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Planning for Retirement

Discussion in 'General Discussion' started by randomshenans, 4 Sep 2020.

  1. dLockers

    Mobster

    Joined: 21 Jan 2010

    Posts: 2,891

    I never said focus on their financial position. I said it could be a higher consideration if you are already supporting an adult dependent. If love leads you to burn out because you are supporting 2 adults, you'll all end up in the poor house.
     
  2. Basher

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 8,573

    Yeah I guess my point is that it just shouldn’t be a consideration at all. You shouldn’t marry or not marry someone just because of their financial position.
     
  3. dLockers

    Mobster

    Joined: 21 Jan 2010

    Posts: 2,891

    That is a very Romeo and Juliet view of the world. but the thread is called planning for retirement. A man in his 30's with an adult dependent should consider whether his love life will impact his ability to live the future he wants.
     
  4. Basher

    Sgarrista

    Joined: 18 Oct 2002

    Posts: 8,573

    I think he should focus on being happy. For some that will be money, for most though - you realise that it’s not the money that makes you happy. To assess the suitability of a partner based even in part in their financial position is really quite a sad state of affairs.
     
  5. Allnamestaken

    Mobster

    Joined: 25 Apr 2010

    Posts: 4,590

    Location: Ipswich

    For me guys, I think I want my foundation to be rock solid, financially and otherwise before I involve someone else in my life long term. For now I would rather not form such a relationship.

    It can be difficult once you have those responsibilities. It’s sad to say it but unless you are careful relationships can turn into burdens if your trying to get ahead specially if they involve kids.
     
  6. Jokester

    Don

    Joined: 7 Aug 2003

    Posts: 41,534

    Location: Aberdeenshire

    Going to reduce my tax liabilities as much as possible for the next couple of years by putting more cash into my pension. Target is to be able to retire at 50 if needed - which will be mainly driven by the state of the oil industry in ~2030.
     
  7. booyaka

    Capodecina

    Joined: 19 Jan 2006

    Posts: 13,621

    Our retirement plans are my wife's NHS pension (she's been in it for 20 years already with 20 years to go)
    My self managed SIPP - Spread of funds/investments. Pay monthly into it myself and my business (one man band) pays a single premium each year to boost pension/reduce corp tax.
    Also have ISA investments as well.

    Nice to see people have a plan, have some form of pension in place. Whilst Workplace pension wasn't rolled out in the best manner - it has most certainly boosted the number of people paying into a pension/reviewing their pension/retirement arrangements. Every little helps with saving for retirement.

    I've seen just about everything in 20 odd years in financial services where people say they won't see retirement/don't need a pension etc - but in reality the sooner you start, the better it is in the long term.
     
  8. Mr^B

    Mobster

    Joined: 25 Nov 2002

    Posts: 3,434

    I have a very good company pension (7%+14%) but I got stung by a conversion of a DB to a DC pension in my previous company which left me with a mere £4k pension pot after 8 years.

    I started late, but I have a good salary and aim to retire at 65-67 with a reasonable pot. Pension fund has also made an average of 10% a year for the past 12 years which helps.
     
  9. theone8181

    Soldato

    Joined: 27 Mar 2013

    Posts: 5,063

    I'm upping mine by 2% a year. I'm currently 34 and pay in 16% and my employer "generously" adds another 6% onto. I'm currently at a pot of around 80k, but 1/4 of that is in a final salary scheme, so not sure how it all works. I'm going to cap mine at 20% a year, but it means I should have 400k at 55, although not sure what if any penalties I'll get. My thinking is that paying in more while young is good (due to compounding), and if I can't retire at 55, 60 won't be too bad (although if it goes up alot, 50s not bad either;)).
     
  10. randomshenans

    Capodecina

    Joined: 11 Sep 2009

    Posts: 12,323

    Location: France, Alsace

    I just got my pay rise through from work. Been in this job only since August last year, so wasn't really expecting much (I was a contractor prior for 10yrs so that rate ended up getting lower towards the end due to near/offshore workers) and it was something like 1% or something, but still! Sadly main thing I was thinking was "ooo this will increase my pension contributions too"

    **** me I'm getting old.
     
  11. shaf

    Wise Guy

    Joined: 23 Sep 2007

    Posts: 1,142

    Some i did and some i didn't. First one I bought (by accident but that's a different story) was a shop that was completely gutted and derelict. Spent lots of money to restore and then rent out.
     
  12. dLockers

    Mobster

    Joined: 21 Jan 2010

    Posts: 2,891

    Does anyone have any good information/benchmarking on pension, age, retirement income, etc,etc?

    It all seems very subjective but there must be some basic rule of thumbs?
     
  13. Nathan

    Mobster

    Joined: 4 Feb 2003

    Posts: 4,648

    Location: West Midlands

    Currently 36. Will retire at 55 if possible at around 20k PA / 100k tax free pay out. 60 means around 24k PA and 140k payout. Mortgage free, with other investments. Then wife’s teacher pension...

    should be ok
     
  14. Spook187

    Sgarrista

    Joined: 16 Jan 2010

    Posts: 8,353

    Location: Cumbria

    Omg I can't believe you wrote that, what a selfish greedy person you sound.
    I look after my Mrs because she can't work through I'll health, fell poorly straight after graduation, what you want me to do bomb her off just so I can have a nice little nest egg.
     
  15. dLockers

    Mobster

    Joined: 21 Jan 2010

    Posts: 2,891

    You've read it out of context although I did say when I made the point it traversed the line. Using your situation on the post I replied to would be the equivalent of saying "dump your mum" but I didn't because that isn't what I think.
     
  16. Admiral Huddy

    Caporegime

    Joined: 17 Feb 2003

    Posts: 29,606

    Location: Chelmsford

    You are right :)
     
  17. Mr^B

    Mobster

    Joined: 25 Nov 2002

    Posts: 3,434

    It depends on so many factors, there's no simple rule. Some people quote the 50-70 rule (you'll need between 50% and 70% of your current income to be comfortable). But that doesn't always work out.

    I am aiming for about £1m in the pot by the time I'm 65, which is about £35-40k p/a.

    The earlier you retire, the lower the annuity you can purchase, so retiring at 55 with £1m in the pot "only" gets you £27k ish p/a
     
  18. dLockers

    Mobster

    Joined: 21 Jan 2010

    Posts: 2,891

    Do you have a decent calculator/modeller?

    We switched from Towers Watson to L&G and it has been a disaster for the tooling we were provided with. L&G can just draw a linear line from now to age 55 and give a number. It doesn't even consider additional employer contributions as you get older etc etc. The Towers Watson version to be fair was about 2000% more complicated but gave a much better view...
     
  19. Mr^B

    Mobster

    Joined: 25 Nov 2002

    Posts: 3,434

    I have my own modeller on a spreadsheet, with best/worst/mid case scenarios based on increasing contributions, fund performance, inflation, salary changes, bonuses, variable 25% drawdown date etc, the online ones are far too generic (for the reasons you stated).
     
  20. martin363

    Hitman

    Joined: 18 Jan 2012

    Posts: 640

    Location: Ho Chi Minh, Vietnam

    I am 48 and retiring in June this year. Retiring is just a term, I wont touch my pension until I am 67, but have the investments to fund a sufficient secured private income until then. Pensions are great, especially when started early, but they they are not the only investment people should make if they want to kick back early.