Drop in income, pre-retirement?

Nebulous2

Interesting article/ survey about finances tightening post- 50. I had assumed the time before retiring was the best opportunity for people to get their finances in order, before a drop in income at pension age.

Does this chime with people's experience?

chesky

Where's the article?. Sorry, obviously being a bit dim but it's rather early.

Nebulous2

chesky wrote: »

Where's the article?. Sorry, obviously being a bit dim but it's rather early.

Sorry and thanks. That's what I get for posting in the middle of the night!

Here.

zygurat789

Nebulous2 wrote: »

Interesting article/ survey about finances tightening post- 50. I had assumed the time before retiring was the best opportunity for people to get their finances in order, before a drop in income at pension age.

Does this chime with people's experience?

The best time to get your finances in order is always now.

PasturesNew

"The pensions specialist found that those aged between 50 and 64 were left with just £231.53 a week once necessary expenses like household bills, living costs and transport costs were accounted for."

For many, throughout their entire lives, it'd be nice to START with that amount ... never mind after household bills, living costs and transport.

£1000/month "just for fun"..... *dreams*

zygurat789

PasturesNew wrote: »

"The pensions specialist found that those aged between 50 and 64 were left with just £231.53 a week once necessary expenses like household bills, living costs and transport costs were accounted for."

For many, throughout their entire lives, it'd be nice to START with that amount ... never mind after household bills, living costs and transport.

£1000/month "just for fun"..... *dreams*

He was talking about those on the average wage.

p00hsticks

zygurat789 wrote: »

He was talking about those on the average wage.

No they're not - as per the first word of the article, the data is only considering professionals.

As at March 2014, the Office of National Statistics has the overall average wage at £474 a week (approx £24,648 a year) - nowher near the figures mentioened in this report http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/may-2014/info-awe-may-2014.html;

zygurat789

p00hsticks wrote: »

No they're not - as per the first word of the article, the data is only considering professionals.

As at March 2014, the Office of National Statistics has the overall average wage at £474 a week (approx £24,648 a year) - nowher near the figures mentioened in this report http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/may-2014/info-awe-may-2014.html;

I think that you should read the article PROPERLY:-[EMAIL="?subject=Earning%20power%20%27at%20peak%20during%2040s%27&body=You%20should%20really%20read%20the%20story%20I%20found%20on%20news.uk.msn.com%3a%20%27Earning%20power%20%27at%20peak%20during%2040s%27%20(http%3a%2f%2fnews.uk.msn.com%2fearning-power-at-peak-during-40s%23tscptme)%27"]

[/EMAIL]Professionals reach their earning power peak in their 40s while salaries drop to their lowest level during their 50s, according to new research.


Saving potential is at its lowest during the decade pre-retirement as average wages drop and household spending goes up, pensions and retirement specialist Friends Life said.
Workers can expect a salary drop of £400 a year once they turn 50, according to earnings data from the Office for National Statistics (ONS).
The majority will see their salary peak between the ages of 40 and 49 to an average of £33,459, according to Friends Life which analysed the ONS figures.
The average income falls to £33,059 when people turn 50, and by a further 6% to £31,052 when they reach 60, a Friends Life spokeswoman said.

Nebulous2

zygurat789 wrote: »

The best time to get your finances in order is always now.

Then is now - if that makes sense!

I took a moderate drop in wages at 50, for a career change, but if anything expenditure has tailed off a bit rather than increasing in the way the article suggests.

I probably have more than a decade before retirement but the idea that money will be most squeezed then doesn't seem right.

With young children and childcare costs every bill seemed an issue, which is certainly not the case now.

nearlyrich

In my forties I had two children to feed clothe and educate with all the associated spending that entails, I have found in my 50's I have more disposable income and the ability to save for retirement. My basic pay is the highest it's ever been too...

pollypenny

I was about to post the same as nearly rich.

In our forties we struggled with the 15% interest rates and mortgage, with two kids in university, no overlap, so no grant.

When youngest graduated and interest rates fell, we had a boost and our fifties were good.