Pensions Planning: The NUMBER

Gatser

chris_m wrote: »

Very true, but also consider - how many people actually NEED a 2/3rds pension.

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.

Totally agree Chris.
I am with you on this opinion.
I have seen too many folks leave retirement until at least 65 and then suffer from reduced health ....or die before they get to 65!
Sadly, most could have had a comfortable existance but that old human trait...GREED.... tells them to keep accumulating wealth for their later years....and all for what.

I think the concept of phased retirement is great... work less and play more :j ...thanks to THE NUMBER :T

beedeedee

We, for the last 13 years, have lived on about a third of what we would be earning if we hadn't been "forced" into early retirement.
And amazingly - you know what? We are far better off financially than we have ever been and also far, far better off than many of our contemporaries who are still working.
Although we have nowhere near as much income - we have learnt to take far more care of it and we quickly learnt there are plenty of people ready and able to help you spend it if you let them........
We no longer have to "impress" anyone. We've learnt that a good car lasts for years and years. Same with clothes and furnishings, although I get easily bored and like to ring the changes - there are some absolute classic staples in our wardrobes that can be worn as and when necessary. If you have them now - set them aside to keep for the future.
We've never been so busy galavanting off here there and everywhere on our discount tickets, cheap flights, airmiles etc - yes it takes time to find them - but we now have that time.
Our social life is great. We could be out every night of the week if our bodies could stand the pace.....we deliberately stay in sometimes to recharge our batteries.
We only ever buy top quality food and wine (as cheaply as possible) - if it's really good, you won't need to eat so much, but we throw lunch and dinner parties and get invited to plenty as well. Restaurants don't really do it for us any more - eaten out far too often in our lives - it's not "special" anymore.
Trust me - life on a pension can be great and we've still got our state pensions to look forward to in a couple of years time.
BTW our annual income is £18,000

zygurat789

Whilst everyone has been busily calculating how much they might need to continue living the life they forsee for themselves I don't think anyone has considered care or nursing home fees. These can be expensive if you wish to maintain a fairly high life style and probably will not be covered by the reductiion of expenditure that such a change will entail such as no car etc.
Perhaps a £20,000 (death tax) should be included somewhere.

Gatser

beedeedee wrote: »

Trust me - life on a pension can be great and we've still got our state pensions to look forward to in a couple of years time.
BTW our annual income is £18,000

Wonderful shared experience...Many thanks!

This is just the sort of realistic encouragement that many of us need.
Must admit...I have to keep telling MYSELF...to semi-retire sooner rather than later.
My experience of "forced retirement" for a few months last year proved that all the things I enjoy doing (;)) cost nothing...or very little.
AND the big gain was all that very precious resource: TIME!

Now I am planning doing it for real in the next 3 years.
(Still got a few financial commitments to clear first)

beedeedee

Just pleased it gave you a bit of encouragement!
We were lucky initially, in that our mortgage had only 18 months to run, so once we had sorted that out, that was one less debt to worry about. We made enormous efforts then to reduce the rest of our outgoings - it's amazing what you don't actually need, that you may have been persuaded to spend your income on, whilst working. We also didn't realise (as a previous poster mentioned) how much is spent on actually "working". Two cars to get us both there, clothes for work, coffees/snacks and lunches, gift giving, office nights out - the list goes on and on. Thousands of pounds a year.
Once you get your head round it - it becomes a source of pride, to not only live within your means on a pension - but also to have far more actual cash to spend on things you want to spend it on - whether that be holidays, hobbies, posessions, whatever.......as I said we now have far more available cash than many of our working contemporaries.
Start to reduce your debts and outgoings during your fifties, whilst you are still earning "proper money" and you will reap the benefits.

Gatser

zygurat789 wrote: »

Whilst everyone has been busily calculating how much they might need to continue living the life they forsee for themselves I don't think anyone has considered care or nursing home fees. These can be expensive if you wish to maintain a fairly high life style and probably will not be covered by the reductiion of expenditure that such a change will entail such as no car etc.
Perhaps a £20,000 (death tax) should be included somewhere.

Excellent point!
I must admit I have not included anything for OLD AGE CARE in my NUMBER. I agree that perhaps I should...as you say, maybe a spare £20k for the proposed Care Policy...if it happens.
Part of me says that after all the misdoings in the financial/pensions world over the years.... "Am I Bovvered???" to put away enough for Care/Nursing in old age... it seems that if you have lots of savings you will only be penalised when it comes to needed care/support.

Why not spend it and then claim poverty if we DO live that long.

I have links with the Aged Care sector and you need circa £20-30k pa
Imagine what you will need to fund that over a 20+ year period (assuming age 75-95)

No thanks.... I'll spend it on all those enjoyable activities whilst I have some fun and fitness left in me! :j

zygurat789

Gatser wrote: »

No thanks.... I'll spend it on all those enjoyable activities whilst I have some fun and fitness left in me! :j

And be a burden on society for the rest of my life?

Gatser

zygurat789 wrote: »

And be a burden on society for the rest of my life?

If my conscience kicks in... I know a nice little clinic near Geneva!:A

zygurat789

Gatser wrote: »

If my conscience kicks in... I know a nice little clinic near Geneva!:A

You need to include the fee and fares into your number, and the death tax and don't forget to gross up for tax.

Gatser

As I know my basic NUMBER as £22k, I will seek to spend that amount whilst I am still working (55-60) PLUS 40% of any returns/income in excess of the £22k.

I can thereby (hopefully) build up my pension/savings to age 60 and during my 60-65 period I could work less but spend (say) 60% of any similar income/returns surplus.

By age 60 I would plan and hope to put my feet up! (and start fully using my pension/savings) :T