Pensions Planning: The NUMBER

chiefie

Wednesday2000 wrote: »

I worked out that we need about £600,000 in the pension and hopefully a paid off house before we can retire.:) We are quite frugal.

What income will you expect to draw from that ? 4% p.a. And will you reduce this come state pension age ?

Thanks - all food for thought

Wednesday2000

chiefie wrote: »

What income will you expect to draw from that ? 4% p.a. And will you reduce this come state pension age ?

Thanks - all food for thought

My husband has a final salary pension at his work so I think that should be about £25-£30k a year. If I have worked that out right?!

Gatser

Well I semi retired in 2013, thanks to the NUMBER concept to guide me. It cannot be stressed enough though to make the most of your health while you are well.... no point in aiming at a bigger number if you are then too old and ill to use it! Happy Healthy New Year to you!

Gatser

I maintain the spreadsheet... and make sure we are still on track to hit each years NUMBER.... working part time helps alongside some pension drawdown as we enjoy the extra free time in the 11 years before State pension kicks in.
The challenge now is to maximise income without incurring HR tax !
Especially if we just do not need to spend it!
It is amazing how little you can have a good life on ;-)

patanne

This thread is so interesting even though I am fully retired! I had decided that I needed exactly the same income to live reasonably in retirement which I acheived. Well I actually overshot as I worked a final 10 month contract which turned into 15 months. What did surprise me is that although I saved the same as I did whilst working (I knew I needed to do that to fund repairs & renewals without reducing my savings too much) my spending pattern changed a lot. My expenditure on petrol, tyres & shoes went up and my food shopping went down quite noticably. I was no longer shooting round one supermarket whilst tired, but I spent a little, and it was just a very little time actually, working out a shopping list for 4 close ones. Do I feel good because I have reduced my shopping bill? Well not particularly, but I do feel good because I am not throwing all that unused food away.

I do think though that the more you earn, the bigger drop you can take. And by the way, having been on short time for the last few years I worked, I was on WAY less then the average £23k.

Flybaby

Was looking for some advice on where to start to find out about pensions and I do literally mean "start". I know absolutely nothing about them. Is there a good thread or website you knowledgeable people could direct me to? Many thanks

atush

Well this forum for sure. You could do a search, read a few posts.

For investing look at moneyvator.

But the most important thing is to start asap. Delaying will cost you. Join an employers pension (as you get extra 'free money' from them). Put in as much as you can, one rule of thumb is half your age as a % (but this can include TR and the employers bit). So age 24? 12%. 30? 15%.

jaypeeuu

Nobody seems to take in to account in the 50hr factor when planning for retirement.
The 50hr factor is the extra hours you will have each week to fill with activities which are rarely free, even sitting in the house reading a book in the winter will incur heating cost's.
Taking the other half out for the day can soon run up a bill of £100 and more with admission fees , lunch and a souvenir (at least that 's how much it costs with my other half!!!).
So it is essential to take this in to account as the hours we used to spend at work did'nt cost much


cheers:A

robin61

jaypeeuu wrote: »

Nobody seems to take in to account in the 50hr factor when planning for retirement.
The 50hr factor is the extra hours you will have each week to fill with activities which are rarely free, even sitting in the house reading a book in the winter will incur heating cost's.
Taking the other half out for the day can soon run up a bill of £100 and more with admission fees , lunch and a souvenir (at least that 's how much it costs with my other half!!!).
So it is essential to take this in to account as the hours we used to spend at work did'nt cost much


cheers:A

You could join English Heritage or National Trust and do a couple of things a week for not a lot with an annual membership. What about U3A ? Seems there are lots of activities available that don't cost a lot to do if you join your local group. Adult education ? Plenty of interesting things to do for not very much. Walking ? Most areas have lots of local walks if you want to do this and it keeps you fit as well. Volunteering ? Why not investigate opportunities ?

It can be expensive filling your time in but with a bit of imagination it doesn' neceserally have to cost you a fortune.

gadgetmind

patanne wrote: »

I do think though that the more you earn, the bigger drop you can take.

I agree. However, Mrs Gadget strongly disagrees, so we're aiming for the same monthly income (after tax, pension contributions, ISA subscriptions, etc.) post retirement as pre-retirement.