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

[Churchlawtonblue]

Every year I check. Every year I realise I need to work an extra year. Use to hope to retire at 58, now be lucky if it’s 62.

Know how you feel.

 

[pee dubya]

I find it strange when people post "I'd be too bored if I retired". Really? Rather than travel the world or pursue your interests or do something truly rewarding, you'd rather stack shelves at an Aldi in Openshawe?... Just incase you got bored?

Whilst I completely agree with you, there's about a million things you can do to avoid being bored, some people just need the structure.

I suspect quite often there's a social side to it as well, retirement has the potential to be quite isolating.

 

[abu13]

My plan is on track to retire at 62, one thing is for sure though, if im not able to go at that point i will be going part time doing something that a get some satisfaction from. I'll be fucked if i am doing a job a hate for an additional 5 years.

 

[Churchlawtonblue]

The whole purpose of government and civilisation for that matter is to ensure everyone is provided for and to ensure balance.

To address your responses -

• The changes to pension limits have little to do with doctors and more to do with a wealth tax break. If it was purely doctors then the limit would have been increased rather than abolished or purely targeted at doctors. Whilst you do pay income tax when you withdraw money, you pay it at a future rate which will have a higher threshold than todays income tax bands. Furthermore you also avoid national insurance so the overall tax rate is much less and you can withdraw 25% tax free.
• The argument that the tax rate is effectively 55% once you exceeded the threshold is also not really valid. I would have exceeded the limit but any way you look at it, if you are employed by a company it’s effectively free money being payed in, just the benefit is not as substantial.
• To quote the late Nigel Lawson, who I have a great deal of respect for, “there is little economic difference between income and capital gains tax”, between 1988 and 98, contrary to the claim that tax take reduced, it didn’t, it actually increased and the administration costs were also much lower, what did happen is that CGT could no longer be used as a loop hole so CGT revenue went down but income tax receipts increased. Most economists agree that aligning CGT is the right thing to do, including the IFS (Institute for Fiscal Studies). CGT is a progressive tax, however it does require some thought about how it’s implemented. You need to avoid taxing the increase in the value of an asset due purely to inflation (indexation) and only tax the net gain. The bigger target needs to be the taxing more of the share-based rewards arising from employment, and of the accumulated retained earnings in smaller companies. Likewise ensuring that hedge and wealth managers don’t get paid using the “carried interest” loophole which means their income is only taxed at CGT rates and not income tax rates.
• Pension funds are exempt from dividend tax.
• Regarding entrepreneurship there are already existing tax incentives that encourage investment e.g Business Asset Disposal Relief. However I do agree that risk based investment should be incentivised but not using the broad brush tools currently applied. Something much more targeted that incentivises the growth of smaller business that offer skilled employment and training, not just minimum wage jobs. This would prevent the use of small companies as a way to avoid tax and as a wrapper for assets.

Yes there is always going to be a disparity between what people earn and rightly so, should someone who has studied for years and become a doctor be paid the same as someone who decided that they couldn’t be bothered, of course not. Likewise those that have truly taken financial risks with their own money should be wealthier.

The problem is when that disparity grows to the level that we are at now, where many have little to no disposable income and the few can spend almost without consequence.

Sorry everyone if I have derailed the thread a little here. I will go back in my box.

Good post, the issue I have is the disparity in the current tax burden placed on the smallest businesses compared to the largest.

CGT in its current form is one of the few tax incentives left to start a small buiness and try and build something for your retirement. Take that away and we might as well all work for a big company.

 

[Lowtower]

I was looking to get out of here and retire to Spain, Benidorm area to be exact.
I'm mortgage free now at 45, was hoping to be able to retire at 55 and get gone, but thanks to the Brexit I'm stuck here, can possibly afford to do the 12 weeks here 12 weeks home thing from 60, but its a massive pain in the arse and would be constantly there to worry about. (2 properties to manage etc)

If things don't change and we don't go back into the EU I'll have to stay on Flag-**** island for ever.

 

[Newman Noggs]

Every day for the last 10 hears before I retired, I swore I'd never work again and laughed in the face of anyone who said "I'd be bored". 3 years after retiring I'm still working. Why ? Because even though I have a decent pension, it isn't enough to spend everyday, or even most days, doing the things I had always imagined me doing. Life intervenes. And if you can't do what you want to do, what's the point of being retired ? It's like waiting to die and the older you get, the more you feel time escaping. So there's a happy balance to be struck unless you are really well off which most people aren't.

Being your own boss and working when you want is the key, but, as others have said, the obstacles facing small businesses are unbelievable if you haven't experienced them before.

 

[Betterdeedthan red]

45 .
4 years left on mortgage.
Every day I work now is a day too many

 

[Lowtower]

Every day for the last 10 hears before I retired, I swore I'd never work again and laughed in the face of anyone who said "I'd be bored". 3 years after retiring I'm still working. Why ? Because even though I have a decent pension, it isn't enough to spend everyday, or even most days, doing the things I had always imagined me doing. Life intervenes. And if you can't do what you want to do, what's the point of being retired ? It's like waiting to die and the older you get, the more you feel time escaping. So there's a happy balance to be struck unless you are really well off which most people aren't.

Being your own boss and working when you want is the key, but, as others have said, the obstacles facing small businesses are unbelievable if you haven't experienced them before.

There does seem to be a divide of those that want to live it up or do new things when they retire and those (like me) who would be happy just pottering around, doing mundane things and taking it easy.
For my lifestyle I wouldn't need much cash at all, and aside from City, I really don't spend much on anything else.

 

[Saddleworth2]

Every day for the last 10 hears before I retired, I swore I'd never work again and laughed in the face of anyone who said "I'd be bored". 3 years after retiring I'm still working. Why ? Because even though I have a decent pension, it isn't enough to spend everyday, or even most days, doing the things I had always imagined me doing. Life intervenes. And if you can't do what you want to do, what's the point of being retired ? It's like waiting to die and the older you get, the more you feel time escaping. So there's a happy balance to be struck unless you are really well off which most people aren't.

Being your own boss and working when you want is the key, but, as others have said, the obstacles facing small businesses are unbelievable if you haven't experienced them before.

You have to get some satisfaction out of what you do though mate. Can I ask what business you are in? Self employed Ghillie?
Thats not work!
I retired ten years ago and it sounds like I’m in a similar position to you. Enough money for the everyday plus some hols but not enough to go bone fishing every year for sure ;-).
I would do the odd days work if I could find somethin* that kept me motivated. Been thinking recently about doing some volunteering which at least would give something back.

 

[paulchapo]

I was looking to get out of here and retire to Spain, Benidorm area to be exact.
I'm mortgage free now at 45, was hoping to be able to retire at 55 and get gone, but thanks to the Brexit I'm stuck here, can possibly afford to do the 12 weeks here 12 weeks home thing from 60, but its a massive pain in the arse and would be constantly there to worry about. (2 properties to manage etc)

If things don't change and we don't go back into the EU I'll have to stay on Flag-**** island for ever.

You can still apply for residency there but have to jump through a few hoops to do so and prove you have a certain amount of funds in the bank. I think Spain is doing a lot of lobbying to change that rule but the EU isn't keen.