How much do you live on in retirement?

Anything goes in The Snug, the GD's rebellious little brother. An off-topic den of iniquity for non-football/news related musings.

Moderators: bristolhammerfc, sicknote, -DL-, Rio, Gnome, chalks, the pink palermo

How much do you live on in retirement?

Postby water on Mon Sep 04, 2017 6:18 pm

As I get ever closer to retirement, I am constantly playing with my calculator, looking at figures.
Would be really interested to hear from retired fellow hammers on what they live on....I am assuming mortgage paid off.
water
 
Posts: 17
Joined: Sun Apr 08, 2012 4:04 pm

Re: How much do you live on in retirement?

Postby warp on Mon Sep 04, 2017 6:30 pm

see, possibly the only good thing about being in my thirties at this moment in time, is that i will never have to worry about retirement!
User avatar
warp
 
Posts: 11769
Joined: Fri Jul 30, 2010 11:13 am
Location: I am everything about this site which is wrong... i don't give a toss about WHUFC.

Re: How much do you live on in retirement?

Postby Shanghai Hammer on Mon Sep 04, 2017 6:54 pm

It's a good question. I read recently that you should aim for a pension of 60% of your final salary. I've been paying in to a company pension for 30 years with another 10 years to go and I still won't achieve that.

Annuities seem to be paying around 3% which means you'll need to live to 90 or 95 just to get your money back. Pensions just seem to be a thinly disguised way to rip people off. No wonder a lot of people have gone into buy to let.
Shanghai Hammer
 
Posts: 851
Joined: Tue Jan 18, 2005 9:37 am

Re: How much do you live on in retirement?

Postby DasNutNock on Mon Sep 04, 2017 7:12 pm

Dont *have* to buy an annuity though, do you? Or have I misunderstood?

I am saving my arse off* to get something resembling a decent pension. If I knew when I was young what I know now, I'd be doing everything I can to get a public sector job & pension.

If I was retiring tomorrow, I think as a couple, we'd want at least £1500 a month incl state pen (assuming some c*nt MP hasn't decided I'm too rich to deserve it), ideally £2k. I am far from being able to afford that right now, but it's achievable.

*26% of my pre-deduction income
User avatar
DasNutNock
 
Posts: 4394
Joined: Sat Sep 17, 2016 4:41 pm

Re: How much do you live on in retirement?

Postby Shanghai Hammer on Mon Sep 04, 2017 7:25 pm

DasNutNock wrote:If I knew when I was young what I know now, I'd be doing everything I can to get a public sector job & pension.


I had one of those for a few years. When I changed jobs in the mid 90's I was "persuaded" to transfer my public sector pension into my new company. That company scheme has now gone bust. Don't take financial advice from me clearly.
Shanghai Hammer
 
Posts: 851
Joined: Tue Jan 18, 2005 9:37 am

Re: How much do you live on in retirement?

Postby ageing hammer on Mon Sep 04, 2017 7:31 pm

I'm 58 on Thursday so it's coming up very fast on the horizon. I have never planned ahead never had money to, I have no idea whether we can survive on what ever we end up with. I made a decision about ten years ago not to wait to retirement age to start living, to start going to places abroad etc.. I have had a brilliant last ten years and I am living my retirement NOW before I reach retirement age. I took this advice from a bloke who along with his wife never went nowhere all their lives so they could save up for their retirement.

By the time they had enough money they were too old to go out and enjoy it. He told me do it in your forties, get into debt if you have to, you never know if you will make it to your late sixties lots don't.

I have had the most brilliant ten years of going away almost every chance we can, if i reach retirement great I can look back on some fantastic memories and we will get by I am sure, everyone else has. I will still be doing this when ( if ) I reach retirement.

Take my advice don't wait until you think you will have enough money do it NOW :scarfer:
User avatar
ageing hammer
 
Posts: 16640
Joined: Thu Jan 03, 2008 10:04 am
Location: Kumb along for the craic

Re: How much do you live on in retirement?

