Pensions Planning: The NUMBER

Kim1965

I have a relaxed longstanding relationship with many of my customers. Its very difficult to say no. 

anonmoose

Yes it's the relationships you build. I relocated a few years ago and by far the hardest thing about the move was leaving some much loved clients behind! So I am possibly underestimating how hard it will be to go part time.

NedS

Sometimes a change can be as good as a rest, as they say. I found myself in a position a coupe years ago that just wasn't sustainable and knew I probably wouldn't last until the point I needed to reach early retirement. I changed roles (same employer) and am much happier now, and far more likely to go on a bit longer than I need to (one more year syndrome). So a change of role/job can work wonders, be that like I have done or partial retirement and taking on a part time job in Asda/Tesco etc.

What I think it highlights more than anything is that there is no one-size-fits-all model for retirement and everyone is different. Some just want to stop, period. Some are happy to reduce hours/days but stay in their 'stressful' job into retirement, others may quit and then take a part time job to make up the shortfall or just to keep themselves occupied/active. Whatever works for you, and be flexible.

michaels

L9XSS said:

Done the calculations.......and I’m retiring at 60, just under 5 years to go. I’m currently managing on a salary of 21k and a mortgage. I’m about to pay off the mortgage next month, then will continue to focus on SIPP, work pension and savings.
Coupled with a DB pension, I’m looking at a net figure of £32k pa at age 60.

Nothing personal but just an observation, I can never understand people who say they are happy living on £Xk and are then expecting £Xk + 10k in retirement.  Why not just retire earlier. 

Similarly for people who say I will have £Yk in retirement before SRA and then £Yk plus full state pension thereafter.  Why would you want an income stream that looked like that?  Surely you would look to find any way you could to equalise your income?

Nebulous2

michaels said:

L9XSS said:

Done the calculations.......and I’m retiring at 60, just under 5 years to go. I’m currently managing on a salary of 21k and a mortgage. I’m about to pay off the mortgage next month, then will continue to focus on SIPP, work pension and savings.
Coupled with a DB pension, I’m looking at a net figure of £32k pa at age 60.

Nothing personal but just an observation, I can never understand people who say they are happy living on £Xk and are then expecting £Xk + 10k in retirement.  Why not just retire earlier. 

Similarly for people who say I will have £Yk in retirement before SRA and then £Yk plus full state pension thereafter.  Why would you want an income stream that looked like that?  Surely you would look to find any way you could to equalise your income?

I think there's a difference between saying "I'm currently managing on £21k" and your phrasing it as "happily living on."  A lot of people here seem to make big sacrifices to get over the line to retire, but don't want to carry on in that way in retirement. 

I once had some sociology lectures as part of a course I was doing. The lecturer was an old retired man who did some relief work, obviously enjoyed what he did, and set out to challenge us. I remember him saying the chief characteristic of the middle classes is that they follow the principle of deferred gratification.  He argued that the working class and the upper class didn't.

That may well be what we often see on the pension forum, people making that sacrifice to build a better future. He also argued that the deferred gratification often never came - by the time the school fees, mortgage and pension were paid people were often unable to finally cut loose or were too unwell to enjoy it.  

L9XSS

Nebulous2 said:

michaels said:

L9XSS said:

Done the calculations.......and I’m retiring at 60, just under 5 years to go. I’m currently managing on a salary of 21k and a mortgage. I’m about to pay off the mortgage next month, then will continue to focus on SIPP, work pension and savings.
Coupled with a DB pension, I’m looking at a net figure of £32k pa at age 60.

Nothing personal but just an observation, I can never understand people who say they are happy living on £Xk and are then expecting £Xk + 10k in retirement.  Why not just retire earlier. 

Similarly for people who say I will have £Yk in retirement before SRA and then £Yk plus full state pension thereafter.  Why would you want an income stream that looked like that?  Surely you would look to find any way you could to equalise your income?

I think there's a difference between saying "I'm currently managing on £21k" and your phrasing it as "happily living on."  A lot of people here seem to make big sacrifices to get over the line to retire, but don't want to carry on in that way in retirement. 

I once had some sociology lectures as part of a course I was doing. The lecturer was an old retired man who did some relief work, obviously enjoyed what he did, and set out to challenge us. I remember him saying the chief characteristic of the middle classes is that they follow the principle of deferred gratification.  He argued that the working class and the upper class didn't.

That may well be what we often see on the pension forum, people making that sacrifice to build a better future. He also argued that the deferred gratification often never came - by the time the school fees, mortgage and pension were paid people were often unable to finally cut loose or were too unwell to enjoy it.  

