Enjoying Retirement
Discussion
mfmman said:
I'd say no on that one as the change to 58 has already been made a few years away. I can see contribution tax rebates changing though, so have upped my AVCs this year whilst it's still available at higher rate
Without sounding a total t4at I’m a high rate tax payer so what I can now put in my pension on a monthly basis and get tax rebate is far from substantial so I’m a bit limited . I get the work rubbish minimum work place one too but then I’ve only been there circa 5yrs .
Apart from ISA’s there is no real other way I can get any form of tax relief as I’ve used up all my previous years of tax allowance by making one off larger contributions.
dmahon said:
...but it’s not comfortable thinking your stash has to hold out for decades.
It is what it is though - there's nothing you can do about inflation, recession or market crashes and there's a point where you have to look at the overall big picture in that if you've got enough capital to generate an reasonable income then if things do go badly tits up down the line that capital will last for quite some while if you do have to start digging into it.In anycase, you might downsize your home to boost capital, get a lifetime mortgage (sorry kids
) or cut down a bit or score a few hours work here and there if needed to mitigate how long and deep you have to dig and keep in mind sooner or later your state pension will kick in too which will help fill your hole back in a bit.On the other hand you might drop dead tomorrow - so enjoy whilst you can.
Somebody said:
Has anyone done inter-railing across Europe? Would like to do this for a month or two with the Mrs and would love to hear of tips/experiences.
Funny you should say that. Last week Interrail had a 50% discount ending, celebrating 50 years of travel….so we made a snap decision to buy two first class tickets for up to 2 months travel. Total cost £800 (only about £60 more than the 1 month offer)
I interrailed back in 1987….a cracking adventure, but I suspect we may want slightly more comfort than I had back then….when I only slept about 4 nights *not* on a train
Not yet sure when we will be able to go: I suspect it’ll early next year, but Mrs MikeIOW is up for adventure: certainly some planning to be done!
Welshbeef said:
Somebody said:
Has anyone done inter-railing across Europe? Would like to do this for a month or two with the Mrs and would love to hear of tips/experiences.
https://www.theadventurists.com/adventures/mongol-rally/This could be so so much fun
mikeiow said:
Somebody said:
Has anyone done inter-railing across Europe? Would like to do this for a month or two with the Mrs and would love to hear of tips/experiences.
Funny you should say that. Last week Interrail had a 50% discount ending, celebrating 50 years of travel….so we made a snap decision to buy two first class tickets for up to 2 months travel. Total cost 800 (only about 60 more than the 1 month offer)
I interrailed back in 1987….a cracking adventure, but I suspect we may want slightly more comfort than I had back then….when I only slept about 4 nights *not* on a train
Not yet sure when we will be able to go: I suspect it’ll early next year, but Mrs MikeIOW is up for adventure: certainly some planning to be done!
Good to see you are enjoying retirement, still using your spreadsheet but no date for finishing yet. Current climate has made me think again.
Enjoying reading all the retirement posts on here with lots of differing views, a lot of food for thought, with the main one being don’t leave it too late.
OldSkoolRS said:
Me and a 69 year old mate played an bar open mic tonight...lots of younger players there before we were on, but got a great reception. I think the host thought we might be past it, but I get the feeling we'll get a longer set next time.
Careful……this could be you 
(but seriously - crack on, I bet the audience loved it!!)
Jaguar steve said:
It is what it is though - there's nothing you can do about inflation, recession or market crashes and there's a point where you have to look at the overall big picture in that if you've got enough capital to generate an reasonable income then if things do go badly tits up down the line that capital will last for quite some while if you do have to start digging into it.
In anycase, you might downsize your home to boost capital, get a lifetime mortgage (sorry kids ) or cut down a bit or score a few hours work here and there if needed to mitigate how long and deep you have to dig and keep in mind sooner or later your state pension will kick in too which will help fill your hole back in a bit.
On the other hand you might drop dead tomorrow - so enjoy whilst you can.
Totally agree Steve . In anycase, you might downsize your home to boost capital, get a lifetime mortgage (sorry kids
) or cut down a bit or score a few hours work here and there if needed to mitigate how long and deep you have to dig and keep in mind sooner or later your state pension will kick in too which will help fill your hole back in a bit.On the other hand you might drop dead tomorrow - so enjoy whilst you can.
Look at those that retired in say 2007 then saw the banking crisis followed then by the good times returning in 2012 so it’s swings and roundabouts you just have to be able to weather potential storms.
That said, it might make a few consider working for an extra couple of years now .
I’m not changing my focus , next year is still the target .
mikeiow said:
Funny you should say that.
Last week Interrail had a 50% discount ending, celebrating 50 years of travel….so we made a snap decision to buy two first class tickets for up to 2 months travel. Total cost 800 (only about 60 more than the 1 month offer)
!
