Is anyone else not bothering with pension planning?
Discussion
I'm 41, recently married, no kids at present.
Feel very lucky that I bought a little Victorian 2-up 2-down house in one of the "fancied" bits of London tube zone 6. Bought for £140K in 2003, now valued at an utterly ridiculous £350-380K.
Am happy here, mortgage nearly paid and I may have one more house move in the next 5 years depending on circumstance and if that happens we will probably move to a larger property nearby.
Returning to the original point, I don't have any provision as yet in pension terms.
Have always figured that at retirement age - lets say 65, I can sell the house here and move back to North Yorkshire (place of birth). Would only want a small property for retirement so for arguments sake lets say it would be 50% of the cost of my current house.
At today's prices, that would probably free up £150K. As an OAP, I could spend £1K/month for 10 years (very simple terms - ignoring inflation etc). That's not too bad if you don't have rent or a mortgage.
That might last till I'm 75 if I'm lucky enough to get there. In the event I last longer, I'm putting away £250/month - about £3K/year in a low-risk, FTSE-tracker account. If I keep that going from now till 65 that should hopefully generate another £75K which at a grand a month will get me to my 80's.
If I'm still going then, they can put me in a home and have the equity.
Have heard so many complaints in recent years from guys retiring, perhaps after unwise investments but for the most part following the advice of a pension planner. Some of them now have only the equivalent of half to two-thirds of what they have paid in.
Sounds nuts to me, am I the only one here or are you all paying thousands a month into future planning and laughing at me when I'm in penury in 30 years time?
Obviously I understand the benefits of long-term compound interest but at the same time think what's the point in not living in the moment. My wife and I spent 2 weeks in Vietnam in early 2016, travelling overland from Hanoi down to Hoi An via Halong Bay, Da Nang etc. Also later in the year had a fortnight in Borneo volunteering at an Orang sanctuary which was great.
I think spending our "spare" cash on travelling now while still relatively young is worthwhile - want to go trekking in Peru next year and while I hope I can still do it in my 70''s I'm not chancing it!! If I reach that age, I'll probably just want sit in my favourite chair so that £1K/month should be OK.
I'll have memories too, really good ones.
Feel very lucky that I bought a little Victorian 2-up 2-down house in one of the "fancied" bits of London tube zone 6. Bought for £140K in 2003, now valued at an utterly ridiculous £350-380K.
Am happy here, mortgage nearly paid and I may have one more house move in the next 5 years depending on circumstance and if that happens we will probably move to a larger property nearby.
Returning to the original point, I don't have any provision as yet in pension terms.
Have always figured that at retirement age - lets say 65, I can sell the house here and move back to North Yorkshire (place of birth). Would only want a small property for retirement so for arguments sake lets say it would be 50% of the cost of my current house.
At today's prices, that would probably free up £150K. As an OAP, I could spend £1K/month for 10 years (very simple terms - ignoring inflation etc). That's not too bad if you don't have rent or a mortgage.
That might last till I'm 75 if I'm lucky enough to get there. In the event I last longer, I'm putting away £250/month - about £3K/year in a low-risk, FTSE-tracker account. If I keep that going from now till 65 that should hopefully generate another £75K which at a grand a month will get me to my 80's.
If I'm still going then, they can put me in a home and have the equity.
Have heard so many complaints in recent years from guys retiring, perhaps after unwise investments but for the most part following the advice of a pension planner. Some of them now have only the equivalent of half to two-thirds of what they have paid in.
Sounds nuts to me, am I the only one here or are you all paying thousands a month into future planning and laughing at me when I'm in penury in 30 years time?
Obviously I understand the benefits of long-term compound interest but at the same time think what's the point in not living in the moment. My wife and I spent 2 weeks in Vietnam in early 2016, travelling overland from Hanoi down to Hoi An via Halong Bay, Da Nang etc. Also later in the year had a fortnight in Borneo volunteering at an Orang sanctuary which was great.
I think spending our "spare" cash on travelling now while still relatively young is worthwhile - want to go trekking in Peru next year and while I hope I can still do it in my 70''s I'm not chancing it!! If I reach that age, I'll probably just want sit in my favourite chair so that £1K/month should be OK.
I'll have memories too, really good ones.
Edited by OzzyR1 on Sunday 12th February 04:00
PurpleMoonlight said:
Don't forget you will have State Pension kicking in at age 67.
It rather depends on the quality of life you want. You have probably described a rather basic one. If you want a better one you will need more money.
I'm 55 and just started my pension planning. £40,000 x 10 in, then £40,000 x 10 out. I plan to do a lot of holiday cruising in retirement.
I discounted the state pension - who knows if it will be around in 25 years time!It rather depends on the quality of life you want. You have probably described a rather basic one. If you want a better one you will need more money.
I'm 55 and just started my pension planning. £40,000 x 10 in, then £40,000 x 10 out. I plan to do a lot of holiday cruising in retirement.
Edited my original post during your reply, I plan to do as much travelling as possible before retirement rather than waiting. Knowing my luck, I'd end up with a gammy leg and be a shoe-in for a new cast-member of Last of the Summer Wine!!
Your plan sounds good though - at 65, £400K probably buys a good few cruises. Likely you have equity elsewhere to fall back on too if the need arises so it sounds like you are sharing my view on life.
Hope you enjoy in good health.
Edited by OzzyR1 on Sunday 12th February 04:11
okgo said:
oyster said:
Rising from £140k in 2003 to £380k in 2017 is 170% increase.
The average for London from Q4 2003 to Q4 2016 according to the Nationwide is 115% increase.
I assume you're one of those property geniuses who can't understand why others aren't as clever as you in forecasting which London borough would triple?
(When in reality you just bought somewhere because you liked the area and got lucky riding the crest of a wave).
Not at all, just wondered given OP mentioned it was a fancied area of Z6 (similar to where I am) which for terraced and semi have seen over 200% since 2003. The average for London from Q4 2003 to Q4 2016 according to the Nationwide is 115% increase.
I assume you're one of those property geniuses who can't understand why others aren't as clever as you in forecasting which London borough would triple?
(When in reality you just bought somewhere because you liked the area and got lucky riding the crest of a wave).
Only skimmed through but definitely some food for thought, thanks for all the responses. Will digest properly over the weekend and add my thoughts.
Quick note on the above though, my little house is on Smart's Lane in Loughton. It's not in this photo but its very similar to the older terraced properties on the right.
https://www.google.co.uk/maps/@51.6483587,0.051656...
Not sure how you get to your statement of "170% increase" however...
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