Pensions Planning: The NUMBER

saucer

PattiTelongo said:

I plan to retire in 5/6 years time when mortgage is paid off.

 I have a DB scheme from an old employer which I can take from 55 but I would lose around 15% if I did. It’s index linked and currently has an TFLS of approx 127k and approx £19k/yr. I’m also very fortunate to be in a great DC scheme with my current employer which I estimate will be at about the same level when l retire based on forecasts from provider. 

Neither me or the wife are in the best of health so we plan to max out on drawdowns and enjoy the finer things in life while we can. My youngest will be in his last year or 2 of uni by then but we hope to live on around 45k/yr and then adjust the drawdown when the SP kicks in at 67. I’m aware we’re very fortunate but joining a pension scheme before my 18th has helped get me to this stage. 

If you mean 15% at 55 instead of 60, that’s actually quite reasonable, especially when you factor in it would be in payment for 5 extra years. Either way 45k per year in retirement with the mortgage paid off is a lot more than most people will have. Well done you on saving for it from your teens. 

Ebeneezer9

I have been gradually reading through this Number thread and have arrived at the conclusion that no amount of calculation and planning could ever predict the future.  I’m 63 and currently paying into a generous LGPS pension. My strategy has been to salary sacrifice 35% of my gross salary and build up my ISA’s, savings accounts, premium bonds and a cash reserve.  As a result of practicing this strategy once I access my RPI linked DB pension, State pension, stop paying train fares and reduce saving, I will be in the fortunate position of having much more income than I have allowed myself this last ten years.  My partner is in the same position with NHS RPI linked DB pension and savings. She is eight years younger than myself so I may consider part time work after retirement age if my employer allows this. Should I survive twenty years after retiring at 67.5 years I hope this will prove a sensible plan for both of us.  I can’t mitigate for war, famine, pestilence, hyperinflation, acts of God etc. but we will hopefully remain housed, warm and nourished.  

QrizB

Ebeneezer9 said:

... I will be in the fortunate position of having much more income than I have allowed myself this last ten years. 

I have to ask - why not retire now and have an extra few years of leisure?

Ebeneezer9

QrizB said:

Ebeneezer9 said:

... I will be in the fortunate position of having much more income than I have allowed myself this last ten years. 

I have to ask - why not retire now and have an extra few years of leisure?

I love my work, great work colleagues, my daily commute through the City of London, working with volunteer groups, passing on my knowledge to the next generation, if I was told in my early years that I would be this happy and fulfilled in life I wouldn’t have believed it. Remuneration for doing what you love must be the zenith of satisfaction with life.

Time4T_Accounts

There’s maybe a midway as well - I ‘retired’ 6 years ago at 60, but have been able to work since as and when I choose, and picking and choosing to work on what interests me,  it beats having the nose to the grindstone, and the resulting income is not earmarked for anything at all.  It’s a very nice freedom to have.

Time4T_Accounts

Ps, I do the volunteering as well …

MallyGirl

Ebeneezer9 said:

QrizB said:

Ebeneezer9 said:

... I will be in the fortunate position of having much more income than I have allowed myself this last ten years. 

I have to ask - why not retire now and have an extra few years of leisure?

I love my work, great work colleagues, my daily commute through the City of London, working with volunteer groups, passing on my knowledge to the next generation, if I was told in my early years that I would be this happy and fulfilled in life I wouldn’t have believed it. Remuneration for doing what you love must be the zenith of satisfaction with life.

How wonderful that must be - you are very lucky

Ebeneezer9

MallyGirl said:

How wonderful that must be - you are very lucky

I thank the Lord every day.

eastcorkram

Not very MSE I know, but I've never worked out my number. I came to it all too late , to work out a number, and then try and ensure that pension income is enough for it. 

I can see it's a really good idea though, if you start to look at it early enough. 

I'm planning, not set in stone, to finish at the end of this year, age 65. Once SP starts, 12 months later, I should be on about 29-30k before tax. My OH is a teacher, and is a two years younger . So with TPS and SP, I'm sure she'll be fine. She has no interest in stopping work at the moment. Has no interest in finances generally, and says she's not looked to what TPS will amount to. I think that's strange. If it were me, I'd need to know.

I don't hate my job. I don't love it either. I've just had enough. I'm always at work before 5.30, so it'll be nice not doing that, especially in the winter. 

I love reading the threads on here , about what people plan to do in retirement. Some of them are amazing. I have no plans, other than tea drinking, more reading, and sitting in the garden. Not gardening. Just sitting! 

I will need to find something, I think, that is classed as sociable. At the moment, neither of us, as a couple or individually, do anything that could be called social. So once I stop work, if I don't make an effort, I'd never see anyone. That might prove to be a difficult step after not doing stuff like that for about the last 30 years! 

I used to think about retirement, as a few years, if you're lucky, of boredom and loneliness, followed by a few years of ill health, hospital visits, and death. Cheery I know.

I now, finally, am seeing that it might be a positive thing, but I'll need to put effort into making it positive. 

FIREDreamer

MallyGirl said:

Ebeneezer9 said:

QrizB said:

Ebeneezer9 said:

... I will be in the fortunate position of having much more income than I have allowed myself this last ten years. 

I have to ask - why not retire now and have an extra few years of leisure?

I love my work, great work colleagues, my daily commute through the City of London, working with volunteer groups, passing on my knowledge to the next generation, if I was told in my early years that I would be this happy and fulfilled in life I wouldn’t have believed it. Remuneration for doing what you love must be the zenith of satisfaction with life.

How wonderful that must be - you are very lucky

I guess very few people feel this way, I can’t wait to retire! Less than five months to go after finally being cured of one more year syndrome thanks fo a recently bought RPI annuity (and two small private sector LPI DB pensions) and deciding that 60 is old enough.

The next stage of life I hope will be better. Can’t be any worse!