How much do you live on in retirement?

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Re: How much do you live on in retirement?

Postby Mega Ron on Wed Sep 06, 2017 11:45 am

delbert wrote: I've just noticed the post by mumbles87, going by your previous posts I assume that's a LU/TfL pension? There's people on here that would explode in indignation at the total awesomeness of that pension scheme.... :D


If Mumbles87 means he was born in 87 then there's no chance that pension will be as good by the time he comes to retire. I can't see any Final Salary Schemes being maintained for that long.
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Re: How much do you live on in retirement?

Postby EvilC on Wed Sep 06, 2017 12:01 pm

delbert wrote: If I take them at 55 then they're reduced. The job I'm currently in kicks me out the door at 60 which ties in nicely with the other pensions.
I've just noticed the post by mumbles87, going by your previous posts I assume that's a LU/TfL pension? There's people on here that would explode in indignation that they are paying for that pension scheme.... :D


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Re: How much do you live on in retirement?

Postby DasNutNock on Wed Sep 06, 2017 12:33 pm

delbert wrote:There's people on here that would explode in indignation at the total awesomeness of that pension scheme.... :D


I don't see any indignation being expressed here. Envy, for sure, at what are (relatively) excellent retirement plans unavailable to many private sector workers.

I don't begrudge anyone a comfortable retirement, and I'm not that bothered that, in the grand scheme, I'm contributing something to that person's retirement. All's I've said is that if I knew then what I know now, I'd have given far more consideration to the retirement plans on offer when I entered the job market.

I will certainly be advising my children to be FAR more considerate of retirement planning when they're considering careers.
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Re: How much do you live on in retirement?

Postby szola on Wed Sep 06, 2017 12:43 pm

Average life expectency for men in the UK is 79.4 years.
Posters on here want to retire before/around they reach 60.
So 15 - 20 years to enter the labour marked, 40 years in and 20 years out again.

This cannot add up :D
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Re: How much do you live on in retirement?

Postby the polecat on Wed Sep 06, 2017 1:15 pm

I think I’m in the same industry as Mumbles, but a privatised section of it.

I’m 46 and hope to retire at 55. Still got a way to go on the mortgage, but at the current rate it should be gone a few years before then. I’m lucky enough to still have a final salary pension. If I leave early I will pay quite a heavy penalty, but I would rather have less money and be fit enough to enjoy it. Since my kids have grown up and I no longer pay maintenance I’m chucking as much into AVCs as possible - mainly to save paying the tax and to build up the pot. I’m no expert, but I think it’s better to save 40% on income tax rather than overpay the mortgage.

My wife has an NHS pension. Her original scheme (which was reasonable) has been frozen since 2015. The new NHS pension is rubbish and structured to pay out at 68. We’ve also got a couple of properties we rent out, which will either add a bit to the retirement income or sell off if we need the money.

The biggest risks for me are redundancy or a major interest rate rise.
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Re: How much do you live on in retirement?

Postby Hammers Dad on Wed Sep 06, 2017 1:34 pm

My pension is currently worth:

Classic - £10.5k (25 years)
Alpha - £1.5k (2 years)
Classic is now frozen as it was replaced by Alpha
I cannot claim Alpha until state pension age of 67.
I can claim classic at 55 with a 5% reduction in pension for every year under 60 I claim it for (if I take it at 55, it will be roughly £7.8k a year instead of £10.5k)
I also get a lump sum of £32k accumulated over the 25 years of Classic
Alpha does not include a lump sum though I can claim £12 lump sum for every £1 of pension I give up. If I give up all of my pension now (if I was eligible to draw it) I could get a £18k lump sum instead.
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Re: How much do you live on in retirement?

Postby Hampshire Hammer on Wed Sep 06, 2017 2:01 pm

I started paying more attention to this when I reached 50, I'm 54 now. The key thing is not aiming for a percentage of your current earnings but to think about what you want to do in retirement and how much it will cost - for example in the early years you will probably do more travelling than when you are older, when you might be looking at greater care costs. So perhaps plan for money to become available at different ages.

For example I have company pensions that I can take at 63 (with no reduction in income) that should give me £15k a year, state pension will kick in at 67. As I'm self employed my company is currently lumping £40k a year into a pension fund for me, which I could start drawing from at 55 (subject to the regulations over tax-free amounts and taxation) but will wait until I actually retire.

We currently have no mortgage but will soon have buy-to-let properties, which are planned to provide some income going forward.

The aim is to be able to retire by the time I am 60, and fund our retirement from various sources.

However, like ageing hammer, we know a number of people who died before being able to enjoy their retirement (including my fiancé's husband) so we are also enjoying our money now. You never know what is round the corner and there is a lot we want to do.
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Re: How much do you live on in retirement?

Postby DasNutNock on Wed Sep 06, 2017 2:11 pm

Hampshire Hammer wrote:However, like ageing hammer, we know a number of people who died before being able to enjoy their retirement (including my fiancé's husband) so we are also enjoying his money now.


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Re: How much do you live on in retirement?

