How much cash at retirement?

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Perhaps more than most people my age, I've seen hundreds of retired people on pensions and bar a couple of exceptions who were really well off, nearly all make compromises they would rather not make.

Don't forget inflation, real inflation, not some government cover up figure. Don't ever underestimate how much things cost. Want to go to Oz ? you probably think £xxx when in truth it is really 3 times £xxx. Need some private medical stuff ? get your cheque book out or go without. New car ? you can keep downgrading until you get a disabled chariot but you didn't work 40 years for that did you ?

When it is too late to add to your retirement funds, do you really want to be the one wondering whether you can have two scoops of ice cream on your cornet ?

Wentthedaywell?

jamesd wrote: »

I don't think that you should be overpaying the mortgage. I'd rather have that money going into investments in a stocks and shares ISA where it can generate ongoing tax free income for the rest of your life. The pension and that ISA income can take care of the mortgage later.

I agree. I'd been paying it down because my job looked particularly insecure and I wanted peace of mind of a roof over my head. Now the pressure is off slightly, I've just started paying the minimum again and saving the rest. I haven't ventured into S&S ISAs though, I'm being boring and putting them into cash savings.

jamesd

Time to change that and start learning about investing within an S&S ISA. No great hurry to do that learning, just start doing and reading and carry on learning as you go.

My personal view is that a larger pot of money is better than a lower mortgage balance. You can pay all of the bills with the pot, not just the mortgage.