Jump to content
IGNORED

Pension and retirement


Ska Junkie
 Share

Recommended Posts

25 minutes ago, Reigate Red said:

@Norn Iron, @lager loud, @Ska Junkie thanks for all your discussion it's really been helpful. Looks like I need to devote a bit of time to this and polish up my spreadsheet skills!

Don't be surprised if you see this thread resurrected in six months time :thumbsup:  

RR, the first thing I'd do is look to see where you'd like to live in retirement.

If you live in Reigate...

The average price for a property in Reigate is £596778 over the last year. Use Rightmove online house price checker tool to find out exactly how much ...
 
That's 240k more than Bristol and 400k more than Northern Ireland. You could buy a lovely detached property over here, play golf on some of the world's best courses right on your doorstep, buy a City season ticket and use Easyjet as your chauffeur (23 flights at around £1725 total return. Currently there are no return flights Saturday evening so you'd have to find accommodation)!
 
Even if there will be the inevitable house price crash, it's all relative as the house you buy in Bristol will be lower in value for instance. 
It's great that this thread from Ska J has provoked people to think seriously about their retirement.
 
Another English friend of mine who I play golf with, moved over here when they retired. They realised Northern Ireland had so much to offer especially as they could sell their Oxfordshire home and buy cheaper and better here. Their extra profit from the sale funds golf, motorbiking and other holidays! 
 
My question is the same to you and others, where do you see yourself in retirement and what do you want to do? 
Looking forward to your subsequent posts as to what you've done/going to do.
 
And finally for all the younguns reading this thread. Please take out a pension if you haven't already or get it reviewed if you have. You can retire using your pension pot from 55 now (or earlier due to ill health etc).
  • Like 1
Link to comment
Share on other sites

19 hours ago, Vespa Red said:

I was told that I needed a pension pot of £250,000 in order to retire at 62 and live in the manner to which I have become accustomed.

I was then told (by the same advisor at a later date) that I needed to take the maximum lump sum out when the time was right (e.g. 62) from my work superannuation scheme which would leave me short of the £24,000 a year that I would need to be taking out prior to my 67th birthday.  I'm confused...

You're not the only one Vespa. 

My understanding is that, if you want to maximise return, it may be worth taking the 25% as either an investment or to make up the shortfall until you get your state pension. Others know far more than me though.

As I'm getting a very good return at the mo, I'm inclined to leave my fund to grow as it is but am confused as to whether to eat into that fund at some point, raising my retirement income, or, as mentioned above, just take the growth annually. I've built a plan that gives me a very handy income but leaves the fund at £99K when / if I reach 90. It's around £220K at the mo but, as I say, growing nicely. 

All very confusing. 

My advice is supposedly 'independent' but they take their commission from the fund value so they are, obviously, suggesting the fund stays high although they are supposed to represent me. I'm going to go to an IFA at some point I think.

@Norn Ironclearly knows his stuff so would know far better than me. 

Edited by Ska Junkie
Link to comment
Share on other sites

1 hour ago, Norn Iron said:

RR, the first thing I'd do is look to see where you'd like to live in retirement.

If you live in Reigate...

The average price for a property in Reigate is £596778 over the last year. Use Rightmove online house price checker tool to find out exactly how much ...
 
That's 240k more than Bristol and 400k more than Northern Ireland. You could buy a lovely detached property over here, play golf on some of the world's best courses right on your doorstep, buy a City season ticket and use Easyjet as your chauffeur (23 flights at around £1725 total return. Currently there are no return flights Saturday evening so you'd have to find accommodation)!
 
Even if there will be the inevitable house price crash, it's all relative as the house you buy in Bristol will be lower in value for instance. 
It's great that this thread from Ska J has provoked people to think seriously about their retirement.
 
Another English friend of mine who I play golf with, moved over here when they retired. They realised Northern Ireland had so much to offer especially as they could sell their Oxfordshire home and buy cheaper and better here. Their extra profit from the sale funds golf, motorbiking and other holidays! 
 
My question is the same to you and others, where do you see yourself in retirement and what do you want to do? 
Looking forward to your subsequent posts as to what you've done/going to do.
 
And finally for all the younguns reading this thread. Please take out a pension if you haven't already or get it reviewed if you have. You can retire using your pension pot from 55 now (or earlier due to ill health etc).

Don't the youngsters have to take a workplace pension nowadays? My lad had one at 16 although that was with airbus. I thought they were obliged to have one, not like in our day when a lot just didn't bother.

