Planning for Retirement

[martin363]

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.

Although I have had no detailed conversations about this with my FA, and am still 20 years away from drawing my pension, the impression I have is that at this moment he would advise taking the 25% lump sum, because it is tax free, using a proportion of the remainder to convert to an annuity to cover essential living costs and offer basic guarantees, and keeping the remainder invested in the pension, whilst also investing the lump sum for income in other funds.

 

[Kreeeee]

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[413x]

Got to say I'm concerned

35.
And for first 5 years I didn't have a pension.
Now I have pensions all over the place. Not sure how they are going to work. How to locate them some jobs I've worked. Are they worth anything. Etc et .

Really. My hope is property.
To have a 300-500k house paid off.
I have no kids, I won't be having any
Having no kids is my only good major decision in my life I'd say .

The boomer age got great pensions and great property price increases.
Likely we will have to pay for ourselves

I'll probably be working until I can't unfortunately. Just leaving everything too late .


I dread to think what some peoples future is . Especially kids now who may never own a property at way things are going

 

[wonko]

Now I have pensions all over the place. Not sure how they are going to work. How to locate them some jobs I've worked. Are they worth anything. Etc et .

The Pension Tracing Service would be a good start - https://www.gov.uk/find-pension-contact-details

 

[Surveyor]

Got to say I'm concerned...

You've previously mentioned you're a higher rate taxpayer which puts you well ahead of many and recently you posted:

Looks like I might be getting a new job with pay rise...

You regularly post about money you've made on crypto and in the stock market.

You seem to be doing pretty well and should be able to plan for a comfortable retirement.

 

[Narj]

Thanks to this thread I dug up an old company pension and reallocated it to a more suitable fund. That moves my FIRE age from 48 to 47.

What are you defining FIRE as in your context? Full on retirement or just being able to work part-time?

What system/sheet are you using to work that out, out of interest?

 

[413x]

You've previously mentioned you're a higher rate taxpayer which puts you well ahead of many and recently you posted:



You regularly post about money you've made on crypto and in the stock market.

You seem to be doing pretty well and should be able to plan for a comfortable retirement.

It isn't much money on crypto. I only have 10k and 10k in shares. Granted that's come from just a years effort (started from 2k in Feb 2020)but this has been an exceptional year. But it obviously isn't much. And crypto is high risk and could go to 1k tomorrow.

I think I'll be OK. But it won't be lavish.

A little bit annoyed my partner who is planning to take a pay cut is now hinting at more sharing of money.

 

[Simon]

You won’t need a brand new EV then !

 

[Narj]

A little bit annoyed my partner who is planning to take a pay cut is now hinting at more sharing of money.

Hrm that should be discussed thoroughly before making a leap. I mean it's probably OK if this looks like it'll go the distance and they can contribute in other ways or will be working their way up again in a new career.

I had a previous partner drop to part-time then basically not working without any prior notice, it drove me bonkers. I'm definitely wary of the impact someone else will have on my quality of life in future now. It's sad being so cynical but there are too many examples of financially screwed people in my social circle now.

 

[randomshenans]

A little bit annoyed my partner who is planning to take a pay cut is now hinting at more sharing of money.

My wife says this all the time "I might start working 80%" Errr no you bloody won't love. You're working 120% if anything!

I don't own a home. We would like to, but not found anything we want. It's a tough one as we skipped the whole ladder thing, so for us to "start" in a small flat and move up to a house as good as we rent now would be not something we'd want to do. Yet, if we want our dream home, it'll cost about 900k+ if we can even find the right opportunity. Luckily we have a flat paid off we can sell to put towards the house but I'm not too worried about not having a family home at 35.
It's a very English thing to have a home paid for and sorted by retirement, probably because of poor state pensions etc. you couldnt pay rent on a UK state pension, but you certainly could on a swiss one.

 

[dirtychinchilla]

Thanks to this thread I dug up an old company pension and reallocated it to a more suitable fund. That moves my FIRE age from 48 to 47.

I find this so interesting. At my current (which is temporary) rate of savings, I believe my FIRE age is 51. But, that's because we're prioritising saving at the moment and that's temporary. It'll shift to quality of life after COVID.