Postby Johnny Byrne's Boots on Mon Sep 04, 2017 8:14 pm

Before I retired I went on a retirement seminar provided by my employer and found it very useful.

The first thing the presenter said was "I'll answer the question everybody asks before we start. In order to maintain your standard of living in retirement, you need between half and two thirds of your salary."
User avatar
Johnny Byrne's Boots
 
Posts: 16311
Joined: Mon Jun 05, 2006 5:19 pm
Location: Hit it, find it, hit it again

Re: How much do you live on in retirement?

Postby Hammers Dad on Mon Sep 04, 2017 9:28 pm

DasNutNock wrote: If I knew when I was young what I know now, I'd be doing everything I can to get a public sector job & pension.

Good idea, then you can plate your house in gold and live off caviar and champagne :asleep:
User avatar
Hammers Dad
 
Posts: 5624
Joined: Wed Jun 28, 2006 9:37 pm
Location: Loving being the boss....

Re: How much do you live on in retirement?

Postby delbert on Mon Sep 04, 2017 9:34 pm

My various work pensions kick in when I'm 60 and my mortgage will have been paid off by then as well, I'm hoping a little stress free part time job will see me through to state retirement age........
User avatar
delbert
 
Posts: 18390
Joined: Tue Oct 07, 2003 11:27 pm
Location: ein volk ein reich ein delbert

Re: How much do you live on in retirement?

Postby DasNutNock on Mon Sep 04, 2017 9:57 pm

Hammers Dad wrote:Good idea, then you can plate your house in gold and live off caviar and champagne :asleep:


Yes, that was my expectation.

Everyone I know who went into the public sector makes quality money and has a pension unavailable to most of the people I know who work in the private. Appreciate that not every state employee is in that position, but don't kid yourself that those sweet salary/pension deals don't exist.

My mate edits a quango newsletter. 90k plus a projected 55-60% pen after 42 years (or something along those lines, I went into a catatonic state when he told me the numbers). I'm saving over a quarter of my gross income, with a young family to support, and I'm just hoping to see something like the equivalent of 15-20% of my final salary.

Defined benefit pensions were scotch mist in the private sector when I started working. I should have targeted a public job with one, or tried to find one of the hens teeth in the private if I'd known how grim saving in defined contributions schemes would work out.
User avatar
DasNutNock
 
Posts: 4394
Joined: Sat Sep 17, 2016 4:41 pm

Re: How much do you live on in retirement?

Postby hammerdivone on Mon Sep 04, 2017 10:14 pm

My old man worked hard all his life, saved into his pension, invested well in property and dropped down dead at 65 without ever having enjoyed any of it.

Now whilst I don't advocate saying **** it and blowing it all before you even get there there is a balance to be had. If you own a property it will increase in value, make the right decisions and a large proportion of your pension will come from when you downsize.

Personally I have a local government pension which I paid into for 10 years when earning low money, an oil company pension of 10 years which is final salary, and then all my others are now amalgamated into one where my additional personal contributions over the years have ranged from 5-8%.

I won't be 'well off' when I retire by any stretch of the imagination and will have to work until I'm 65, but I have made damned sure that the family have enjoyed life whilst I'm still around to witness it and enjoy it myself.

In answer to the OP's original question, depending on where we end up living between £1500-2000 per month in todays money to be comfortable
User avatar
hammerdivone
 
Posts: 21289
Joined: Mon Jul 26, 2004 1:55 pm
Location: Somewhere between here and reality

Re: How much do you live on in retirement?

Postby RichieRiv on Mon Sep 04, 2017 10:46 pm

It's think you're onto something HD1. Like all things in life it's about balance. People who tend to pour money into their pension don't tend to see the benefits of it when they retire.

As for buy to let, who's to say that's a sound investment in 10 years time? They're already withdrawing the tax priveldges and you only need Mark Carney to start to ratchet up rates and people will find themselves in the ****.

I've got a few more years left, but my plan is to simply slow down and reduce hours.
User avatar
RichieRiv
 
Posts: 14509
Joined: Tue Dec 17, 2002 3:35 pm
Location: http://www.helpforheroes.org.uk/

Re: How much do you live on in retirement?

