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

ErinGoBrath

waveydavey48 said:

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. 

50x current revalued pension as a bare minimum at age 55. This matches current RPI annuity rates. Maybe a larger multiplier if the pension has a lot of high revaluing GMP in it.

DairyQueen

ErinGoBrath said:

50x current revalued pension as a bare minimum at age 55. This matches current RPI annuity rates. Maybe a larger multiplier if the pension has a lot of high revaluing GMP in it.

Good luck with that.

Not sure where you sourced your multiplier figures but x40 is considered very generous. Depending on personal circumstances x30+ looks good.

I have limited life expectancy, OH has generous DB pension, no dependents, reasonably au fait DIY investors, plenty of other assets. At x32 I was very happy to transfer (with positive recommendation) in 2018.

ErinGoBrath

DairyQueen said:

ErinGoBrath said:

50x current revalued pension as a bare minimum at age 55. This matches current RPI annuity rates. Maybe a larger multiplier if the pension has a lot of high revaluing GMP in it.

Good luck with that.

Not sure where you sourced your multiplier figures but x40 is considered very generous. Depending on personal circumstances x30+ looks good.

I have limited life expectancy, OH has generous DB pension, no dependents, reasonably au fait DIY investors, plenty of other assets. At x32 I was very happy to transfer (with positive recommendation) in 2018.

You did ask. Even at 50x I would probably still be minded to keep my DB. Eggs and baskets.

Edit: And possible LTA issues as it is now frozen for 5 years.

Sea_Shell

Morning all.

Just a little bit of housekeeping done on the finances this morning.  

Robbed out our Virgin RSs that are maturing shortly to pay off an ending 0% stoozed Credit card
Put enough into the main account for the main CC balance due shortly
And also topped up accounts with enough to cover DD's etc for the first week in May.

Yes, technically I've done myself out of a couple of £ interest, but at least we can now go away, whenever, and know that the banks can take care of themselves for 4 weeks!!

Just now keeping an eye on the weather forecast, before booking!


Total pot is enjoying the recent uplifts to fund prices!

michaels

Sorry to hijack your thread Sea-shell but it seemed relevant to the discussion.  With the markets being so high, I think we can probably afford to spend more than we have been doing up to now.  However every bone in my body hastes wasting money and I have no idea how to get out of this mindset.  You have been underspending these last few years, do you worry about whether you are spending enough and have any plans to help?

fred246

I sometimes worry I am not spending enough but then my wife helps me out and puts things right.

Sea_Shell

michaels said:

Sorry to hijack your thread Sea-shell but it seemed relevant to the discussion.  With the markets being so high, I think we can probably afford to spend more than we have been doing up to now.  However every bone in my body hastes wasting money and I have no idea how to get out of this mindset.  You have been underspending these last few years, do you worry about whether you are spending enough and have any plans to help?

I know what you mean!!!  When you've been a lifetime saver, that's a hard habit to break.   I also agree about the feeling of "wasting" money, and that you still want to get value for money.   Lockdowns haven't helped, obviously, as we haven't been able to "do" lots of things that we'd planned to do in 2020, which was our first whole year both retired.

Looking at the figures (yes, they appear to be particularly good at the moment), we could easily afford to be spending £20-25,000 p.a.   Maybe once things return to proper normal (here's hoping they do) then with a few foreign holidays thrown in, we should get closer.

We're just not ones for gadgets and new stuff, or clothes etc.   We very rarely replace things just "because", it's usually if they are at the end of their life, and NEED replacing!!    I've been selling a few bits on FB too.

Were still really twitchy about signing up to memberships of things too ATM,  gyms, National Trust etc. as I'm not yet confident that we'll get full use of them without further restrictions being put in place.

But its also the little things that we need to change...like stopping off at a local café, for a drink and a snack, whilst out and about, rather than always taking our own.   DH hates queueing, so can't be bothered with the takeaway thing.

We just don't have expensive tastes or hobbies.    I can't suddenly magic up a whole different lifestyle...but we'll give it a stab, which is partially what this thread is about.   Our transformation from saver to spender.


As for a plan to help you.    If you find one can you let me know!!     

Seriously, it's easy to say something like "allocate yourselves £50 a week as "fun / don't care" spends, and then spend it.    But even if you did this and moved the money to another account especially, at the end of the month, you'd probably just have £400 in a different account!!! 

saver_ali

it’s reassuring that we’re not alone in finding it difficult to change our spending habits, after years of being careful with money. I’m glad I’m not the only one to take a flask out with me rather than getting a takeaway! On the rare occasions we go for an expensive meal I often regret it. 

One nice thing though is that if you have an emergency, like a broken washing machine or a big car repair, you don’t have to worry because you have the money for it.

The only thing I can reconcile is going on nice holidays, but I spend a lot of time shopping around to get good deals, and we prefer self catering with the occasional meal out rather than All Inclusive or eating out all the time.

We have been gradually doing house repairs and renovations as well. We’ve just had the bathroom replaced, but that was long overdue as it’s been 25 years since we moved in. 😀

westv

A flask and sandwiches when you go shopping?! 

Stubod

...there should be a separate thread on "changing mindset from saving to spending". This has been a problem for us (me) since we retired a couple of years ago.

I have changed the format of our monthly budget spreadsheet from focusing on "monthly amount saved" to monthly "excess money",  ie the difference between what we planned to spend, and what we actually spend. As Seashell says, you could put all any excess into a separate account  as "money waiting to be spent, but you would probably just end up with yet another "savings" account.