Enjoying Retirement
Discussion
GT03ROB said:
2k-6k is a pretty big range really. When you think for a married couple the state pension will give around 1.5k, then you have a range of a pension pot from very little up to about a million.
The issue is really one of what sort of discretionary expenditure do you want. If you retire earlier then you are most unlikely to see your expenditure drop, if anything it will rise. But you will no longer be saving out of income. Other things people mention such as mortgages/kids/etc., well those costs are not impacted by retirement. So you either have them or don't. The biggest factors to me are modelling growth into the future & modelling how your expenditure will fall as you age through retirement. Both are exceptionally difficult!
Chat with WM last night went well . All on track . The issue is really one of what sort of discretionary expenditure do you want. If you retire earlier then you are most unlikely to see your expenditure drop, if anything it will rise. But you will no longer be saving out of income. Other things people mention such as mortgages/kids/etc., well those costs are not impacted by retirement. So you either have them or don't. The biggest factors to me are modelling growth into the future & modelling how your expenditure will fall as you age through retirement. Both are exceptionally difficult!
Plan is small release of cash from pension whilst taking monthly draw from pension and cash which i guess is pretty obvious.
One point he made was that most seem to spend less than they could as they are conscious of no back up income.
He also agreed that past 70 spending tends to go down although my model allows for the same amount from 55 to 90.
I might be working part time on a self employed basis so if this is the case I’ll draw smaller amounts from my overall pot and take cash each year from the limited company set up.
My pot doesn’t allow for future inheritance but the monthly draw does include my daughters uni accommodation costs for 6 years .
All in all pretty happy
Edited by GT3Manthey on Wednesday 9th February 07:22
GT03ROB said:
2k-6k is a pretty big range really. When you think for a married couple the state pension will give around 1.5k, then you have a range of a pension pot from very little up to about a million.
The issue is really one of what sort of discretionary expenditure do you want. If you retire earlier then you are most unlikely to see your expenditure drop, if anything it will rise. But you will no longer be saving out of income. Other things people mention such as mortgages/kids/etc., well those costs are not impacted by retirement. So you either have them or don't. The biggest factors to me are modelling growth into the future & modelling how your expenditure will fall as you age through retirement. Both are exceptionally difficult!
Chat with WM last night went well . All on track . The issue is really one of what sort of discretionary expenditure do you want. If you retire earlier then you are most unlikely to see your expenditure drop, if anything it will rise. But you will no longer be saving out of income. Other things people mention such as mortgages/kids/etc., well those costs are not impacted by retirement. So you either have them or don't. The biggest factors to me are modelling growth into the future & modelling how your expenditure will fall as you age through retirement. Both are exceptionally difficult!
Plan is small release of cash from pension whilst taking monthly draw from pension and cash which is guess is pretty obvious.
One point he made was that most seem to spend less than they could as they are conscious of no back up income.
He also agreed that past 70 spending tends to go down although my model allows for the same amount from 55 to 90.
I might be working part time on a self employed basis so if this is the case I’ll draw smaller amounts from my overall pot and take cash each year from the limited company set up.
My pot doesn’t allow for future inheritance but the monthly draw does include my daughters uni accommodation costs for 6 years .
All in all pretty happy
Oh , also there is the option to take 50k lump for a new car !
Edited by GT3Manthey on Wednesday 9th February 07:23
Jaguar steve said:
There's a tendency to learn a particular spending or saving style when young I think and that forms a habit that stays with you for ever. Mrs JS and I bought our first house and had kids when we were barely out of our teens. Neither of us earned much so for a few years money was very tight and there was no choice but be very careful with every penny we had.
Nearly 4 decades on we're better off than we'd ever imagined in our wildest dreams back then but we still live our everyday lives frugally and think long and hard before forking out on any treats or luxuries we don't actually need.
It's the only mindset toward money that we're both comfortable with.
You’re right it’s bloody hard to change people but she knows me retiring is the right thing for us to do so she’s now becoming more conservative with the usual care free spending.
She’s not worked in 22 years so it’s been all me supporting the family who are now late teenagers although one will hopefully soon be starting work .
I do think the weight of one salary has had a bearing on my decision to pack in work next year and make the family adjust.
Also my wife now has health complications so being at home is becoming a must .
I’m just glad and grateful that we have funds to fall back on in retirement
plenty said:
Very similar here (19 years). So many arguments about money. Came close to breaking us a few times.
The breakthrough came when we abandoned the joint account and instead agreed a fixed monthly stipend. She's happy, I'm happy.
Good plan glad you found a solution.The breakthrough came when we abandoned the joint account and instead agreed a fixed monthly stipend. She's happy, I'm happy.
I tried that many years ago & once she’d spent the allowance she just carried on with the joint account !
I was brought up with very little as was she so for the life of me i can’t work out why she is so frivolous.
Anyhow we seem to be turning a corner
omniflow said:
I am thinking that there will be 4 phases of "retirement" for me.
