Pensions Planning: The NUMBER

SouthCoastBoy

My objective was always to pay off mortgage ASAP, that way I knew my family were in a stable position even if I did lose my job. Mortgage paid off by 35, but only live in a modest house. I was out if work for 6 mths in 2001 but due to previous financial decisions there was no drama, we could continue to carry on as normal. Didn't start a pension until 40 as previous to that i was too young or contracting, but saved in peps, isas etc since early 90s. Everybody has different aspirations, priorities etc. It is important to have a plan that suits you. My plan is most probably not that representative of the majority of the UK population but it suited me and helped sleep easy at night.
 

barnstar2077

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.  

That is strange, as I have always associated the middle classes with keeping up with the Joneses!  The people I know that I would consider middle class have a new car every few years, have at least two holidays abroad a year, and every time you go round there they have just redecorated some rooms or had a new kitchen / bathroom fitted.  The kind of people who have just had their windows replaced with ones with grey frames and had a fire pit installed because it is the latest fashion.  Hardly an example of restraint.

barnstar2077

SouthCoastBoy said:

My objective was always to pay off mortgage ASAP, that way I knew my family were in a stable position even if I did lose my job. Mortgage paid off by 35, but only live in a modest house. I was out if work for 6 mths in 2001 but due to previous financial decisions there was no drama, we could continue to carry on as normal. Didn't start a pension until 40 as previous to that i was too young or contracting, but saved in peps, isas etc since early 90s. Everybody has different aspirations, priorities etc. It is important to have a plan that suits you. My plan is most probably not that representative of the majority of the UK population but it suited me and helped sleep easy at night.
 

"It is important to have a plan that suits you."  Very true.  There is a lot of talk on this forum about how much is enough, but it is so individual that one persons number means virtually nothing to someone else (but it is interesting hearing everyone's views of course.)

Someone living in a tiny house up north with no kids will probably need a lot less for their bills and spending money than someone in London in a big house with a family of six for instance.

As you say, I think people need to ask themselves what is most important to them, is it having three holidays a year now, having an extravagant retirement, or securing their families future that matters most etc (or trying to do all three! :  ) 

Kim1965

barnstar2077 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.  

That is strange, as I have always associated the middle classes with keeping up with the Joneses!  The people I know that I would consider middle class have a new car every few years, have at least two holidays abroad a year, and every time you go round there they have just redecorated some rooms or had a new kitchen / bathroom fitted.  The kind of people who have just had their windows replaced with ones with grey frames and had a fire pit installed because it is the latest fashion.  Hardly an example of restraint.

I would not have considered the majority of the Middle classes to be affluent enough to justify that sort of spending. Or perhaps iam viewing such spending habits from a working class perspective

barnstar2077

Kim1965 said:

barnstar2077 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.  

That is strange, as I have always associated the middle classes with keeping up with the Joneses!  The people I know that I would consider middle class have a new car every few years, have at least two holidays abroad a year, and every time you go round there they have just redecorated some rooms or had a new kitchen / bathroom fitted.  The kind of people who have just had their windows replaced with ones with grey frames and had a fire pit installed because it is the latest fashion.  Hardly an example of restraint.

I would not have considered the majority of the Middle classes to be affluent enough to justify that sort of spending. Or perhaps iam viewing such spending habits from a working class perspective

It is barely sustainable, but that is what keeping up with Joneses takes!

westv

I wouldn't have said spending a lot of money on things makes you middle class. 

SouthCoastBoy

I'd like to think the UK has moved away from class structures. I've never been too sure what their definitions are anyway.

westv

SouthCoastBoy said:

I'd like to think the UK has moved away from class structures. I've never been too sure what their definitions are anyway.

Best not read this then LOL!

https://en.m.wikipedia.org/wiki/Category:Social_class_by_country

barnstar2077

westv said:

I wouldn't have said spending a lot of money on things makes you middle class. 

No, nor did I, only that spending a lot of money is what I have observed middle class people doing.  The discussion is about stereotypes of course, and many middle class people won't live that way.

westv

barnstar2077 said:

westv said:

I wouldn't have said spending a lot of money on things makes you middle class. 

No, nor did I, only that spending a lot of money is what I have observed middle class people doing.  The discussion is about stereotypes of course, and many middle class people won't live that way.

I think the difference is dinner and lunch.