Just looked at my spreadsheet again and it's now saying 65...see how solid my calculations are! I used an online calculator and got 58. So I think my spreadsheet might need some work!

 

[inferno]

I have a mixture of stocks, BTL and Bitcoin. I will sell my BTLs as the ROI is just not good enough.

The most important thing is to invest for your future, own a property ( even if its cheap, you are on the ladder) after that, its to check that the investments are good value for money. I had to get my mother to cash out of her managed funds, the fees were high and the returns were poor.

If we are talking long term, 20-30 years , a small investment in Bitcoin could be a great idea, just buy, hold and forget about it!

 

[413x]

I have a mixture of stocks, BTL and Bitcoin. I will sell my BTLs as the ROI is just not good enough.

The most important thing is to invest for your future, own a property ( even if its cheap, you are on the ladder) after that, its to check that the investments are good value for money. I had to get my mother to cash out of her managed funds, the fees were high and the returns were poor.

If we are talking long term, 20-30 years , a small investment in Bitcoin could be a great idea, just buy, hold and forget about it!

I'm not banking on it or even suggesting it. But if bitcoin is the future, even with my small holding, it literally could change a lot.

Its well worth the risk.
I'd lose what 10k if it died today. But if it really does rocket. Well. Who knows

 

[413x]

My wife says this all the time "I might start working 80%" Errr no you bloody won't love. You're working 120% if anything!

I don't own a home. We would like to, but not found anything we want. It's a tough one as we skipped the whole ladder thing, so for us to "start" in a small flat and move up to a house as good as we rent now would be not something we'd want to do. Yet, if we want our dream home, it'll cost about 900k+ if we can even find the right opportunity. Luckily we have a flat paid off we can sell to put towards the house but I'm not too worried about not having a family home at 35.
It's a very English thing to have a home paid for and sorted by retirement, probably because of poor state pensions etc. you couldnt pay rent on a UK state pension, but you certainly could on a swiss one.

It's a shame.
I'm not sure how to handle it. I see my friends etc all going up, both of them often, and my gf going down to the bottom.
This is OK I guess, I can't force her to stay in a bad job. But a recent comment on 'couples share' shook me.

She seems to have picked up a medical condition also which is making working hard. Which also means she does less around house etc. It's gotten bad enough I worry she might not be able to work eventually. I'm already at point of booking holiday alone because she can't do the activities I love.

If I get a new job at salary I'm pitching for I believe I could take on the mortgage myself as well. Which is something I've always wanted. But no way I can support someone like I may have to

Shes a good person. But she doesn't really think of the future. Especially financially

 

[randomshenans]

It's a shame.

I tell you what, this lockdown/ rona times has really been tough on couples, we've been really struggling on a lot of stuff and honestly spent a lot of it questioning the future and a lot comes down to work and money. It's like she wants all the nice things, she earns a decent salary but then also has a go at me buying anything (she bought 7 pairs of shoes in Feb...) and yet if I do anything, we just don't need it. Money/future plans and all of this with partners I find is the biggest challenge to really and I mean really align yourselves on. It's crazy hard I find. You think you're in sync but then you have certain convos and it leaves you like wtf?!

 

[413x]

I tell you what, this lockdown/ rona times has really been tough on couples, we've been really struggling on a lot of stuff and honestly spent a lot of it questioning the future and a lot comes down to work and money. It's like she wants all the nice things, she earns a decent salary but then also has a go at me buying anything (she bought 7 pairs of shoes in Feb...) and yet if I do anything, we just don't need it. Money/future plans and all of this with partners I find is the biggest challenge to really and I mean really align yourselves on. It's crazy hard I find. You think you're in sync but then you have certain convos and it leaves you like wtf?!

Bit similar. Her purchases for the house are apparently needed. Mine aren't, or less so. And I have to point out I organised and paid for invisible things like plastering etc.

Generally she's really good. And she's never stopped me buying stuff. But I said if you want anything that's not essential (a new sofa) and I don't want it. You have to buy it.

