Financial position at age 50!!

Aspen_Sky

Hi all,

I am a complete newbie on here, and am not sure if I am posting this in the correct place! You just sound like a lovely bunch of people on the "old style" threads, and i would value your opinions...please be gentle with me!

Next week I reach a milestone birthday...the big 50 to be precise!! I have no idea where it has come from...last time I checked I was 35, but I can't deny it...it is here, and it has got me thinking!

I have been pondering the meaning of life etc, but today I am thinking about my finances...More specifically, I am trying to figure out if I am in a reasonably healthy financial position or not for my age/stage in life? I guess the future, and retiring/pensions are in my mind, and I realise that it is a subject that no one I know ever really talks about in detail.

So, I am going to look more closely at my financial position, and try to come up with an outline "state of affairs". I am hoping that this may focus my mind more on what I need to achieve over the next few years!

That may sound a bit pompous, but believe me it is not. The truth is that I have been following more of a "lifestyle" path of late, and am now slightly concerned that I am being left behind financially....I do not want to find myself having to work way beyond retirement age just to pay the bills!

Sorry for my rambling, but I guess my question is this - Does anyone else of a similar age (or indeed any age) feel that they are in a good financial position for their stage in life?

I do not in any way want to turn this into a competition....I realise that everyone's situation is different, and incomes vary greatly. Would it be helpful though for me to post a brief message about my current situation, and see what comments and suggestions are on offer? Perhaps others who might be having similar thoughts may want to do likewise, and we can discuss.

Anyway, just throwing this out there...all comments most welcome

Living the dream!
Aspen Sky

westie660

Hi Aspen Sky

I like the sound of your new thread. I am a few years younger than you, but have been having similar thoughts regarding retirement planning.

Please post a few details of your current situation, and hopefully others will also join in the discussion.

Look forward to following the chat :T

MallyGirl

I have just turned 48. I have several pensions tagging along behind me from previous employments and am in the current company scheme as they put in 10% of salary if I put in 4%. I see the annual statements and know that I could not live on their predicted payouts.
OH has a bit more in his as he did AVCs to avoid paying highest rate tax for a bit - but then he was made redundant and was out of work for 5 months which has cost us a fair amount.
Between OH and I we have 3 endowments paying out in the next 2 years, at which point we will see how much mortgage is left as they certainly won't pay out anything like the amount predicted when we took them out in the high interest days of the early 90s.
Our house is our retirement plan - probably £600k equity in it so we will have to move somewhere cheaper at some point to free up the money.

bexster1975

I think there are huge numbers of variables for people answering this. I will be mortgage neutral in the next 6 months. But my job is terrible and I'm planning to leave to set up my own business. I have a pension and have done for ten years. This will need to be re visited once I am self employed. However my outgoings are small, so my savings ( offsetting the mortgage) could pay my expenses for at least two years. I'm 40. Don't know whether this is good or not. But it has given me choices so I'm happy

Bexster

maman

It's virtually impossible to say whether you're in a good position or not. I'd suggest you put unforeseen things like redundancy or ill health to one side and assume you'll continue to work until your planned retirement age. Then you need some forecasts of what your income from pensions and savings might be set against your outgoings. Outgoings are hopefully going to change if you pay off any mortgage and reduce travel etc.


When you've done the sums you should have an idea what to do next. Maybe you need to start overpaying the mortgage or building a nest egg of savings.


One thing the OS boards will help you with is cutting back on household costs especially food bills which should help.


Others will confirm but I believe that on the Debt Free boards (where you don't have to be in debt to post) you can complete a Statement of Affairs, a bit like a budget statement, and others will comment on how you can cut back on overall costs.

Aspen_Sky

Many thanks for the replies...interesting to hear your thoughts.

I suppose the Pension is the area that concerns me most. As I mentioned, hubby and I have been following more of a "lifestyle" path for the last few years, and pension contributions are dire!

Our current position (for both of us) is this:

Own home (3 bed detached) owned...mortgage free
2 x small btl rental properties owned...mortgage free
Cash savings approx 35k
Other investments approx 45k
Personal pension Peanuts!!! Total joint pot of about 30k! + state pensions
Absolutely no debt of any kind

I have always been suspicious of pension schemes and so have not invested heavily (probably a bit stupid of me). Both myself and hubby have always worked in small private companies, and so no work pension to look forward to.

The properties are in the North, so not of the kind of value that you would have in Southern climes!

Any thoughts much appreciated

bexster1975

Hi aspen sky

If you have been living a more " lifestyle" life for the past few years does that mean lower expenditure? Will the BTL properties not be used for either pension income ( through rentals) or a lump sum ( if sold)? Working out your outgoings each month will be a good start.
I'm not sure what you mean by left behind? £80,000 in cash and investments doesn't sound too far behind anything. If you know what your expenses are, when you hope to stop working, and whether you will have any debts to service once you stop working this will give you an idea of your needed retirement income. As other posters have mentioned, this can't take account of illness/ other problems derailing the best laid plans!

Bexster

maman

That makes it much easier to comment.
So what I said about doing the maths still applies but you'll need to know how much you need to live on per week/month/year. From what you've said the only income you'll have will be state pensions and the rents on BTL. If that's not enough then you need to think of other income generators. You can dip into your savings for some expenses but, personally, I would try not to use them for day to day living and you're unlikely to get much income from interest for the foreseeable future on anything low risk. That would leave you perhaps more BTLs or higher interest investments (with the risk they involve). What does your DH think?

[Deleted User]

Well I'm a good deal older than the poster ,but have been mortgage free for 20+ years. My late OH and I downsized when our big house was costing more to run than it was worth the effort for It took me awhile to get used to living in a smaller place (about a quarter of the size of our previous house) but evetually it has been a far better idea as the bills are pretty low and I live comfortably enough with no debts and am quite content with my lot.There is only me to feed so my food bills are quite low.When we moved we gave both of our DDs a lump sum to do what they wanted with rather than waiting for us to shuffle off:) They both used it to get decent houses and I was pleased as its set them both up.I have a roof over my head,food in the cupboards ,lots of friends and a very busy full life.I run my own car and am content with what I have .You seem to have more than enough from what you've said but I don't know what sort of lifestyle you have .Mine is centred around my DDs,son-in-laws, and my seven grandchildren.I am a very 'hands-on' Granny as I look after three of my grandsons after school and during the holidays full-time.I don't smoke and rarely drink.I enjoy holidays with the family every year ,but I also manage a few week-ends away with friends of sis-in-laws.I am lucky my family all live close by which helps I guess.

Aspen_Sky

Thanks all.

Just to clarify what I mean by "lifestyle", we are both currently choosing to work for only 8 months of the year, and spend the other 4 months overseas (to travel and escape the British winter!). We both really enjoy this, but it does mean that our income is now pretty low, and only enough to cover yearly expenses....there is nothing at all left over to increase our savings pots.

We would like to continue with this work pattern for the considerable future, but are slightly concerned that it means we can only "tread water" with our finances.

I guess this is what I mean by "getting left behind"!

bexster1975

Hi

Sounds like a great life to me! My previous comments still apply. Work out annual expenses on retirement ( as far as you know today) then look at pension forecast, state pension forecast and savings and investments and try to calculate how long that would last at the income level you need/want.

As long as you have enough to do what you decide is important, there is no "behind".

Good luck to you, sounds ideal to me if you can live the way you are doing until you are done

Bexster