Pensions Planning: The NUMBER

Earl_Tucker

dean350 said:

justme111 said:

Private health insurance will be of no help with your previously existent chronic illnesses- they don't cover them in the UK - they don't cover emergencies either !
Don't ask me what they cover ...🙄
Although would have been rich of me to complain- I am being treated for cancer under private health scheme ...

Only hope for the OP is if he already has a BUPA International policy or if they accept a transfer in from his current provider. Correct that existing conditions will be excluded from a new policy taken out in the UK. Premiums will be high if the OP is older in any case.

Thanks all for the comments - clearly I still have, as suspected, considerable amounts of planning to do! Healthcare and private education are not something I had actually considered all that much but maybe need some thought - I may be blithely assuming too much about the NHS and state education. (Although,  having dealt with private health providers for years now, I'm deeply suspicious of them.) The stuff on pensions is particularly useful, so thanks especially for that. Finances, I think, will be ok assuming the world doesn't collapse in the meantime, and if it does then I guess we're staying put for a while; the greater concern might actually be managing re-assimilation into the UK whilst also figuring out how to be retired... But that's for another thread!

MallyGirl

State education will be provided but, depending on when you return to the UK, may not be what you would choose. The best state schools are usually full with waiting lists so if you arrive with children between 11 and 16 years of age you will be allocated what is left. If you arrive with primary aged children then you will be in a better place - apologies if you have given ages, its a long thread.
The NHS is marvellous for emergencies but you can wait quite a long time for referrals, orthopaedics, more 'minor' surgery (even before covid). 

MallyGirl

I am about to start on the next chapter of finding out what our number really looks like. After 20 odd years of offset mortgages and no savings, which meant everything went on a credit card to maximise the benefits, we are moving to a 5 year fix normal mortgage which should see us through to retirement. I have also closed all the bouncing bank accounts that used to support regular savers and am going for a simpler life - since there is little benefit to be had any more. With a 2 year fix on energy as well this will be the most regimented our finances have ever been.

michaels

MallyGirl said:

I am about to start on the next chapter of finding out what our number really looks like. After 20 odd years of offset mortgages and no savings, which meant everything went on a credit card to maximise the benefits, we are moving to a 5 year fix normal mortgage which should see us through to retirement. I have also closed all the bouncing bank accounts that used to support regular savers and am going for a simpler life - since there is little benefit to be had any more. With a 2 year fix on energy as well this will be the most regimented our finances have ever been.

Will the mortgage be paid off when you have retired as then it sin't part of your number. Also I think you are supporting a child through Uni that will presumably end eventually (?). And of course there are all the costs that only relate to going to work and saving that will end.

Against that may be more heating if you are not WFH and more spending on holidays etc when you have the time...

Wednesday2000

I just got this email.

How much do I need to retire? - Monevator

Wednesday2000

The closer we get to retirement the more nervous we are getting. The rise in energy bills has worried us.

We still haven't moved house as the people we are buying from haven't found a house yet. The person buying our house will need to get an extension on her mortgage offer as it runs out at the end of November.

My husband is saying about working for another 5 years now.

Wednesday2000

MrsFingersCrossed said:

Hello. Me again, but this time with not such an optimistic outlook I'm sorry to say.

We had planned for our retirement quite well I thought, but my husband has recently been diagnosed with a terminal illness so I now have to look ahead as if it's just me, and unfortunately it's not looking very good financially.  I am a planner and am finding it hard with the future so sad and the timeline so uncertain. 

I'm sorry to read that. I hope the advice other people have given you on here will help you plan for your future.

MallyGirl

michaels said:

MallyGirl said:

I am about to start on the next chapter of finding out what our number really looks like. After 20 odd years of offset mortgages and no savings, which meant everything went on a credit card to maximise the benefits, we are moving to a 5 year fix normal mortgage which should see us through to retirement. I have also closed all the bouncing bank accounts that used to support regular savers and am going for a simpler life - since there is little benefit to be had any more. With a 2 year fix on energy as well this will be the most regimented our finances have ever been.

Will the mortgage be paid off when you have retired as then it sin't part of your number. Also I think you are supporting a child through Uni that will presumably end eventually (?). And of course there are all the costs that only relate to going to work and saving that will end.

Against that may be more heating if you are not WFH and more spending on holidays etc when you have the time...

We will still have 5 years on the mortgage at retirement unless we overpay - which I hope to be able to do when sharesaves mature or we get bonuses.
Uni support will end in 5 years which is why OH wants to carry on that long (when I would rather go a year earlier).
I WFH and OH has done since Covid - his employer is trying to get them back in the office 2 days a week but not many people are keen on it. After retiring I won't have to heat my office at the bottom of the garden any more - expensive electric UFH - and we won't heat the top floor (OH's office) so that will reduce fuel bills a bit. We should be able to move to just one car plus camper at that point but OH will resist.

DairyQueen

Wednesday2000 said:

The closer we get to retirement the more nervous we are getting. The rise in energy bills has worried us.

We still haven't moved house as the people we are buying from haven't found a house yet. The person buying our house will need to get an extension on her mortgage offer as it runs out at the end of November.

My husband is saying about working for another 5 years now.

It has taken a few years for Mr DQ to feel sufficiently comfortable to bite the bullet. It has taken many spreadsheet iterations to build his confidence. Stress-testing the numbers (e.g. high inflation/bear market) has helped. So has living on our 'number' for the last 18 months.

It has been 'one more year' for the last three years but he is now ready.

He has been helped by reducing working hours in stages over the last year. First to 4 days, then two. He has been working only one day per week for the last month and will move to around 6 days per year from January so will effectively be fully retired.

We 'upsized' this year. Sold one property last year and completed on the purchase of our retirement home in March. We have a second property to dispose of and the move should have been history this summer. The complication has been the extensive refurb required on the new home. We will therefore live in the second property until the refurb is complete. Only then will we sell (or gift) the second property.

The move was expected to take a year. It has already taken 20 months and will likely be three years before we are finally settled.

Retirement is a major lifestyle change in many ways and requires planning. Especially if a house move is part of the plan.

Our plan has required frequent revisits and adjustments but the process has been valuable as we are both now clear on our aims and on how we will finance retirement. We have completed estate planning, wills and LPOAs. All of these steps build the confidence you need to jump.

Keep planning/forecasting/dreaming. You will get there.

Stubod

We got stuck in the "one more year" scenario but finally went for it a couple of years ago. Again lots of spreadsheet iterations! Interesting that my "worst case" scenario spreadsheet, (the one we actually used), had inflation set at 4% and interest rates at 1%, and we are now over 4% and less than 1%! Hopefully these rates won't last too long, and goes to show that you still need a bit of a contingency plan!