Pensions Planning: The NUMBER

kempiejon

I used to work with a guy like that and was a bit judgy, I thought it was sad he was so defined by his job and had nothing outside to give him pleasure. As I got to know him it was more than that he just loved his job. He didn't like his home life. I felt sorry for him.

Workerbee999

Frugaliza said:

Sarahspangles said:

Mostly I just want to control my own time. As simple as that. I already know some of the things I want to do. In the main they are things I already do, given a free weekend, and it’s frustrating to have to put everything away and get back into work mode. 

Exactly this. 100%.  I've between 16 and 21 months left to the bid R day depending on when I decide to go.

Me too definitely. Planning end of next year. Just tired of other people deciding how I have to spend my time 

Frugaliza

Planning end of next year. Just tired of other people deciding how I have to spend my time 

Timing when to go is an interesting one I've been thinking about.  My pension is fully cooked by Aug 2026 however going 5 months earlier won't make a huge difference to the payout.  The main advantage will be starting my new life in the spring when one naturally feels more inclined to get out and about and enjoy the great outdoors.  

MallyGirl

Frugaliza said:

Planning end of next year. Just tired of other people deciding how I have to spend my time 

Timing when to go is an interesting one I've been thinking about.  My pension is fully cooked by Aug 2026 however going 5 months earlier won't make a huge difference to the payout.  The main advantage will be starting my new life in the spring when one naturally feels more inclined to get out and about and enjoy the great outdoors.  

I know the feeling. Financially it would be better for me to hang on till September 2026 as I'd get one last bonus and could sal sac just the right amount to pay no tax on the rest - I just can't face that extra few months of work when the weather will be nice. I have stopped saying 2 years and started saying 18 months.

Sarahspangles

Frugaliza said:

Timing when to go is an interesting one I've been thinking about.  My pension is fully cooked by Aug 2026 however going 5 months earlier won't make a huge difference to the payout.  The main advantage will be starting my new life in the spring when one naturally feels more inclined to get out and about and enjoy the great outdoors.  

One of my current frustrations is the amount of time I spend sitting. I currently offset this with gym visits on some workday evenings over Winter, but if the weather is bad at the weekend I miss out on getting much daylight or fresh air.

I retire just as the clocks go forward at the end of March, so it will be light by 7.00 and until 7.30 pm. The plan is to get outdoors most days, alongside using the last few months of my gym pass to get ‘hiking fit’ again. Then we can make the most of good days next Winter.

Moonwolf

Sarahspangles said:

Frugaliza said:

Timing when to go is an interesting one I've been thinking about.  My pension is fully cooked by Aug 2026 however going 5 months earlier won't make a huge difference to the payout.  The main advantage will be starting my new life in the spring when one naturally feels more inclined to get out and about and enjoy the great outdoors.  

One of my current frustrations is the amount of time I spend sitting. I currently offset this with gym visits on some workday evenings over Winter, but if the weather is bad at the weekend I miss out on getting much daylight or fresh air.

I retire just as the clocks go forward at the end of March, so it will be light by 7.00 and until 7.30 pm. The plan is to get outdoors most days, alongside using the last few months of my gym pass to get ‘hiking fit’ again. Then we can make the most of good days next Winter.

I'm very similar, currently I seem to have no time to get out.  I love walking and being out with nature.  However with work, caring responsibilities and my share of the housework I'm not getting out early enough. 

I'm going at the end of March.

I do parkrun but I'm 5 minutes slower than I was 10 years ago so hopefully I have time for more weekday training.

A few years ago I did one of those charity endurance hikes with some friends and we walked 100Km in a weekend. We've also done the three peaks and some other 20-30 milers but stopped when I got ill and with covid etc. We are meeting again for a weekend next summer to do some (much more gentle) hiking so want to get fit for that and I will probably use some of my savings for a nice pair of binoculars (it is in the budget).  

LL_USS

Whether we love our job or not, it is just nice to have (or at least to feel like we have) the freedom to work at the level that is suitable for us. I like many parts of my job, but it also has some parts that can drive me to the wall. I like to make some arrangement that can allow me to choose to work less days in a week, or to avoid working on the parts I don't like. 

