(NON FINANCIAL) Retirement plans/ dreams/ discussion.

atush

bluenose1 wrote: »

Ha, me to, just got in from work and put our heating on again, would you believe it's June.
Though no doubt I will be moaning about the heat when we go to Disney, Florida in August as I know from experience it is rather hot and humid. There again we only do the Parks in the morning and chill by the pool from early afternoon so I will be brave and soldier on!!! No matter the weather beats being in work.
Hoping it might be my last Summer in work.

I have a house there and i dont go in August! I did one year, just because i had a wedding to go to.

bluenose1

atush wrote: »

I have a house there and i dont go in August! I did one year, just because i had a wedding to go to.

That must be fantastic to have a house in Florida. We got friendly with a New Yorker who spends his summers in New York and winters in Florida, a snowbird. Though I think the other year he had some damage to his Florida home when there was some flooding.
Not sure if we will buy a property abroad or just do long let holidays.

Pauli354

I am 54 in a few months and plan to retire at 56 along with my wife.
I had originally planned to retire at 60, but some heart related issues have really got me thinking about my own mortality, and I have decided to retire earlier.

Thankfully, I will have my mortgage cleared next year and then I hope to boost my cash reserve with approx the last 16 months of earnings without major debt, and therefore have a larger cash reserve come retirement day.
I will have accrued 15 years pensionable service with my current company, as well as having 2 other frozen pensions.
My wife will retire with a really good package being able to avail of a Health Service early retirement scheme which allows her to leave at 55 with full pension rights, and having accrued what will be the equivalent of 49 years superannuation by the time she retires (as her pension will be paid as if she worked to 67)

We won't be loaded, but with no large expenditure, we will be comfortable.
We plan to buy a motorhome and tour Europe initially. Cant bloody wait! :j

cfw1994

vulcanrtb wrote: »

Very good point, ProDave. I use the term 'smoothing' when describing my approach to friends and colleagues. I plan to drawdown 40k a year on retirement then reduce it as various other pensions (one DB then SP) come online so I get a consistent 40k a year forever (in today's terms).

I sometimes wonder if that makes sense long term.
I would expect most people to spend more in the earlier part of retirement compared with the later parts.
For example, this perspective from a reasonably wise fella.
Backed up by this US report.

Certainly there could be unforeseen health issues costing money later (but that could happen any time...).

For a given value of X that one thinks one needs on early retirement, I would imagine needing something like
100% of £X for ages 55-65
80% of £X from 65-75
70% of £X from 75-85+

Any other views here?
(& apologies - this thread title is (NON FINANCIAL) & I have dropped into this...but I am talking %s, not numbers :rotfl:

MallyGirl

I would expect it to ramp up again in later years - even if you don't need residential care you might want help in the home and you are likely to pay people to do things that you would have done yourself when younger and stronger.

cfw1994

MallyGirl wrote: »

I would expect it to ramp up again in later years - even if you don't need residential care you might want help in the home and you are likely to pay people to do things that you would have done yourself when younger and stronger.

Interesting, thanks.
Any 'evidence' to back your expectations up, or is it "gut feeling"?

Having now got elderly relatives in their 80s, their costs have definitely declined quite dramatically from around 65-70. Perhaps in part because they are a "more frugal" generation anyway....
Even now, with hospital visits and carers (4 visits a day when not in hospital!) being involved, their direct *costs* have not massively hockey-sticked up: any future inheritance will certainly be eroded by this, and if it goes on for multiple years....but frankly it is their money & they should spend it to be as comfortable as possible, including being in their own home as long as possible.

The Prudential did a report a few years back that found very much the opposite to your thinking: that "in reality, consumption falls and savings rise during retirement".
I know I want to do more travel than I currently do, but a lot of that might be UK/Europe-based, and whilst we are still fit & healthy, we are very happy camping (maybe that campervan!) to keep local travel costs low.....I still suspect my 'declining spending' theory will hold for us (& I am talking what is hopefully a 30+ year timeframe).
I wonder how many 70-75+ year olds go on lots of expensive global travel...

MallyGirl

cfw1994 wrote: »

Interesting, thanks.
Any 'evidence' to back your expectations up, or is it "gut feeling"?

gut feeling - based on how much my great Aunt's care was costing, plus seeing Mum pay for gardener, decorators, cleaner, etc which she would have done herself in the past. She also runs the house at a very warm temperature all year so the bills are huge.

cfw1994 wrote: »

I wonder how many 70-75+ year olds go on lots of expensive global travel...

My Mum and her husband, my Dad and his wife - both working on the 'can't take it with you when you die' and 'this might be the last trip' approach. Mum loves Africa, Dad's kids are mostly in Aus/NZ so he has to travel if he wants to see them. It is their money and I am glad they are spending it on themselves.
I guess we are probably not the average family but it is the one I know best!

cfw1994

MallyGirl wrote: »

gut feeling - based on how much my great Aunt's care was costing, plus seeing Mum pay for gardener, decorators, cleaner, etc which she would have done herself in the past. She also runs the house at a very warm temperature all year so the bills are huge.

My Mum and her husband, my Dad and his wife - both working on the 'can't take it with you when you die' and 'this might be the last trip' approach. Mum loves Africa, Dad's kids are mostly in Aus/NZ so he has to travel if he wants to see them. It is their money and I am glad they are spending it on themselves.
I guess we are probably not the average family but it is the one I know best!

I can see that with bills & costs of running the house. & glad they are spending it: my own parents were painfully frugal to the end (25 years ago), trying to get OHs old folks spending has never been easy!

MallyGirl

cfw1994 wrote: »

my own parents were painfully frugal to the end (25 years ago), trying to get OHs old folks spending has never been easy!

Same with OH's parents - my Mum, not so much :rotfl:

atush

bluenose1 wrote: »

That must be fantastic to have a house in Florida. We got friendly with a New Yorker who spends his summers in New York and winters in Florida, a snowbird. Though I think the other year he had some damage to his Florida home when there was some flooding.
Not sure if we will buy a property abroad or just do long let holidays.

Probably wise not to own a holiday home abroad. i own 2, and they can be expensive. But i am american and want a place to retire half the year to eventually, and i need a place to be registered to vote, pay tax etc (fl is cheaper for tax as you dont pay State income tax). As i sold our family home when my mom died in 2001.

Hurricane irma was supposed to go right over the top of my house. I went to bed at midnight convinced i would have no home when i woke up. But it took a dog leg turn and went inland south of me so no major damage just some rain blown under the front door. Some roof shingles off etc.

We have a little gite in Brittany we have had since 1990. It cost like 5000 gbp. Will sell it in a few years once the OH retires fully i suspect. Used it for weekends and the odd week when we lived in Jersey. Only use it for a few weeks now.