Love this . Last week Interrail had a 50% discount ending, celebrating 50 years of travel….so we made a snap decision to buy two first class tickets for up to 2 months travel. Total cost 800 (only about 60 more than the 1 month offer)
!
I’m sure when the time comes I’ll be looking for similar deals to travel the UK .
Don’t want to be driving, the train will be far more relaxing .
A few cheap B&B’s thrown in outside of school holidays and I’ll be away .
Can’t wait !
Jaguar steve said:
dmahon said:
...but it’s not comfortable thinking your stash has to hold out for decades.
It is what it is though - there's nothing you can do about inflation, recession or market crashes and there's a point where you have to look at the overall big picture in that if you've got enough capital to generate an reasonable income then if things do go badly tits up down the line that capital will last for quite some while if you do have to start digging into it.In anycase, you might downsize your home to boost capital, get a lifetime mortgage (sorry kids
) or cut down a bit or score a few hours work here and there if needed to mitigate how long and deep you have to dig and keep in mind sooner or later your state pension will kick in too which will help fill your hole back in a bit.On the other hand you might drop dead tomorrow - so enjoy whilst you can.
- Fixed income - DB pension or annuity
- Equity investments
- Rental property
- Downsized property
- Inheritance
- part-time work.
GT03ROB said:
You draw from each pot based on the situation at the time. It's also why if you have a DB pension (& only a DB pension) transferring out is a high risk strategy.
Agree it can be a high risk strategy but depends on individual circumstances.I only had a DB pension and to transfer was almost a nobrainer due to the very high multiple and the fact my wife also had a DB scheme which we didn’t transfer.
So in my case it wasn’t really high risk at all and now it is invested very conservatively with the chance of running out at about 1%!
craig1912 said:
GT03ROB said:
You draw from each pot based on the situation at the time. It's also why if you have a DB pension (& only a DB pension) transferring out is a high risk strategy.
Agree it can be a high risk strategy but depends on individual circumstances.I only had a DB pension and to transfer was almost a nobrainer due to the very high multiple and the fact my wife also had a DB scheme which we didn’t transfer.
So in my case it wasn’t really high risk at all and now it is invested very conservatively with the chance of running out at about 1%!
As I've mentioned I'm in the process of transferring out. But I have a few other layers in the plan which provide the risk mitigation.
It’s funny when people talk about multi layered pensions.
99% of people will rely on the state pension and a pension pot of under £62k giving an annuity of £3000 a year at 65 years old.
Retirement is not going to be a happy place for many people. They were never educated on finance and just rely on their state pension.
Wages kept low. People scratching a living.
99% of people will rely on the state pension and a pension pot of under £62k giving an annuity of £3000 a year at 65 years old.
Retirement is not going to be a happy place for many people. They were never educated on finance and just rely on their state pension.
Wages kept low. People scratching a living.
GT03ROB said:
....and its why the best retirement plan is multi-layered. .eg:
Not to mention tightening belts a little….that can reduce the risk a lot too: make your money work harder.- Fixed income - DB pension or annuity
- Equity investments
- Rental property
- Downsized property
- Inheritance
- part-time work.
I’ve always been conscious how much that daily latte and bun takes from your wage when earning….I was generally as happy with a regular tea bag or even instant coffee, & save the treat buy for Friday.
Well, the same can be true when you no longer have a wage.
Take a flask, or on hikes, a stove and pot: brew up on that long walk. Make that part of the adventure. Make the flapjack to take (I made some to take later for our biking adventure!). Take a moka pot to look flash: makes terrific coffee
Don’t skimp to the point it feels bad/daft, of course, but (for example) it’s as easy to take your own sweets and bottle of drink to the cheap matinee film showing as it is to pay the ludicrous prices cinemas charge.
Look out for local theatre deals/offers. Obviously try to holiday off peak (could lower ski holiday prices….although since 1/3rd of the cost of our Les Arcs fortnight was lift passes, maybe not….)
Accept that all insurance companies are buggers, and do the annual dance to get a better deal on house & car cover. You have time to do the (usually online) shopping around: make that a task to tick off. The insurance on our cars was around £90 cheaper than the renewal premiums offered us. Use TopCashBack: we bought some rather expensive Denby from the I’ll gotten gains of that!
All of those things can help lower your personal rate of inflation, whilst the Country continues to see 7+% gains….
Lawks….I’m becoming Martin Lewis
lrdisco said:
It’s funny when people talk about multi layered pensions.
99% of people will rely on the state pension and a pension pot of under 62k giving an annuity of 3000 a year at 65 years old.
Retirement is not going to be a happy place for many people. They were never educated on finance and just rely on their state pension.
Wages kept low. People scratching a living.
