Feeling left by the wayside

geelamch

Reading some posts on here lately and starting to feel quite ill prepared for the future. Actually thought I was doing quite well towards early retirement, faltering now though with the financial planning some people have in place on this forum.
This is not a rant of jealousy ( possibly envy lol) I really need to get more up to speed .
Mantra for today " gotta get a million lol.

Love this site ,keep up the good work.

C-dog

If you're planning for the future, you're doing brilliantly. Many don't

Keep up the good work

atush

as long as you are planning, and saving as hard as you can, you shouldn't have too much envy. You will be more comfortable than most.

People with higher paid jobs perhaps have larger pots. Although some esp in the future, will have a lot of debt to pay off to get there. The point is, I know from experience that earning well can mean (along with saving) getting used to a certain lifestyle. those who earn less, are most likely prepared to live on less. And be just as happy.

I could not live scrimping like some do (although I know how). So if you have expensive needs/wants like say holidays abroad, meals out in restaurants, and buying high quality groceries like seafood, then you just have to save enough to fund them.

Those happy with staycations, lunches out cheaply or fish and chips on the pier, and eating cheaper food at home dont need as much so dont need to save as much.

You just have to work out who you are, your Number, and how to get there.

Southend1

atush wrote: »

Those happy with staycations, lunches out cheaply or fish and chips on the pier, and eating cheaper food at home dont need as much so dont need to save as much.

Fish and chips isn't a cheap lunch these days - it can cost £5-7 and you have to pay to take a stroll on Southend pier

kangoora

Also, a million should produce a stable £40k/year for life but you don't necessarily need a £1m in savings.

If you have a final salary pension you can reduce that million by (FS pension per year x 25 for example).

If you're willing to accept some loss of capital then that can reduce the £1m substantially by drawing down capital to an acceptable level that coincides with your state pension(s) (or any other pensions) being due.

There's always downsizing a house to realise a decent chunk of that £1m. At an extreme there's always equity release schemes also.

Spending doesn't tend to be linear in retirement, with spending tending to decrease as you age (with the exception of care homes etc if required). Not true for everyone however.

I intend to retire early using pretty much all of the above ideas, downsize, drawdown and use interest gained until FS pension kicks in, continue with more limited drawdown (this time with interest, smaller drawdown and FS Pension picking up the slack) until SP kicks in (now no drawdown and just using pensions and interest) and meanwhile keeping my income broadly level with my target income as each 'extra' piece in the puzzle kicks in.

As mentioned above, the key thing to understand is The Number, what amount of money you need to have a happy retirement. Once you know that you'll know how much you need to save to achieve it OR if you need to revise The Number and make some sacrifices in your retirement OR work a bit longer so The Number is achievable.

cns06

Its a struggle but getting something put away every month is the main thing.

kidmugsy

Years ago one of the great Investment Trust gurus intoned "Look upon life as a series of liabilities". It's not the only way to look at it, but it is one necessary view if one has any claims to be an adult. (Which often doesn't set in until about age forty!)

atush

Southend1 wrote: »

Fish and chips isn't a cheap lunch these days - it can cost £5-7 and you have to pay to take a stroll on Southend pier

fish and chips on the Quayside is cheaper here. I can get fish bites for 2 quid (fish and small chips for 4-5)or a whole small fish for the same, and that can be enough for 2x Baha fish tacos if I can get them home quick enough (2 miles lol).

Of course on top fo that 2 quid I have to buy some flour tortillas (1 quid) and make come creamy guac and shredded cabbage (1.50 approx)

4.50- 5 quid for dinner for 2 isn't bad. I used to do the fish myself but it is actually cheaper to get it from the chippy.

geelamch

Maybe I should open a chippy then !

geelamch

In all honesty I should probably relax about the future however it seems to have been highlighted recently about the picture of pensions.
Really don't want to lock the door and put on an extra jumper ,
Drunk as a Lord and lying in the sun would be more my scenario if possible.

50 now with 34 yrs f/s (salary 43500)
Avcs of about 60000
Shares about 12000
Savings fluctuate between 10 and 15k ( dependant on grown up kids begging bowl )
Wife has her own pension (superannuation scheme )23 years membership.

Won't be skint but is it wrong to want the lot ?

green_man

geelamch wrote: »

In all honesty I should probably relax about the future however it seems to have been highlighted recently about the picture of pensions.
Really don't want to lock the door and put on an extra jumper ,
Drunk as a Lord and lying in the sun would be more my scenario if possible.

50 now with 34 yrs f/s (salary 43500)
Avcs of about 60000
Shares about 12000
Savings fluctuate between 10 and 15k ( dependant on grown up kids begging bowl )
Wife has her own pension (superannuation scheme )23 years membership.

Won't be skint but is it wrong to want the lot ?

You are in fact way better off than most then. Of course there will always be plenty of people in a better position but you can only affect your own. Do you intend working until you have fully funded your f/s pension (40 years I assume)? You main issue might be then how you fund the potential gap between drawing your final salary pension and retiring (if you intend retiring when you get 40 years in). You are very young to have 34 years f/s contributions.