Budgeting with no pension

[DuxDeluxe]

We have been in a period of low inflation so long people forget how devastating it can be. Pundits are saying we are nearer the next crash then away from the last one.

Many around the world work real hard their whole life simply to eat......
Count your blessings!

I do, every day. My brother worked just as hard but at 66 he can't afford to retire. That is one reason why I said I feel slightly guilty about being reasonably well off

 

[Chockswahay]

This thread is indeed thought provoking.

In June 2013 I 'retired' at 55 ............. now I am seeking full time employment again

We have had fantastic fun over the last two years, but to be frank, there is only so much adventuring to be had before it becomes 'all we do'.

Perhaps we are fortunate that we are (relatively) young and in excellent health, therefore we just don't feel 'old enough to retire' However, we are acutely aware that our current level of funding, whilst it is adequate, it is still finite. One of the risks with 'living for today' etc, is that tomorrow has a habit of coming around more often than not for most of us so there is a good chance that if we spend too much now we may well run out of funds before we get there

Looking back on all this I have discovered that (given the chance) I want more! Also the nice thing about working is that time off is 'different' and not just another day

So for me (us) the chance to work until 65 is actually not as scary as it might sound. Life is a balance and for the time being I am attracted to the idea of an equal balance........ half work.......half play

I suppose it does help that I have never seen my job as work......... I do accept however that it does compromise my liberty (if liberty is measured in time)........ on the other hand the financial reward is 'compensation' for this.

But.......... if I don't get a job flying aeroplanes.......... I will continue with my 'retirement' ........... because there is no other job that interests me in any way that could pay me enough to give up my free time.

Crikey, I am confused, haha

 

[DBK]

This thread is indeed thought provoking.

In June 2013 I 'retired' at 55 ............. now I am seeking full time employment again

We have had fantastic fun over the last two years, but to be frank, there is only so much adventuring to be had before it becomes 'all we do'.

Perhaps we are fortunate that we are (relatively) young and in excellent health, therefore we just don't feel 'old enough to retire' However, we are acutely aware that our current level of funding, whilst it is adequate, it is still finite. One of the risks with 'living for today' etc, is that tomorrow has a habit of coming around more often than not for most of us so there is a good chance that if we spend too much now we may well run out of funds before we get there

Looking back on all this I have discovered that (given the chance) I want more! Also the nice thing about working is that time off is 'different' and not just another day

So for me (us) the chance to work until 65 is actually not as scary as it might sound. Life is a balance and for the time being I am attracted to the idea of an equal balance........ half work.......half play

I suppose it does help that I have never seen my job as work......... I do accept however that it does compromise my liberty (if liberty is measured in time)........ on the other hand the financial reward is 'compensation' for this.

But.......... if I don't get a job flying aeroplanes.......... I will continue with my 'retirement' ........... because there is no other job that interests me in any way that could pay me enough to give up my free time.

Crikey, I am confused, haha

A half-way house is to take seasonal work - of which there is a lot around this part of the world. Not the highest paid work of course, but being an NT car park warden wouldn't be too bad, plus lots of jobs going in the leisure and hospitality industry during the summer here. It does mean you can only get away in the winter but lots of Funsters do that.

 

[Spidey]

I have a co worker who is still working at 68. Her husband still works as well. They have a nice house in an expensive area with a mortgage still. She says they can't afford to retire but every weekend they eat out go on weekend trips. I think then it's more they can't retire and have the same house and lifestyle. They don't have family holding them in an area. I would rather have a smaller house in a cheaper area and not eat out as much but each to their own.

Our main concern when we downsize and move would be family. We are the sandwich generation. My in laws will be late 70's and kids still want a base. It's trying to please everyone that holds a lot of people back from doing what they want to do. At the moment it's easy for us to make plans but come the day we move it's going to be hard.

 

[WAG2CRU]

It differs for everyone but, it could be said that it's rarely too early to retire but, often too late!

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[Gellyneck]

The other thing to consider about hoarding the funds and more important than enjoying yourself.

Do you (your heirs) really want to give The Treasury the inheritance tax?

 

[GeriatricWanderer]

I'm planning to spend my last £1 on the way to the cemetery. Haven't quite worked out how.

