It's time to start digging up those Squirrelled Nuts!!!!

ErinGoBrath

swindiff said:

A £600k pension pot is considered "tight" now is it? 

Between two with no DB I would say it was. A 4% withdrawal is just £24k which is only aout 25% more than minimum / living wage.

We need £1,000 a month just to pay utility, council tax, car running costs and Sky TV bills. That is £15k a year gross on its own. That only leaves £9k.

On £30k a year we would be OK.

Other people's spends will vary of course.

ErinGoBrath

eastcorkram said:

ErinGoBrath said:

Sea_Shell said:

First quarter figures are in....

Our pots now stand at:
Pensions - £349,012
ISAs - £180,303 
Locked cash - £59,560 (matures in Sept)
Ready cash (net) - £9,020. (£12,000 total moved into ISA)

Compared to the end of 2020, we are up £236, but have spent £2,700.  So effectively up £2,936.   All pretty flat.

12 months to end March 21, we're up £91,860, with spends of £11,710, so growth of £103,570, or 20%  (but from the "low" point of last March of course - so skewed a lot)

You may have done OK last year but it looks a bit tight for retirement. Do you have any DB benefits kicking in at some point which may change the balance of the equation?

Whether it's tight or not, it's probably a lot better off than 80 or 90% of the population.

That is a fair point.

swindiff

ErinGoBrath said:

swindiff said:

A £600k pension pot is considered "tight" now is it? 

Between two with no DB I would say it was. A 4% withdrawal is just £24k which is only aout 25% more than minimum / living wage.

We need £1,000 a month just to pay utility, council tax, car running costs and Sky TV bills. That is £15k a year gross on its own. That only leaves £9k.

On £30k a year we would be OK.

Other people's spends will vary of course.

Most couples will also have approx £20k state pension.

ErinGoBrath

swindiff said:

ErinGoBrath said:

swindiff said:

A £600k pension pot is considered "tight" now is it? 

Between two with no DB I would say it was. A 4% withdrawal is just £24k which is only aout 25% more than minimum / living wage.

We need £1,000 a month just to pay utility, council tax, car running costs and Sky TV bills. That is £15k a year gross on its own. That only leaves £9k.

On £30k a year we would be OK.

Other people's spends will vary of course.

Most couples will also have approx £20k state pension.

I was looking at retiring before state pension age though. From SPA you're laughing really.

I suppose £240k could be notionally separated in the SIPP to pay two SP amounts for ages 55 - 67. This leaves £360k which would give £12k - £14k so a total of £34k pre and post SPA.

Looking at it that way it should be eminently doable.

EDIT: Plus the DB which I may take prior to age 60.

swindiff

I'm looking at retiring at 60. So I have my plan between 60 and 67 and my plan from 67 on when state pension kicks in.

ErinGoBrath

swindiff said:

I'm looking at retiring at 60. So I have my plan between 60 and 67 and my plan from 67 on when state pension kicks in.

Yes, it makes things clearer when i split this into distinct time periods. Though i suppose you may want more income in total pre SPA when you are young enough to be able to enjoy it more.

I guess I am going to find it difficult to switch from saver mode to spender mode. A small DB helps to reduce the risks though. No way would I trade that for a TV, not unless the multiplier generosity was insane.

EDIT: Spellchecker!

swindiff

That is exactly what we are doing. We should have approximately £10k per year more from 60 to 67 than we do from. 67 on.

Thrugelmir

Sea_Shell said:

First quarter figures are in....

Our pots now stand at:
Pensions - £349,012
ISAs - £180,303 
Locked cash - £59,560 (matures in Sept)
Ready cash (net) - £9,020. (£12,000 total moved into ISA)

Compared to the end of 2020, we are up £236, but have spent £2,700.  So effectively up £2,936.   All pretty flat.

12 months to end March 21, we're up £91,860, with spends of £11,710, so growth of £103,570, or 20%  (but from the "low" point of last March of course - so skewed a lot)

Comparisons to the 31/12/2019 or earlier are more likely to be meaningful. A month period starting in the middle of a dip are misleading. As a 20% recovery doesn't should particularly great. Even the FTSE 100 has recovered nearly 28% with dividends reinvested. 

waveydavey48

ErinGoBrath said:

swindiff said:

I'm looking at retiring at 60. So I have my plan between 60 and 67 and my plan from 67 on when state pension kicks in.

Yes, it makes things clearer when i split this into distinct time periods. Though i suppose you may want more income in total pre SPA when you are young enough to be able to enjoy it more.

I guess I am going to find it difficult to switch from saver mode to spender mode. A small DB helps to reduce the risks though. No way would I trade that for a TV, not unless the multiplier generosity was insane.

EDIT: Spellchecker!

Just out of interest what would count as an insanely generous multiplier? I have that decision to make in about 6 months when my DB kicks in. I asked for an illustration of benefits a couple of years ago and at that stage it was 34. Don't know if it will still be 34 when I have to pull the trigger. 

Sea_Shell

Thrugelmir said:

Sea_Shell said:

First quarter figures are in....

Our pots now stand at:
Pensions - £349,012
ISAs - £180,303 
Locked cash - £59,560 (matures in Sept)
Ready cash (net) - £9,020. (£12,000 total moved into ISA)

Compared to the end of 2020, we are up £236, but have spent £2,700.  So effectively up £2,936.   All pretty flat.

12 months to end March 21, we're up £91,860, with spends of £11,710, so growth of £103,570, or 20%  (but from the "low" point of last March of course - so skewed a lot)

Comparisons to the 31/12/2019 or earlier are more likely to be meaningful. A month period starting in the middle of a dip are misleading. As a 20% recovery doesn't should particularly great. Even the FTSE 100 has recovered nearly 28% with dividends reinvested. 

I fully appreciate that, that's why I said they were skewed.

For completeness, in Dec 2019, our total pot was £562k

Since then we've spent £14,000, and now have £597k, so by my maths (?), we are up 8.7% from December 19

£562k + 8.7% = £611k - £14k = £597k