of the month when they're holding out till payday.
Soldato
Private pensions are usually only payable 10 years before state pension age, and as yours could easily be 70 years old by the time you get there you might want to funnel some cash into an ISA or similar to tide you over for a few years if you want to retire before then...I've been hammering my pension, current I'm 35 and putting in about 715 a month (mine and works combined). I am under egging that I'll have 400k at 55, however I'm hearing talk of private pensions being increased to 57 (not sure why as if its a pot that can run out it makes no odds). I'm going off a 2.5% increase in salary and a further 2.5% increase on the pot (can't remember exact equations used I my spreadsheet), buy I've got 75k in one pot and about 30k in another that's final salary. My current income is about 36k, but up north so probably more than average (obviously about half the average if London salary).
Yeah, with no mortgage. I wouldn't bother with a car either if I didn't work. I often have months with outgoings after car and mortgage of just £500. I try and avoid consumerism and alcohol.
Man of Honour
As much as I enjoy my work, and as much as I am successful and a "leader in my field", I can honestly say I do look forward to having more time for spending with family and friends and travelling more to see family and friends too. You may be right and I might get bored or at least do some NED work - which would be a nice part time piece of work.
If I won the lottery (not that I play) and made enough not to have to work ever again, I wouldn't work - there's so much more I'd like to do if I didn't have to work!
Soldato
Shhh you can't suggest that in here. People will get upset and start stating how the system is fixed against them and the government are corrupt, only benefiting the rich etc.
That said, I highly expect state pension to be means tested at some point. If you saved well / planned effectively - you get X. You didn't do this, then you will get more. Horrible to say, but it's the only way I see it going without more tax rises (which again people seem to moan about)