Retiring

dickie davies said:
Sit down with your Mrs and write down all the expenses for necessities, council tax food, utilities etc
Then there's maintenance on your property
Factor in every day luxuries such as new car, washing machine every however many years
Then you need to think about what are you going to do with your retirement time, travel etc and how much money you'll need for that

In theory 25k should be fine, but it's all about what you want to do/see
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We have pretty much done this and we are planning to get everything replaced in the years between 64 & 68 such as the new bolier and the like. We like to go on holiday a couple of times a year but won't be going at peak times and like SC rather than all inclusives. Generally we have quite an inexpensive life style. neither one of us really drink or do cocaine :)
 
abu13 said:
I am due to get it at 67, but im not banking on it with these cunts:)
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in a similar position, i'm 55 and state pension kicks in for me at 67, been doing the sums and at todays prices I reckon 30K/year is enough to have a good retirement, and 25k a comfortable modest one. That's nett figures so avoiding paying any tax when retired is a very attractive proposition
 
flook said:
in a similar position, i'm 55 and state pension kicks in for me at 67, been doing the sums and at todays prices I reckon 30K/year is enough to have a good retirement, and 25k a comfortable modest one. That's nett figures so avoiding paying any tax when retired is a very attractive proposition
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I agree,
i feel quite comfortable with this, as I say I can only base it on if i was retiring tomorrow. Before tax we would need about £10k a year plus the state pension. Given life expectancy is 84 then if all goes to plan I should be ok. Fucked if I live to 85 though :)
 
abu13 said:
I agree,
i feel quite comfortable with this, as I say I can only base it on if i was retiring tomorrow. Before tax we would need about £10k a year plus the state pension. Given life expectancy is 84 then if all goes to plan I should be ok. Fucked if I live to 85 though :)
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Funnily enough my numbers are based on clog popping at 84
 
abu13 said:
What do people think a married couple would need for a comfortable retirement?
I know everyone has different needs and plans but I have heard such a wide range of numbers I just have no idea.

I believe me and the missus would be quite comfortable with an income of £25k a year, If i was to retire tomorrow and given we would get around £18k in joint state pension I believe i would only need another £10k a year income. Obviously things change but I am interested in what people think or have experienced.
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You must have some idea about what income you need for a comfortable retirement. What income do you have now? Are you comfortable with it?

You can subtract pension contributions, savings (and mortgage repayments for example if not paid now but will be when retired) from your income now to find what income you actually live on.

You could monitor your income and expenditure rigorously for 12 months to determine if you have an annual deficit or surplus.

I reckon about 25k after tax is plenty, assuming mortgage paid and including at least one luxury such as holidays per year. You will probably need less in later retirement (say 75+). My parents aged 78-80 reckon <20k is enough.
 
flook said:
in a similar position, i'm 55 and state pension kicks in for me at 67, been doing the sums and at todays prices I reckon 30K/year is enough to have a good retirement, and 25k a comfortable modest one. That's nett figures so avoiding paying any tax when retired is a very attractive proposition
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Not paying tax?
Dream on.
 
abu13 said:
We have pretty much done this and we are planning to get everything replaced in the years between 64 & 68 such as the new bolier and the like. We like to go on holiday a couple of times a year but won't be going at peak times and like SC rather than all inclusives. Generally we have quite an inexpensive life style. neither one of us really drink or do cocaine :)
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I know it’s not something most people want to think about, but it is worth considering the financial situation if either of you should pass away. Would you each have enough to be comfortable in this event?
 
Millwallawayveteran1988 said:
I know it’s not something most people want to think about, but it is worth considering the financial situation if either of you should pass away. Would you each have enough to be comfortable in this event?
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Needs considering because unless you both go together it’s going to happen.
 
Millwallawayveteran1988 said:
I know it’s not something most people want to think about, but it is worth considering the financial situation if either of you should pass away. Would you each have enough to be comfortable in this event
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Do you know the legalities in this event!
If I'm drawing down on my pension and snuff it when there's still £100k left, will the fund transfer to my wife?
 
What are peoples thoughts on the tax free withdrawal of 25%, i know 3 people who withdrew this as soon as they could at 55. Seems a little silly to me unless you are desperate for the cash.

They have used the money for holiday's, new cars and other "treats" rather than a desperate need for it.
I understand the live for today thinking but seems short sighted to me.
 
I'm 4 years into drawdown and still have some tax free cash left to withdraw. It's all a balance. Remeber that as soon as the cash is out of your pension it becomes part of your estate and therefore potentially inheritance tax.
 
Millwallawayveteran1988 said:
I know it’s not something most people want to think about, but it is worth considering the financial situation if either of you should pass away. Would you each have enough to be comfortable in this event?
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yes i've struggled factoring that in as when it happens has a major impact obviously. In the end I ignored it on the basis if she goes first she's more expensive than I am so I'm better off, and if I go first I'm past caring :)
 
DTKOAG said:
Anyone had/having dealings with Reassure ?
L&G passed over to them last year numerous pension polices.
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I have a small-ish pension with them which was also an L&G policy. No issues other than I noticed over Xmas that one of the two funds my pension invests in is showing as closed, so I'm wondering if I need to do something about it, and they seem to have a backlog of messages at the moment, so am waiting for an answer.

I've no concerns about them, they're handling £39bn of investments, so should be okay.
 
Downsizing, Equity release and RIO's are a way to unlock capital in retirement. The first is the best option but do it sooner rather than later. Some people can't bear to part with houses where they have brought kids up or it holds some sentiment.

A Rio and equity release are best accessed once the savings or drawdown pensions are gone. I'm budgeting to do this if I make it to around mid 70's as I draw down my pension, it will be gone by then, in my case it will be equity release as to get a RIO you still need the requisite income which I won't have, will just be the state pension by then.

As a final point, a Financial Adviser I know told me it's incredible these days that some people factor in inheritance, if it's a big estate then there's no problem. However if it's say around 100k that money would soon go if the person leaving the estate were to be placed in a care home, £3k per month, leaving just £23k ring fenced to pass on, it soon goes. I'm in that boat with my old man who's 88 but I've not factored that to my finances, anyone could have something like a stroke at anytime and need lifetime care.
 
For all those of a certain age make sure you have
A. A will
and
B. Power of Attorney set up so your affairs can be dealt with when you lose mental capacity.
It will save a great deal of grief and pain later on. For instance if you lose capacity with no power of attorney set up you or your offspring will not be able to sell your house to fund any care or move into more suitable accommodation.
 
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