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

[Otter Spotter]

I have clients still taking their shoes and socks off ?

 

[ABZSteve]

We have planned for £4K/month from 55-60 then £3K/month thereafter. My wife doen't have a pension, oh, she does, that is me so I had to factor in an income for her. Our council tax bill is circa £3K/ annum and our gas/electric is running at £2K/annum. I have factored in maintenance and some nice holidays as well as Motorhome travel. I also want to change my car every few years and perhaps the Motorhome so that has to be budgeted for. Even cutting back on cars/holidays etc, we would need at least £26K/annum. We plan to sell both of our properties and downsize so hopefully there will be a good bit of free cash there. I will be 55 next July and in July this year, I was given the opportunity to retire this coming Friday. I didn't take it for a few reasons (no, not mad) so I will be working on for another couple of years or so. I have a GMP that will kick in when I am 65 as well as healthy pension plans and investments. I would also like to ensure my kids can benefit and plan to help with mortages etc as soon as I can (again, not mad). I don't plan to work past 58 though so still feel I will be retiring a good bit early. Good luck to all but please do your numbers again and again; best to err on the high side though

 

[The Wino]

We have planned for £4K/month from 55-60 then £3K/month thereafter. My wife doen't have a pension, oh, she does, that is me so I had to factor in an income for her. Our council tax bill is circa £3K/ annum and our gas/electric is running at £2K/annum. I have factored in maintenance and some nice holidays as well as Motorhome travel. I also want to change my car every few years and perhaps the Motorhome so that has to be budgeted for. Even cutting back on cars/holidays etc, we would need at least £26K/annum. We plan to sell both of our properties and downsize so hopefully there will be a good bit of free cash there. I will be 55 next July and in July this year, I was given the opportunity to retire this coming Friday. I didn't take it for a few reasons (no, not mad) so I will be working on for another couple of years or so. I have a GMP that will kick in when I am 65 as well as healthy pension plans and investments. I would also like to ensure my kids can benefit and plan to help with mortages etc as soon as I can (again, not mad). I don't plan to work past 58 though so still feel I will be retiring a good bit early. Good luck to all but please do your numbers again and again; best to err on the high side though

Why do your figures change at age 60 I'm nearly there but still don't feel ready for the pipe and slippers!!!!??

 

[tuscancouple]

We use a very old program MS Money

+1 for MS Money. I'd be lost without it having used it for 20+years, so have multiple backups of the data file at three separate storage locations and a CD copy of the program

Mick

 

[SpeedyDux]

I retired in my late 50's, the main criteria were savings and income with savings holding equal importance for a comfortable retirement. Retiring in your 50's means your cars and van are going to need replacing multiple times, your double glazing maybe twice, your bathrooms two or three times, furniture, fences, multiple holidays now that you have the time and health and of course your rainy day pot. It adds up to a substantial sum if your income is low, the higher your income the more you can pay for these things out of income, so I would say if you want to retire on the low income you suggest you will need to make sure you have a substantial savings pot behind you.

Nowadays things like double glazing, bathrooms, cars etc. should last decades if looked after. Who knows, one day avocado bathrooms might become all the rage again! New bathrooms are an option rather than a necessity. On the other hand ... CH boilers ... there's a risk that new "green" legislation might ban new replacement ones that use gas or oil. That could be a huge problem in 10 years time. No idea what the solution will be except a source of refurbished used gas boilers.

Fences, well I've extended their life by screwing metal plates across joints to make them more sturdy and so far they have survived 2 windy winters, unlike many of my neighbours' fences. They are relatively cheap to replace if necessary although it is a nuisance. Flat roof replacement for my garage and extensions will be a big hit to the savings pot one day. Fingers crossed.

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[Ivory55]

The in-laws got prepared in the 60 to 65 age had a new retirement bungalow, trouble is when they hit 75 to 80 all the stuff like boiler etc was worn and needed replacing, and that’s when the reserve has dropped down.

 

[ABZSteve]

Why do your figures change at age 60 I'm nearly there but still don't feel ready for the pipe and slippers!!!!??

No pipe and slippers for me either. More expense required from 55-60 to buy some nice toys. Also going through some house refurb. Three bedrooms, living room and hall just completed. Still two bedrooms and two bathrooms to do next year . Final car for wife in a couple of years i.e. no more new ones, it will have to last

 

[Puddleduck]

I'm curious about the £20k/year type figures being discussed as being adequate. Is this between 2 people? If so, then the state pension gives £17400 (for 2 people), so there isn't much to make up.

We were living on £25K between us before we retired as we went part time

Blimey, how far is your hospital, we have one to the west & one to the east both under 4 miles away and for outpatient treatment get a choice of which one to go to.

Our minor injuries unit is 26 miles, anything serious and it is over 40 miles.

 

[Potty]

Ours is the same and for very specialist treatment like chemotherapy and some operations nearer 100 miles.