This is very true.99% of people will rely on the state pension and a pension pot of under 62k giving an annuity of 3000 a year at 65 years old.
Retirement is not going to be a happy place for many people. They were never educated on finance and just rely on their state pension.
Wages kept low. People scratching a living.
PH (& MSE forum users) are a very small proportion of the population. Taking time and interest in your finances is such a valuable thing to do.
We have tried very hard to educate our offspring on finances.
One was with a bunch of pals recently, talking about their credit scores (the way those mid-20s youngsters party, eh!), & he messaged me: his showed 999, whilst theirs were all around 400-600!
One was him taking on debt was good, and how could he have such a high score without any borrowing. I reminded him of the ‘good debt bad debt’ quiz
lrdisco said:
It’s funny when people talk about multi layered pensions.
99% of people will rely on the state pension and a pension pot of under 62k giving an annuity of 3000 a year at 65 years old.
Retirement is not going to be a happy place for many people. They were never educated on finance and just rely on their state pension.
Wages kept low. People scratching a living.
A working life was not a happy place financially for many, so it would be a surprise for their retirement to be any different. It will also come as a surprise to many how much of a simple life many who are retired live. No multiple overseas holidays, one old cheap car, going out for a meal maybe once a month, no Sky/Netflix/Etc; basic food; entertainment being provided by a walk with the dog.99% of people will rely on the state pension and a pension pot of under 62k giving an annuity of 3000 a year at 65 years old.
Retirement is not going to be a happy place for many people. They were never educated on finance and just rely on their state pension.
Wages kept low. People scratching a living.
My wifes' father is like this. They have downsized into a simple park home. Never have holidays. rarely go anywhere other than the local town. A simple city car. They probably don't spend more than 1000/month, yet have 2 state pensions & a couple of other pensions to draw on, plus savings in the bank.
A simple life but they are happy.
GT03ROB said:
lrdisco said:
It’s funny when people talk about multi layered pensions.
99% of people will rely on the state pension and a pension pot of under 62k giving an annuity of 3000 a year at 65 years old.
Retirement is not going to be a happy place for many people. They were never educated on finance and just rely on their state pension.
Wages kept low. People scratching a living.
A working life was not a happy place financially for many, so it would be a surprise for their retirement to be any different. It will also come as a surprise to many how much of a simple life many who are retired live. No multiple overseas holidays, one old cheap car, going out for a meal maybe once a month, no Sky/Netflix/Etc; basic food; entertainment being provided by a walk with the dog.99% of people will rely on the state pension and a pension pot of under 62k giving an annuity of 3000 a year at 65 years old.
Retirement is not going to be a happy place for many people. They were never educated on finance and just rely on their state pension.
Wages kept low. People scratching a living.
My wifes' father is like this. They have downsized into a simple park home. Never have holidays. rarely go anywhere other than the local town. A simple city car. They probably don't spend more than 1000/month, yet have 2 state pensions & a couple of other pensions to draw on, plus savings in the bank.
A simple life but they are happy.
GT03ROB said:
A working life was not a happy place financially for many, so it would be a surprise for their retirement to be any different. It will also come as a surprise to many how much of a simple life many who are retired live. No multiple overseas holidays, one old cheap car, going out for a meal maybe once a month, no Sky/Netflix/Etc; basic food; entertainment being provided by a walk with the dog.
My wifes' father is like this. They have downsized into a simple park home. Never have holidays. rarely go anywhere other than the local town. A simple city car. They probably don't spend more than 1000/month, yet have 2 state pensions & a couple of other pensions to draw on, plus savings in the bank.
A simple life but they are happy.
I can see how this happens although i they both get full state pensions plus a couple of other pensions to draw on I’m guessing they are likely to have more like 2k a month disposable income given two state pensions must amount to around £1600. My wifes' father is like this. They have downsized into a simple park home. Never have holidays. rarely go anywhere other than the local town. A simple city car. They probably don't spend more than 1000/month, yet have 2 state pensions & a couple of other pensions to draw on, plus savings in the bank.
A simple life but they are happy.
Just a guess of course
The state pension will give a fully paid up couple around £1600 a month. if they've both got an average pension fund amount and both use it to buy an annuity on retirement that's another £500 a month.
All back of a fag packet of course but that's a combined income of over £2k already. Chuck in a little more from ISA income or savings and a part time job if if they want one to give them something to do and you might be looking at closer to £2500 a month.
We could live well on that.
It probably explains too why retirees have so many aches and pains - they come as a consequence of lugging heavy wallets and purses about.
All back of a fag packet of course but that's a combined income of over £2k already. Chuck in a little more from ISA income or savings and a part time job if if they want one to give them something to do and you might be looking at closer to £2500 a month.
We could live well on that.
It probably explains too why retirees have so many aches and pains - they come as a consequence of lugging heavy wallets and purses about.
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