Comfortable Pension for a Single Person

MoneyWorry

Also, I get a bit of inspiration from my sister. Retired in 2012 on full basic state pension plus a £5500 pa NHS pension. Again no debts, no mortgage. She is one of the happiest, contented people I know. Yes, she has to be careful, but runs a car, has regular lunches out with friends and even a regular bottle of two or of wine. 

Whiterose23

Ultimately, i think it's great to plan ahead to retirement, but nobody can be sure whether they'll be enjoying retirement at all, let alone spending it single or as part of a couple. (Sorry, bit morbid but I'm a realist). So I'm not sure that going all out for a massive pension is always the right idea. It's good to read these more realistic (or realistic to me!) forecasts. My own position is full state pension, plus around the same again in a DB pension and a private pot, and I think I'll be ok on that.
It's a shame that most posters on here are the higher earners; it would be good to hear more from average and lower earners.

Mr_Countdown

Whiterose23 said:

Ultimately, i think it's great to plan ahead to retirement, but nobody can be sure whether they'll be enjoying retirement at all, let alone spending it single or as part of a couple. (Sorry, bit morbid but I'm a realist). So I'm not sure that going all out for a massive pension is always the right idea. It's good to read these more realistic (or realistic to me!) forecasts. My own position is full state pension, plus around the same again in a DB pension and a private pot, and I think I'll be ok on that.
It's a shame that most posters on here are the higher earners; it would be good to hear more from average and lower earners.

I’m in pretty much the same boat as you Whiterose23. When I take my works pension in a few years (at about 57) it will be about the same as SP amount and the lump sum I get will be divided over the 10 years to SP age to make up an amount I can retire on. Won’t be rich but will be nice to get off the hamster wheel and enjoy life. Taking on a stress-free part time job like dog walking or something could be an option to pay for a luxury holiday each year, otherwise I’ll still be able to afford a few budget holidays each year.

drummersdale

I will have completed 41 years with the Civil Service in October 2021 so my current train of thought would be to take partial retirement (if approved) in Feb 2022 when I would be 59 and work until 62 when my wife (who is also a CS) will have completed around 39 years (although she has been part time for a fair bit of that and just gone back full time now daughter is almost 18) and can perhaps retire when she is 58.  I realise that means I would lose a % of pension (as would she) but I don't really fancy working until I am 65 so that she can retire at 60.  I will get a reasonable lump sum and pension at 59 (plus supplemented by partial working for a few years) and then when she decides to call it a day she would also get a lump sum plus pension.  Daughter will hopefully starting university in September 2021 so some of the lump sum can be used to help her out - as we will get the minimum in terms of maintenance grant under the current rules.  I think when I did my last set of calculations we would have around £34,000 per annum for the 2 of us (plus money in the bank from our lump sums), which, if we have no Mortgage any significant debts by then should be OK until we hit 67/68 (god willing) for state pension.    Not sure where that sits in terms of being "comfortable" but if I retire at 62 I will have been working (counting the job I had when I left school and before I joined the CS) for 46 years and that's more than enough for me.

akh43

I retired almost a year ago at 60 and am single.  After getting a few quotes from work pension from age 55 and not being happy with the projection I spent a few years before retirement contributing as much as I could to an AVC that was linked to my work DB pension to boost it to an amount I was happier with.  My monthly DB pension is £1,079 and I actually pay more tax now than I paid the last couple of years working as my AVC contributions took me out of the tax band for the most part and I only paid a small amount of NI contributions.  It gave me a few years of living on a similar amount (actually £200 less a month) to what my pension would be on retirement and I knew without doubt that I would have no problems living on my pension.  I have very few and low bills compared to some I have read on here, no mortgage or debt and have a good amount of savings should it ever be needed. I have another pension from when I opted out which so far I have not touched.

I have been so much happier since I retired, have met new friends, have new interests and I am healthier as I joined a weekly walking group.  I have no regrets about retiring early even though I won't get my pension or bus pass for over 5 years.

drummersdale

akh43 said:

I have been so much happier since I retired, have met new friends, have new interests and I am healthier as I joined a weekly walking group.  I have no regrets about retiring early even though I won't get my pension or bus pass for over 5 years. - where I live - Merseyside - you can get a bus pass to travel across the county at 60 - I'm banking on it!

akh43

drummersdale said:

akh43 said:

I have been so much happier since I retired, have met new friends, have new interests and I am healthier as I joined a weekly walking group.  I have no regrets about retiring early even though I won't get my pension or bus pass for over 5 years. - where I live - Merseyside - you can get a bus pass to travel across the county at 60 - I'm banking on it!

I'm in Manchester, so not far away from you, but totally different, I won't get my bus pass until SP age and only the bus aspect is free to add the tram/train there is now a £10 a year charge.

drummersdale

I'm in Manchester, so not far away from you, but totally different, I won't get my bus pass until SP age and only the bus aspect is free to add the tram/train there is now a £10 a year charge.

That's a surprise as I always assumed Manchester to be quite progressive when it came to travel - just goes to show how there can be disparity with only 40-50 miles separating the two areas.  Glad to read you're enjoying your retirement - I hear great things from those who have!

LHW99

Interesting thread. One particular worry for me has been to ensure that either I or OH will be OK money-wise when one of us passes. It helps that we both have small DB's with 50% inheritable, but now that SP is not able to be passed on, we have been adding to both our SIPPs over recent years to ensure there is a bit of a cushion at that point - so drawing a lower amount to supplement initially and leaving a reasonable amount to replace a part of the non-inherited pensions in due course.

[Deleted User]

Just wondering how OP is getting on with retirement plans. Any news or updates?