Budgeting with no pension

[Judge Mental]

2% would be 'zero risk high street' - you can get 3% on up to sixty grand (if you have a partner) from Santander, but the point of the spreadsheet is just that; change the interest rate to 2% and £200k would still last 20 years drawing £12,000 pa, if you're 65 that might be long enough!

My father only made 65 and my grandfather 55, so I am not planning on working in somebody else's office until I'm 68; I might not make any money writing, but it is still work and I can do it until they nail down the lid or I lose my last marble, in either case I shan't be troubled by lack of money

Problem with putting monies with one bank is that there is no protection over a certain amount. Was 80k but has it been changed to 50k....not sure

 

[Minxy]

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!

By increasing the amount drawn by 2% each year this accounts for inflation so by year 24 you haven't got any money left!

 

[Minxy]

Problem with putting monies with one bank is that there is no protection over a certain amount. Was 80k but has it been changed to 50k....not sure

Was £85k for all banks within the same group per person, changing to £75k.

 

[Neilfg]

Am still working but hope to stop paid employment in the next couple of years and our income will come from what we have saved. How much is needed is determined by how much you spend and your savings, but I could not get my head round the amounts and got conflicting advice.

After a bit of research rather than just asking the advisers I came across the 4% Rule which is a rough guide to what pot you need to be financially free for the rest of your life. There are lots of articles about this on the web and calculators to assist (e.g. http://www.firecalc.com ), lots of articles rubbish it but as a guideline it helps you decide yes I can do this or not but in that case it provides a target amount. Whether you want to or are ready to is a different thing entirely.

 

[Bacchus]

Problem with putting monies with one bank is that there is no protection over a certain amount. Was 80k but has it been changed to 50k....not sure

£85k per institution according to "money saving expert" http://www.moneysavingexpert.com/savings/safe-savings.

[edit] -dropping to £75k from 1/1/2016, as @MinxyGirl says above[/edit]

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[Gellyneck]

Problem with putting monies with one bank is that there is no protection over a certain amount. Was 80k but has it been changed to 50k....not sure

Down from £85k on 1 Jan, 2016 to £75k.

 

[irnbru]

Whats a SIP ? And 4% of what?

 

[Judge Mental]

Have one savings pot with the Leeds. It pays 4.4

6 months withdrawel though. Not sure when rate finishes though

 

[Judge Mental]

Whats a SIP ? And 4% of what?

Self invested pension I fink?

 

[Gellyneck]

Whats a SIP ?

Once you've poured your wine into the glass .................
Sorry, in your case this would be guzzle!

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[Bacchus]

Whats a SIP ? And 4% of what?

A sip is a very small drink, not heard of on this forum. Or a Self Invested (Personal) Pension - basically has the tax protection of a paid for pension but you choose the funds.

I have been recommended to set one up with Fidelity as their charges are reasonable

 

[cliffanger]

Cliff stopped working 3 years ago at 60, I stopped 2 years ago at 58. Both self employed with no pensions. We do have a house we rent out so that is our pension. We decided that there is a small window of possibly 10 years when you are healthy enough to enjoy travelling in the van, and every year after that is a bonus.

We've never looked back. We walk every day. The only stress is our Rob at 24 taking on a psychiatric nursing degree, but that is going OK.

I must say though - the Great Pensions Robbery which means women of my age have lost out on 6 years of pension is now leaving a bitter taste in my mouth - contributions all paid up years ago, I should have been getting it this week - and now have to wait until I am 66 - this will affect a lot of us Funster Females - what d'ya say to a revolution eh girls.......?

 

[Neilfg]

Down from £85k on 1 Jan, 2016 to £75k.

If you had a savings pot for retirement that you would use for income then you would be unlikely to use a Bank etc.. to hold it so the 75k compensation or whatever is pretty irrelevant. Using a SIPP (Self Invested Pension Plan) then the funds are invested in Shares, Bonds, Property etc... these although managed by a provider (LV, Aviva, AXA etc...) are ring fenced and if the provider was to go bust you would be unlikely to loose any of your investments as they are independent of the provider, mind investment can go down.

