We had a friend who worked in the pensions department at Westlands years ago, organising the monthly payments. He noticed that the people who worked until 65 only seemed to draw their pension for about 18 months, whereas those that retired early seemed to draw them for decades - he made sure he retired as early as possible, 55 at the time
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
. Still looking forward to the adventures. I hope we get there and get to meet you somewhere along the way.
It is hard especially if in the past you have been short of money and had to really work hard to be comfortable. It’s difficult to stop earning and start spending your carefully collected savings. We have an asset in our house and with not having any children are planning to eventually sell up and rent as a back stop if needed.
Help. We are looking for some real world advice on if we are near or have already reached the point of retirement.
I have 8 years to pension age the better half has 2 years and both of us have had enough of being beholden to work. The better half has a few issues we feel its time to enjoy life.
Being very lucky to have paid the mortgage and the motorhome and the bills are just everyday stuff from having a property. We don't really want to full time so having done the maths I think we can do it
Ive broken everything down that we can think of insurances, services to car and motorhome, gas electric etc multiplied and divided and computer says yes it can be done. Just.
Happy days.
But the question is? Is there an amount, a real world figure people have found they require. A couple we saw a few weeks back said friends of them had set a target of £15000 per year to live off and only spent £13000. This seems to match our figures. So is this figure realistic? Do you already live on a smaller budget?
New decade new lifeAny advice is helpful
Unfortunately no pension scheme for the other half but since the original post over a year ago NHS did there stuff and she is much better now.
Think you might be right, I am looking at stopping, but feel at the moment I may as well carry on, until we can get away.
But conversely, because it is an average, just as many will live to that age or beyond. It's also worth looking at your relatives and ancestors for life expectancies and indications of common causes of death or diseases. No-one seems to have particularly bettered the average in my family for instance, but deaths prior to late 80's are quite rare in my wife's family, with many relatives living well into their 90's, or at least had been until Covid intervened for three this year.
Reminds me of bumping in to a mate I hadn't seen for years in 2019. he's about 3 years older. I asked him what he was doing now being retired? He replied" I haven't retired ,what's the point?" He travels 70 miles each way to work every day. They are also stuck with 2 kids at home in their lates 30's. the boy ,who used to have his own place when asked why he didn't move out stated "why , who wants to come home at night to an empty house, have to cook , do washing etc when mother does it all ?" I'd have thrown them both out long ago.3 adult children at home
I think this year although better than 2020 will be restricted
Non of our lot have had great life expectancy men especially hence the need to get out early hopefully I think we are looking at the property for later on down the line as a way of getting more money
Sounds like you have things sorted. I am in a similar position but plan on doing another two years & retire at 59. I just want a bit extra in case those in charge decide to put retirement age back again to try and claw back covid spending.
Only cautionary note. For most folk, as they get older, moving/downsizing gets harder and harder. Especially if you've lived in the same property for a long time.Non of our lot have had great life expectancy men especially hence the need to get out early hopefully I think we are looking at the property for later on down the line as a way of getting more money
Stay in the larger property as planned and as the pot gets tight later down the line downsize to free up 100k possibly still leaves the kids a fair chunk and to be honest the kids have said spend it
You my friend are probably the boat Im in but you are probably businesswise and experience wise 10 year farther down the line than me (Im 53) .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
.
The market is very bouyant at the moment, stamp duty holiday, so a good time is now
Medical science?
Beat me.
Wow that’s made my head spinIf you're referring to the £3600 gross contribution, anyone can pay that amount into a UK pension each year, even if you have no earned income. You contribute £2880 and HMRC give you £720 tax relief to make a £3600 gross contribution. You can then take 25% tax free (£900) and the balance of £2700 at your income tax rate, which could be zero if your income plus drawdown is entirely within the personal allowance.
So, if you pay no tax, you've just received £3600 for an outlay of £2880, or £720 profit.
If you pay tax at 20%, you get £900 tax free and £2160 after tax, a total of £3060 for £2880 or £180 profit.
If you have earned income, you can pay more, and correspondingly receive more. When I took my first pension, I carried on working for another 6 years. For illustrative purposes say that my pension and salary would have given me a higher rate tax liability on around £10000 of annual income, meaning that I would only get £6000 of that money after tax. By continuing to make pension contributions to at least that level I only had to contribute £8000 to make a gross contribution of £10000, with HMRC making up the additional £2000 from tax relief. It also reduced my annual income calculation by the amount of the gross contribution, taking it below the higher rate threshold and saving me another £2000 in income tax. So effectively, £10000 in my pension cost me £6000. I can take £2500 (25%) of that tax free, and if I draw the balance before SPA when I would be liable to 40% income tax again, I receive the balance less £1500 tax. So I take £8500 in pension income for an initial outlay of £6000.
There aren't many places you can get a guaranteed profit for no cost and very little effort
No you can't. You can take part of the 25% at a time over several years but the rest is taxable . There are different rules if its a small pensionWow that’s made my head spin
Deneb can anyone draw 25% tax free from a pension pot each year.
So total withdraw in four years.
Ive asked a few people this but never got an answer.
If my understanding of your question is correct then, sadly, the answer is no.Wow that’s made my head spin
Deneb can anyone draw 25% tax free from a pension pot each year.
So total withdraw in four years.
Ive asked a few people this but never got an answer.
Funny you should say that, I‘m relying on my wife!
A couple we know we’re planning to retire but then put it on hold, whem I asked why they had changed their minds they said one of their children had got into serious debt and they had had to used their 25% tax free to bail him out. Their other daughter had said it wasn’t fair that just because she had lived within her means she hadn’t received anything, so they felt that they had to give her a similar amount towards a deposit on a house.Reminds me of bumping in to a mate I hadn't seen for years in 2019. he's about 3 years older. I asked him what he was doing now being retired? He replied" I haven't retired ,what's the point?" He travels 70 miles each way to work every day. They are also stuck with 2 kids at home in their lates 30's. the boy ,who used to have his own place when asked why he didn't move out stated "why , who wants to come home at night to an empty house, have to cook , do washing etc when mother does it all ?" I'd have thrown them both out long ago.
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