Phase 1 - Over 55 - able to access my pension, but still working pretty much full time. Kids have left home, pension has breached LTA - a really nice relaxing time - money coming in, but no stress if work disappeared tomorrow. This is where I am right now.
Phase 2 - Closer to 60 - working sporadically - most likely to be 3 - 6 month assignments, rather than 2 or 3 days / week. Being totally relaxed about where / when / if the next assignment comes from should make this phase even more relaxing than phase 1. IR35 should have settled down and found a level by the time I'm here, so contracts should be easy to find. I could even go inside IR35 if I had to. Considering moving house during this phase - not to free up cash, but to have a different lifestyle
Phase 3 - 65 - 75 - no more work. If we didn't move house during phase 2, then we'll move at the beginning of this phase - somewhere on the south coast. Lots of travelling (rather than holidays).
Phase 4 - 75+ (or maybe 80 or even 85+) - slow down considerably - a lot less travelling, sell all my cars (apart from my 156GTA SW, which I'm keeping forever), buy a Honda Jazz. Possibly downsize.
My thinking is:
Phase 1 is self-supporting - at this point my pension just provides the "f
k it" knowledge that makes working much more pleasant
Phase 2 will burn some of my pension pot, but not too much
Phase 3 will burn through probably 75% of the total
Phase 4 will eat the rest.
Well thought out .Phase 1 - Over 55 - able to access my pension, but still working pretty much full time. Kids have left home, pension has breached LTA - a really nice relaxing time - money coming in, but no stress if work disappeared tomorrow. This is where I am right now.
Phase 2 - Closer to 60 - working sporadically - most likely to be 3 - 6 month assignments, rather than 2 or 3 days / week. Being totally relaxed about where / when / if the next assignment comes from should make this phase even more relaxing than phase 1. IR35 should have settled down and found a level by the time I'm here, so contracts should be easy to find. I could even go inside IR35 if I had to. Considering moving house during this phase - not to free up cash, but to have a different lifestyle
Phase 3 - 65 - 75 - no more work. If we didn't move house during phase 2, then we'll move at the beginning of this phase - somewhere on the south coast. Lots of travelling (rather than holidays).
Phase 4 - 75+ (or maybe 80 or even 85+) - slow down considerably - a lot less travelling, sell all my cars (apart from my 156GTA SW, which I'm keeping forever), buy a Honda Jazz. Possibly downsize.
My thinking is:
Phase 1 is self-supporting - at this point my pension just provides the "f
k it" knowledge that makes working much more pleasantPhase 2 will burn some of my pension pot, but not too much
Phase 3 will burn through probably 75% of the total
Phase 4 will eat the rest.
I’m not quite at LTA yet but will have the LTA equivalent in cash to run alongside my pension so hoping all good when I quit at 55 and start drawdown
ARHarh said:
I was at that stage at 55, but they hacked me off and I quit. Was going to take a bit of time off then look for work. Now 3 years later I have not looked for work and have no intention of looking for work.
Perfect. I think I’ll feel the same . Been making the same early morning train journeys for 35 years and properly tired of it .
Said to the missus this morning I can’t wait to have Monday mornings to decide how my week is going to pan out .
As has been said many times, life is too short and we don’t need/ want to live like rock stars.
98elise said:
Agreed
I used to work in London. At this time of year I would leave a cold dark house, get in a cold car to drive to a cold station and stand in the rain. I would then stand on a train for an hour with hundreds of other cold pissed off people. At about 8:30 I would be sat at my computer with a coffee wondering what crap the day would bring.
Now I'm retired I get up at about 8:15, and by 8:30 I'm sat in a warm house with my first coffee wondering what I'll choose to do today. I've already had a much better day than any day at work.
This sounds utter bliss I used to work in London. At this time of year I would leave a cold dark house, get in a cold car to drive to a cold station and stand in the rain. I would then stand on a train for an hour with hundreds of other cold pissed off people. At about 8:30 I would be sat at my computer with a coffee wondering what crap the day would bring.
Now I'm retired I get up at about 8:15, and by 8:30 I'm sat in a warm house with my first coffee wondering what I'll choose to do today. I've already had a much better day than any day at work.
nickfrog said:
I have to agree. I have had some fun at work but none of it was really of my choosing whereas I just got a message from a mate wanting to play tennis in 45 minutes, it's a lovely sunny day, the courts are deserted. Might have a good chat and we may even play some tennis. If I was 30 again I would try to retire younger, I might have actually left it a bit late unnecessarily and probably out of habit.
I think habit comes into it lots . I said to the wife last night it’ll seem a weird concept not following the same routine and working after so many years.
At what age did you retire ?
nickfrog said:
51, a couple of years ago.
The kids going to uni probably put paid to it happening earlier, although I have retrospectively realised that I should have made the most of pension tax relief in a bigger way in my 30s and shouldn't have paid off the mortgage so early. Easy to say now though, some you win, some you don't...
