Enjoying Retirement
Discussion
Jaguar steve said:
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.
Same as my thinking above Steve. 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.
But then most retirees of a certain era tend to stick to a budget and are scared of ever overspending
GT03ROB said:
So you also run a multilayer strategy.... guaranteed income from your wife's scheme. So this does reduce the risk.
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.
Putting it that way, yes you are correct. My IFA would have been less inclined to give a positive recommendation without my wife’s DB pension, although I do think it would have been OK.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.
One regret I do have is that nearly all my retirement funds are in pensions and in hindsight I would have diverted some funds to things like ISAs to give more flexibility (although without tax relief probably less in overall funds).
It is something I’ve tried to educate my kids with, encouraging them to have a pension, ISA and in the case of my eldest BTL’s. They also take an active interest in what their money is invested in which hopefully will keep them in good stead later on in life (although retirement. Is 35-40 years off yet!)
One thing I continue to be amazed by is how many people in my friendship circle rely on inheritance to fund their retirement, and therefore live under the pressure of providing the same for their offspring.
Wonder if this will continue as a culture or die out (excuse the pun) with this generation. We inherited nothing and intend to leave very little - very clear with our kids that we invested in them heavily in their formative years, but once working they are on their own. It does mean that they will need to approach their financial planning differently to many of their peers.
Wonder if this will continue as a culture or die out (excuse the pun) with this generation. We inherited nothing and intend to leave very little - very clear with our kids that we invested in them heavily in their formative years, but once working they are on their own. It does mean that they will need to approach their financial planning differently to many of their peers.
MarcelM6 said:
One thing I continue to be amazed by is how many people in my friendship circle rely on inheritance to fund their retirement, and therefore live under the pressure of providing the same for their offspring.
It's completely understandable to want to preserve family wealth and also not to be the beneficiary of an inheritance yet deny your children the same.The 'contract' you have with your kids is a personal thing.
For me that covers both what they can expect to inherit & what care we expect then to provide to us in later life.
Mine will inherit what's left and no special provision will be made - they are clear on that - I use the term they can have what we've failed to spend.
We also expect very little from them in later life - they live in different places to us and we want them to de living their own lives - not cooking, cleaning and generally caring for one (or both) of us if we make it far enough to need it.
For me that covers both what they can expect to inherit & what care we expect then to provide to us in later life.
Mine will inherit what's left and no special provision will be made - they are clear on that - I use the term they can have what we've failed to spend.
We also expect very little from them in later life - they live in different places to us and we want them to de living their own lives - not cooking, cleaning and generally caring for one (or both) of us if we make it far enough to need it.
Carbon Sasquatch said:
The 'contract' you have with your kids is a personal thing.
Exactly. And highly dependent on cultural background.If you're White British you'll probably expect your children to be as independent as possible as soon as possible, and not wish to burden them with caring for you in your later years.
People from other cultures may see things quite differently.
I perhaps wasn't clear in my initial post.
We have many friends that are relying on inheritance and state pension only to fund retirement, and have no other pensions/investments at all. Rather than preserving family wealth, they will be spending the inheritance and leave nothing to their children, but are bringing children up in the culture of expecting inheritance.
We have many friends that are relying on inheritance and state pension only to fund retirement, and have no other pensions/investments at all. Rather than preserving family wealth, they will be spending the inheritance and leave nothing to their children, but are bringing children up in the culture of expecting inheritance.
plenty said:
Exactly. And highly dependent on cultural background.
If you're White British you'll probably expect your children to be as independent as possible as soon as possible, and not wish to burden them with caring for you in your later years.
People from other cultures may see things quite differently.
There is a massive culture of inheritance within sections of the "white British"If you're White British you'll probably expect your children to be as independent as possible as soon as possible, and not wish to burden them with caring for you in your later years.
People from other cultures may see things quite differently.
Just not in your bit, or mine
JeffreyD said:
There is a massive culture of inheritance within sections of the "white British"
Oh yes, that's true.But generally speaking folks in the UK/US/Northern Europe tend to prioritise children 'standing on their own feet' as soon as possible. And don't expect to live with them in old age. Whereas for many parts of the world as well as UK folks with overseas roots it's fairly normal for multiple generations of families to live under one roof and/or remain financially interdependent, not only out of necessity but choice.
MarcelM6 said:
I perhaps wasn't clear in my initial post.
We have many friends that are relying on inheritance and state pension only to fund retirement, and have no other pensions/investments at all. Rather than preserving family wealth, they will be spending the inheritance and leave nothing to their children, but are bringing children up in the culture of expecting inheritance.
Got it. That's just poor planning.We have many friends that are relying on inheritance and state pension only to fund retirement, and have no other pensions/investments at all. Rather than preserving family wealth, they will be spending the inheritance and leave nothing to their children, but are bringing children up in the culture of expecting inheritance.
Jaguar steve said:
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.
I'm 49 and my wife is 47 and I'm hoping to retire at around 60 with a similar viewpoint to this. We will need to cover the years between whenever we retire and the state pension kicking in with savings and the like (which is what I'm aggressively saving for now).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.
We already live a pretty simple life now compared with many on here I think (by accident rather than design) which is very happy and enjoyable and very much live on considerably less than we earn so I'm hoping this is going to be good preparation for retiring and living on less.
With regards to inheritance my Dad recently passed away at 83 and left my Mum who is now 80. I've told my Mum to start doing things like getting taxis to places (my Dad did the driving and the car has been sold), getting private medical care for some ailments she has, getting a gardener in, etc, etc. In summary spend what she has on making her life easier and, hopefully, happier. I hope she spends as much of what she has as she can in the time she has left and I haven't given a thought to me getting any of it.
I am in my 50s and in good health, but I realised recently that if I dropped dead suddenly I would leave a bugger's muddle of business affairs for my family to wrestle with. They would not be able to dispose of the business for anything like true value, or run it. So I am downsizing and streamlining, such that someone else could take over.
The problem is, I may not drop down dead (a nice problem to have of course) and what then?
I was speaking a couple of days ago to someone who has worked for me for a few years and I found myself being nostalgic about the business as it was five years ago. Then it occurred to me, I am not ready for retirement or to stop pushing forward. I still want the excitement of running businesses and to feel that I am still a "player in the game". I am also scared witless about making a pile of my winnings and hoping to live the rest of my life on them. I don't want to buy a smaller house or car. In short, I want to be earning still and able to control my income.
Counter to the above there is also the problem that I AM in my 50s and if something went wrong with the business I would potentially not have the time or energy to recover the situation. I think of Johnny Depp as George Jung in blow, trying as an ageing man to restart his cocaine importation business, when in fact the moment had passed. He would never recapture old glories.
I think what I need to do is start doing some deals in my line of work. Something more liquid that I can come out of if I want to. All in limited companies, no PGs, and a limited investment in each.
It would be easier if I was employed, hated my job but liked golf.
The problem is, I may not drop down dead (a nice problem to have of course) and what then?
I was speaking a couple of days ago to someone who has worked for me for a few years and I found myself being nostalgic about the business as it was five years ago. Then it occurred to me, I am not ready for retirement or to stop pushing forward. I still want the excitement of running businesses and to feel that I am still a "player in the game". I am also scared witless about making a pile of my winnings and hoping to live the rest of my life on them. I don't want to buy a smaller house or car. In short, I want to be earning still and able to control my income.
Counter to the above there is also the problem that I AM in my 50s and if something went wrong with the business I would potentially not have the time or energy to recover the situation. I think of Johnny Depp as George Jung in blow, trying as an ageing man to restart his cocaine importation business, when in fact the moment had passed. He would never recapture old glories.
I think what I need to do is start doing some deals in my line of work. Something more liquid that I can come out of if I want to. All in limited companies, no PGs, and a limited investment in each.
It would be easier if I was employed, hated my job but liked golf.
Enjoying this thread.
I stepped down to 3 days a week when I was 36 to concentrate on creating other income streams that were less stressful. Working in professional services I decided to jump at an opportunity I was offered to go part time.
It’s been great and I’ve spent the last few years building up investment income streams and doing one off capital generating projects.
Life is too short to wait for retirement. Wish I had done it sooner.
I stepped down to 3 days a week when I was 36 to concentrate on creating other income streams that were less stressful. Working in professional services I decided to jump at an opportunity I was offered to go part time.
It’s been great and I’ve spent the last few years building up investment income streams and doing one off capital generating projects.
Life is too short to wait for retirement. Wish I had done it sooner.
Jaguar steve said:
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.
Check your fat packet!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.
The *average* UK pension pot might fund £3k per year, not £500 a month….
https://www.telegraph.co.uk/financial-services/pen... (Other searches suggest similarly low amounts)
Those of us on threads like this are not average….
Meanwhile: what’s everyone up to today? Got a bike ride to do here!!
Bongos said:
Enjoying this thread.
I stepped down to 3 days a week when I was 36 to concentrate on creating other income streams that were less stressful. Working in professional services I decided to jump at an opportunity I was offered to go part time.
It’s been great and I’ve spent the last few years building up investment income streams and doing one off capital generating projects.
Life is too short to wait for retirement. Wish I had done it sooner.
Would you mind expanding upon this? What streams of income have you generated?I stepped down to 3 days a week when I was 36 to concentrate on creating other income streams that were less stressful. Working in professional services I decided to jump at an opportunity I was offered to go part time.
It’s been great and I’ve spent the last few years building up investment income streams and doing one off capital generating projects.
Life is too short to wait for retirement. Wish I had done it sooner.
Yes - generating top up (toys) income when retired hasn't been discussed much in this thread.
There was another retirement thread recently (possibly in Jobs & Employment Matters) which was mainly focussed on this.
General consensus was that, as we are all PBDs, we should be starting at least one new business in retirement.
Plus a bit of voluntary work.
Lacked details though.
Maybe this can be explored a bit in this thread.
There was another retirement thread recently (possibly in Jobs & Employment Matters) which was mainly focussed on this.
General consensus was that, as we are all PBDs, we should be starting at least one new business in retirement.
Plus a bit of voluntary work.
Lacked details though.
Maybe this can be explored a bit in this thread.
rfisher said:
Yes - generating top up (toys) income when retired hasn't been discussed much in this thread.
There was another retirement thread recently (possibly in Jobs & Employment Matters) which was mainly focussed on this.
General consensus was that, as we are all PBDs, we should be starting at least one new business in retirement.
Plus a bit of voluntary work.
Lacked details though.
Maybe this can be explored a bit in this thread.
Being a little thick here but what are PBD’s? There was another retirement thread recently (possibly in Jobs & Employment Matters) which was mainly focussed on this.
General consensus was that, as we are all PBDs, we should be starting at least one new business in retirement.
Plus a bit of voluntary work.
Lacked details though.
Maybe this can be explored a bit in this thread.
I know I’m going to kick myself when you tell me !
I'm glad you asked...used to happen all the time at work and people used acronyms as if everyone knew what they were talking about. I'd make a point of saying similar to you. Then everyone else would admit they didn't know either, but didn't want to look stupid asking. 
I'm not going to get rich on my little sideline, but it'll pay for the occasional nice meal out, or maybe put it by and save up for something nice/holiday. I don't want it to become too much like 9-5 though, but the equivalent of an afternoon a week (spread out in small chunks due to the nature of the work and having to let things dry/cure/set, etc) for the price of a meal out for my wife and it doesn't seem like work.
Interested to hear what other people might do though.
I'm not going to get rich on my little sideline, but it'll pay for the occasional nice meal out, or maybe put it by and save up for something nice/holiday. I don't want it to become too much like 9-5 though, but the equivalent of an afternoon a week (spread out in small chunks due to the nature of the work and having to let things dry/cure/set, etc) for the price of a meal out for my wife and it doesn't seem like work.
Interested to hear what other people might do though.
Edited by OldSkoolRS on Saturday 21st May 14:32
Drumroll said:
If you start buisnesses when you are retired to me you aren't retired, just changing jobs.
I guess that's the very black and white approach, though going from 40-50 hours a week to a couple at most isn't changing jobs for me...though I'll call it semi-retirement if it helps. I do agree that those who 'retire' and then run a company that takes up the bulk of the week fits your description though: Former colleague did this and he's pretty much back at the firm 4-5 days a week, just as a sub-contractor instead. I did consider doing 3-4 days a month, but it wasn't enough for them to bother having me on their books and the insurance, etc that I'd need to set up would take a big chunk out of that, so I'd need to work double that. Started to seem like my former colleague and I didn't want that (even if it would mean no longer dealing with all the corporate stuff or being a manager, just working in the field).
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