Postby westham,eggyandchips on Tue Sep 05, 2017 7:28 am

I have a bout 15-20 years between mortgage being paid off and retirement.

So that window will be my opportunity to save like mad for the "prostate years" 8-)
User avatar
westham,eggyandchips
 
Posts: 11597
Joined: Tue Aug 07, 2007 8:06 pm
Location: Shake for me girl, I wanna be your backdoor man!

Re: How much do you live on in retirement?

Postby sendô on Tue Sep 05, 2017 9:33 am

DasNutNock wrote:My mate edits a quango newsletter. 90k plus a projected 55-60% pen after 42 years (or something along those lines, I went into a catatonic state when he told me the numbers).

The sort of pension percentage that we should all expect to get, frankly. It's the current system whereby we all expect to work hard, spend all our money on servicing debt and get less than minimum wage upon retirement that is wrong, not the public sector.
User avatar
sendô
 
Posts: 23749
Joined: Thu Nov 10, 2005 1:41 pm
Location: in the pessimistically optimistic camp.

Re: How much do you live on in retirement?

Postby Estuary on Tue Sep 05, 2017 9:42 am

ageing hammer wrote:I'm 58 on Thursday so it's coming up very fast on the horizon. I have never planned ahead never had money to, I have no idea whether we can survive on what ever we end up with. I made a decision about ten years ago not to wait to retirement age to start living, to start going to places abroad etc.. I have had a brilliant last ten years and I am living my retirement NOW before I reach retirement age. I took this advice from a bloke who along with his wife never went nowhere all their lives so they could save up for their retirement.

By the time they had enough money they were too old to go out and enjoy it. He told me do it in your forties, get into debt if you have to, you never know if you will make it to your late sixties lots don't.

I have had the most brilliant ten years of going away almost every chance we can, if i reach retirement great I can look back on some fantastic memories and we will get by I am sure, everyone else has. I will still be doing this when ( if ) I reach retirement.

Take my advice don't wait until you think you will have enough money do it NOW :scarfer:


Broadly speaking that's my view, and we are the same age. My wife and I live our life to enjoy the fruits of our labour now, there may not be a tomorrow, and we know that to be true.

As well as being a business owner, I have an investment portfolio which has done well over the years, a good year has returned 14%, a bad one 4%, I don't put a lot in relative to my earnings, but have done every month since 1987 so had built a decent pot. we have a nice property on which I still owe approx 50%, currently I am not paying down the capital sum, just paying the interest, but will pay down from January, until that's paid or we down size (unlikely Mrs E is hugely sentimental about the house and its memories) so I wont be packing up anytime soon.
I have put nearly all my spare money into our business, it has returned me a very decent living for over 20 years and the copy rights we own will continue to deliver a decent return well into the future.
My business has its ups and downs, the last two years my industry has had huge and largely unforeseen changes which seriously effected my working life and that of my business partner. But I had some cash savings, and when they were exhausted I cashed in lumps of the investments which saw us through.
Things are looking much better going forward, the volatility and uncertainty that new global mediums brought with them and the effect on us has flattened out. The reason I wont be retiring is I don't want to, I do something I really enjoy, and if I want time away in my world I can take it.
I could even close the office, stop producing and distributing and live off the income generated, that would diminish over time but would give my business partner and I a decent standard of living provided we had no debt, but while we can take a healthy living and add to the value of rights catalogue we own I'll carry on working full time.
Our current audited value after costs over the next five years is £3.2m, we have a bit of debt in the business, but nothing that it cannot cope with in the worst trading periods, and we have some loans in the company, so I will continue to keep working to drive and grow the business.

Planning for tomorrow is sensible, but living for tomorrow and worrying about what's to come is foolish.
User avatar
Estuary
 
Posts: 3272
Joined: Fri Oct 28, 2011 4:40 pm

Re: How much do you live on in retirement?