This thread is really useful and, I think, may go on for some time.

I'm just relieved I'm not the only one confused by the whole thing TBH.

Link to comment
Share on other sites

35 minutes ago, Ska Junkie said:

@Norn Ironclearly knows his stuff so would know far better than me. 

Thanks for the comment, however, I'm basing it on my knowledge when giving best advice on Pensions from more than 25 years ago! I know so much has changed since I have hung up my hat, but the basic principles of why and when to retire haven't!

I did though have to go through this process of tapping into my Pension Fund. In my case, I had to fight my own provider to get access to my works pension as per the 2015 Financial Services Act change brought in by George Osborne. In my case, it wasn't as simple apparently.

I thought I might do an Erin Brockovich at one point and expose the red tape that pension providers are using to stop people from tapping into pension funds at a young retirement age. Eventually, another indie Financial expert was able to get through the bureaucracy. What George Osborne was trying to do was great. What the providers are doing, deplorable. The Financial Ombudsman was next to useless as well....all of the above is in my opinion of course! No male equivalent of Erin Brockovich either!  Having tried to take on the Benefits Agency in the High Courts regarding registered blind people with Retinitis Pigmentosa, left me mentally exhausted/battle weary! 

Because of the Indie Advisor and that I can get his advice any time in the future, I accept the commission he gets from my fund per annum. 
 It is a very small price to pay for the incredible stress he relieved from me so that I could provide a home, a need and a want and my dream, for my registered blind wife and son. We now own a bungalow that is beyond our heart's desire and all because of my pension. Ok, we may not be living beyond our dreams and having luxurious treats but we have a quality of life back, something we wanted- a house and where it is located.

This is why I stress what do you want from your pension fund when you retire and what is achievable with the fund you currently have?

Martyn Lewis on his excellent moneysavingexpert gives great insight. Here is the link for his overall pension advice.

  https://www.moneysavingexpert.com/pensions

Back again to the basic questions..  Lager Loud and I stress what do you want out of life when you retire? Lager L is more switched on re the financial rules and regulations  especially as he, unlike me, has been in the finance business this century!

I am more than happy to recommend an Independent Pension advisor in South Bristol. Please PM me and I will gladly pass on his details as I already have to another otiber.

 

  • Like 2
Link to comment
Share on other sites

Good thread guys.

I'm similar age to SJ, but my divorce 10 years ago made a huge dent in my pension pot.

Still looking to go at 62 though, even if it means downsizing (would rather not if given the choice - love the space !). 

Either way, I'm great at doing **** all, so retirement will suit me. My missus is 10 years younger than me, and hopeless at doing **** all - so she will want to keep working.

Happy days !!

Link to comment
Share on other sites

2 minutes ago, The Gasbuster said:

Either way, I'm great at doing **** all, so retirement will suit me. My missus is 10 years younger than me, and hopeless at doing **** all - so she will want to keep working.

Happy days !!

You might find her view on that changes when you stop working.

I retired before my wife. It only took her a few weeks of bringing me a cup of tea in bed before she left for work to decide that maybe she’d like to stop too!

  • Haha 3
Link to comment
Share on other sites

On 19/08/2021 at 13:27, cidercity1987 said:

If it was me I'd take the 25% tax free lump sum and invest it somewhere else (like a stocks/shares ISA or even property) to spread the risk.

Put the rest into drawdown. Annuity rates are terrible.

Retire as soon as you can, plenty of odd jobs going around if you want a few hours casual to top up your weekly cash.

Just imo.

image.png.7962ce18817df2df0c150ed0bdae89e0.png

Link to comment
Share on other sites

On 22/08/2021 at 13:20, Ska Junkie said:

Don't the youngsters have to take a workplace pension nowadays? My lad had one at 16 although that was with airbus. I thought they were obliged to have one, not like in our day when a lot just didn't bother.

This thread is really useful and, I think, may go on for some time.

I'm just relieved I'm not the only one confused by the whole thing TBH.

All that's changed I believe is that you used to be given the choice to opt in or opt out of a pension. Now, you are automatically enrolled in one, so would have to go out of your way to contact HR and opt out. 

  • Like 1
Link to comment
Share on other sites

I think it’ll be worth bumping this thread on a regular basis, for those that haven’t caught up with it yet, those entering their final years of work and those who’ve done it and can offer advice and share experiences.

If anyone’s considering taking up Norn Iron’s offer of a pensions advisor recommendation, do it. One thing I have found out is a good advisor is well worth the money. 