Pretty spot on TBF.....Yes I’m managing on a salary of 21k with a mortgage. I’ve actively overpaid the mortgage to finally be in a position to pay it off 11 years early (25 year term). This has meant sacrifice but was my choice. I’m looking forward to having more disposable income with being Mortgage free from this August/September of this year. This will allow me to focus on pension contributions for the next 5 years and build savings to reach FIRE at 60. “Jam today or jam tomorrow” ? Rightly or wrongly in my case I’ve focussed on setting myself up for “deferred gratification”

cfw1994

Kim1965 said:

I have a relaxed longstanding relationship with many of my customers. Its very difficult to say no. 

You sound a little like our plumber. 
He is actually not keen to stop, just gently ease back. 

Around 5 years back (maybe more), he had a young 'apprentice' come along with him.....he takes on more of the work (& our fella says his 'lad' sometimes takes too much on for his liking!), but maybe that could be a way to help your customers moving ahead whilst *eventually* stepping further away?   

I do appreciate taking someone on is a commitment - I have no idea how their 'partnership' works, although some tasks he just tells us to pay the lad direct, who appears to now be a plumber in his own right!

Robert_McGeddon

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. 

Fully inflation proofed? I have 2 small DB pensions, "inflation-proofed" but RPI capped at 5% and 12%. The RPI+5% one is already set to lose value in real terms and the other one borderline in the current economic situation.

Nevertheless, with DB + SP near to annual basic outgoings I am not that worried about market falls on the DC side of things. Still watch the pennies, though!

pensionpawn

L9XSS said:

Nebulous2 said:

michaels said:

L9XSS said:

Done the calculations.......and I’m retiring at 60, just under 5 years to go. I’m currently managing on a salary of 21k and a mortgage. I’m about to pay off the mortgage next month, then will continue to focus on SIPP, work pension and savings.
Coupled with a DB pension, I’m looking at a net figure of £32k pa at age 60.

Nothing personal but just an observation, I can never understand people who say they are happy living on £Xk and are then expecting £Xk + 10k in retirement.  Why not just retire earlier. 

Similarly for people who say I will have £Yk in retirement before SRA and then £Yk plus full state pension thereafter.  Why would you want an income stream that looked like that?  Surely you would look to find any way you could to equalise your income?

I think there's a difference between saying "I'm currently managing on £21k" and your phrasing it as "happily living on."  A lot of people here seem to make big sacrifices to get over the line to retire, but don't want to carry on in that way in retirement. 

I once had some sociology lectures as part of a course I was doing. The lecturer was an old retired man who did some relief work, obviously enjoyed what he did, and set out to challenge us. I remember him saying the chief characteristic of the middle classes is that they follow the principle of deferred gratification.  He argued that the working class and the upper class didn't.

That may well be what we often see on the pension forum, people making that sacrifice to build a better future. He also argued that the deferred gratification often never came - by the time the school fees, mortgage and pension were paid people were often unable to finally cut loose or were too unwell to enjoy it.  

Pretty spot on TBF.....Yes I’m managing on a salary of 21k with a mortgage. I’ve actively overpaid the mortgage to finally be in a position to pay it off 11 years early (25 year term). This has meant sacrifice but was my choice. I’m looking forward to having more disposable income with being Mortgage free from this August/September of this year. This will allow me to focus on pension contributions for the next 5 years and build savings to reach FIRE at 60. “Jam today or jam tomorrow” ? Rightly or wrongly in my case I’ve focussed on setting myself up for “deferred gratification”

Or there's immediate gratification whilst you're still young enough to enjoy it! Tomorrow's never promised, as alluded to above, so whilst the kids were living with us we had good holidays, new cars, nice Christmas's etc without going over the top. Mortgage not paid off (mainly due to interest only) and actually extended over the years whilst always contributing the minimum to trigger the maximum employer contribution. Part design, part circumstances however I reasoned, having listened to many who said that they had more money than time / health / energy in retirement, with falling outgoings (bar mortgage) I don't need a king's ransom when I decide to call it a day. I'll have a mortgage until 75 however it's perfectly serviceable because what I didn't overpay (and mainly enjoyed) during my 20's - 40's, went into the pension pot. My philosophy, I suppose, was to gauge the money through pre kids, kids, post kids (not at home) and retirement so I could do what I wanted to do (within reason) across the decades. I took some of the (excess) wealth that I would have in retirement and enjoyed it earlier. Horses for courses. It's not the dress rehearsal!

Kim1965

The rational me said pension first over mortgage but the emotional side won the arguement. I took 6 yrs off the term of my mortgage and feel good about it.