My children earn far more than I ever did so not planning to go without now in order to leave them an inheritance.

As a result of a lifetime's wanderings my occupational pension was always going to be minimal so I took a flyer some years back and bought a few of buy-to-lets which I'm now gradually selling off as my cash pot runs low. It's worked well for me.

It wouldn't worry me a toodly-pip if I departed with an enormous amount owing on my credit cards.

If I were now still in pre-retirement years, I'd go the buy-to-let route without hesitaion.

 

[Deleted34567]

I'm planning to spend my last £1 on the way to the cemetery. Haven't quite worked out how.

My children earn far more than I ever did so not planning to go without now in order to leave them an inheritance.

As a result of a lifetime's wanderings my occupational pension was always going to be minimal so I took a flyer some years back and bought a few of buy-to-lets which I'm now gradually selling off as my cash pot runs low. It's worked well for me.

It wouldn't worry me a toodly-pip if I departed with an enormous amount owing on my credit cards.

If I were now still in pre-retirement years, I'd go the buy-to-let route without hesitaion.

Without doubt. Worked very well for me too.

 

[buttons]

I'm planning to spend my last £1 on the way to the cemetery. Haven't quite worked out how.

My children earn far more than I ever did so not planning to go without now in order to leave them an inheritance.

As a result of a lifetime's wanderings my occupational pension was always going to be minimal so I took a flyer some years back and bought a few of buy-to-lets which I'm now gradually selling off as my cash pot runs low. It's worked well for me.

It wouldn't worry me a toodly-pip if I departed with an enormous amount owing on my credit cards.

If I were now still in pre-retirement years, I'd go the buy-to-let route without hesitaion.

There is an interesting question, who is responsible to pay off credit cards owed by a deceased.

 

[Electraglide]

There is an interesting question, who is responsible to pay off credit cards owed by a deceased.

The executor from the deceased's estate.

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[irnbru]

Enjoying reading the replies here. I've no one to leave anything to so want to spend what I've got but whether it will be enough to last me out who knows. I know I would hate to die leaving money behind. Now where's that crystal ball.

 

[buttons]

The executor from the deceased's estate.

That is interesting, so what is the difference between taking a loan tied into a property and taking a loan without any ties should the recipient die.

 

[Spidey]

There is an interesting question, who is responsible to pay off credit cards owed by a deceased.

No one is the answer. We had this situation when my mum died. She had credit card debt when she died. But it wasn't hers as such! Youngest sibling borrowed off the cards to pay for college (she was in her 30's) and never earned enough to pay it back! There was a huge family row when we found out! My mum was so ashamed to die with debt :-( When she died the debts died with her.

 

[Gellyneck]

Enjoying reading the replies here. I've no one to leave anything to so want to spend what I've got but whether it will be enough to last me out who knows. I know I would hate to die leaving money behind. Now where's that crystal ball.

Wait a wee minute Sandra. After Mum has got her cut we're all forming an orderly queue.
Probably not a lot left though after we've embalmed you in the wine right enough.

 

[irnbru]

No chance @Gellyneck The plan is for me to spend mums too..If I don't bleed her dry by then..lol but given the fact no one knows how long they have she might enjoy spending mine.

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[Judge Mental]

I retired at 57 now 62..due to health But we re fine..nice mortgage free house we are fine, Have savings that I break into for holidays etc...Mrs M has a good job so its sa reversal of rolls really...(just got in from shopping)

we are putting our house on the market and moving from london to south coast. Just had it valued, London prices obscene have made bundles just sitting on my hands..its so wrong w are simply disenfranchising the young. but is financing the retirement as being self employed although I earned well had a crap pension.Will get a similar property to our London home for nigh on half the money.....

Its more a worry and a balancing act for those without children as ours will get whats left...Would do my head in to think it would g to Osborne. Rather leave it in trust for pets to be honest!

 

[Gellyneck]

No chance @Gellyneck The plan is for me to spend mums too..If I don't bleed her dry by then..lol

OK, that's it! The Funsters forming RSPCMums.