I feel it's better for me instead of waiting till retirement to have a completely set of activites (travelling, dancing, painting...) I arrange to insert those activities along the side of my current work life, when and where appropriate. With a bit more financial freedom now, I have set aside more holidays, arranging to go to Europe or anywhere the sun shines during the gloomiest and coldest days in England. I accept having less pay per month/ year to have enough freedom to do things outside of work, to enjoy the weekends properly (not working nights and weekends like in the past). I believe with a bit of financial literacy and planning (luckily I enjoy doing this) we do make our money work harder and save more.

After many years working out what I need, I can see that the model of work-life that works for me from now on is long and thin: speading it out, playing around the weather, enjoying from earlier days.

dont_use_vistaprint

Personally, I think the number approach is way too simplistic a methodology.

I have a financial plan that takes into account of my basic living expenses, With a few extra columns that model potential CPI over the next 50 years. The plan is based around the concepts of retiring as early as possible (already done) living my dream life (doing that) and dying with nothing (the hard part)

I have columns that represent big choices and decisions such as buying vehicles, Property downsizing, very large projects.

I have a column budgeting holidays and trips, that decreases as I get into my 70s but it’s also indexed against inflation.

A column for family gifts, support , Christmases birthdays,  that increases over time  as small children and even those not yet born become young adults.

Then I have all my interest and income columns, tax-free lump sum drawdown taxable and non-taxable interest, property downsizing, air bnb when I’m off in Asia for several months a year. I include here the years where an LGPS and State Pension kick in 

but back to the number, I enjoy a simple life of the outdoors and Photography and spending time with friends and family ,travel is  frequent - 10-15 countries a year but extremely cheao,   I do a lot of home cooking and do not consume or buy stuff unless it’s absolutely essential , I tend to lend , repair , reuse rather than buy. 

My figure is around 16,000 with 4,000 for travel 


The reason I say the die with nothing part is hard is because in every calculation and model I run I die with more money than I’ve ever owned and I think this is true with a lot of people they work for too long Instead of enjoying their 40s and 50s whenthey have good health

Alwars lived on max 80% of my income , whether that was 10k or 100 K , always  saved  at least 10% and given away 10% never really needed financial advice, Money is a tool, use it wisely

LHW99

Many here are spreadsheet nerds (I am) but many in the "real" world are not. What most people forget is that the likelihood of living to 100 is increasing, but unfortunately the likelihood of being in good health until that age is not rising as fast.

So the possibility of having to cover (high) care fees is therefore also likely to be increasing.

Retiring at SPA would be a retirement length of ~32 years, and 40 years from age 60. To look at retiring earlier would mean trying to fund (eg) a 50 year retirement from maybe 30 years of work. For many people that is just unrealistic, even for those on median, never mind minimum wage.

While I can see where you are coming from, I think many people need some sort of "Number" if only as a target. It can't ever be perfect, as life can always throw a curved ball. But for many it is at least a good starting point, and a way of ensuring they don't precipitously retire without sufficient to last them, but not discovering that until they are beyond the age where they are able to do something about it.

Sometimes K.I.S.S. is a useful approach.

pterri

LHW99 said:

Many here are spreadsheet nerds (I am) but many in the "real" world are not. What most people forget is that the likelihood of living to 100 is increasing, but unfortunately the likelihood of being in good health until that age is not rising as fast.

So the possibility of having to cover (high) care fees is therefore also likely to be increasing.

Retiring at SPA would be a retirement length of ~32 years, and 40 years from age 60. To look at retiring earlier would mean trying to fund (eg) a 50 year retirement from maybe 30 years of work. For many people that is just unrealistic, even for those on median, never mind minimum wage.

While I can see where you are coming from, I think many people need some sort of "Number" if only as a target. It can't ever be perfect, as life can always throw a curved ball. But for many it is at least a good starting point, and a way of ensuring they don't precipitously retire without sufficient to last them, but not discovering that until they are beyond the age where they are able to do something about it.

Sometimes K.I.S.S. is a useful approach.

Im so grateful for my impending DB pension. I’d be constantly on edge even if I had quite a large SIPP and other savings otherwise. It’s a personality trait I think, I read some research that suggested that those from backgrounds where their parents struggled (like me)  retain that fear even they are now financially secure (also me)