  • Like 4
Link to comment
Share on other sites

20 hours ago, Kid in the Riot said:

All that's changed I believe is that you used to be given the choice to opt in or opt out of a pension. Now, you are automatically enrolled in one, so would have to go out of your way to contact HR and opt out. 

Quite often a company makes a contribution to a pension scheme alongside that made by the employee.

Often it can be that when opting out that the company doesn't make an equivalent contribution to the opted out fund. As a result the value of your opted out fund can be significantly lower than what would have happened had you stuck with the company scheme.

Well worth the question when you talk to HR...

 

Link to comment
Share on other sites

On 29/08/2021 at 09:20, ralphindevon said:

I think it’ll be worth bumping this thread on a regular basis, for those that haven’t caught up with it yet, those entering their final years of work and those who’ve done it and can offer advice and share experiences.

If anyone’s considering taking up Norn Iron’s offer of a pensions advisor recommendation, do it. One thing I have found out is a good advisor is well worth the money. 

On a general note as well, to my fellow members of Generation Y - INVEST IN A PENSION!

My god, the amount of people I know who either don't have one or invest very little in one is frightening. It's the best savings scheme you will ever be offered. The government are literally giving you money to save.

Yes, the obvious catch is you can't touch it until you are 55. But, compound interest, baby! 

It's such a no-brainer but I know several people in their 30s who haven't put a penny into a pension. Unbelievable really. 

  • Like 3
Link to comment
Share on other sites

18 hours ago, Kid in the Riot said:

On a general note as well, to my fellow members of Generation Y - INVEST IN A PENSION!

My god, the amount of people I know who either don't have one or invest very little in one is frightening. It's the best savings scheme you will ever be offered. The government are literally giving you money to save.

Yes, the obvious catch is you can't touch it until you are 55. But, compound interest, baby! 

It's such a no-brainer but I know several people in their 30s who haven't put a penny into a pension. Unbelievable really. 

I'm 52 and don't have one.

I'm in the unfortunate position where i lost the lot about 10yrs ago when the company i'd worked for went under, i lost just over £160k.

I'll be working until I die because of corporate greed, i just dont trust any advisor/company since then.

I have small MoD pension which isn't worth a lot.

  • Sad 2
Link to comment
Share on other sites

I think about my future a lot and pensions etc. It’s always hard to know weather or not your putting enough into it. I work for a small local company which pay the minimum 3% and I’m paying 8% but plan on upping that to 15% in October. I turn 30 in October and as it stands will probably  have about £11500 then. Am I on track etc ? Im not even sure what size pot I should be aiming for 🤔

Link to comment
Share on other sites

3 hours ago, Posset red said:

I think about my future a lot and pensions etc. It’s always hard to know weather or not your putting enough into it. I work for a small local company which pay the minimum 3% and I’m paying 8% but plan on upping that to 15% in October. I turn 30 in October and as it stands will probably  have about £11500 then. Am I on track etc ? Im not even sure what size pot I should be aiming for 🤔

There are many versions of contribution calculators, that should be able to give you a better understanding of what is needed. Here's one from the mighty Prudential.

https://www.pru.co.uk/tools-calculators/retirement-contributions-calculator/

The most important decision is when would you like to retire? When you do retire, what would you like to do and how much money do you need?

Imagine you retired at the start of this year. What would it cost you to fund everything for this year? Ignore for the time being, your mortgage when working out your spending as it might already be paid off when you retire. 

With that figure, multiply it by 1.03 for every year between now and your estimated retirement date. The .03 represents the 3% annual inflation rate. However you might think it will be less, say 2%. In which case multiply your figure by 1.02 etc.. if 4% is your inflation rate then it's 1.04. If you're aged 30 today and 58 is your projected retirement date, take your original annual spend and multiply it 28 times using your annual inflation rate. Don't just multiply it by 28 but do it 28 times (Y x 1.03 x 1.03 x 1.03 x 1.03 etc ie annual compound interest)! 

This projected figure will give you a rough idea what you need in your pension pot for that first year in retirement. Comparison with the projected pension pot will become a bit clearer as to how much you need to save. There are other retirement years to consider even before the state pension kicks in.

If in 2001 you had a purchasing power of £100, today you would need £147 to be like for like. Putting money under the mattress for retirement will erode your real purchasing power that's why a pension plan is so important.

