Can we retire please? How much money do you really need need?

[busby]

we never got to have that pint at Bennicasim did we , hopefully next time and thanks for the comment

Al

We never got that far south, Left Benicasim early Nov...Van valeter,tested and straining to be off again,,,We may meet up somewhere again for a pint,,Keep safe,,BUSBY.

 

[SwissBob]

As may have already been mentioned in the 14 pages of responses to the original question it all depends on what you want. We can manage very well (mid south west France) on 2K euros a month - no debt, no mortgage.

We have a BnB which we open as and when we can be bothered - usually just for the big racetrack events nearby - and I do some casual online work (so not really 100% retired) plus the very nice teachers pension all add up to a comfy time for our needs.

 

[Otter Spotter]

After reading this thread i’m feel a bit better, not a lot just a bit so why do I feel like I do?

We are 67 & 69 and have really only just started enjoying ourselves as in motorhoming, this being our 3rd year.

I’ve just added up our assets, we get just over £25k a year in pensions, have £350K+ in the banks. We have circa £850K in property 2 of which bring in £450 a month rent.

No mortgages, don’t smoke but like a drink. A BMW and a £90K motorhome

I still run my own business although tailoring it down to fit in more with our travelling which earns me after tax around £65K per

i’m frightened to death of running out of money and regret massively not retiring fully and years ago so we had more time to enjoy it

Why do I feel like I do?

Please no smart wisecrack answers, i've grafted to get where I am but can’t seem to be able to stop

Please use cash flow forecast software which will show you that you will never run out of money. You have to consider selling your business and or business assets and go off and enjoy your remaining lives together. Good forbid Covid hit you what use is you having al” your wealth then, the only people who will benefit from your wealth will be your beneficiaries, ask yourself will they enjoy your wealth more than you could ?
As a successful businessman you may think you don’t need professional advice but I would find an independent Financial Planner ( not a bank salesman) and give them all the inf9 the6 need to provide you will the evidence you need to retire and go off and enjoy.
I did this for many clients and most are enjoying life to the full subject to Covid. I sobering situation and the reason I finished early is I provided planning for 8 clients in the last 2 years who could have enjoyed a long and financially sound life but Cancer killed them so they didnt have the time to enjoy their retirement.
Please stop worrying about your wealth and get on and enjoy it.

 

[Fragle]

After reading this thread i’m feel a bit better, not a lot just a bit so why do I feel like I do?

We are 67 & 69 and have really only just started enjoying ourselves as in motorhoming, this being our 3rd year.

I’ve just added up our assets, we get just over £25k a year in pensions, have £350K+ in the banks. We have circa £850K in property 2 of which bring in £450 a month rent.

No mortgages, don’t smoke but like a drink. A BMW and a £90K motorhome

I still run my own business although tailoring it down to fit in more with our travelling which earns me after tax around £65K per

i’m frightened to death of running out of money and regret massively not retiring fully and years ago so we had more time to enjoy it

Why do I feel like I do?

Please no smart wisecrack answers, i've grafted to get where I am but can’t seem to be able to stop

Excellent and you deserve to enjoy the fruits of your labour. Im sure it wasn't easy to get in that financial position and at least your enjoying it now. Happy travels

Retirement is a bit of a leap into the dark and everyone has different ideas of what they need as has been shown in the thread.

As someone said earlier I would like to enjoy the fruits of my labour till i'ts all gone and then write the cheque to the undertaker that bounces.

 

[Garfields]

Retirement is a bit of a leap into the dark and everyone has different ideas

I think that covers it
For most it's easy once you decide to jump
Getting to that point is harder

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[Fragle]

As may have already been mentioned in the 14 pages of responses to the original question it all depends on what you want. We can manage very well (mid south west France) on 2K euros a month - no debt, no mortgage.

We have a BnB which we open as and when we can be bothered - usually just for the big racetrack events nearby - and I do some casual online work (so not really 100% retired) plus the very nice teachers pension all add up to a comfy time for our needs.