Postby DasNutNock on Tue Sep 05, 2017 9:50 am

sendô wrote:The sort of pension percentage that we should all expect to get, frankly. It's the current system whereby we all expect to work hard, spend all our money on servicing debt and get less than minimum wage upon retirement that is wrong, not the public sector.


I absolutely agree with you, everyone's pension should be better. Doesn't mean I don't seriously envy the people I know that have a FS pension to look forward to.

I'm not proud of that envy, but it isn't for traditionally selfish reasons. I'm not particularly materialistic for myself, and have little or no interest in the collection of status symbols or expensive possessions. It's because I have a family to take care of, and it pains me that I won't be able to do what my parents were able to do for me in retirement.
User avatar
DasNutNock
 
Posts: 4394
Joined: Sat Sep 17, 2016 4:41 pm

Re: How much do you live on in retirement?

Postby chelmsfordhammer91 on Tue Sep 05, 2017 10:14 am

I'm only 26 so still a way off but I work in financial services (investment administration) so work with pensions on a daily basis.

As said before, ideally you want a minimum of 2/3 of your salary amount to maintain your current lifestyle. This assumes the average mortgage is around 1/3 of your salary.

I don't pay in to my pension but my work pays in a couple of grand a year. When/if I earn more I might make contributions but the pension is just a wrapper for the underlying investment.

You would hope for the fund your invested in to double your money every 10-15 years which has been out performed by a lot of funds out there.

I'm no financial advisor but the earlier you save the better as this all extrapolates down the line to give you what you need. Obviously stocks and shares go up and down so some people make a loss but generally over 30 odd years nearly every fund (bar the technology funds around the dot com bubble) have increased in value quite considerably.
User avatar
chelmsfordhammer91
 
Posts: 234
Joined: Sat Nov 07, 2015 5:59 pm
Location: Broomfield, Chelmsford

Re: How much do you live on in retirement?

Postby DasNutNock on Tue Sep 05, 2017 10:37 am

chelmsfordhammer91 wrote:You would hope for the fund your invested in to double your money every 10-15 years which has been out performed by a lot of funds out there.


Hope springs eternal, Baldrick...
User avatar
DasNutNock
 
Posts: 4394
Joined: Sat Sep 17, 2016 4:41 pm

Re: How much do you live on in retirement?

Postby rare as rockinghorse shat on Tue Sep 05, 2017 10:53 am

I've got my own work pension which at the current rate should be around £240k upon maturity + state. Missus has her own which should be higher. These figures won't be worth then, what they are now, of course.
Our main plan is to buy a second property and get the mortgage paid off from our current, turning it into a rental and fixed asset for sale if we choose and it's in an area which is quite prime for development.

I'm 30years from retirement and once I am able to, I will be putting more away into an investment which generally yields around 11% p.a so not looking too bad at the moment.... fingers crossed.

I am absolutely also in agreement of not plunging all you can into your retirement.
I don't see the benefits of living a wealthier later life in regret. Balance is key and I'll be making damn sure that me and my other half will be having the most enjoyable and fulfilled life we can, when we can.
User avatar
rare as rockinghorse shat
 
Posts: 53920
Joined: Sun Jan 23, 2005 3:43 am
Location: The Ambassador of Quan

Re: How much do you live on in retirement?

Postby EvilC on Tue Sep 05, 2017 10:58 am

sendô wrote:The sort of pension percentage that we should all expect to get, frankly. It's the current system whereby we all expect to work hard, spend all our money on servicing debt and get less than minimum wage upon retirement that is wrong, not the public sector.


1) Public sector debt interest accounts for around 5% of total public spending.
2) Why should we all expect to get that type of pension? I could do that, but I'd have to pile a load more of my wages into my pension or other savings that is a de facto pension. I can't really afford that without going without a lot of **** that I can't/won't go without.
User avatar
EvilC
 
Posts: 9201
Joined: Sun Jul 25, 2004 5:54 pm
Location: In the street as the cold wind blows, in the ghetto...

Next

Return to The Snug

Who is online

Users browsing this forum: No registered users and 8 guests