Only freedom will do

elantan

patanne wrote: »

You're talking about 'the number' which has a whole thread (or 2) of it's own. And you are doing the right thing by planning for it. But what you can't plan for are the things that change in YOU. Like the things you buy to help you forget that your holiday will finish tomorrow and the lets do whatever because it has been a sh**ty week at work.

You won't have to pay NI on unearned income. Your petrol will cost less because you are not stuck at the lights for ages.

Personally, I have never had so much disposable income and I do not have a DB pension.

I don't tend to live in a world where I spend x y or z cause I'm back at work tomorrow, or where I've had a hard shift so will just buy something, I leave for work at 6 am so don't tend to get stuck in traffic ... finally I won't pay national Insurance but that's about it

I do intend on going away for drives and hitting hills and garden centres, I do intend on being busy, which will cost on extra money as I currently have a uniform provided

But I do understand what you mean by what you say and I think everyone's number will be different for different reasons ...

Hoping personally not to need enough so that I pay tax

elantan

edinburgher wrote: »

Sorry, confusion reigns! No, it means to reduce our existing pension risk to an acceptable level for people of our age planning for FIRE, we need to add £9,257.60 of our own money to buy bonds in SIPPs. We then need to add £200/m and rising in bonds until we quit work. That would give us c. £300k in pensions. Would also need to find the money to bridge the gap between stopping work and drawing down pension money.

For me I'm thinking of the tax free lump sum to help with that, won't cover it all but it means I have less to find

Karmacat

edinburgher wrote: »

Sorry, confusion reigns! No, it means to reduce our existing pension risk to an acceptable level for people of our age planning for FIRE, we need to add £9,257.60 of our own money to buy bonds in SIPPs. We then need to add £200/m and rising in bonds until we quit work. That would give us c. £300k in pensions. Would also need to find the money to bridge the gap between stopping work and drawing down pension money.

Molto grazie! I get that now :j I'm too concerned with my tax declaration to think about my own situation now, but when I've done that, I need to do my (last ever) Continuing Professional Development declaration, then sort out the rate of return on my cash ISAs, and then I'm going to look at the stocks/bonds/cash percentages on my dosh ... then I'm going to become a prize winning author, I don't think I mentioned that :D

ClaraMac

This is great to read, I've just joined MSE (and graduated) so I guess this journey is beginning for me too.

Very wise words, good luck with your current trials and tribulations!

edinburgher

elantan wrote: »

I don't tend to live in a world where I spend x y or z cause I'm back at work tomorrow, or where I've had a hard shift so will just buy something

Ah - but what about Mr El of the takeaway dinner?

elantan wrote: »

For me I'm thinking of the tax free lump sum to help with that, won't cover it all but it means I have less to find

I'm confused - how can a tax free lump sum from a pension help cover the period until you can claim a pension? :rotfl:

Karmacat wrote: »

Molto grazie! I get that now :j I'm too concerned with my tax declaration to think about my own situation now, but when I've done that, I need to do my (last ever) Continuing Professional Development declaration, then sort out the rate of return on my cash ISAs, and then I'm going to look at the stocks/bonds/cash percentages on my dosh ... then I'm going to become a prize winning author, I don't think I mentioned that :D

Cash ISAs? That's so 1997 KC

edinburgher

ClaraMac wrote: »

This is great to read, I've just joined MSE (and graduated) so I guess this journey is beginning for me too.

Very wise words, good luck with your current trials and tribulations!

Get a pension as soon as you can, pay in whatever you have to to maximise the free money/match available from your employer and the government. I guarantee that one day you will be glad you did it (or dead, in which case you won't mind)

elantan

edinburgher wrote: »

Ah - but what about Mr El of the takeaway dinner?



I'm confused - how can a tax free lump sum from a pension help cover the period until you can claim a pension? :rotfl:



Cash ISAs? That's so 1997 KC

Mr El would eat take away every night of the week ... work or no work ... he likes them a tad too much

Pensions ... was meaning personal pension draw down till SP kicks in ... sorry should've said ... I see them as two totally separate things

Plan on starting with PP at 60 then I think I'm 67 before SP kicks in ( and current employment one as well)

edinburgher

What about the period before any pensions? Didn't I read that you hoped to stop before then?

elantan

Well I intend on stopping at 60 which is when I will start drawing down my PP ... so 6-7 years before SP kicks in ... but I think I will have to start drawing upon my PP at retirement, also intend on having a BTL to help with approx £500 a month though, so whilst I intend on taking the (hopefully) £50k to use as a supplement I am hoping to have the 500 income per month from the house so only hope to need 600 per month from the draw down ...

I may ( depending on needs at the time) just take my lump sum and not draw down the rest, but I am not counting on that as there are too many variables I am looking at already

edinburgher

BTL looks a lot more confusing and a lot less profitable for new entrants now that they've changed the tax situation.

A relative retires this month, small DB pension that may or may not cover their basics + plans for a small business. When you talk to them about pensions, there's a healthy level of denial going on (words along the lines of 'nobody knew about pensions when I was in the workforce for 40 years...') They're probably in a similar situation to you re. different pots, just glad that you have a good few years to strengthen your support mechanisms as opposed to relying on luck