Pensions Planning: The NUMBER

badmemory

The change from having to save for stuff & having the cash to spend is quite difficult.  I retired 8 years ago with more disposable income than when I was working.  I received an inheritance 5 years ago.  And I still can't stop myself from saving.  New upgraded car & bathroom & my assets are still growing.  Not that anyone in real life knows how much my assets are.  I made that mistake once many years ago (the broad hints were killing) but then my now ex-husband spent it all & left me with what he thought was nothing.  I think that may still be influencing my need to not "flash the cash".  One of these days I may be able to just spend like there is no tomorrow.  Just not this week!

cfw1994

badmemory said:

The change from having to save for stuff & having the cash to spend is quite difficult.  I retired 8 years ago with more disposable income than when I was working.  I received an inheritance 5 years ago.  And I still can't stop myself from saving.  New upgraded car & bathroom & my assets are still growing.  Not that anyone in real life knows how much my assets are.  I made that mistake once many years ago (the broad hints were killing) but then my now ex-husband spent it all & left me with what he thought was nothing.  I think that may still be influencing my need to not "flash the cash".  One of these days I may be able to just spend like there is no tomorrow.  Just not this week!

Go for it, this week - it is Black Friday after all!!

Alexland

fred246 said:

Do a married couple have to have £2 million to be millionaires?

Yes otherwise you would just be a lesser "millionaire couple" not a couple of millionaires. But then maybe one of you has more in their name (eg a pension) that causes one of you to be individually a millionaire? But what if there is a DB scheme - can you include CETV? Should your estimated net worth be reduced to recognise that the money hasn't yet been taxed on the pensions? All seems very unclear. Maybe the best option is move to a country with a low value currency to be sure of your millionaire status.

ukdw

fred246 said:

I would be a millionaire if my wife died. Never sure about that. Do a married couple have to have £2 million to be millionaires?

I would say people with net worths of more the £2m are multiple millionaires.

CFrog

I have an arrogant neighbour who likes to brag that he's a millionaire but I get the distinct impression he's 'asset rich and cash poor'.  He and his OH 'rattle around' in a big house but she still works and they both drive around in cars they bought at auction and they don't 'splash the cash'.  When people say they are 'millionaires' are they including the value of their house(s) or is it just disposable assets like cash, investments etc; if they are including houses then I imagine there alot of millionaires (particularly in the SE).

fred246

I think you normally add up the value of everything you own and then subtract everything you owe. So a large house owned outright is good, if you still have a large mortgage on it not so good.

Alexland

CFrog said:

I have an arrogant neighbour who likes to brag that he's a millionaire but I get the distinct impression he's 'asset rich and cash poor'.

Most of us are cash poor as it's a terrible asset to hold in large quantities.

No shame in having millions in assets.

garmeg

CFrog said:

I have an arrogant neighbour who likes to brag that he's a millionaire but I get the distinct impression he's 'asset rich and cash poor'.  He and his OH 'rattle around' in a big house but she still works and they both drive around in cars they bought at auction and they don't 'splash the cash'.  When people say they are 'millionaires' are they including the value of their house(s) or is it just disposable assets like cash, investments etc; if they are including houses then I imagine there alot of millionaires (particularly in the SE).

If you add in the full value of my SIPP to my shares ISA, Premium Bonds, NSI Linkers and other taxable cash savings then it mounts to over £1million, but only just. Maybe £1.1 million.

As I cannot get most of the SIPP out tax free then I am not a milionaire.

Next year Rodders ...

westv

The cash inheritance mentioned a couple of months is now expected to total around £40k. 
We just need to decide (not right now but at some point in the future) whether we add this to our £50k budgeted for home move upgrade or add to our pension income pot. when I do retire in 12-24 months or so.

LULULU1

Our number is 30k per year including heavy mortgage payment

I am 58 and have a full time job paying 45k per year gross. I am hoping to retire from this role next year in March 2022 and work part time with an income of approx 10k per year gross. I will just tip into the higher tax bracket this year by 2k as I still pay a lot into my AVC, Approx £1k per month 
I have a final salary pension which will pays me £15k gross a year which I now taken to help us pay down our debts.

My wife is 54, she is earning gross 12k per year. She has a final pension of £5k per year due when she is 55.
Both of us are due to receive full state pension.

We have a mortgage of 114k at 1.64% interest rate fixed for 5 years and due to finish in 19 years time. This is still high as currently we favour investments over mortgage overpayments but can flip this if things change when rate expires in 2024. 

We a few small debts less than 5k in total which we will pay off before retirement.
We have 105k in our AVCs which we can access when we reach 55. (me 45k, wife 60k)
We have 100k in my wife’s SIPP.

Any other thoughts or ideas or improvements would be greatly appreciated.