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

[Lowtower]

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.

Yeah I know, And I have been looking into this, but its the uncertainty of it all and how the rules can change that throws you out.
I cling to the hope that it will all work out and I can enjoy my last days in sun without a care in the world.

 

[paulchapo]

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.

Spot on loads of people are the same. Not everyone wants to jet off on holidays or spend it on other expensive hobbies. Retirement is the freedom not to be governed by somebody else dictating your life. This inflation and cost of living crisis as a result has impacted everyone massively and that's always a danger when your income drops, unless you have a great pension.

 

[Manc in London]

Personally, I am more concerned about health than money as we have been in a public sector pension (me since I was 30, the missus since 22) and my employer paid into a group pension for five years. We are each 49 years of age so still have some time left in the workplace. My last mortgage payment will be made when I am 67 so I can hardly go running off into the sunset. It is because of the pension we have stayed in the public sector.

I can see myself retiring before then but only when my pension benefits are guaranteed (post 58 years of age). Currently, I am a Research & Insight Manager. However, I'll be happy to retire in my early 60s (as part of redundancy so pension benefits will be protected) and take on a chilled out job in the day time in a nice coffee shop or book shop. I will look to be active as I think it is important to get out and about and to keep our central thought processes ticking over. I may even consider a return to studying. If my daughter has children, I will be more than happy spending time looking after them too.

My stepdad was 72 this week. He is still working because it is his vocation and him and mum need the money (he is self employed). He still travels to Africa, Asia and Europe for work, and often works at weekends while also managing the holiday rental flat in the house. He's already had three minor heart attacks. I am determined to not put myself in that position.

 

[Newman Noggs]

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.

Very true. I think most people would like to live it up but have different ideas what that would involve. It also depends on whether there are two of you bringing in income. Running two cars is a killer though.

 

[Newman Noggs]

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.

I have a company through which I invoice for my counter-fraud consultancy, the idea being that I'd do 3 days a week. Of course, what actually happens is that you are at the beck and call of your clients who want (and actually need) everything yesterday. Very hard to balance.

 

[Saddleworth2]

I have a company through which I invoice for my counter-fraud consultancy, the idea being that I'd do 3 days a week. Of course, what actually happens is that you are at the beck and call of your clients who want (and actually need) everything yesterday. Very hard to balance.

I have a couple of fishing buddies who worked in card fraud for one of the banks. Fascinating stuff. You will certainly always be in demand.

 

[Kompany Car]

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.

The problem with CGT is it incentives the wrong behaviours. PAYE employees and small business owners have the same rules around how much you can contribute into a pension tax free per year.

Any tax breaks need to come via a separate mechanism and they should always be focused towards the very early stages of a new business (everyone has to start somewhere) and encouraging growth of SMEs by taking on employees who are subject to PAYE, not maintaining established "one man band" business, with the wife, cat and budgie listed as directors. As in reality they add no more value to the overall economy than a PAYE employee.

This would obviously need rules to prevent people exploiting the system by setting up multiple businesses or recycling businesses (disolving and then reopening under a new business name) to maintain the tax break.

From a UK point of view, its not a problem of people not setting up businesses, its our inability to grow and nurture SMEs to become large national and multinational companies and preventing them being swallowed up by other multinationals due to lack of investment.

 

[paulchapo]

Yeah I know, And I have been looking into this, but its the uncertainty of it all and how the rules can change that throws you out.
I cling to the hope that it will all work out and I can enjoy my last days in sun without a care in the world.

I have older friends that have just sold their apartment in Tenerife after nineteen years. They looked into applying for residency. Another big outlay was they would have to pay 80 Euros a month for private health insurance, but I guess that would have applied without Brexit.

 

[halfmist]

I think part of not enjoying retirement or feeling you want to go back to work is a bit like when they release a whale from captivity. You're so used to your old way of life that you can't adapt to being free. In the same fashion, you even hear about people being released from long prison sentences who want to go back in.

Not every interest requires a lot of funding.
I find planning the week ahead for what we are going to do is vital.
It gets stuck in a Diary and we try and keep to it
If it’s a Monday and we are stood in the kitchen with nothing planned it usually ends up a shit day.
There is nothing wrong with lazy days as long as they are planned.

 

[Churchlawtonblue]

The problem with CGT is it incentives the wrong behaviours. PAYE employees and small business owners have the same rules around how much you can contribute into a pension tax free per year.

Any tax breaks need to come via a separate mechanism and they should always be focused towards the very early stages of a new business (everyone has to start somewhere) and encouraging growth of SMEs by taking on employees who are subject to PAYE, not maintaining established "one man band" business, with the wife, cat and budgie listed as directors. As in reality they add no more value to the overall economy than a PAYE employee.

This would obviously need rules to prevent people exploiting the system by setting up multiple businesses or recycling businesses (disolving and then reopening under a new business name) to maintain the tax break.

From a UK point of view, its not a problem of people not setting up businesses, its our inability to grow and nurture SMEs to become large national and multinational companies and preventing them being swallowed up by other multinationals due to lack of investment.

Well that doesn't apply to me. I run a small buiness and employ people and all I've seen the last 20 years is progressively higher taxes and more red tape and paperwork and when it's just you dealing with all the issues that go with running a small business you wonder why you bother sometimes?

Especially when the biggest business's pay less tax proportionally and even then still don't pay their fair share as they have the ear of governments including ours.

 

[halfmist]

The problem with CGT is it incentives the wrong behaviours. PAYE employees and small business owners have the same rules around how much you can contribute into a pension tax free per year.

