EXTENDED: You've got another week to add your travel & holiday deals questions for expert MSE Oli as part of the latest Ask An Expert event.
Pensions Planning: The NUMBER
in Pensions, annuities & retirement planning
2.3K replies 622.9K views
Latest MSE News and Guides
Energy Price Cap change
Martin Lewis on what it means for youMSE News
Best £1 you've ever spent?
Share your most impressive bargainsMSE Forum
New MSE Forum avatars available
Try 'em out nowMSE Forum
Both my parents are still alive and well into their 90s, they brought me up with the strong protestant work ethic which made this country great. I retire soon and still play an active game of tennis beating many younger than myself and losing top some older than meas well as lots of swimming regular walking at least 8-10 miles I plan on contiuing in the same vein indefinately.
Ah but the state pension qualifies you for so much more. Free bus (and sometimes train travel), significant discounts at many large retailers, free prescriptions, eye tests etc, free swimming and in the case of our corporation, discounted other leisure activities and other charges These are only the ones I use, there must be lots of others.
The young are relatively ignorant of what it is like to be old
The point is none of us knows are date of death.
Live long and prosper
Looking at my calculation of my NUMBER, I was wondering how much life insurance I should include over the coming years.
I know its a personal decision...but there must be a decreasing need to pay increasing premiums as we get older and nearer DEATH! :eek:
Not sure when I should plan to STOP paying for life cover.
Thinking about 65....
What's your view?
Depends on what you want the life assurance to do, who it is to benefit and what the value of your estate is likely to be.
In my case, I have no dependants and no-one to leave anything to, so LA is not a priority for me now or ever. Having said that, I get death in service benefits (4 x salary) with my job, so I don't bother with extra LA.
Spot on. I've just retired due to ill-health aged 54 and I have a 2/3rds final salary pension, paid off mortgage with lump sum. Actually I am slightly better off because I don't have the costs associated with working - clothes, dry cleaning, train fares, the expensive cappucino and almond croissant that I could not resist every morning on the way to the office etc etc
But, how many people will actually end up with a 2/3rds pension in the future ?
Mr X with salary £24,000 2/3rds = £16,000
Mr Y with salary £120,000 2/3rds = £80,000
The NUMBER is a better indicator of what you should be aiming for in retirement rather than just 2/3rds of salary.
Mr X probably needs every penny of his £24,000
Mr Y probably could still have a very happy existance on far less than £80k
Very true, but also consider - how many people actually NEED a 2/3rds pension. Bear in mind that the deductions will be less (no NI, less tax, no pension contributions, etc) so, depending on circumstances, one can end up "taking home" more from less. Also, as you say, the expenses associated with working cease and it's likely that large expenditures like the mortgage will also be finished.
I "could" work till 65 and get a 2/3rds pension but I have no intention of doing so. My needs are fairly simple, the mortgage will be cleared and my desires for retirement don't involve large expenditure. I'm single so have no need for a pension to support two people. My plan is that as soon as my forecast of savings, pension and state pension project that I will be able to quit and live the way I want, I'll be off to enjoy doing what I want to do whilst I'm still fit enough to do so.