 

[Wombles]

Retirement can be what you make it & our choice every day - can't imagine either of us choosing to go back to work. So long as we have good enough health then there are countless things to do, people to meet & places to see. One of our new hobbies is volunteering which can be very rewarding & you meet some interesting people - can make more of a difference than we ever did working but then neither of us had a job that we really enjoyed. We do have our son at home for another year & an unfinished self-built house to finish so plenty to keep us busy but gradually trying to build a life for when we have an empty nest & the house is finished & sold. As my Gran used to say - "if you have your health then you have everything" . We have lived on very little then had two good incomes & lived the lifestyle that that brought but now we are older our priorities have changed so we would rather live in a small house & get out & make the most of life...

 

[Puddleduck]

Being better off than most makes me feel a bit guilty but then think of the massively stressful job that led to it, and the hard work over the last 45 years.

Same here. We started with nothing and worked out hearts out. Literally in Martin's case. Not many people work 7 days a week and at least two 24 hour shifts in that week...... we did and we have suffered with health issues that I attribute to that.

We are the sandwich generation..

Martin's parents died relatively young but my parents are in their 80s and not in the best of health but also not so unwell as to be knocking...... Both my Grandmothers lived into their 90s and one Grandfather to late 80s. One set of Great-Grandparents both to their mid-90s.

Although I do have a sister I am the closer (emotionally and geographically) so I tend to get to be the go-to daughter. Sister provides the toys and entertainment - like buying Mum an ipad which Mum has now learnt how to turn off I get to do shopping and cleaning and hospital runs.

Our own children have left home but are starting to provide us with Grandchildren and I love it when we get the "Sorry to ask but are you available........." phonecalls. We do live a distance from the children and perhaps that is a good thing as they don't rely on us exclusively.

There is an interesting question, who is responsible to pay off credit cards owed by a deceased.

The estate will pay off credit cards and other unsecured debts as a rule but if there is no money it gets written off. For a debt secured on property the person or institution who are owed the money will negotiate on how to get their money back. If the property is sold they will be paid off after the tax man and other government charges but before any other debtors. If there is no money then they lose out like all the unsecured debtors.

I once was part of a team that handled an estate of a titled gentleman who died with only debts..... the person I really felt sorry for was the fishmonger and game dealer who had supplied him with smoked delicacies on credit. The banks and other institutions could sustain the loss...... Had to admire the old guy's style though. He had been diagnosed with terminal cancer and spent every penny and more in the six months before his suicide

My mum was so ashamed to die with debt :-( When she died the debts died with her.

Sorry she felt ashamed. Even more sorry about the family row. It's only money and money s only a way to keep score in life's game.

 

[Stealaway]

Trouble I have is trying not to spend my hard earned pension so the kids get something when I reach the great Aire in the sky

Have you asked the kids how they feel about it?
I know my kids are more than happy for us to spend every penny, I would hate thinking that they were waiting for us to die so they can cash in ---- and they certainly know how to spend/waste it!
We will never spend all our money (although we are giving it a good go) there will always be some money left in a house.
I was surprised to learn that any pension money left in our SIPP passes onto the kids tax free, so that is the last pot you should be spending.
I was also surprised how little we needed when we retired - you can live cheap and still do all the things you really enjoy.
I retired at 52 because too many friends had already died, my mother died at 59 so I was determined to have some fun for the last few years of my life while we were still fit and active. It was a worry but we thought what's the worst think that can happen. We would have to sell our house and move into a council 'granny flat' so no problem. We are now 67 & 68 and wonder why we worried -- Life is Good.

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[DuxDeluxe]

Same here. We started with nothing and worked out hearts out. Literally in Martin's case. Not many people work 7 days a week and at least two 24 hour shifts in that week...... we did and we have suffered with health issues that I attribute to that.

Yep - worked pretty well 7 days a week all my life and the last 15 years managing a global job across all time zones. The stress has ruined my health, thanks to ever higher targets and ever poorer service delivery by affiliates .... Having an EVP with a charisma bypass didn't exactly help, either.

 

[Judge Mental]

This thread is indeed thought provoking.

In June 2013 I 'retired' at 55 ............. now I am seeking full time employment again

We have had fantastic fun over the last two years, but to be frank, there is only so much adventuring to be had before it becomes 'all we do'.