 

[Puddleduck]

I have to go to Newcastle for some treatment but then I am "special". lol

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[The Wino]

Nowadays things like double glazing, bathrooms, cars etc. should last decades if looked after. Who knows, one day avocado bathrooms might become all the rage again! New bathrooms are an option rather than a necessity. On the other hand ... CH boilers ... there's a risk that new "green" legislation might ban new replacement ones that use gas or oil. That could be a huge problem in 10 years time. No idea what the solution will be except a source of refurbished used gas boilers.

Fences, well I've extended their life by screwing metal plates across joints to make them more sturdy and so far they have survived 2 windy winters, unlike many of my neighbours' fences. They are relatively cheap to replace if necessary although it is a nuisance. Flat roof replacement for my garage and extensions will be a big hit to the savings pot one day. Fingers crossed.

Flat roofing has moved on some of the membrane and grp systems are designed to last a lot longer than the old felt ones. Best done sooner rather than later or its new boards and if it gets too far joists/plasterboard as well.

 

[Puddleduck]

Flat roofing has moved on some of the membrane and grp systems are designed to last a lot longer than the old felt ones. Best done sooner rather than later or its new boards and if it gets too far joists/plasterboard as well.

Our GRP system has cracked after 17 years and will need to be replaced next summer. The 25 year guarantee wasn't worth the paper it was written on

 

[The Wino]

Our GRP system has cracked after 17 years and will need to be replaced next summer. The 25 year guarantee wasn't worth the paper it was written on

All too often the case with guarantees we mved house last year had all the usual questions then when we saw the solictor to sign he said here are the guarantees from your sellers but probably not worth the paper they are written on!!!!!!!!!!!!so what was the bloo*** point presumably to string it out for the fee!

 

[BusyBuilder]

Metal profile roofing is as good as GRP if not better as each panel is replaceable.

As for £1m pension pot ? aye right !!

 

[Phod's]

In the year you ‘finish work’ you can still do carry forward of unused relief using the last 3 years un-used relief.
Recycling is only relevant if you are already drawing ‘pension’ income, but if you haven’t started drawing, then not an issue.

This is NOT what recycling is!!!!!!!!!!!!!!!
You CAN be drawing pension and contribute again IF you have other savings/income to use........recycling is for example using you tax free cash lump sum to directly fund pension again, hence recycling!!!!
Recycling is considered an in authorised contribution and you'll be beaten with a big stick!
Similar scenario where e.g. 10K tax free cash taken but already had 10k in savings and you could the contribute to pension and not be deemed as recycling............this only assumes you could contribute 10k as an example!!!!!
Just seen a previous thread of O...S.....offering financial planning advice.....REALLY!!!

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[The Wino]

This is NOT what recycling is!!!!!!!!!!!!!!!
You CAN be drawing pension and contribute again IF you have other savings/income to use........recycling is for example using you tax free cash lump sum to directly fund pension again, hence recycling!!!!
Recycling is considered an in authorised contribution and you'll be beaten with a big stick!
Similar scenario where e.g. 10K tax free cash taken but already had 10k in savings and you could the contribute to pension and not be deemed as recycling............this only assumes you could contribute 10k as an example!!!!!
Just seen a previous thread of O...S.....offering financial planning advice.....REALLY!!!

As I said in a previous post I thought when they reduced to amount able to be put in without any earned income that was to avoid recycling and it now doesn't matter where the money comes from but you are limited to the£3600 a year gross. Am I wrong?

 

[Phod's]

As I said in a previous post I thought when they reduced to amount able to be put in without any earned income that was to avoid recycling and it now doesn't matter where the money comes from but you are limited to the£3600 a year gross. Am I wrong?

You're right £3600 GROSS without earned income.......btw it wasn't you I disagreed with!!!!

 

[spitfire]

Yes, I agree.

Unless you were one of the older civil servants, invested highly in pensions or properties, inheritance or a lottery win. No chance

Not sure about the pensions of older civil servants ! I was a Job Centre manager and my civil service pension is £600 per month so hardly huge

 

[ceejayt]

If you have time and want to put in the effort then this application is good - available for Mac or iPad - not sure if it is available on PC but don't think so.

You can pout in a ton of variables, changing income requirements, renewing cars, investment and pension growth, selling houses etc - tell it how long you want to live and it will tell you whether you will get there with cash to spare

I have 5 differing models and refresh the numbers each year - needs some diligence but it its an excellent forecaster (not cheap at around £40)

The last cheque you should write should be to the undertaker ..... and it should BOUNCE

 

[bigtwin]

Not sure about the pensions of older civil servants ! I was a Job Centre manager and my civil service pension is £600 per month so hardly huge

Whether £600/month is good, bad, or otherwise rather depends on how long you were with that employer! If you were there for only two years it’d be a bloody good pension!