I asked the original question in the hope of responses like this. Thank you. That shows it is happening and I'm not mad in thinking so. it gives us confidence to go for it.

Respect to those who have a lot more than the basic need and I am envious of your financial position. But and it's a big But nobody knows what will happen tomorrow and we are where we are financially. so many have already said we worked to get financially ok and then he/she died.

We live in hope of not being that couple

 

[autoswan]

Good thread this im just the wrong side of 50 and decided a year ago to wind down work a bit to have more freedom, family time while fit enough to enjoy it.
Got fingers in a few pies so very interested in the useful info from experienced retired folk on here.

 

[mikebeaches]

As others have mentioned, taking retirement is a bit of a 'leap of faith'.

But with careful thought about your own circumstances, it should be fine for most folk - deciding when the time is right.

I was fortunate enough to semi-retire (ie work part-time) from the age of 55, and fully retire at 59.

At first I was apprehensive as to whether it was the right thing and whether finances would work.

After about five years, felt much more financially confident as money went further than expected.

Now in my seventies, looking after health is the big priority.

 

[The Wino]

I think the thing that no-one has mentioned is continuing to work if they enjoy it. I think we can manage pretty well with the cash we have if we can invest at a rate just to match inflation and live to 100 we will have more than we spend now a year including our old age pensions but I still started a new job this year only 2 days a week because I like what I do!
It is nice though to feel like if I want to stop or if I get messed around I can just call it a day. Meanwhile I'm sure I can find something to spend the extra cash on I quite fancy a tr6.

 

[Al n Val]

I think the thing that no-one has mentioned is continuing to work if they enjoy it.

and that’s why I still do it, I started a Home Cinema retail and installing business about 10/11 years ago and still love it, working from home and having 2 of the best demo rooms in the UK so i’ve been told, makes it a pleasure to do.

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[Ivory55]

and that’s why I still do it, I started a Home Cinema retail and installing business about 10/11 years ago and still love it, working from home and having 2 of the best demo rooms in the UK so i’ve been told, makes it a pleasure to do.

I bet it’s a very few who actually enjoy work, most it’s a means to an end.

 

[mikebeaches]

Oops... Deleted - wrong thread!

 

[Al n Val]

I bet it’s a very few who actually enjoy work, most it’s a means to an end.

ah don’t worry i’ve been there done that, worked underground for 17 years, was a bastard of a job but great people and it was a right laugh tbh but Maggie put paid to that unfortunately

It ruined my body though and i’m paying for it now , I remember coming home with my wages and after handing it out to pay for mortgage and bills/food I was left with 60 pence and same the week after and after that and too scared to spend it.

Probably the reason why i’m frightened to run out now I suppose

 

[Al n Val]

We never got that far south, Left Benicasim early Nov...Van valeter,tested and straining to be off again,,,We may meet up somewhere again for a pint,,Keep safe,,BUSBY.

i’m pretty sure we were supposed to meet in the site bar one night in Sept but wife had other plans

 

[busby]

i’m pretty sure we were supposed to meet in the site bar one night in Sept but wife had other plans

Can't re.member that long back..BUSBY, Pm you.

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[Fragle]

financial Question related to retirement planning.

Are you allowed to take a tax free lump sum from each pension you have ?

I have 3 separate pensions. 2 are money purchase and I have decided that I will do drawdown with these if and when required. (sort of emergency pot)

The other is a final salary pension from a previous job that pays out at 65. I retire officially at 67 it will give me 23k tax free lump sum and 4k per year.

Can I also take a larger tax free lump sum in different years from the money purchase pension other than your tax free limit £12500.

Am I right in thinking that once I get to 67 and have a pension I will only be able to get £3359 tax free drawdown from a pension as including your state pension this would take you to £12500

 

[bigtwin]

financial Question related to retirement planning.

Are you allowed to take a tax free lump sum from each pension you have ?

Yes

I have 3 separate pensions. 2 are money purchase and I have decided that I will do drawdown with these if and when required. (sort of emergency pot)

The other is a final salary pension from a previous job that pays out at 65. I retire officially at 67 it will give me 23k tax free lump sum and 4k per year.