Any tax breaks need to come via a separate mechanism and they should always be focused towards the very early stages of a new business (everyone has to start somewhere) and encouraging growth of SMEs by taking on employees who are subject to PAYE, not maintaining established "one man band" business, with the wife, cat and budgie listed as directors. As in reality they add no more value to the overall economy than a PAYE employee.

This would obviously need rules to prevent people exploiting the system by setting up multiple businesses or recycling businesses (disolving and then reopening under a new business name) to maintain the tax break.

From a UK point of view, its not a problem of people not setting up businesses, its our inability to grow and nurture SMEs to become large national and multinational companies and preventing them being swallowed up by other multinationals due to lack of investment.

The danger is, taking on employees with all the rules and regulations plus minimum wage etc in a new business venture is a recipe for disaster.
As the vast majority of new businesses fail in the first two years my advice to clients was always keep your overheads to a minimum in the early years, if you can work from home do, if it’s in the same line of business as you did previously through PAYE, try and keep on good terms with your past employer.
With a good relationship they may possibly give you some part time work whilst you ease yourself in.

 

[oakiecokie]

National Trust have a similar rule, which is probably more pertinent to the FOC's on here ;)

At my age its more like the fucking National Truss.

 

[Kompany Car]

The danger is, taking on employees with all the rules and regulations plus minimum wage etc in a new business venture is a recipe for disaster.
As the vast majority of new businesses fail in the first two years my advice to clients was always keep your overheads to a minimum in the early years, if you can work from home do, if it’s in the same line of business as you did previously through PAYE, try and keep on good terms with your past employer.
With a good relationship they may possibly give you some part time work whilst you ease yourself in.

Im not advocating taking on employees in the very early stages but likewise tax breaks shouldn't be given to those who after 5yrs plus of doing business remain as one man bands. It should be given to those willing to take risk by expanding and increase employment.

 

[Citizen of Legoland]

Know how you feel.

I’ve been bumping my pension like mad these last few years. So much so that I nearly went over the £40k limit in one year. All because I stopped making payments between 1997 & 2005, bit stupid but I was just so skint at the time but it shows how quickly the fund can fall behind schedule. Plus when setting it all up, everyone puts state retirement age when really people should be planning to retire at 60 for personal pensions when they’re 25 or whatever, to give people flexibility later on. I’m lucky I made some gambles that paid off work wise, so I can boost it but I’ll still only be in the avg category for pension income when I take it.

If I get there.

 

[halfmist]

Im not advocating taking on employees in the very early stages but likewise tax breaks shouldn't be given to those who after 5yrs plus of doing business remain as one man bands. It should be given to those willing to take risk by expanding and increase employment.

Fair point but the risks associated with standing on your own two feet rather than relying on others to take the risk, doesn’t suddenly end after x years.
It stays with you for the whole time one is self employed, your only as good as your last job.

 

[Kompany Car]

Well that doesn't apply to me. I run a small buiness and employ people and all I've seen the last 20 years is progressively higher taxes and more red tape and paperwork and when it's just you dealing with all the issues that go with running a small business you wonder why you bother sometimes?

Especially when the biggest business's pay less tax proportionally and even then still don't pay their fair share as they have the ear of governments including ours.

Then it shows that the current system is not working. That said there must be a reason why you are still in business.
As regards tax and large multinational companies, it needs a serious review as does the ability of some large companies to operate in an almost monopolistic manner.

 

[Blue Maverick]

For those retiring older I wonder what they are going to do, even the fittest 67/68 old isn’t going to be sky diving etc, insurance premiums would be sky high, yes there are holidays but look at what at they cost these days, Brexit will have fucked up many wanting to live in the sun into old age as well. Unfortunately they want to work most of us to the grave.

 

[halfmist]

Then it shows that the current system is not working. That said there must be a reason why you are still in business.
As regards tax and large multinational companies, it needs a serious review as does the ability of some large companies to operate in an almost monopolistic manner.

I think the reason why he is still in business is probably because he needs to make a living.
The self employed unlike the employed cannot just up sticks, walk away from commitments, straight in to something else.
That is partly the reason why they are allowed to work under different tax arrangements.
it is also unrealistic to say the UK government can deal single handed with the tax treatment of multinationals, it just ain't going to happen.
they have tried to get other countries to agree to changes but it just falls on deaf ears.
Also just look what's happened as a direct result of the corporation tax hike.
Astra Zeneca are taking 2000 jobs destined for Macclesfield over to Ireland where the Corporation Tax rate is only 12.5%.
Monopolies are an essential part of life today, without them there would be no Microsoft, Apple, Google etc and no Blue Moon.!!!

 

[Churchlawtonblue]

Then it shows that the current system is not working. That said there must be a reason why you are still in business.
As regards tax and large multinational companies, it needs a serious review as does the ability of some large companies to operate in an almost monopolistic manner.

Well I'm still in business as clearly I earn a bit of money and still need to to support my family, I also have a responsibility to my employees and it's the only thing I know . But none of that doesn't mean it's not gotten an awful lot harder the past few years.

 

[skillman]

For those retiring older I wonder what they are going to do, even the fittest 67/68 old isn’t going to be sky diving etc, insurance premiums would be sky high, yes there are holidays but look at what at they cost these days, Brexit will have fucked up many wanting to live in the sun into old age as well. Unfortunately they want to work most of us to the grave.

Because of my job, I speak to people quite a bit about retirement plans and provisions for it and it's a common occurrence that people are scared shitless to touch their pension because they've spent years building it up.

It's a massive shame really that people feel the need to carry on working even when their pension and income in retirement is near-enough sorted. Seen it too many times where it's been left too late and had they (if they could) retired a couple of years earlier then they could've got so much more done.