Retirement...when, how old and how much??

dickie davies said:
I am mistaken and you are correct

I've searched it and if i understand it correctly, if you die before reaching 75 the drawdown pot can be passed on tax free
If you die after the age of 75 the pot is taxed at the beneficiary's rate

I was under the impression after 75 the pot couldn't be inherited

Even so, it would be very much in the retirees interest to explore all options
The ten year ring-fence could be worth more than a drawdown pot

One thing for certain is that it is a huge decision

A former work colleague has recently retired with a pot of around 400k
He made his decision to retire in Jan so his real option at that time was drawdown as annuity rates were crap

He's taking the 25% tax free in small sums as and when he requires, so the majority of the 400k always stays invested and in theory will grow to cover the tax free withdrawal and agreed drawdown he takes annually
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Sounds about right. I knew about the tax aspect after age 75. The pension game is hugely complicated and I have to keep reminding myself of the multitude of rules to hope that I invest and plan wisely.
 
As long as you register at the job centre you get qualifying years.
There will be no difference in pension now that SERPS has gone.
 
Manchester33 said:
It's risk vs reward.

You might feel that pensions aren't safe, but I'd argue they are worth the risk because of the tax incentives behind them.

If you're effectively investing 20%/40% more through a pension and can withdraw it efficiently too, the returns would be incomparable to paying down your mortgage for example. If you have a timescale of 15 years+ a well-invested pension would win every time.
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Is the right answer in my opinion.
@A57 the snake , please take financial advice. Paying the mortgage off is not always the best option unless it is on a high interest rate. We are hardwired all our lives to pay our mortgage off but if you can invest the funds instead you might be far better off.
 
mackenzie said:
I'm 58. Just taken my occupational pension and a lump sum. Still working 2 days a week though (civil service since I was 17).
Best thing I ever did. Yes, my occ pen will be lower when I fully retire but I don't give a shit. I'll be able to live off it then too, easily.
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Long may you enjoy it.
 
abu13 said:
The best bit of advise i can give to anyone is to log your annual living expenses, i have done this for the last 3 years and expect to continye until i look to retire in 6 or 7 years time.

As basic as,
How much cas came into the household.
Hiw much cash went into debt repayment.
How much cash went into savings, investments.

Deduct the debt and savings payments from the total income for a rough cut figure of your day to day living.


Very rough cut but by my working out i need in the region of £26k per year in my hand to maintain my current lifestyle.


Obviously this will increase with inflation so i work it as a percentage of my total income,the aim is to keep this as clise as possible each year.
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I've done something similar, trouble is with covid, war, rising interest rates and an absolute clusterfuck of a mini budget, any financial planning is more akin to a wild guess than a realistic prospect
 
Retired from a public sector job in 2016 at 52, final salary pension. Took my full lump sum. Indexed linked to cpi from 55.
Too young to stop so got a full time minimum wage job to top up my incomings. My plan was to aim for 60 to put my feet up. But the current climate means I’ll have to bide my time now.
 
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flook said:
I've done something similar, trouble is with covid, war, rising interest rates and an absolute clusterfuck of a mini budget, any financial planning is more akin to a wild guess than a realistic prospect
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For me this is a greater incentive to do this going forward, we are going through one of the toughest times in recent history and if people can get their heads around working to a plan now then the better prepared they will be when the time comes.

I spoke with a guy at work earlier this year, he is 64 years old and I asked him if he had any plans to retire anytime soon, he said that he hadn't really given it any thought and would carry on working as long as his or his wifes health held out. I asked him if he was in the company pension scheme which thankfully he was but he had absolutley no idea what was in it. What bothered me was that he said this is his only pension and he has only been in it for about 10 years. How anyone can get to that stage in their lives and not know what is in their pension pot amazes me.
 
abu13 said:
For me this is a greater incentive to do this going forward, we are going through one of the toughest times in recent history and if people can get their heads around working to a plan now then the better prepared they will be when the time comes.

I spoke with a guy at work earlier this year, he is 64 years old and I asked him if he had any plans to retire anytime soon, he said that he hadn't really given it any thought and would carry on working as long as his or his wifes health held out. I asked him if he was in the company pension scheme which thankfully he was but he had absolutley no idea what was in it. What bothered me was that he said this is his only pension and he has only been in it for about 10 years. How anyone can get to that stage in their lives and not know what is in their pension pot amazes me.
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Most people live a "Come a day, go a day, God send Friday" life. They don't envisage living to retirement age or even think about it until it's upon them. One thing is for sure nobody is having any sort of life living on the state pension alone. It won't be enough to pay for the basics to survive soon, if that's not the case already.
 
paulchapo said:
Most people live a "Come a day, go a day, God send Friday" life. They don't envisage living to retirement age or even think about it until it's upon them. One thing is for sure nobody is having any sort of life living on the state pension alone. It won't be enough to pay for the basics to survive soon, if that's not the case already.
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latest from the walking disaster that is the current government is its looking like a back track on the triple lock is coming. Those relying solely on the state pension are well and truly fucked if that is scrapped
 
flook said:
latest from the walking disaster that is the current government is its looking like a back track on the triple lock is coming. Those relying solely on the state pension are well and truly fucked if that is scrapped
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They always go after the poorest, the lowest common denominator first. Absolute scum. Not to mention liars of course as keeping it was central to their election manifesto.
 
paulchapo said:
They always go after the poorest, the lowest common denominator first. Absolute scum. Not to mention liars of course as keeping it was central to their election manifesto.
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indeed, promised by both parties in 2019, kept 20, 21 and broken 22, and looking likely to be broken in 23
 
flook said:
indeed, promised by both parties in 2019, kept 20, 21 and broken 22, and looking likely to be broken in 23
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People keep on voting the conmen in its ridiculous. Unless you're very rich no way this lot help you.
 
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