Postby mumbles87 on Wed Sep 06, 2017 2:28 pm

mushy wrote:
Mumbles,
You talk about a 25% tax free lump and in the next sentence you mention re-mortgaging, would it not be more efficient to take the money and pay off the mortgage thus saving quite a bit on interest rates?


by time I retire the mortgage should be paid off

I could use the money I pay for AVCs now to over pay on the mortgage to pay it quicker but its bearly worth it because the 40% tax break on AVCs is worth more to me. I think I pay £132.60 every 4 weeks for my AVCs costs me roughly £77 a month due to the tax breaks

I remortgage next December I can cut up to 6 years off the mortgage and pay the same amount a month as we do now but pay it back 6 years earlier

will weigh it all up then

Mega Ron wrote:
If Mumbles87 means he was born in 87 then there's no chance that pension will be as good by the time he comes to retire. I can't see any Final Salary Schemes being maintained for that long.


your not wrong Mega ron!.. I doubt state pension will be able.. it will be means tested.. but at least I have been paying something for the past 12 years so I should get something rather than nothing which some people end up with which is sad to see
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Re: How much do you live on in retirement?

Postby Rio on Wed Sep 06, 2017 2:31 pm

I've spent most of my adult life in debt and terrified to look at my bank balance, let alone the future. I've no idea where to turn to for advice for retirement. I looking forward to endless days of beans on toast and reusing tea bags
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Re: How much do you live on in retirement?

Postby Mega Ron on Wed Sep 06, 2017 3:48 pm

mumbles87 wrote:
your not wrong Mega ron!.. I doubt state pension will be able.. it will be means tested.. but at least I have been paying something for the past 12 years so I should get something rather than nothing which some people end up with which is sad to see


You absolutely will get something having paid in. You can't plan on receiving a final salary pension for a retirement in anything other than the very near future.

I'm in a final salary scheme myself and have paid in for the last 11 years but, at 37, there's no way it will be a final salary scheme when I retire.
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Re: How much do you live on in retirement?

Postby Hampshire Hammer on Wed Sep 06, 2017 5:27 pm

Hampshire Hammer wrote:However, like ageing hammer, we know a number of people who died before being able to enjoy their retirement (including my fiancé's husband) so we are also enjoying his money now.

DasNutNock wrote:FYP

Shame that he didn't have much savings, though insurance paid their mortgage off. Not having a mortgage does make a big difference but if I hadn't got divorced I would have paid mine off two years ago.
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Re: How much do you live on in retirement?

Postby mumbles87 on Wed Sep 06, 2017 5:46 pm

Never say never ron

Could change to average earnings which whilst would be a kicker would stop those who switch jobs 2 years before retirement to get more cash..

I'd take average earnings lol
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Re: How much do you live on in retirement?

Postby Mega Ron on Wed Sep 06, 2017 6:09 pm

mumbles87 wrote:Never say never ron

Could change to average earnings which whilst would be a kicker would stop those who switch jobs 2 years before retirement to get more cash..

I'd take average earnings lol


Obviously it's a long way down the line for us but the way things are looking we will be lucky to get decent returns.
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Re: How much do you live on in retirement?

Postby Hammers Dad on Wed Sep 06, 2017 7:27 pm

mumbles87 wrote:
Could change to average earnings which whilst would be a kicker

That's what they did with ours 2 years ago.
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Re: How much do you live on in retirement?

Postby RichieRiv on Wed Sep 06, 2017 8:57 pm

Mega Ron wrote:Obviously it's a long way down the line for us but the way things are looking we will be lucky to get decent returns.


I wouldn't be too pessimistic about it. No one knows how it going to pan out - or if they do, they're not worrying about pensions. By the time you come to retirement age we could have experienced 3-4 booms and an equal number of busts. Ultimately the FTSE 100 and 250 (both popular for Pension Fund Administrators) are higher now than 5, 10, 15, 20 years ago.
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Re: How much do you live on in retirement?

Postby Hugh Jargon II on Wed Sep 06, 2017 9:05 pm

I started off at just turned 18. Paying 11.7 %. This has gone up to 14.5% .

I've paid in a lot. But I'm retiring early on a 2/3rds final pension next year.

All those years I was a poor relation amongst my mates (brickies, stockbrokers, and printers)

Now? They call me a lucky bugger. My lump sum will pay off my mortgage with 70k left over and I will be drawing in 50% of my current wage. For doing sod all.


Gonna work though. I'm aiming to be a teaching assistant at a primary school. After my current 80 hour week...it will feel part time.
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Re: How much do you live on in retirement?

Postby delbert on Wed Sep 06, 2017 9:11 pm

mushy wrote:
Delbert,

Forcing you out the door at 60? Fairly unusual these days, is it an American company?


Nah mate, I work for the MoD on a weird contract.........
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Re: How much do you live on in retirement?

Postby RichieRiv on Wed Sep 06, 2017 9:22 pm

Hugh Jargon II wrote:For doing sod all.


Not strictly true. When you do work you put your life on the line and have encountered things that would quite simply break most people.

I wouldn't swap with you.
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Re: How much do you live on in retirement?

Postby Hugh Jargon II on Wed Sep 06, 2017 9:24 pm

That's a fair point. There has been a price for sure. Hopefully my retirement will relinquish the demons :arry:
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