 

[Taran_Las]

<snip>
We've never looked back. We walk every day. The only stress is our Rob at 24 taking on a psychiatric nursing degree, but that is going OK.
</snip>

Obviously anticipates having to look after his parents​

 

[gus-lopez]

Interesting spreadsheet, however in today's marketplace achieving 5% returns year on year is no easy ask. 2% is nearer the mark for low risk cash or near cash investments.

I left a small amount ( & it was small ! ) in a pension fund in 1984. Unilver guaranteed that it would grow at the rate of 8,5% . Oh,yes I thought pull the other one. So I was amazed to find out that it had & it has only been reduced to 8% a couple of years ago. Just seems incredible that they could maintain it over quite a volatile period for some 30+ years.

Wish I'd left all the rest that I took out .

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.
.

Same here & now I look back & realise that none of it was worth it.

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

Russians looking for pilots then ?

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.

Under the new rules I thought that when you died the pot was inherited by spouse etc?
I actually asked the question about mine this week , which I am now thinking of taking, & was told that if I died the pot left goes to my wife as a lump sum. She cannot continue with income.

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[barsteward]

I left a small amount ( & it was small ! ) in a pension fund in 1984. Unilver guaranteed that it would grow at the rate of 8,5% . Oh,yes I thought pull the other one. So I was amazed to find out that it had & it has only been reduced to 8% a couple of years ago. Just seems incredible that they could maintain it over quite a volatile period for some 30+ years.

Wish I'd left all the rest that I took out .



Same here & now I look back & realise that none of it was worth it.


Russians looking for pilots then ?




Under the new rules I thought that when you died the pot was inherited by spouse etc?
I actually asked the question about mine this week , which I am now thinking of taking, & was told that if I died the pot left goes to my wife as a lump sum. She cannot continue with income.

Could she not then invest the lump sum in her own sipp?

 

[barsteward]

All this has got me thinking, maybe I need to go see my advisor. I have about 3 pensions one of which is worth a reasonable sum (by my standards) perhaps I don't need to be in this position.
Would never even have thought about drawing any of my pension until 65 were it not for this thread....and may still not after advice. lol

 

[Neilfg]

All this has got me thinking, maybe I need to go see my advisor. I have about 3 pensions one of which is worth a reasonable sum (by my standards) perhaps I don't need to be in this position.
Would never even have thought about drawing any of my pension until 65 were it not for this thread....and may still not after advice. lol

Absolutely seek out an adviser, independent if you can. but just speaking to the pension company directly can be useful to start with, this is not something we deal with every day but it is very important to understand and I found it helped to talk to different people to get options.

 

[barsteward]

I have got an advisor and he does keep sending me letters for reviews, but it was sort of leave it until I reach retirement. Never expected to end up where we have, so you never know, might be a more pleasant out come than I expected.

 

[Don Quixote]

We packed in the "rat race" in 2011, me at the age of 53 move to our home in Spain selling up in UK and whilst not a bed of roses really glad we did. The main factor for me was a heart attack at the age of 42 and then seeing a few close friends passing away before ever reaching retirement age. If you can do it I would say go for it as life is to short to not to enjoy you hard earned cash. We get by on our military pensions and savings.
So many people "live to work" instead of "working to live" and here in Spain you see how Spanish people work to live and money is not everything.

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[WillH]

I retired at the age of 51, 11 years ago. My wife followed suit 3 years later. If I were to consider any guidelines for retirement planning they would be as follows:

Start early, I was 21 when I commenced.
Pay off any mortgages as soon as possible, at least before 50 years of age.
Plan a retirement age, mine was 55.
Consider any state pension to be 'icing on the cake'.

My planning went better than expected hence the earlier retirement date, also the early death of a few colleagues kept me aware of timing. As someone has stated above you have a ten year window to do things, I'm on year twelve now and still going. We don't fritter our money away but still enjoy a good quality of life, we are now just as well off as when we retired so are drawing down a bit more on the capital to spend on travel, just back from a couple of weeks in Australia that we booked on a whim.

Planning is everything, I didn't expect a state pension, may not see one yet, so treat it as an extra.

 

[barsteward]

We packed in the "rat race" in 2011, me at the age of 53 move to our home in Spain selling up in UK and whilst not a bed of roses really glad we did. The main factor for me was a heart attack at the age of 42 and then seeing a few close friends passing away before ever reaching retirement age. If you can do it I would say go for it as life is to short to not to enjoy you hard earned cash. We get by on our military pensions and savings.
So many people "live to work" instead of "working to live" and here in Spain you see how Spanish people work to live and money is not everything.

