How old will you be when you can retire?

gadgetmind

New_and_Improved_Me wrote: »

I could live on 30K a year

So could I, but I have a wife who can't.

I'm aiming to retire just after I'm 55.

I have *very* ambitious plans regards income in retirement as I'd ideally like more than I have now. However, that's because my monthly income at the moment is constrained by me putting 50%+ of my salary into pensions and investments to make early retirement possible.

MFW_ASAP

I'm trying for 60 but will probably manage 65. I'm looking at a combination of ISA & SIPP investments, a small (£4k pa) final salary pension and downsizing from a large family home to a small cottage (releasing about £200k of tax free cash that I might use to buy a couple of BTLs).

onlyroz

Assuming that in retirement we don't have a mortgage to pay, or require life insurance, or have kids to support, then our bills (in today's money) would come to around £4500 a year. On top of that we would need to cover food, fuel, household maintenance, Christmas and holidays. So £12k (or even better £12k each) sounds like enough to live on.

coastline

A recent survey by an insurer suggests millions aren't aware how much you need to save...many have no idea about their pension pot.
Theres a handy table at the bottom of the link combining state and private pensions showing how much people will have as a percentage of working salary..

http://www.mindfulmoney.co.uk/retirement-planning/millions-in-the-dark-over-pensions-what-you-need-to-know-to-retire-in-comfort/

ging84

i don't plan on retiring, ever certainly not fully, if you are not a manual work then i honestly don't think the concept of retirement needs to exist other than on ground of ill health

Loughton_Monkey

coastline wrote: »

A recent survey by an insurer suggests millions aren't aware how much you need to save...many have no idea about their pension pot.
Theres a handy table at the bottom of the link combining state and private pensions showing how much people will have as a percentage of working salary..

http://www.mindfulmoney.co.uk/retirement-planning/millions-in-the-dark-over-pensions-what-you-need-to-know-to-retire-in-comfort/

There is a 'bug' in the bottom line of the table, but however "handy" it is, and however 'shocking' it is, I am afraid a large majority of the public do not listen or act.

wotsthat

coastline wrote: »

A recent survey by an insurer suggests millions aren't aware how much you need to save...many have no idea about their pension pot.
Theres a handy table at the bottom of the link combining state and private pensions showing how much people will have as a percentage of working salary..

http://www.mindfulmoney.co.uk/retirement-planning/millions-in-the-dark-over-pensions-what-you-need-to-know-to-retire-in-comfort/

Rather solves the demographic problem - lots of people who think they can retire simply won't have the choice.

Loughton_Monkey

New_and_Improved_Me wrote: »

I could live on 30K a year

12K, not a chance even with a lump sum

Most of us did at one time or another (inflation adjusted).

I "could" live on it today, but would be constantly saying "do you call that 'living'?". And I would have to move house.

Human psychology dictates that if you have to take a drop in lifestyle when you retire, then you will forever 'wish' you had put a bit more away while you could. Sadly, for most people, this wisdom only comes to them far too late.

An analysis of my expenditure (8 years into retirement) tells me that 60% of my outgoings are in the category of "expenses" rather than "spending. i.e. Utilities, Tax, Motoring, Groceries, and other expenses like Insurance.

Only 40% is what I call "discretionary spending", such as holidays, books, meals out, cigars, booze. Even then, that includes quite a bit of clothes and household goods that could be considered "expenses".

This is a very similar breakdown to when I was working.

Without downsizing, I could probably drop the 60% 'expenses' element by 20% - partly by driving one small car instead of a large and a small, plus a few other measures. I could theoretically cut the discretionary element by 50% but I would be living a totally different 'lifestyle'. Even then, I would still be spending 68% of what I do now.

This informs me that retiring on the 'traditional' 2/3rds of final salary is not necessarily 'high living'.

chucknorris

Ivrytwr3 wrote: »

Not all Public Sector pensions are enough to retire on. After 22yrs service i i could leave at aged 40 with a £35k lump sum and £12k immediate pension.

£12k per year at 40 year old is not a retirement sum.

At only 40 years old 12k is more than a decent pension, the conversion rate in my pension scheme is a terrible x12 for the lump sum, so I definitely will not be taking it, if your pension scheme was similar you would have almost a 15k pension without taking a lump sum (if it is optional, probably not). I'm not sure when I will retire yet but it could be as little as 2.5 years away, when my pension would be about 10.5k which although I would like more, I'm happy enough with it considering that I would have only worked there part time for 6 years, I'll also have about another 2.5k private pension too, both payable 8 years after retiring (if I don't defer).

chucknorris

Loughton_Monkey wrote: »

I could theoretically cut the discretionary element by 50% but I would be living a totally different 'lifestyle'. Even then, I would still be spending 68% of what I do now.

This informs me that retiring on the 'traditional' 2/3rds of final salary is not necessarily 'high living'.

I think this demonstrates how important it is to plan your retirement income, even more so now with the disappearance of the private sector final salary schemes.