She's worried our earnings are diverging us. And she won't be able to keep up. I told her we will always keep it fair (I always have) and if I want to go to Mexico I will help her out with money. Ie I'll pay more than half. Because I want it. But I'm not paying for her.

But if she wants to go somewhere same goes in reverse.

I also pointed out, if you do take a salary decrease this is one of those ramifications I told you about before. Yes you'll have an easier work life. But that new car you wanted is a no go. That holiday to Africa is a no go. Just be aware of the ramifications

And yes we have been struggling. I think if it wasn't for her 'condition' it would be OK. Worst thing is it's not her fault. I feel so bad for her. But it's causing a strain.

When I told her about my solo holiday she was sad , but understood. I had to say I can't stop doing things I love. I'd love you to come. But if you can't, I'm not missing out.

 

[Martynt74]

I tell you what, this lockdown/ rona times has really been tough on couples, we've been really struggling on a lot of stuff and honestly spent a lot of it questioning the future and a lot comes down to work and money. It's like she wants all the nice things, she earns a decent salary but then also has a go at me buying anything (she bought 7 pairs of shoes in Feb...) and yet if I do anything, we just don't need it. Money/future plans and all of this with partners I find is the biggest challenge to really and I mean really align yourselves on. It's crazy hard I find. You think you're in sync but then you have certain convos and it leaves you like wtf?!

To be fair, you bought a taxi



It's different in our house i guess as i earn more, but then i also spend more on crap. I worked out our money and then set up the following system which has worked really well for us (i guess it's different for @413x above as i don't get the impression he's married so would want to keep things separate)

Money into Pot 1 (Income etc)
Money from Pot 1 to Pot 2 for Bills (Generally fixed each month)
Money from pot 1 into Pot 3 & 4 for Individual Spends (This way i can save and buy stupid expensive stuff without it coming from a "joint" pot)
Remainer drops into Pot 5 which is for other spending. Meals out, holidays etc
Anything left from Pot 5 goes into Savings

Seems to work well as it keeps things separate for individual spending, so i can go buy a paddleboard/xbox etc but there's no keeping stuff separate to have the whole "i paid for the meal last week, you should pay tonight" nonsense

 

[randomshenans]

To be fair, you bought a taxi

It was a huge bone of contention I have to say... even though I bought it with the profit I made from selling advent calendars and selection boxes, so didn't even cost us anything!!

Bit similar. Her purchases for the house are apparently needed. Mine aren't, or less so. And I have to point out I organised and paid for invisible things like plastering etc.

I get 100% this. She wanted a new sofa, or house things, bowls that she wants, or god any other thing "for the house" that I couldn't give two ***** about... but they're for "us" and essential. They have messed up logic man. You have to try and play them at their own game and make them think things are their ideas

 

[Uther]

To be fair, you bought a taxi



It's different in our house i guess as i earn more, but then i also spend more on crap. I worked out our money and then set up the following system which has worked really well for us (i guess it's different for @413x above as i don't get the impression he's married so would want to keep things separate)

Money into Pot 1 (Income etc)
Money from Pot 1 to Pot 2 for Bills (Generally fixed each month)
Money from pot 1 into Pot 3 & 4 for Individual Spends (This way i can save and buy stupid expensive stuff without it coming from a "joint" pot)
Remainer drops into Pot 5 which is for other spending. Meals out, holidays etc
Anything left from Pot 5 goes into Savings

Seems to work well as it keeps things separate for individual spending, so i can go buy a paddleboard/xbox etc but there's no keeping stuff separate to have the whole "i paid for the meal last week, you should pay tonight" nonsense

We just pool all our money, maybe because we've been married for 27 years and together for over 30. The seemingly modern way of keeping everything totally seperate is a bit strange to me.

 

[Martynt74]

We just pool all our money, maybe because we've been married for 27 years and together for over 30. The seemingly modern way of keeping everything totally seperate is a bit strange to me.

Ours is mainly pooled, just in a convoluted multi bank way. The main reason for "spends" was that i'd feel bad spending money on high cost items like £1000 on a paddleboard etc. She'd generally be happy with me doing so, i just felt bad, whereas this way i have that ability without feeling bad for doing so. I say she wastes her spends as she uses it to treat me/the kids