Then there's the thought of paying off your mortgage if not already achieved, going on a once in a lifetime holiday, buying a special present to celebrate your retirement. All these will add up but it can be provided by your tax free lump sum! However, it needs investment by your good self. 

 

It boils down to when do you want to retire and how much do you need to fulfil your retirement needs and wants. Pension plans are flexible and are transportable from job to job.

It really is a good idea to speak to an advisor who can help you out with these figures and the maximum amounts you can invest per year plus of course how much you can actually afford.

 

 

 

Edited by Norn Iron
Info
  • Like 1
  • Flames 1
Link to comment
Share on other sites

Hi chaps, I thought I would drag this back up as I had a full pension 'survey' result yesterday.

Drawdown pot is at ~£238k, GFV (at 65) fund will pay me £64K at 65, obviously, and my current company pension (annuity) value is just shy of £60K. At 54 (55 in March), I've been told I'm in a good place and have changed my company one to 8% contributions. They pay 3 and match me up to 5 so they're paying 8% too.

I'm now targeting 60 as when to walk away but still don't know. Part time somewhere is still an option (an easy, stress free 20 hours a week at a very basic wage).

As for March, when I can take 25%, I'm torn, as over 8% return will surely do me wouldn't it plus the fund would continue to grow, post retirement so why no leave it where it is? I don't (currently) need the money so this is my dilemma?

Link to comment
Share on other sites

Yo Ska. Thanks for update. Really pleased you had a full pension survey.

I have had to reread this thread to see what all the posts said.

I think your dilemma can be summed up by asking if you're working to live or living to work?

How secure is your job? There are people who have benefitted by waiting knowing that voluntary redundancy is looming. You then get a financial incentive plus your pension. It might not be a subject we like talking about or wishing on anyone but it is a fact redundancy happens and can be an advantage to some.

Sounds to me as if you're liking the idea of retiring more and more but are naturally scared about the finances. 

The doom and gloom merchants think the worst will happen to this country. Having left primary school education in time for the 3 day week and all those power cuts, I can confirm we survived. It's not all doom and gloom.

You are preparing well for that retirement day. Reviewing your preparations is important and should be reviewed annually as a minimum. I think the first week of March 2022 would be a great time to make an informed decision as to what to do for the forthcoming tax year ie work or retire. You would have come through the winter months re your job and will have more of an understanding if you want to continue working.

I said the first week in March as a review date because of that all important Bed and Breakfast 'offer' I discussed in a previous post. This is where you take advantage of all HMRC has to offer for tax year ending 5th April 2022 and the new tax year that will start on the 6th April. You will be able to honestly benefit from those 2 days and your financial advisor will earn his commission. It's not a difficult process and it's 100% legal!

Your thread has helped City fans think more about their own pension situation.

Without my work pension I had for 9 years commencing in my mid 20s, my family would be on the poverty line today. I'm not exaggerating either. This includes the state benefits we gratefully received.

Nobody could've guessed my wife would be so ill (cancer survivor as well) that I would have to give up my job and become her full time carer. 25 years on from my last monthly salary, my lil ol' pension saved us.

To those City fans who haven't got a pension, please do something about it this coming week. Even if it is putting in a minimum amount per month, just do it. You're not  providing just for your retirement but there will be a way out financially should anything change before your assumed last working day.

  • Like 2
Link to comment
Share on other sites

1 hour ago, Robbored said:

Wow!  Makes me sooo glad that I have a NHS final salary pension and this year my OAP as well. I never ever had to make tough decisions about retirement thankfully.

The decisions certainly are tough for us laymen @Robbored, maybe not for those in finance. Myself, I genuinely don't have a clue and, as I'm approaching 55, am being bombarded with emails re taking 25% and doing x,y or z. I really don't have a clue so am leaning towards leaving well alone.

At some point, I would like to go part time before quitting altogether but am totally reliant on others as to when I may be able to do this.

As said before, it's an absolute minefield. 

Your NHS final salary pension is a blinding one, but, I assume, that's reflected in salary?

Great Post from @Norn Irontoo. Certainly makes people realise we have no idea what the next 5 or 10 years may bring when we assume we can carry on working, maybe we cannot. Is £300k enough? I have no clue.

Edited by Ska Junkie
Link to comment
Share on other sites

14 minutes ago, Ska Junkie said:

. Your NHS final salary pension is a blinding one, but, I assume, that's reflected in salary?

Yes. My NHS pension is based on half of my final salary and is index linked. 40/80ths but not  being that interested is financial matters I’m not really sure what that means other than it’s a half!

