Pensions Planning: The NUMBER

DT2001

NedS said:

Kim1965 said:

£1600 (21k pa less tax) as singleton would just about do it for me. Better still if it was all fully inflation proofed, got some db, wish i had more☹️. Mortgage gone😁
 There will be a lot of hesitant dc only would like to be retired out there... Sweaty bum times with the markets at the mo. May have to settle for part time 

A global tracker is only down around 10% year to date and at the same level it was a year ago, so I would imagine anyone with a retirement plan that's looking flaky now, probably needs to reconsider their plans.

I agree as if you are close to retirement hopefully you wouldn’t be 100% in equities so overall it should be a minor downturn on your graph. 

When setting your number and assuming some sort of SWR you will get  a target for your pot.
If you hit that, put in your notice and the markets turn what do you do? Is it the start of a poor sequence of returns or just a blip? As we know on here the early years are key. So Kim1965 is placed well to cope with the flexibility of taking on p/t work.

Kim1965

I start drawing a modest db inflation proofed pension i(approx 7 or 8 k i) n a few years, At 67 with a full state pensio n i have a solid foundation.
 Not got quite enough dc to fill the gap, but pt no stress job is a huge step in the right direction. Not too many people on this for Forum consider pt work, orso it seems. 

SouthCoastBoy

I'm leaning more to part time work, for me it is more a question of whether I can secure one. Jobs are difficult to get in my area, but if I could would be quite happy to take one.

anonmoose

Or start a part time business if you can't find a suitable job locally. Lots of self employed opportunities to earn a little extra cash on your terms.

Nebulous2

Kim1965 said:

I start drawing a modest db inflation proofed pension i(approx 7 or 8 k i) n a few years, At 67 with a full state pensio n i have a solid foundation.
 Not got quite enough dc to fill the gap, but pt no stress job is a huge step in the right direction. Not too many people on this for Forum consider pt work, orso it seems. 

Depending on the occupation, part time can be very difficult to manage. My previous job had a lot of meetings that were all seen as the most important thing since the last one. If people had been involved in the piece of work concerned then they were called into the meeting, including part-timers on a day off. It would have been very difficult to stick to 2-3 days, you would end up working bits of 5. Some people tried phased retirement, but few of them liked it. 

I retired last year at 59. DB pension, did my sums and decided we could afford it. Relocated, which released a chunk of cash to bridge the gap to SPA. I quickly discovered I wasn't ready to retire and took a part-time job with the NHS. I ended up with more responsibility than I expected, but from April I've gone down to one day a week. 

It has helped in a lot of ways, helping to adjust psychologically to less working time, building up a small NHS pension, giving more disposable money to buy toys, meeting people etc.

We regularly see people on here in our position, finding ourselves with a capital sum which feels like a huge responsibility, as it would be very difficult to replace. We filled 4 S&S ISAs when we got the money last year. They are now under water or hovering around breakeven, so again the security of a modest wage helps remove any concerns about that. This month is the first month since retiring that we've had to dip into our savings. 

I've always regarded our lifestyle as fairly modest, bringing up children we were able to make what we had go a long way, but I've been reviewing our number recently and reckon we need to up it. We're gradually travelling a bit more, went abroad in February, going again in November and caravanning quite a bit in between. I reckon we need £2500 net a month to cover where we are currently at, with some erosion of capital for big expenses - new kitchen, new bathroom, replacement vehicle. Thankfully none of those are imminent.  

SouthCoastBoy

anonmoose said:

Or start a part time business if you can't find a suitable job locally. Lots of self employed opportunities to earn a little extra cash on your terms.

I definitely wouldn't want the responsibility of running a business and the stress that would bring, part time work yes, running my own business no

Sea_Shell

I was part time for the last 15 or so years of working!!   Still finished at 47.

Slacker!!! 😇


Ok, ok... DH was still full time on a good wage mind, before he went "cold turkey" 😉

anonmoose

I can understand that Southcoastboy although I meant a very low stress service type gig. Eg window cleaner, dog walker, gardener, online buy and sell etc. Not a complex growth business.

I run one of these type service businesses and the only reason I am stressed is the hours I have to do to earn an average full time wage (I work 7 days a week).  If I could do my job on a part time basis it would be perfect as I love it and I will do that as transition when I have my number. 

You can choose who you work for and on your terms when you get established. And depending on the job you can spend all your time outdoors and get fit on the job.

Kim1965

Ive been self employed for the last 24 yrs(plumber/gas engineer). Every year i say thats it, 2/3 days week only, never works that way. If i carry on doing the same and work 2 days, I would spend the rest of the week on the phone fending off jobs.
 Time for something new and besides, my body is broken, the physical side of my work is a daily ordeal. 

anonmoose

That's true Kim when you are self employed saying you are going to reduce hours is the easy bit. Actually managing it is another thing.