Regret retiring too early with not enough money?

Number75

Ah - thanks for the info!
My age means that it was never very relevant to me so I was only aware of the 55 change.
I had thought that at 50 you couldn't get more than the 25% TFLS and the rest you had to buy an annuity so you couldn't just burn through it.
But I never had to paid that close attention to the rules!

noh

You could take 25% TFLS and drawdown within limits. So yes it wasn't possible to burn through the remaining funds.

BoxerfanUK

Of course, nobody wants to keep working and saving to have a comfortable retirement only to die before or shortly after retiring.

Equally, nobody wants to retire too early at say 55 with inadequate pension/income provision only to find they've lived to be 95 and had to struggle for 40 years.

atush

because in the past few years we've lost 3 friends (of our age) to cancer and so now we'd rather have a smaller income but more years of good health to enjoy.

And I could make major life decisions based on health conditions of my next door neighbors. Or the guy sitting next to me on the plane/bus/train.

But neither of us would be making the correct decisions, as the health of our friends or neighbors (local pollution not withstanding) have Zero effect on our own health and LE. So that really isnt the best way to go about panning your retirement.

Better to look into your own health/LE by genetics, lifestyle factors, and your latest checkup.

Linton

Corona wrote: »

.......
(PS A financial adviser once told me that pensions are calculated on the basis that: one-third of people never get to pension age; one-third of people die within 2 years of retiring, so that just leaves one-third to actually claim a pension).

From the data for males born in 1952 from the 2010 ONS tables:
95% are still alive at 21
82% are still alive at 65, 2% die aged 65-67
50% are still alive at 84
41% (ie 50% of those reach 65) are still alive at 87
2% reach 100

Sadly, the latest data (2014) is presented as life remaining expectancies rather than as % of the population which makes it more difficult to extract these figures.

Perhaps your FA figures show why DB pensions have failed.

justme111

atush wrote: »

And I could make major life decisions based on health conditions of my next door neighbors. Or the guy sitting next to me on the plane/bus/train.

But neither of us would be making the correct decisions, as the health of our friends or neighbors (local pollution not withstanding) have Zero effect on our own health and LE. So that really isnt the best way to go about panning your retirement.

Better to look into your own health/LE by genetics, lifestyle factors, and your latest checkup.

I do not think the post that you quoted was about life expectancy calculations. I think it was about emotional impact that made them reprioritise.

NeilCr

And, also, it's not impossible to find some work if later down the line of retirement you fancy doing something

I've been volunteering for some time now. Recently one of our managers left and they couldn't find a replacement. They are going to try again but in the meantime I was asked if I was interested in a certain part of the job on a part time temporary basis

I was and have just started. I'm really enjoying it - it is an area that I am very interested in and it's got my brain buzzing. There's no real pressure - I am lucky that I am financially stable (I understand that others are in a different position) and it was my choice to agree to it

AnotherJoe

justme111 wrote: »

I do not think the post that you quoted was about life expectancy calculations. I think it was about emotional impact that made them reprioritise.

Exactly. "wake up and smell the coffee" events.

AnotherJoe

Triumph13 wrote: »

A technique that helps me with those worries is to think about things in terms of a daily budget rather than a monthly or annual one. Say that your 'bills' total £900 a month out of your £3k leaving you £2,100 of disposable income. That's £70 a day. Before you start fretting about all the things you might want to do that would cost more than £70 for the day, think about all the ones that would cost less but still be a much better day than going to work.
<snip>

I've just done a quick spreadsheet-base summation of my bank statements and the like, and those numbers are actually close enough to make the £70 a day a great place to start !

.... Mrs AJ did however remark that £70 a day to spend on clothes in "White Stuff" seemed like a great idea to her :eek:

bugslet

atush wrote: »

And I could make major life decisions based on health conditions of my next door neighbors. Or the guy sitting next to me on the plane/bus/train.

But neither of us would be making the correct decisions, as the health of our friends or neighbors (local pollution not withstanding) have Zero effect on our own health and LE. So that really isnt the best way to go about panning your retirement.

Better to look into your own health/LE by genetics, lifestyle factors, and your latest checkup.

justme111 wrote: »

I do not think the post that you quoted was about life expectancy calculations. I think it was about emotional impact that made them reprioritise.

Got there before me, just me111. I'm hoping to retire at 55. Parents died at 63 father and 68 mother. I do take after my mother as far as a love orc chocolate and the excess padding goes. On the other hand I don't smoke and get a lot more exercise and fruit and veg.

However , my best friend died at 56, friend I was on holiday died three days ago age 62 and whilst logically it has no impact on my longevity, it's difficult to think just plain ignore it. For the first time in 26 years I'm planning to take off two weeks at once this year (not going anywhere); the cost of building up a biggish pot has been significant. I really hope to get the benefit!