When to retire......

Generali

CLAPTON wrote: »

tesco's value salmond

If it's not bad enough that the supermarkets have been selling horse on the quiet they're now openly selling tinned Scottish politicians?

Disgusting.

CLAPTON

Generali wrote: »

If it's not bad enough that the supermarkets have been selling horse on the quiet they're now openly selling tinned Scottish politicians?

Disgusting.

you're right

horse Ok
scottish politicians No

mind you, I won't be buying this Aussi wine again.......

BobQ

So how do young people find job opportunities in a stagnant economy if those who are supposed to retire (early or normally) see a need to work longer (either to make end meet or for the fun of it)?

marathonic

BobQ wrote: »

So how do young people find job opportunities in a stagnant economy if those who are supposed to retire (early or normally) see a need to work longer (either to make end meet or for the fun of it)?

The same way anyone has ever found a job in history - by making yourself more appealing to a potential employer through bettering your education or being highly motivated.

In Ireland, the dole is over 200 euro per week. I know of people there that, when offered employment in the construction sector (when things had just started deteriorating) would work out the difference between the dole and the pay they were being offered and turn down the job because "I'm not working for 40 euro a day".

People who had this attitude are likely to appear undesirable to potential employers when good times return and I'm imagine that those just coming out of college stand a better chance of securing certain roles because they don't have a 5-10 year gap in employment.

kabayiri

I'm not sure putting all your eggs in one basket is a good idea. That includes relying on a private pension. Who knows what yields will be typical in 10/15/20 years time?

Putting money into property does feel safer at the moment, even if I do sound like a Hamish clone! BTL landlords can still be landlords after the typical retirement age. It's a solid revenue earner.

If you're of a more riskier persuasion, it won't have escaped your attention regards the Top Gear article on classic cars. Some have increased in value ten fold in the last decade or so. Maybe this reflects the fact that the luxury sector is one of the few areas in the economy which remains relatively buoyant.

Harry_Boyle

marathonic wrote: »

Suppose that's true.

My pension planning is going okay (well, relative to some co-workers anyway).

My personal contributions between 20 and 30 needed to be 2% to take full advantage of my employer contribution of 4%. Most co-workers stick to this minimum.

Personally, my personal contributions have ranged between 6% and 26% over the years - and will be dropped to 3% this year so I can focus on paying down the mortgage to a 60% LTV to move onto the market leading interest rates.

Luckily, my peak contribution levels happened during the trough of the market a few years ago.

As it stands, my pension pot is at 1.7 times my salary at 30 years old. Therefore, I feel comfortable enough with my updated contributions of 3% employee and 6% employer.

Two rules of thumb I've read are:

• £35,000 by 35 - which I've already exceeded
• contribute a percentage of salary equal to half your age when starting out - a 30 year old would need to contribute 15% and, whilst I'm only contributing 9% total, the growth from my current pot should more than make up the difference

I'm under no illusions though. The above plan will allow me to avoid such measures as going for Tesco Value Horse Burgers in retirement and allow me to go for the premium range instead. However, it's unlikely to provide an income sufficient to go on an annual or twice yearly holiday.

For this reason, I intend to increase my contributions as soon as I get onto a 60% LTV mortgage rate - which I expect to happen within the next 3 years.

Great to see posts like this, it's always interesting and informative to see what other people are doing with their finances. There are a few 'naysayers', particularly on this board, who get irritated when they read about other people's plans going well. I think it's because their own are either non-existent or are going badly. These are the people who really need to read other people's success stories in order to adjust their own plans accordingly. Unfortunately they seem to just want to bury their heads in the sand and just snipe that those doing well. Shame, but we'll cry all the way to the bank.

Good luck to you, though it doesn't sound like luck is involved in your plans.

moneyinmypocket

Property is always a good option as people need somewhere to live, I would love to build up a property portfolio and live off that when I retire

Prudent

Generali wrote: »

If it's not bad enough that the supermarkets have been selling horse on the quiet they're now openly selling tinned Scottish politicians?

Disgusting.

Although this might resolve the uncertainty arising from the referendum.

michaels

BobQ wrote: »

So how do young people find job opportunities in a stagnant economy if those who are supposed to retire (early or normally) see a need to work longer (either to make end meet or for the fun of it)?

Really interesting view in the context of this thread.

Most people work in order to consume and thus their being in employment creates an equal amount of demand as the extra supply they provide...except of course if the majority are actually trying to save for a pension in which case the level of demand will be lower than the extra output supplied. Classical economics would suggest that the market for savings and investment should address this but with govts interfering in this market by trying to fix prices (interest rates) then perhaps this is a reason why the economy may not be reaching a natural equilibrium.

MacMickster

michaels wrote: »

Really interesting view in the context of this thread.

Most people work in order to consume and thus their being in employment creates an equal amount of demand as the extra supply they provide...except of course if the majority are actually trying to save for a pension in which case the level of demand will be lower than the extra output supplied. Classical economics would suggest that the market for savings and investment should address this but with govts interfering in this market by trying to fix prices (interest rates) then perhaps this is a reason why the economy may not be reaching a natural equilibrium.

Unless, as an economy, we have full employment, then we need to make some kind of decision about how we manage those who are not employed. I believe that it is important that school leavers move more or less straight into work, This is necessary to both help them to develop their work ethic and also the skills to move from childhood to adulthood.

In the UK we are seeing increasing levels of youth unemployment, at a time that our older workers are either choosing or being compelled to work longer. We are also seeing falling productivity from our working population.

I would be in favour of a completely flexible state pension age, with the size of pension adjusted to fully reflect the years of contributions, and also actuarially adjusted to reflect the period over which it is likely to be paid. Retire at 55 on maybe 40% of the pension that you would get at 68.