Your 100% right, but many people just get tossed around in the "sea of life" and in Britain we have a dog eat dog culture. Now, most off us on this forum are of an age where "how long we are lightly live" out ways who we can take most advantage of.

As an after thought.....we are now the hunted.

 

[gus-lopez]

Could she not then invest the lump sum in her own sipp?

Yes , quite likely.

I have got an advisor and he does keep sending me letters for reviews, but it was sort of leave it until I reach retirement. Never expected to end up where we have, so you never know, might be a more pleasant out come than I expected.

I hope it turns out well for you. You're better taking it now as you never know what's likely to happen & there's no point you struggling on till 65 just'cause that's how it always was. Better to enjoy it now .

I've hummed& haahed about taking mine for the last 5 years as I've still 4 years to go till age 65 , but having seen my brother die in 2011 at age 67 Then wife's youngest brother last october at 57 ,then her sister earlier this year at 62 I've decided that it is better starting it now then later that might never come.

 

[barsteward]

Yes , quite likely.



I hope it turns out well for you. You're better taking it now as you never know what's likely to happen & there's no point you struggling on till 65 just'cause that's how it always was. Better to enjoy it now .

I've hummed& haahed about taking mine for the last 5 years as I've still 4 years to go till age 65 , but having seen my brother die in 2011 at age 67 Then wife's youngest brother last october at 57 ,then her sister earlier this year at 62 I've decided that it is better starting it now then later that might never come.

 

[CWH]

I know this is asking a Q like how long is a piece of string BUT
Do you budget to reach a certain age hoping it sees you out? Is this for a single or a couple?
I hear all to often about the people that drop down dead and don't get to enjoy their hard earned cash, so whens enough enough to get by.?

If you don't have a pension you will probably always be anxious that you won't have enough to live on.
So if you have sufficient capital, you could start a pension now by putting in the maximum allowed either monthly or through lump sums. This should reduce your anxieties as you can provide yourself with a pension (small when starting late, but adds to any state pension) and also stop you worrying about whether you're spending too much & leaving yourself 'destitute' in the future. Of course if you die early you've lost out; it's all a horrid gamble!

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[Candapack]

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!

Eddie, move to Scotland and get a castle. OTH, a bit far from the ferries.
Hey, move to Scotland, get a small house, use the massive balance to set up a ferry service to Belgium from Scotland, make some money too!!
I'll expect free lifetime travel on J M Ferries for the idea.

 

[Judge Mental]

Eddie, move to Scotland and get a castle. OTH, a bit far from the ferries.
Hey, move to Scotland, get a small house, use the massive balance to set up a ferry service to Belgium from Scotland, make some money too!!
I'll expect free lifetime travel on J M Ferries for the idea.

Ha ha ha so funny. After living in london Just want the quiet life safe cycling and bit of sea fishing

Still within reach of town for shows etc..
Wife a theatre addict

 

[Candapack]

There was a story about the Queen Mother. She was about 95 at the time. Apparently, she had a problem with debts which ran into millions.
What I particularly remember was someone writing, "it's not her that's got the problem"!
Daughter, if you're seeing this, apologies in advance.

 

[Candapack]

Ha ha ha so funny. After living in london Just want the quiet life safe cycling and bit of sea fishing

Still within reach of town for shows etc..
Wife a theatre addict

Scotland;
Cycling, duh;
Sea fishing, oh come on now;
Theatres, just the biggest Thesp Fest on the planet. Not to mention regular tours by The Krankies, Bay City Roller tribute bands, and the like.
PLUS, Queen Nicola.
It's a no brainer, especially for a Sarth Londoner.

 

[barsteward]

Ha ha ha so funny. After living in london Just want the quiet life safe cycling and bit of sea fishing

Still within reach of town for shows etc..
Wife a theatre addict

eeee tha could do worse than moovin up ear tha nos, weve got sum sort ov classical place in Leeds nah. Sonly a 30 min coach ride plus thoe'l nose bag, fert naggs from Todd,
Eeee and its a classical place (in Leeds) weir thee used ter film Queenies Castle.
but tha can buy a Kingdom and a serf fer £250.000.
Eee just a minit, I need to ger stop me wipit barkin

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