We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Pensions Planning: The NUMBER

1281282283284285287»

Comments

  • LL_USS
    LL_USS Posts: 334 Forumite
    100 Posts First Anniversary Photogenic Name Dropper
    QrizB said:
    westv said:
    What is "immersive reader" mode?
    A setting in your browser.
    In Firefox on Android it's an icon showing a rectangle with lines in (like a printed page) in the address bar.
    Other browsers / OSs may vary.

    I did not know about this. So useful tip to know thanks.

  • Stemma
    Stemma Posts: 805 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    I don't know if this is the correct place for this question. I received a lump sum from a previous pension when I was 50. I am now about to retire, can I get the full 25% tax free lump sum again from another pension fund?
    Sometimes later becomes never. ...
  • I just checked my figures from 3 years ago when I retired at 60, now 63 and my expenditure figures have now reached my initial calculation. However everyone's life style is different as we also live in Spain for 5 months of the year, I have included those figures also converted to pounds
    We also sold the 4 bed  house in the south of England and moved to Northern Ireland another 4 bed house but the difference in price allowed us to help our 3 children get their first properties, plus we added additional funds to savings. Cost of living is much better in Northern Ireland compared to the south of England

    So the expenditure is below £32000 pa and that includes additional holidays, a new car is not priced in as I bought a new car after I retired with cash when i turned 62, the plan is to get a new car every five years but will depend on savings.
    I should point out that my wife receives DWP PIP so we reduce the £32000 by £7000 each year. At first we only withdrew £25,000pa but have increased that now this year due to IHT. 

    The key for me is Pension growth vs what we draw each year, pension growth across the 3 pension pots since I retired at 60 is between £50,000 to £64,000pa.  I track my pensions twice per month and my current spreadsheet goes back 10 years. With the changes to IHT I am looking at drawing the maximum up to the 20% tax  threshold from the pension pot going forward and as I approach 67 and the state pension kicks in I will lower the amount, this is based on achieving the same growth, if not then £25,000pa. I will be updating my figures to include an inflation element for the next 3 years.

    Below is my old calculations, in case its any use to anyone.

     

    Amount

    Months

    Total

    council tax

    150

    12

    1800

    Spain Wise slush fund (Eating etc)

    300

    12

    3600

    TV & BB

    100

    12

    1200

    Elec

    71

    12

    852

    Oil central heating NI

    500

    1

    500

    Food

    400

    6

    2400

    Bank charges

    36

    12

    432

    Petrol

    50

    6

    300

    Ferry

    1000

    2

    2000

    Insurance Car house

    800

    1

    800

    Insurance house spain

    200

    1

    200

    Community fee spain

    250

    1

    250

    Spain elec pa

    800

    1

    800

    Spain water pa

    400

    1

    400

    Spain council tax pa

    250

    1

    250

    Spain TV BB

    25

    12

    300

    eating out Spain (5 months)

    1000

    4

    4000

    Petrol SPain

    40

    4

    160

    Petrol from Ferry to Spain house

    120

    4

    480

    Safety net

    150

    12

    1800

    Pool cleaning Spain

    50

    12

    600

    Clothing

    60

    12

    720

    Car service

    400

    1

    400

    Repairs and replacing

    1000

    1

    1000

    Mobile

    60

    12

    720

    Additional holidays

    2

    2500

    5000

        
        
       

    30964


  • ukdw
    ukdw Posts: 357 Forumite
    Ninth Anniversary 100 Posts Name Dropper
    Interesting - I tend be break my expenses down into Mandatory and discretionary too -  and don't worry too much about the discretionary ones - because I can always stop them if I start to run out of money!

    Bank charges surprisingly high at 432- is that a Spain thing, or some sort of packaged account?

    Interesting your mention of reducing your drawdowns when  the state pension kicks in.

    My current plan too is to drop my DC pension when the state pension kicks in - but more recently I have been thinking that effectively means I will be no better off day to day when I get my state pension - so I am wondering whether it might just be worth leaving the drawdown as is, or maybe reducing it a little bit - but not by the whole state pension amount - and take the state pension on top - even if it means paying 40% on some of it.

    40% tax by itself sounds a lot - but I am trying to convince myself that its not the 40% I should be worrying about - only the 20% of it above the normal basic rate 20%.









     
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.2K Work, Benefits & Business
  • 600.9K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.