Retiring

[Mazzarelli's Swiss Cheese]

So if my pension is 20k a year. Is that paid as 1/12 monthly without tax deducted or does tax get taken from it also

Same 13K ish personal allowance,as now mate, so just basic rate on 6 pr 7 grand I think.

 

[denislawsbackheel]

So if my pension is 20k a year. Is that paid as 1/12 monthly without tax deducted or does tax get taken from it also

All income over the threshold is still taxed.
You don’t pay NI on pension income though.
(Though that may change soon)

 

[Mazzarelli's Swiss Cheese]

All income over the threshold is still taxed.
You don’t pay NI on pension income though.
(Though that may change soon)

Ouch! That'll be a fair chunk?

 

[Como Cat]

When I was thinking about retirement, I was told that, assuming no mortgage, it was:

£10k pa - survival
£20k pa - comfortable
£30k pa - very comfortable
£40k pa - luxury

What is luxury to me though might be penury to you.

Is that per person or per household?

 

[Mazzarelli's Swiss Cheese]

Is that per person or per household?

I suppose it depends how you want to do retirement. Sat in front of the telly waiting for God and getting into the sort of state where you think Mrs browns boys is funny is cheap enough. If you prefer to fill your time with hobbys, travel, and a prozzy once a week then it'll be a bit more.

 

[NorthamptonBlue]

Is that per person or per household?

I think it was per couple.

 

[NorthamptonBlue]

I'd agree with your numbers... We don't have an extravagant social life so the numbers above work for me.

I retired at 56 at the end of March mainly because SWMBO has Lymphoma and we need to take our chances now.. So far I have no regrets!

Sorry to hear that blue. Hope you both keep enjoying it.

 

[NorthamptonBlue]

When I retire do the council home me and the wife because our private rent is nearly 12k per year ? And give it another 5 yts till I am 65 the rent will be around 15k per year. I cant see how I could ever retire to be honest:(

The article did assume you owned your home. I’m not sure the numbers work otherwise unfortunately.

 

[Hayley Croppers chopper]

Rather than an annuity, you can draw down on your fund
If for instance the fund is worth £300, 000, you can take 25% in a lump tax free, then draw down on the rest at whatever you deem necessary
Income before taxation is roughly £11,500
So if you jacked in work at 61, you can use the £75k for six years (call it£10k a year and you have £15k in savings) plus a draw down of £11,500 on the big pot
That's 21,500 tax free income for six years
When you reach 67 your old age pension kicks in so your looking at 20k but 8 grand taxable
225k with a drawdown of 11,500 should last at least 25 years. By the time your 86 how much disposable income will you need?

Pension drawdown calculator - making your money last - Which?

If you’re considering pension drawdown as a way to provide your retirement income, use our pension drawdown calculator.

www.which.co.uk

Thanks: that’s food for thought

 

[worsleyweb]

Can’t see me ever doing it. Retiring full whack. Worked from home two days during lockdown and was bored to tears. Got a few irons in the fire outside of development which I am enjoying and may evolve what I do over the next few years.