Can I also take a larger tax free lump sum in different years from the money purchase pension other than your tax free limit £12500.

Notwithstanding any withdrawals that keep you below your annual tax free income allowance (currently £12500), you may withdraw upto 25% of your total pot. You may not do this multiple times (unless you are staying within your overall 25% - i.e. taking 5%tax free for five consecutive years (slight simplification)).

Am I right in thinking that once I get to 67 and have a pension I will only be able to get £3359 tax free drawdown from a pension as including your state pension this would take you to £12500

Yes, £3359, as untaxable income, plus any of your 25% tax free amount that remains available. You can, of course, elect to take some more income from your pension and pay the appropriate amount of tax.

Ian

 

[Otter Spotter]

financial Question related to retirement planning.

Are you allowed to take a tax free lump sum from each pension you have ?

I have 3 separate pensions. 2 are money purchase and I have decided that I will do drawdown with these if and when required. (sort of emergency pot)

The other is a final salary pension from a previous job that pays out at 65. I retire officially at 67 it will give me 23k tax free lump sum and 4k per year.

Can I also take a larger tax free lump sum in different years from the money purchase pension other than your tax free limit £12500.

Am I right in thinking that once I get to 67 and have a pension I will only be able to get £3359 tax free drawdown from a pension as including your state pension this would take you to £12500

Yes you can take up to 25% of each personal pension you have,
Tax free cash from Final salary schemes is different, not necessarily 25% your employer pension administrator will give you the minimum and maximum tax free cash you are entitled to. If you take more tax free cash from these it could reduce the annual pension you receive.
in respect of the 2 money purchase schemes consider not taking all the tax free cash in one go but mix and match the tax free cash and taxable pension so you can take more income whilst paying less tax tax and allow the fund to continue to be invested In the drawdown plan. This potentially has the additional benefit of increasing the amount of total tax free cash you end up taking over time. Pm me if you need anything else.

 

[Fragle]

Yes you can take up to 25% of each personal pension you have,
Tax free cash from Final salary schemes is different, not necessarily 25% your employer pension administrator will give you the minimum and maximum tax free cash you are entitled to. If you take more tax free cash from these it could reduce the annual pension you receive.
in respect of the 2 money purchase schemes consider not taking all the tax free cash in one go but mix and match the tax free cash and taxable pension so you can take more income whilst paying less tax tax and allow the fund to continue to be invested In the drawdown plan. This potentially has the additional benefit of increasing the amount of total tax free cash you end up taking over time. Pm me if you need anything else.

Message sent. Thanks

 

[carolyn]

It varies so much on the schemes at your place of work it really is worth getting professional advice. Nick retired from Westlands at 60 after 42 years. They used to do a very nice thing thing for people who were on old schemes where you could go at 60 and your pension would be topped up an equivalent to the state pension until the state pension could be drawn. It was 65 but is now 66 for him. Taking that into account & Nick’s poor family history we took the max lump sum plus the lower pension for him.

I retired at 55 from the NHS and although both my parents died young, hopefully I won’t, we went for the lower lump sum for me but the larger annual pension as in theory being female and retiring younger, I should draw my pension for longer.

There are so many variables it can be confusing. The websites are useful as at least they give a good base for some groundwork before seeing an IFA. It will be money well spent but that’s only my opinion. I do remember a patient of mine who was a Bank Manager in the days when you could phone them up for a chat saying” capital is easy to spend but hard to accumulate”!

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[Deneb]

I do remember a patient of mine who was a Bank Manager in the days when you could phone them up for a chat saying” capital is easy to spend but hard to accumulate”!

So true, and whenever I contemplate buying anything I find myself mentally converting its price into the number of hours I had to work to accumulate that amount of money. It often influences my decision as to whether I actually want or need it!

