I'm in a similar boat.Yes. Most people will want to retire well before state pension - 68 for me and i dont want to work beyond 60 so that is 8 years to fund with all of it taxed.
My pre Tax drawdown would need to be circa £47k per annum to have £35k to spend. Once i hit state pension age i get £9k per annum from the state but i'd have spent £376k by then. Even if I cut back the spending to £2k per month I will need to drawdown £30k per annum and a total of £240k before state pension kicks in.
Not sure how these calculations of sub £200k will work.
Yeah sorry for this generation, highest level since 1991 I believeall time high?
Not in my lifetime!all time high?
You need to be looking at a property trust to protect his estate. Possibly too late at 89 as there is a period before it kicks in i think but is an essential thing to avoid care home costsI’m budgeting 30k per annum, 1400 household, food, golf fees, City, motor costs, and 1k per month for me and the Mrs going out for a nosebag now and again and a few beers (300 for Mrs H for her fripperies). Money will run out when we are about mid 70’s but we have a modest house worth about 220k we can sell, buy a terraced house equivalent of 150k today and equity release a further 50k so another 100k to see us through to mid 80’s, by then there will be no motor, no golf and probably no Season Ticket to pay for so the state pension will suffice.
I stand to inherit half of my Dad’s estate (about 250k) but I don’t factor that in, he’s 89, he could have a stroke, dementia or other debilitating illness and end up in a care home that could potentially take up all his assets.
I’m working about three days a week at the moment but from March next year when I’ll be nearly 64 I’ll be down to one day a week (Fridays) until full retirement 2 years later. Can’t wait!
Hes a bit stubborn, my Sister who works for a Financial Advisor approached him to be his Power of Attorney, he said he was able to look after his own finances. I’ll look into what you have suggested and see if there’s anything we can do, he’s getting frail now and slowed down exponentially the last few years but thankfully still has his “marbles”, thanks.You need to be looking at a property trust to protect his estate. Possibly too late at 89 as there is a period before it kicks in i think but is an essential thing to avoid care home costs
Sounds like a good plan.I’m budgeting 30k per annum, 1400 household, food, golf fees, City, motor costs, and 1k per month for me and the Mrs going out for a nosebag now and again and a few beers (300 for Mrs H for her fripperies). Money will run out when we are about mid 70’s but we have a modest house worth about 220k we can sell, buy a terraced house equivalent of 150k today and equity release a further 50k so another 100k to see us through to mid 80’s, by then there will be no motor, no golf and probably no Season Ticket to pay for so the state pension will suffice.
I stand to inherit half of my Dad’s estate (about 250k) but I don’t factor that in, he’s 89, he could have a stroke, dementia or other debilitating illness and end up in a care home that could potentially take up all his assets.
I’m working about three days a week at the moment but from March next year when I’ll be nearly 64 I’ll be down to one day a week (Fridays) until full retirement 2 years later. Can’t wait!
I'm not planning on paying much tax in the period between whenIi retire and when State Pension kicks in.Yes. Most people will want to retire well before state pension - 68 for me and i dont want to work beyond 60 so that is 8 years to fund with all of it taxed.
My pre Tax drawdown would need to be circa £47k per annum to have £35k to spend. Once i hit state pension age i get £9k per annum from the state but i'd have spent £376k by then. Even if I cut back the spending to £2k per month I will need to drawdown £30k per annum and a total of £240k before state pension kicks in.
Not sure how these calculations of sub £200k will work.
Funny you should say that, out with the girls yesterday she came home quite pissed, not often she does that.Sounds like a good plan.
Although 300 beers a month for the wife seems a bit excessive.
That’ll do, its 12,500 at the moment I think and would hope by the next election the tax allowance will increase, the only downside as with my pension is inflation which can seriously affect draw down’s, its a little worrying. I was going to pack work in altogether but Covid and inflation have made me reassess. I could probably pack in now but the last thing you would want to do after retirement is to go back to work.I'm not planning on paying much tax in the period between whenIi retire and when State Pension kicks in.
Ballpark figures: £320K pot and retiring 5 years before state pension age
25% lump sum tax free = £80K
Drawdown tax free amount each year, say £12K
Total = £140K for 5 years = £28K per year tax free.