Yet another reason not just to save endlessly now. If you do become house bound you're going to use so little.
And at that point... what even is life.
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
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Yet another reason not just to save endlessly now. If you do become house bound you're going to use so little.
And at that point... what even is life.
I hear the comments about not being able to consider a situation where you just stop working.
That is one of those "it depends" things. I'm in the same job for over 40 years. The first 30 years of that was exciting, pushing the edge etc, but that has mostly peitered out and I don't get too much from work these days. I'm about 2 years from being able to retire. In about 12 months time I'll probably go down to 3-4 days a week.
But like many, I got a taste of what retirement might be like during covid lockdowm. My employer services the hospitality industry, and therefore just like them, we were the first to lockdown and the last to get back to work. So I roughly had 15 months at home on 80% pay. Quite a long time of that was when there was no real restrictions on movement. I reasonably enjoyed it, but it did get me wondering in retirement that I'd need a reason to get out of the bed every morning. Doing charity work might be a thing, but only see me doing that maybe 1 day a week. So it is important I feel to have a plan as to what you are going to do in retirement (health permitting).
I wouldn't mind spending the cold months in say canary islands or some such, but not sure my finances will let me do that.
That is one of those "it depends" things. I'm in the same job for over 40 years. The first 30 years of that was exciting, pushing the edge etc, but that has mostly peitered out and I don't get too much from work these days. I'm about 2 years from being able to retire. In about 12 months time I'll probably go down to 3-4 days a week.
But like many, I got a taste of what retirement might be like during covid lockdowm. My employer services the hospitality industry, and therefore just like them, we were the first to lockdown and the last to get back to work. So I roughly had 15 months at home on 80% pay. Quite a long time of that was when there was no real restrictions on movement. I reasonably enjoyed it, but it did get me wondering in retirement that I'd need a reason to get out of the bed every morning. Doing charity work might be a thing, but only see me doing that maybe 1 day a week. So it is important I feel to have a plan as to what you are going to do in retirement (health permitting).
I wouldn't mind spending the cold months in say canary islands or some such, but not sure my finances will let me do that.
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Soldato
Generally at the start of retirement unless your unlucky with health you can do a bit more. Few more holidays, or certainly longer ones etc
But give that 10 years and most will be rarely travelling and if so unlikely to be long haul.
At that point even cars tend to go down in cost as they travel less, dont want a big more awkward to park one etc.
But give that 10 years and most will be rarely travelling and if so unlikely to be long haul.
At that point even cars tend to go down in cost as they travel less, dont want a big more awkward to park one etc.
Soldato
I keep having this recurring nightmare where I’m old and need to go to a retirement home.. the issue is that the only one I can afford is a warehouse in an industrial estate lol…
Sadly it’s too far away to have definite plans at the moment.. who knows I might retire then work aboard for a few years before coming back to the uk to settle or never come back..
Or I could just be that grumpy old man who lives in that old spooky house that we all had as a kid.
Sadly it’s too far away to have definite plans at the moment.. who knows I might retire then work aboard for a few years before coming back to the uk to settle or never come back..
Or I could just be that grumpy old man who lives in that old spooky house that we all had as a kid.
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I think the main reason to really hit saving into pension is for early retirement, as In I hope to retire before I'm 60 and too old to enjoy myself...if that's possible is hard to say this far out ....
Soldato
How much retirement income can you get from £300,000.
How much retirement income can you get from £300,000.If you're looking to work with a Financial Planner for financial advice and would like to determine if w...
youtu.be
Soldato
It is. Compound interest is your friend.
That's the thing. Unless you have a huge pot retiring early sounds horrible to me.
Yeah. If I had millions I'd retire tomorrow and do stuff. But realistically that's not going to happen.
I'd much rather work 6 months of the year and have money to do stuff the other 6 than have 12 months off and not have enough to do anything.
I think the bigger thing for me is knowing that it's an option, as early as possible. If my skills become redundant, I get ill and can't work, or family needs me, knowing that I could work part-time or a few months of the year would be hugely valuable.
I feel like there's a weird focus on early retirement where people act like the only possible scenario is that you save up loads and then fully retire at the earliest opportunity.
Realistically, each year you're buying yourself a bit more flexibility about your future. I'd hope that at some point I can move into something part-time, and also that if I'm not enjoying it I'd have enough saved up to be able to drop it.
Yes it's good to have the option.
One of my biggest fears is not so much dying but not being able to get around.
With depression and mental health rife not being able to do fun things really gets me.
So I do very much fear my health failing and having years and years house bound. Even mentally stable people get ground down by that. I doubt I'd have a chance.
But yeah. That thought is more scary than actually dying. That's why I can't imagine just retiring as soon as possible but not having the funds to use the time.
I haven't not been busy ever. Never got furloughed. Even started part time work at 13.
Always worked in summer holidays.
Time off is fine. Time off sitting around at home is not
Soldato
How much retirement income can you get from £300,000.
How much retirement income can you get from £300,000.If you're looking to work with a Financial Planner for financial advice and would like to determine if w...
Sorry, now that I have a moment to breath....
This video is very interesting to me as it's likely going to be around the size of my DC pot when I retire and I never knew that I could buy an annuity for a period of time and then when it matures, recieve a chuck back to buy another.
This may be my approach... cash out the 25% tax free.. use that to invest in stocks and shares via an isa till I need the mone, Buy a 10 year annuity and when that expires buy another 10 year one, so on... I like the idea of knowing how much cash I'll be getting for a period of time.
That video just shows I won't be retiring until I have to for medical reasons.
State pension won't start until at least 70 and is a big variable.
I doubt my pension pot will be any higher than 300-400k
Cost of living will probably require 30k to live OK by then.
With the above I will be absolutely needing to equity release.. Which has always been part of the plan. But that may only plug the state pension hole.
So yeah. Probably will have to work as long as possible.
Soldato
People need to remember when talking about inflation and their pensions, everything is worked out in today's equivalent and the assumption is already made that your pension pot will raise with inflation till at least the time of retirement.
it's not the case of I need x amount in todays money, so I will been x amount plus the compound rate of inflation as your pot should compound too.
Soldato
Met an old workmate today from my last job, asked about another colleague only to find that he'd died at work.
Don't spend your life chasing that last few pounds. Too many people do that, and never live to retire.
Don't spend your life chasing that last few pounds. Too many people do that, and never live to retire.
Ah I wasn't sure about that
Yep. Even working to the average life expectancy is a coin toss.
Do you expect to be paying income tax? If so, taking out 75k tax free seems like a bad idea. Maybe 20k a year (or whatever the future ISA annual contribution limit is).
Associate
Housebound as in needing help to do things too? My Mum saved up rather than spend, did so for years, until she eventually needed help in the house, cooking, bathing, toileting. At a cost of £700 a week, her little savings pot wouldn't have lasted more than a couple of years.
I often wonder if I should refrain from spending some of my inheritance, maybe I'll be housebound one day
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Soldato
yub, I plan to be over the personal tax allowance.. most people with any sort of pension will be over their personal allowance as the state pension is just under the amount. if you take the 75k (25%) out in bulk at the start, anything you earn in capital gains is tax free if you pop it into an isa. If you leave the amount in the main pot to grow and use draw down, what ever you take out 75% of it will still be taxed. Swings and roundabouts... I just like the idea of a knowing how much I have for a period of time.
Soldato
I found this earlier, might be helpful: