Pensions Planning: The NUMBER

crv1963

Gatser wrote: »

Thanks crv1963 ... it’s great to see this topic is still relevant as the years go by... Gosh! ... and it is 10 years since I posted that first comment.
It has worked well for us and continues to do so, we are now supporting our daughters to do likewise as they approach THREE-O, compound growth is a very helpful ally. Happy Healthy 2020!

Completely relevant. I read the whole thing 3 years ago when recovering from a heart attack and deciding that I was absolutely going to retire at 55 if I survived that long!

Now back in full swing at work, advised by cardiologist when he discharged me that I really shouldn't retire at 55 but it is the number of days worked (or rest days not working) that count. So I have had a change in career direction, work 13 twelve hour shifts over a 4 week period. Love the work and the days off.

Plan is to escape before 60- I reach maximum possible DB pension at 58.

I encourage everyone to read the thread- work colleagues (those who discuss retirement) and my sons. Both sons are much better/ earlier at retirement planning than I ever was!

Mnd

But skip the bit at the start from White Flag :eek:

worlestone

Well, my wife and I have just retired, 2 weeks ago and found the thread very helpful. We're 58 and 56, and hoping it all goes well on £30k pa, a combination of DB (x 2) and SIPP, until SPA kicks in and then all will be rosy!

We are also trying to move/downsize, from Somerset to Dorset to be closer to children and grandchildren (but not too close). This is interesting as our bit of Somerset (WsM) is cheap and Dorset is a bit pricy!

Thank you for the thread

atush

crv1963 wrote: »

He hasn't heard back yet. The company he currently works for are in his department at least very focused on pensions and early retirement, his current boss is 36 with a plan to go at 45, so he gets lots of encouragement to both live a life and plan a future without work.

I don't interfere with what my sons do for work but do encourage future planning- something I never really did at their ages, but have passed on the benefit of experience with money mistakes and planning!

Every generation has different issues, his is the problem with home ownership (by 25 everyone I knew was a home owner- then came the massive increase in interest rates and lots of people re-possessed), rising pension age (for SP) and Brexit. The constant I have learned is plan for your own future and take promises from the Govt with a pinch of salt, just use the chances available at the time.

I dont interfere either, but i did encourage all 3 of mine to join their work pensions. Still in their 20's, they all have at least 2 (obne has 3 as has changed jobs more often). One has over 2 years in a DB pension.

The Twins latest pensions arent as good as their earlier ones (esp the DB one) as their employers dont contribute much, but at least they are in them. Their early ones had a good employers contrib

crv1963

atush wrote: »

I dont interfere either, but i did encourage all 3 of mine to join their work pensions. Still in their 20's, they all have at least 2 (obne has 3 as has changed jobs more often). One has over 2 years in a DB pension.

The Twins latest pensions arent as good as their earlier ones (esp the DB one) as their employers dont contribute much, but at least they are in them. Their early ones had a good employers contrib

My oldest only has the auto-enrol pension through work but has a plan he says of retiring at 40, so has LISA, PP and ISA, not sure how he does it but he reckons he has a savings rate of 70% of earnings and has started a side business to boost income. He's always been a good saver! Mind he works long hours and lots of overtime- his rationale is better to be earning it than spending it (I guess he has listened to me in the past after all!).

Youngest has workplace pension, works in planning and purchasing, has a young workforce and in his department most are focusing on retiring early. When he started at 18 he was given and followed advice from others and has max employer matching contribution of 11% so has consistently had 22% saved into pension. He's turned out to be a saver too, has moved out to his own flat (shared) and is saving H2B ISA and LISA.

Edit- Both appreciate the power of compounding, so as in the accumulation stage are 100% equities. Youngest has started a degree, he pays the course fees (student loans) and his employer gives him paid time off to attend uni when he has to and some time to study.

I have told them and they have listened- have a life and enjoy your youth, so they do have a social life/ holidays and budget for these monthly- so adopting my idea of putting a bit away each month into different pots.

SingleSue

I have an ideal number and the blooming scary realistic number.

My ideal is around 18k for a single person to allow for some luxuries and not having to scrimp and save, the realistic unless an absolute miracle happens is probably closer to 10k (SP plus a very very small private pension)

I'm late to the game, I'm 50 this year, work part time due to disabilities and even though retirement is still 17 or so years away, no idea if I will end the year still able to work let alone in 17 years time. There has also been no real chance to build up a work based pension as I had to spend many years as a carer to family members and only returned to work just over 2 years ago.

I would love to be able to just pile money into a pension now but money is in pretty short supply. On various threads on this board, I have seen amounts that are far more than I actually earn a year being seen as a pretty standard figure to be paid in for someone of my age (last tax year my earnings were a smidge over £5.2k, it will be more this tax year but not by a huge amount). The company I work for does have a work based scheme but my earnings don't quite meet the requirements for it to enrol on a voluntary basis with an employer contribution....getting ever closer but no cigar just yet and of course no where near auto enrolment.

I do however have a private pension, it was one that was through work in the early 2000s which I continued paying into privately for a short time after having to leave work to become a carer and which I then started paying into again last summer when the realisation hit me that I was going to be pretty beggered financially come retirement. I can't pay much into it (currently around 10% of my meagre earnings) and it is just a drop in the ocean but it makes me feel like I am actually doing something to plan for the future.

In the past if I needed extra money I just did extra hours or got an additional job but I already struggle to do the hours I am doing so that is not possible unfortunately.

Eeek!

crv1963

SingleSue wrote: »

I have an ideal number and the blooming scary realistic number.

My ideal is around 18k for a single person to allow for some luxuries and not having to scrimp and save, the realistic unless an absolute miracle happens is probably closer to 10k (SP plus a very very small private pension)

In the past if I needed extra money I just did extra hours or got an additional job but I already struggle to do the hours I am doing so that is not possible unfortunately.

Eeek!

Anything is better than nothing!

Do you have any hobbies or interests that you do that you could turn into money making schemes? I have a friend who cannot work but likes crafting so makes things like baby clothes/ purses/ cards and then goes to Christmas Craft Fairs and sells them, makes some money- at the prices it doesn't cover anywhere near the minimum wage but she enjoys the time spent doing them.

I rent a room near work when I am on shift (work is about 100 miles from home) I pay £20 per night- stay on average 11 nights a month so landlady gets an income of around 2k pa from me, it is no frills- access to kettle/ shower etc could cook if I wanted but after a 12-14 hour day I just eat at work and want to sleep.

Hope you manage to stay well.

cloud_dog

Mnd wrote: »

But skip the bit at the start from White Flag :eek:

There's a name from the past. Unfortunately I had a wee run in with WF back in the day (2006 :eek:).

Gatser - I see he left a little parting gift for you on his profile page :rotfl: (bless his cotton socks).

SingleSue

crv1963 wrote: »

Anything is better than nothing!

Do you have any hobbies or interests that you do that you could turn into money making schemes? I have a friend who cannot work but likes crafting so makes things like baby clothes/ purses/ cards and then goes to Christmas Craft Fairs and sells them, makes some money- at the prices it doesn't cover anywhere near the minimum wage but she enjoys the time spent doing them.

I rent a room near work when I am on shift (work is about 100 miles from home) I pay £20 per night- stay on average 11 nights a month so landlady gets an income of around 2k pa from me, it is no frills- access to kettle/ shower etc could cook if I wanted but after a 12-14 hour day I just eat at work and want to sleep.

Hope you manage to stay well.

I built and run an international motor sports results website! Unfortunately when I set it up back in 2005, it was set up on a voluntary basis so no income available from it. I'm actually right this moment updating a Championship meeting from Australia....

I've looked at ways I could monetise the above but the whole ethos of it was that it to be available to everyone regardless of income but then when I set it up the whole thought was that we would be swallowed up by technology advancements within a few years so it wouldn't really matter. Turns out people still really like old school :rotfl:

My hands are not what they used to be so crafting is not an option (much to my dismay, I used to make soft toys back in the day) and even though I built the website I own and a few others, they are forum based with very simple coding so that is not an option either. It is so simple that I set it up when I didn't even know how to copy and paste, although we have added extra coding to it now.

My real skills are in running teams, admin based etc. For the website, I have a team of around 60 all around the world who I organise, annoy, frustrate and plead with to make sure meetings are covered. It is annoying that I am able to do this in the cyber world but in the real world, employers take one look at the wheelchair think sick days and slam the doors shut so I am stuck in a minimum wage job that is well below my actual abilities with no option for further upward movement (I managed to move from bottom of the rung to second in command in just over a year..but still minimum wage).

I am looking around for better employment and with two years on record back in employment with zero sick days, maybe my chances will be better than they were but we shall see.

No room at this particular inn to rent a room, one bedroom is for my carer (who also happens to be my son) and the other is for when my youngest son comes home from uni in the holidays and then there is my bedroom.

atush

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