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

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.
Click to expand...
Is that you James ?
 
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.
Click to expand...
Some people dont live to retire, some live to retire. I once spoke to bloke and it changed my life...he had worked all his life doing the same job with the same firm and had just retired. I asked him what he was doing with his time. His answer, putting his feet up and watching TV. Another client of mine is still working, he's 74, doesn't drink. doesn't smoke, still works 7 days a week, quite wealthy by all accounts, has a Land Rover, a Range Rover and a brand new Defender, 4 weeks in the Bahamas every year and still acts like a 20 year old. He'll die on his tractor I'm sure.
 
I retired years ago.
Never stopped since.
Travelling all over the world with my Mrs.
Regular jollies golfing and sailing with mates.
Go to operas all over Europe plus monthly concerts in the U.K.
Spend two months a year in France.
I don’t have time to watch tv and feel sorry for people who think three cars mean a thing.
 
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.
Click to expand...
After watching the video I posted above, my rough calculations, via a compound interest calculator, tell me that retiring at 62 with a fund of £350k, I could quite easily have an income of £27,500 tax free until I'm mid 80's in age and that is with the uncrystallised fund (current pension fund) growing at 4% PA and the draw down pot growing at 3%
 
dickie davies said:
After watching the video I posted above, my rough calculations, via a compound interest calculator, tell me that retiring at 62 with a fund of £350k, I could quite easily have an income of £27,500 tax free until I'm mid 80's in age and that is with the uncrystallised fund (current pension fund) growing at 4% PA and the draw down pot growing at 3%
Click to expand...
I don’t wish to sound negative, and agree that the video you posted is a decent explanation of how flexi access drawdown works. What he didn’t really focus on is (as we have experienced since the pandemic) that the underlying fund value can actually fall. It is worth factoring a few negative years in any calculations. The timing of when these occur can have a dramatic impact on how long funds last for.
 
GornikDaze said:
I don’t wish to sound negative, and agree that the video you posted is a decent explanation of how flexi access drawdown works. What he didn’t really focus on is (as we have experienced since the pandemic) that the underlying fund value can actually fall. It is worth factoring a few negative years in any calculations. The timing of when these occur can have a dramatic impact on how long funds last for.
Click to expand...
Absolutely, but whilst interest rates are high even a cash deposit could return 3% which is why I calculated at relatively low growths of 4% and 3% and also because interest rates are high, pension annuity is also a real option now
 
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
✖
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.