Lazy when it comes to saving money!

zippy1973

Linton wrote: »

How much income do you need to be comfortable?

Dont forget inflation. In 17 years your £150K would be worth £106K with 2% annual inflation, and historically inflation has been a lot higher than 2%.

Never thought of inflation. If I was to retire today, for my current lifestyle, I would be comfortable on the £1100 approx a month projected pension and topping up by drawing £400 a month from my savings. That would be more than enough


Very naïve as you can see when it comes down to this but I guess its better I am doing something rather than nothing!

richy999

I am in a similar position to you... same age and am a member of the LGPS.
Like you, I would prefer not to have to work till I’m 67 so am in the process of building up savings/investments to live off between the age I retire and 67. Obviously, the more I save, the earlier I can retire.

In answer to your question, yes, I think you are a bit lazy with regards to looking after your savings.
You might find more motivation to do something about it if you think of how lazy your savings are. Right now, they are working perhaps 1.5 days per week compared to your 5 days… they are not working hard enough to compete with inflation.

It doesn’t take a lot of effort to move your ISA funds into better paying accounts and the effects of compound interest over the next 17 years will certainly make it worthwhile.

woolly_wombat

YorkshireBoy wrote: »

That £500 a month could/should be making at least 5% AER...

Can you elaborate please?

AlanP_2

I know you said £14k LGPS at Age 60 but just checking as that is not the Normal Retirement Age for the scheme and taking it early would mean that there would be a reduction to cover the longer payment period.

Have you accounted for that in some way already?

AlanP_2

woolly_wombat wrote: »

Can you elaborate please?

Current & Regular Saver accounts paying 4-6% interest pa, lots of discussions on here about bets payers and any criteria to be met.

badger09

woolly_wombat wrote: »

Can you elaborate please?

In a current account, such as Nationwide FlexDirect, or TSB Classic Plus. Or in various Regular Savings accounts, with the above named @ 5%, or HSBC/M&S/First Direct @ 6% etc etc

zippy1973

richy999 wrote: »

I am in a similar position to you... same age and am a member of the LGPS.
Like you, I would prefer not to have to work till I’m 67 so am in the process of building up savings/investments to live off between the age I retire and 67. Obviously, the more I save, the earlier I can retire.

In answer to your question, yes, I think you are a bit lazy with regards to looking after your savings.
You might find more motivation to do something about it if you think of how lazy your savings are. Right now, they are working perhaps 1.5 days per week compared to your 5 days… they are not working hard enough to compete with inflation.

It doesn’t take a lot of effort to move your ISA funds into better paying accounts and the effects of compound interest over the next 17 years will certainly make it worthwhile.

Thanks. I agree and with previous comments I am going to start looking going forward

zippy1973

AlanP wrote: »

I know you said £14k LGPS at Age 60 but just checking as that is not the Normal Retirement Age for the scheme and taking it early would mean that there would be a reduction to cover the longer payment period.

Have you accounted for that in some way already?

Yes, that is after the reduction by taking it earlier than my normal retirement age, going by the online tool when logged into my account

Dan83

I always thought I was pretty good with money, always made sure I was getting something in return, I joined this site and straight away noticed Yorkshire boy is the man when it comes to saving.

Read and take note to what he says.

When I joined in early December, all my money was in a few accounts earning not a lot, I read a few post, noticed Yorkshire boy giving a lot of advice, I took his advice and opened a load of accounts, at 1st I was put off by the time it take, but honestly, I opened nationwide, TSB and tesco in my 30min dinner break.

If you are going down the current account route, the sooner you get it done, the better and it really doesn't take as long as you think, unless you have to ring them up, I was lucky and everything was done online.

AlanP_2

zippy1973 wrote: »

Yes, that is after the reduction by taking it earlier than my normal retirement age, going by the online tool when logged into my account

OK, good, just thought it was worth checking.

An option you might like to consider, using Excel maybe, is whether using more of your non-LGPS assets between 60 and normal LGPS retirement age (65/66) and delaying starting the LGPS may be better.

Essentially I mean smoothing your income as each "pot" becomes available - Cash/ISA or whatever then LGPS then State.