Ian

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[spitfire]

Whether £600/month is good, bad, or otherwise rather depends on how long you were with that employer! If you were there for only two years it’d be a bloody good pension!

Ian

Nope 20 years

 

[bigtwin]

Nope 20 years

Then, I agree with you that £600/month is hardly huge.

Ian

 

[spitfire]

Then, I agree with you that £600/month is hardly huge.

Ian

My female staff were not hugely paid and as male staff are on the same pay the married ones with children got family credit as it was at the time as their wage was low enough to be eligible . This is how the government keeps its wage bill down by only topping up wage of family staff members .

 

[The Wino]

It's probably still in effect a 170k pot.

 

[Deneb]

This is NOT what recycling is!!!!!!!!!!!!!!!
You CAN be drawing pension and contribute again IF you have other savings/income to use........recycling is for example using you tax free cash lump sum to directly fund pension again, hence recycling!!!!
Recycling is considered an in authorised contribution and you'll be beaten with a big stick!
Similar scenario where e.g. 10K tax free cash taken but already had 10k in savings and you could the contribute to pension and not be deemed as recycling............this only assumes you could contribute 10k as an example!!!!!
Just seen a previous thread of O...S.....offering financial planning advice.....REALLY!!!

Recycling is a complex subject and you really need to read the relevant section of the HMRC pensions manual to understand it. In part it depends whether you make contributions greater than the norm in the year in which you receive a tax free benefit from a pension, in either of the two years preceding receipt of the benefit or the two years following.

Even if you make additional contributions from savings or another source, HMRC are entitled to assume you made the additional contributions as a result of taking a pension benefit if, for example, you subsequently replace the savings with money taken from the pension.

Read the examples in the manual. However, it is important to note that all of the tests outlined in the manual have to be met, one of which is that there was an intent to recycle your pension benefit. Also, it states that nothing in the rules are intended to prevent normal retirement planning by an individual and that, to date, no individual had ever been prosecuted for recycling.

The rules are aimed more at pension schemes rather than individual members. Even so, you would have to be brave to intentionally flout them. I received a lump sum from one of my pensions and made relatively small contributions within the limits each year until the third tax year after receipt, when I was then able to increase contributions up to my annual earned income as I was still working at the time.

If you are no longer working, and subject to the contribution limit of £3,600 gross, you are never going to breach the recycling rules in any circumstances.

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[busbuddy]

i changed job last year and had a £60k pension pot (im 53) but my new job has the minimal NEST pension ,during this year i have seen several independent financial advisers and one that was recommended by a major pension company and i am still none the wiser what to do
i received advice ranging from...you will be fine leaving things as they are........to.....you must immediately open a new pension and contribute £1000 a month to it
i expected a bit of difference as the advisers might offer what they prefer rather than whats best for me but the range was huge and even the simple question of do i leave the £60k where it is or put it into another pension was met with a bewildering selection of options

 

[Deneb]

If you have time and want to put in the effort then this application is good - available for Mac or iPad - not sure if it is available on PC but don't think so.

You can pout in a ton of variables, changing income requirements, renewing cars, investment and pension growth, selling houses etc - tell it how long you want to live and it will tell you whether you will get there with cash to spare

I have 5 differing models and refresh the numbers each year - needs some diligence but it its an excellent forecaster (not cheap at around £40)

The last cheque you should write should be to the undertaker ..... and it should BOUNCE

View attachment 352221

RetireEasy is another useful tool. It's all online and lets you make similar projections. There used to be a free version. Not sure if that is still the case, but it only cost a few quid a month to subscribe to the more capable versions and unless you are intending to continuously remodel your projections you can cancel the subscription as soon as you have printed off or downloaded your results into Excel.

 

[Silver-Fox]

I retired in my late 50's, the main criteria were savings and income with savings holding equal importance for a comfortable retirement. Retiring in your 50's means your cars and van are going to need replacing multiple times, your double glazing maybe twice, your bathrooms two or three times, furniture, fences, multiple holidays now that you have the time and health and of course your rainy day pot. It adds up to a substantial sum if your income is low, the higher your income the more you can pay for these things out of income, so I would say if you want to retire on the low income you suggest you will need to make sure you have a substantial savings pot behind you.

Wow I bet the companies around your way are happy if you add to the economy like that ?

 

[Nanniemate]

I may be able to let you know my employer announced redundancies today and if we want to stay we have to interview for our jobs in January.

Heyho here we go again. this time I have a camper if they announced they were finishing us the end of the week (as has happened in the past) I was already eyeing up the price of crossings to Europe.

Don't know wheather to be concerned or disappointed I not booking a boat...….

 

[Silver-Fox]

Our GRP system has cracked after 17 years and will need to be replaced next summer. The 25 year guarantee wasn't worth the paper it was written on

If it’s only cracked that can be prepared and overlayed with fresh resin and matt.

Where the crack is, presuming it’s a straight line. You could put a movement joiner in.

Just a thought.

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