 

[Cheshirecat57]

So true, and whenever I contemplate buying anything I find myself mentally converting its price into the number of hours I had to work to accumulate that amount of money. It often influences my decision as to whether I actually want or need it!

Im the other way, I spend it and justify by telling myself thats why I work

 

[Skyway]

Enjoy your retirement go for it as said before could be dead tomorrow have fun now not when you cannot

 

[Ivory55]

So true, and whenever I contemplate buying anything I find myself mentally converting its price into the number of hours I had to work to accumulate that amount of money. It often influences my decision as to whether I actually want or need it!

Glad I am not the only one who thinks how many hours or days to buy that.

 

[Hirsch]

After reading this thread i’m feel a bit better, not a lot just a bit so why do I feel like I do?

We are 67 & 69 and have really only just started enjoying ourselves as in motorhoming, this being our 3rd year.

I’ve just added up our assets, we get just over £25k a year in pensions, have £350K+ in the banks. We have circa £850K in property 2 of which bring in £450 a month rent.

No mortgages, don’t smoke but like a drink. A BMW and a £90K motorhome

I still run my own business although tailoring it down to fit in more with our travelling which earns me after tax around £65K per

i’m frightened to death of running out of money and regret massively not retiring fully and years ago so we had more time to enjoy it

Why do I feel like I do?

Please no smart wisecrack answers, i've grafted to get where I am but can’t seem to be able to stop

That is the problem isn't it. With a work ethic it is very different to change. Perhaps you have it in what you said. "Tailoring down your business to fit in with travelling".

I think most of us might think you should just chuck it and enjoy life whilst there is time.

Good luck and best wishes.

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[WESTY66]

Glad I am not the only one who thinks how many hours or days to buy that.

You certainly aren’t, and when I retire with my pension I will HAVE to search out all Lenny HB free Aires! I guess it’s a result of being a bottom feeder all my life instead of the high flyer that I never had the brains for, oh and wasting all my money on Harley Davidsons and the lifestyle
That said, I’m happy with my lot

 

[Garfields]

I found it hard to adjust to retirement to begin with

I then got up and made some coffee and though this is fine

Be aware of the "I will just do another year syndrome" one more year working is one less in retirement whichever way you count it

 

[Al n Val]

That is the problem isn't it. With a work ethic it is very different to change. Perhaps you have it in what you said. "Tailoring down your business to fit in with travelling".

I think most of us might think you should just chuck it and enjoy life whilst there is time.

Good luck and best wishes.

i'm beginning to think you could well be right, i can't begin to tell you how much we enjoy being in the motorhome and how its changed our lives. We absolutely love it, but no doubt you guys n gals know that already

We've met some really lovely people, a lot of which are now our friends, and its a lifestyle I wish we'd had years ago, but probably finances and family didn't allow us to do it then I suppose.

I said when we purchased it, "if we don't like it we'll sell after a year", and i also said after the first year, "I hope we get another 10 years"

I'm hoping the second part comes true

stay safe everyone and hopefully we can meet up with everyone single one of you when we're allowed to travel again

Al

 

[tjay]

Hi, we are both retired, have been for 17 year after bad motorcycle accident. I have my OAP but wife still to young for hers.
I also have couple of small company pensions , likewise the wife.
Local council Welfare Rights folk , kept us well informed re benefits that we could/should claim for !! very please to find out that we could receive some extra cash via them !
So my advice is to contact them to find out what you can qualify for, remember the old saying, "If you don't ask then you will not get "
Makes the difference in getting away in motorhome more often, covid permitting.
Drive safe and enjoy !

 

[busby]

You certainly aren’t, and when I retire with my pension I will HAVE to search out all Lenny HB free Aires! I guess it’s a result of being a bottom feeder all my life instead of the high flyer that I never had the brains for, oh and wasting all my money on Harley Davidsons and the lifestyle
That said, I’m happy with my lot

Being Happy is the most important thing,,some are happy counting and having money,,,i used to like spending it,,,You dont need things as you get older so normaly keep myself happy touring in the sunshine,,,Nowt so queer as folk..BUSBY.

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