Interesting point on uni . The kids going to uni probably put paid to it happening earlier, although I have retrospectively realised that I should have made the most of pension tax relief in a bigger way in my 30s and shouldn't have paid off the mortgage so early. Easy to say now though, some you win, some you don't...
I have a daughter that’ll be off to uni when I’m 55.5 but my pension provisions cover her accommodation fees for 6 years as she wants to study medicine.
I figure we’ll make use of the student loan & she can take that part of the debt when she starts working or I’ll pay it off eventually for her.
I’m not thinking I have to work whilst he’s at uni
okgo said:
By looking more closely at your ISA stuff as per the other thread you could probably have already been retired for 5 years 
Most folks never pay back the loan, not sure why you'd ever pay it off tbf.
Maybe so maybe not who knows . Most folks never pay back the loan, not sure why you'd ever pay it off tbf.
I she starts working and earning over 26k is it? Then she’s paying 6% on the loan.
No panic we have a way to go.
If you are into reading all my other posts & threads you’ll know I have health issues at home that are all forming part of the decision making progress .
Edited by GT3Manthey on Monday 14th February 14:07
Grandad Gaz said:
No, only retired at 65, I’m afraid!
We sold our home in Hertfordshire and moved to North Norfolk about 18 months ago.
We usually get up about 6:30-7am, have breakfast and then head out about 8am. We like to keep active ( something you become more aware of, the older you get!) I am very much an outdoor person and get a lot of pleasure watching the wildlife here
We walk about four or five miles a day normally by the sea but, sometimes around a National Trust site such as Sheringham Park or Felbrigg. We always have a coffee while out and about in the mornings.
Now that things are opening up, we intend to do a bit of travelling. New Zealand is looking very promising later in the year!
Fabulous good for you . We sold our home in Hertfordshire and moved to North Norfolk about 18 months ago.
We usually get up about 6:30-7am, have breakfast and then head out about 8am. We like to keep active ( something you become more aware of, the older you get!) I am very much an outdoor person and get a lot of pleasure watching the wildlife here
We walk about four or five miles a day normally by the sea but, sometimes around a National Trust site such as Sheringham Park or Felbrigg. We always have a coffee while out and about in the mornings.
Now that things are opening up, we intend to do a bit of travelling. New Zealand is looking very promising later in the year!
North Norfolk I love ! But as of yet can’t get the wife to agree to move that far. Some wonderful beaches there.
We are Brentwood and spend lots of time in Frimton so not quite so far so that’s likely to be where we head although I’d head to Norfolk ideally too .
Sounds like in retirement you take in the important non expensive things in life . As you say wildlife
Im very much drawn to the sea & also very much an outdoor type.
Enjoy your retirement and keep up the walking !
Fusion777 said:
Judging by how often you post on this topic, it sounds like you'd be best bringing your date forward! Don't mean that in an inflammatory way, just that it seems to be pre-occupying you. Don't know your history, but what's stopping you from doing this, or at least dropping your hours, or even doing a different role for a while?
Tks for the post . No issues but I started this thread so I’m likely to post regularly and check in to get experiences .
To answer you - there won’t be an option to cut down my hours or work as a contractor so it’ll be full time retirement which was always my plan .
I’m planning my retirement so it’s good to get actual views so it’s the point of starting the thread.
So far I’ve found all the feedback for the thread very helpful .
It’s also uplifting at times to get some guidance and reassurance in preparation for retirement.
ARHarh said:
The most difficult bit to get used to is not having someone give you loads of money at the end of every month. Once you get over that bit it's easy to get used to.
Agreed . Drawdown might prove a little stressful to start but I’m sure I’ll get used to that too .
My pension guy said lots get to retirement with a healthy pot and don’t spend it.
I currently enjoy the benefits of private health cover along with my family under the company scheme . So that’s myself and the wife and 2 teenagers.
I’ve used it quite heavily over the last 2 years and I’m about to go in for another knee op.
Private health cover ( especially given the wife’s now health issues) is one thing I’ll be paying for out of my monthly draw.
Need to start getting quotes for next year
I’ve used it quite heavily over the last 2 years and I’m about to go in for another knee op.
Private health cover ( especially given the wife’s now health issues) is one thing I’ll be paying for out of my monthly draw.
Need to start getting quotes for next year
alscar said:
When getting quotes for a personal PHI don’t get them too early as they will no doubt then increase before you press the go button.
I would also try your existing Company provider - they will probably agree to a straight transfer with no further underwriting.
Yes I did think of doing that . Bupa is the company provider so I’ll speak with them . I would also try your existing Company provider - they will probably agree to a straight transfer with no further underwriting.
Tks
Drumroll said:
True, all my pension forecasts say I am going to be short by the time I reach 75, but at no point do they include our state pension in their calculations.
Funny as my calculations according to my WM include the state pension. Maybe some just do things differently. One thing that’s not added in is future inheritance for obvious reasons though that will happen at some stage.
In the pipeline I may end up working very part time with a family member so that might well provide some additional income too.
Gassing Station | Finance | Top of Page | What's New | My Stuff