I also get an nurses pay rises.

  • Like 1
Link to comment
Share on other sites

2 hours ago, Norn Iron said:

Yo Ska. Thanks for update. Really pleased you had a full pension survey.

I have had to reread this thread to see what all the posts said.

I think your dilemma can be summed up by asking if you're working to live or living to work?

How secure is your job? There are people who have benefitted by waiting knowing that voluntary redundancy is looming. You then get a financial incentive plus your pension. It might not be a subject we like talking about or wishing on anyone but it is a fact redundancy happens and can be an advantage to some.

Sounds to me as if you're liking the idea of retiring more and more but are naturally scared about the finances. 

The doom and gloom merchants think the worst will happen to this country. Having left primary school education in time for the 3 day week and all those power cuts, I can confirm we survived. It's not all doom and gloom.

You are preparing well for that retirement day. Reviewing your preparations is important and should be reviewed annually as a minimum. I think the first week of March 2022 would be a great time to make an informed decision as to what to do for the forthcoming tax year ie work or retire. You would have come through the winter months re your job and will have more of an understanding if you want to continue working.

I said the first week in March as a review date because of that all important Bed and Breakfast 'offer' I discussed in a previous post. This is where you take advantage of all HMRC has to offer for tax year ending 5th April 2022 and the new tax year that will start on the 6th April. You will be able to honestly benefit from those 2 days and your financial advisor will earn his commission. It's not a difficult process and it's 100% legal!

Your thread has helped City fans think more about their own pension situation.

Without my work pension I had for 9 years commencing in my mid 20s, my family would be on the poverty line today. I'm not exaggerating either. This includes the state benefits we gratefully received.

Nobody could've guessed my wife would be so ill (cancer survivor as well) that I would have to give up my job and become her full time carer. 25 years on from my last monthly salary, my lil ol' pension saved us.

To those City fans who haven't got a pension, please do something about it this coming week. Even if it is putting in a minimum amount per month, just do it. You're not  providing just for your retirement but there will be a way out financially should anything change before your assumed last working day.

You've called it perfectly NI, I do want to go relatively early but just don't know if I can afford it.

Luckily, I / we are of a generation where we just paid a pension contribution from a young age as it was the 'norm'.

I was looking at going very early (57) and going back to work if I felt I needed to but, working in a technical field means the technology moves on so fast that even a year out makes you useless.

If things stay as they are, I believe I can go at 60, maybe just before, using the fund growth plus a bit from the fund,to give me a good income until my GFV pot and state pension kicks in meaning I take less from the fund, maybe I won't. Part time is another option (work 20 hours or something similar) for a few years.

When I read, a while ago, that the government were looking at enticing the older workers to retire earlier to unblock the pathway for younger workers, my eyes lit up but it hasn't/ won't happen.  It would have been too perfect for someone  of my age tbh.

18 minutes ago, Robbored said:

Yes. My NHS pension is based on half of my final salary and is index linked. 40/80ths but not  being that interested is financial matters I’m not really sure what that means other than it’s a half!

I also get an nurses pay rises.

Very nice, well done you. 👏 

I assume 50% of anyone's final working salary plus state pension (eventually) is enough to be comfortable in retirement? I was planning on more than that so may need to reassess my goals tbh.

Edited by Ska Junkie
  • Like 1
Link to comment
Share on other sites

9 minutes ago, Ska Junkie said:

Very nice, well done you. 👏 

I assume 50% of anyone's final working salary plus state pension (eventually) is enough to be comfortable in retirement? I was planning on more than that so may need to reassess my goals tbh.

Nothing much to do with me! I simply paid my superannuation each month which was automatic for everyone. There was an option to opt out but I know of only person that did - I bet she regrets that decision now.

  • Like 1
Link to comment
Share on other sites

2 minutes ago, Robbored said:

I never heard a 60th of anything related to the NHS pension scheme.

I only mentioned it as I have 2 company final salary pensions based on 60ths. I assumed public service final salary schemes were as good. I know a retired chap with 40/50ths. Schemes like that don’t exist anymore.

Link to comment
Share on other sites

24 minutes ago, TonyTonyTony said:

I only mentioned it as I have 2 company final salary pensions based on 60ths. I assumed public service final salary schemes were as good. I know a retired chap with 40/50ths. Schemes like that don’t exist anymore.

40/50ths? Wow, that's an awesome retirement package he's having then.

  • Haha 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...