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

Thrugelmir

Sea_Shell said:

Terron said:

shinytop said:

I think there are two separate aspects of spending in retirement (for me at least) you need to think about. One is getting used to spending money out of a diminishing pot and the other is getting the best value for money when you spend it.  I'm starting to get used to the former but I don't think I will ever stop doing the latter.

Ah, but what some of us experience is getting used to spending more from a growing pot, after spending decades saving to build up such a pot and then finding it more than covers what we have been used to spending. Getting best value is something we have generally been doing for decades too and won't stop.

I started taking some pensions in 2019. My post tax income for FY2019/20 was about double what I was taking home in my last job in 2013, after all deductions including paying into pensions. Before tax and deductions it was lower.

It is a nice problem to have, but still bears discussing.

I can appreciate that too.    You mentally gear yourself up to be spending from a diminishing pot, but we've got £53,000 more now than we had when I stopped work (21 months), and we've spent about £20,000, so we'd "made" £73,000.   

Until it's cash in the bank or a cast iron investment it's merely a figure on a piece of paper. 

Sea_Shell

Thrugelmir said:

Sea_Shell said:

Terron said:

shinytop said:

I think there are two separate aspects of spending in retirement (for me at least) you need to think about. One is getting used to spending money out of a diminishing pot and the other is getting the best value for money when you spend it.  I'm starting to get used to the former but I don't think I will ever stop doing the latter.

Ah, but what some of us experience is getting used to spending more from a growing pot, after spending decades saving to build up such a pot and then finding it more than covers what we have been used to spending. Getting best value is something we have generally been doing for decades too and won't stop.

I started taking some pensions in 2019. My post tax income for FY2019/20 was about double what I was taking home in my last job in 2013, after all deductions including paying into pensions. Before tax and deductions it was lower.

It is a nice problem to have, but still bears discussing.

I can appreciate that too.    You mentally gear yourself up to be spending from a diminishing pot, but we've got £53,000 more now than we had when I stopped work (21 months), and we've spent about £20,000, so we'd "made" £73,000.   

Until it's cash in the bank or a cast iron investment it's merely a figure on a piece of paper. 

It's not even on paper!!!  Just binery code on a server somewhere!!

But yes, I fully appreciate it's not hard cash, but still, we have to put some faith and trust in the numbers.

ex-pat_scot

Sea_Shell said:

Thrugelmir said:

Sea_Shell said:

Terron said:

shinytop said:

I think there are two separate aspects of spending in retirement (for me at least) you need to think about. One is getting used to spending money out of a diminishing pot and the other is getting the best value for money when you spend it.  I'm starting to get used to the former but I don't think I will ever stop doing the latter.

Ah, but what some of us experience is getting used to spending more from a growing pot, after spending decades saving to build up such a pot and then finding it more than covers what we have been used to spending. Getting best value is something we have generally been doing for decades too and won't stop.

I started taking some pensions in 2019. My post tax income for FY2019/20 was about double what I was taking home in my last job in 2013, after all deductions including paying into pensions. Before tax and deductions it was lower.

It is a nice problem to have, but still bears discussing.

I can appreciate that too.    You mentally gear yourself up to be spending from a diminishing pot, but we've got £53,000 more now than we had when I stopped work (21 months), and we've spent about £20,000, so we'd "made" £73,000.   

Until it's cash in the bank or a cast iron investment it's merely a figure on a piece of paper. 

It's not even on paper!!!  Just binery code on a server somewhere!!

But yes, I fully appreciate it's not hard cash, but still, we have to put some faith and trust in the numbers.

I struggle with getting through this with Mrs XPS.
I occasionally show her THE spreadsheet, and the seemingly inexorable progress.

"yes but it's all theoretical and could be lost tomorrow".

Frankly, any non-physical assets are a demonstration of trust in computers and the interconnected society. 
Cash in the bank is still binary code on a server, until withdrawn from a cash machine.
SIPPs and ISA balances are code on a server.
DB pensions are promises made on electronic communications.

Eldi_Dos

Sobering thoughts on a day that the appeals came through concerning the Horizon system

Sea_Shell

Eldi_Dos said:

Sobering thoughts on a day that the appeals came through concerning the Horizon system

Exactly.   If you're financially "paper free" where is your proof that you had £xxxx, before the computer had a brain fart and marked your account as zero!!!  

ex-pat_scot

Sea_Shell said:

Eldi_Dos said:

Sobering thoughts on a day that the appeals came through concerning the Horizon system

Exactly.   If you're financially "paper free" where is your proof that you had £xxxx, before the computer had a brain fart and marked your account as zero!!!  

It's not being "paper free" per se. If your assets are fundamentally held online, rather than as physical goods, then you are at the mercy of the asset-holder's control framework. Having simple affairs, taking statements and reconciling regularly are key to ensuring the accuracy of your assets held by others, whether they be bank, SIPP provider or Bitcoin exchange etc.

westv

ex-pat_scot said:

Sea_Shell said:

Thrugelmir said:

Sea_Shell said:

Terron said:

shinytop said:

I think there are two separate aspects of spending in retirement (for me at least) you need to think about. One is getting used to spending money out of a diminishing pot and the other is getting the best value for money when you spend it.  I'm starting to get used to the former but I don't think I will ever stop doing the latter.

Ah, but what some of us experience is getting used to spending more from a growing pot, after spending decades saving to build up such a pot and then finding it more than covers what we have been used to spending. Getting best value is something we have generally been doing for decades too and won't stop.

I started taking some pensions in 2019. My post tax income for FY2019/20 was about double what I was taking home in my last job in 2013, after all deductions including paying into pensions. Before tax and deductions it was lower.

It is a nice problem to have, but still bears discussing.

I can appreciate that too.    You mentally gear yourself up to be spending from a diminishing pot, but we've got £53,000 more now than we had when I stopped work (21 months), and we've spent about £20,000, so we'd "made" £73,000.   

Until it's cash in the bank or a cast iron investment it's merely a figure on a piece of paper. 

It's not even on paper!!!  Just binery code on a server somewhere!!

But yes, I fully appreciate it's not hard cash, but still, we have to put some faith and trust in the numbers.

I struggle with getting through this with Mrs XPS.
I occasionally show her THE spreadsheet, and the seemingly inexorable progress.

"yes but it's all theoretical and could be lost tomorrow".

Same here. I tell my wife what we have and she says "but it could all go to pot!

Sea_Shell

We hold tight to the fact that we could suffer a 16% drop, and still have the base amount that was our benchmark starting point.

michaels

Sea_Shell said:

We hold tight to the fact that we could suffer a 16% drop, and still have the base amount that was our benchmark starting point.

Probably worth also looking at the output charts on cfiresim that show clearly that often some of the worst paths start with a positive phase in the early years....

DT2001

Even in the worst path scenarios it will not derail Sea_Shell’s retirement with the cash held, spending level, and future guaranteed DB and state income.
Cfiresim, Guyton Klingon etc are interesting if you want to spend as much as you can or retire as early as possible. It seems as if many on this forum find it difficult to adjust to the decumulation phase and/or do OMY so will fortunately not need to be adjusting their spend regularly although they might reduce when the stock markets are falling.
Flexibility and peace of mind are I think the key. Since starting to read the threads on here I’ve adopted a flexible Number approach which helped with the 1st lockdown when we had minimal income for 4 months. I knew if forced into retirement we could do some of what we were aiming for but not all.