Perhaps we are fortunate that we are (relatively) young and in excellent health, therefore we just don't feel 'old enough to retire' However, we are acutely aware that our current level of funding, whilst it is adequate, it is still finite. One of the risks with 'living for today' etc, is that tomorrow has a habit of coming around more often than not for most of us so there is a good chance that if we spend too much now we may well run out of funds before we get there

Looking back on all this I have discovered that (given the chance) I want more! Also the nice thing about working is that time off is 'different' and not just another day

So for me (us) the chance to work until 65 is actually not as scary as it might sound. Life is a balance and for the time being I am attracted to the idea of an equal balance........ half work.......half play

I suppose it does help that I have never seen my job as work......... I do accept however that it does compromise my liberty (if liberty is measured in time)........ on the other hand the financial reward is 'compensation' for this.

But.......... if I don't get a job flying aeroplanes.......... I will continue with my 'retirement' ........... because there is no other job that interests me in any way that could pay me enough to give up my free time.

Crikey, I am confused, haha

would there not be more chance of decent contracts in the middle east..Syria for instance?

 

[GJH]

Having an EVP with a charisma bypass didn't exactly help, either.

Does one with charisma actually exist? I thought they had to undergo removal of any residue before taking the job

 

[DuxDeluxe]

Does one with charisma actually exist? I thought they had to undergo removal of any residue before taking the job

Yep, his predecessor was equally demanding but also understanding, considerate and helpful when things got a bit squirrely

 

[Chockswahay]

would there not be more chance of decent contracts in the middle east..Syria for instance?

Get out! ................................. NOW!

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[Judge Mental]

Get out! ................................. NOW!

there was me thinking you were adventurous..being a pilot and all

 

[Huskydog]

They've used their 5 free posts as has Huskydog. Time to pay up

All paid up now ,just watch out for my posts

 

[Janine]

All paid up now ,just watch out for my posts

Ooooo...can't wait!

 

[The Wino]

This is a very interesting thread.

I have worked for myself for the last twenty five years as an independent contractor, this year I turned down a lucrative six months in favour of "freedom".

I am only(!) 51 can't really afford to retire as such, but my son has finished school, I have investments which cover my basic outgoings so don't have much need of income (at the moment!!), and could re-arrange things (downsize) to be comfortable enough to do the work that I want to rather than the daily grind - I have just finished the first draft of my first novel, I don't expect it to be a best seller or to win the booker prize, but I am already excited about writing the second and would rather be an impecunious writer than a wealthy commuter, or, indeed, the richest man in the graveyard (the males in my family aren't famed for longevity)

One of the things I have looked at is the "pension" which can be accessed from age 55 and annuities. The freeing up of this system is, IMHO the best thing that this government has done; OK they did it in the hope of a tax windfall from people taking out their pension savings to splash on a shiny new MotorHome, but the net result is that we don't HAVE to buy an annuity with any pension savings, and that has to be good. Personally, I think that the annuity is the work of the devil, designed principally to grab your savings when you die and keep them out of the hands of your successors, we can now invest any pension savings how we want, say in a SIPP, and we can draw slightly more than is required to preserve the capital; effectively you need a smaller lump sum because you can run it down to zero when you die instead of preserving (or even growing) it for the pension provider!

If anyone is interested I have created a spreadsheet to see how long your lump sum (from downsizing or elsewhere) might last, so for example a £200000 lump sum would last 37 years if I can invest it at 5% and draw a thousand a month from it, whereas it would only buy an annuity of around £300 a month! I don't think I will live another 37 years, and if I do I probably won't want for much.

The spreadsheet allows you to change the lump sum, the expected interest rate, and the rate of drawing to see what effect it has. It doesn't change how long you live, that's up to you and your god.

I presume I can upload the file, if so I hope that it may be of some interest to others.

The problem with this calculation is that the drawings remain the same so reduce in real terms over time. It there is 2% inflation over 20 years the value is reduced to 2/3 what it is now but a good tool to play with!

 

[robnchris]

Anyone and everyone that does`t have a final salary pension should cash their pension in and put it into a SIP.

If for no other reason most people pensions die with them, perhaps a small lump sum to a beneficiary part from that it`s gone.
With a SIP investment it`s yours and when you die it belongs to your estate so partner get it all, after that it will pass to any children, this will incur taxes of course.

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