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

retiringtoosoon

pensionpawn said:

Sea_Shell said:

pensionpawn said:

michaels said:

pensionpawn said:

Sea_Shell said:

We've recently dumped Sky for a firestick on Prime!!

Ads are a bit of a pain (on ITV etc) but we'll suck that up for a saving of over £30 a month!!!

With the size of your pots why don't you treat yourselves instead of putting up with the "pain in the a... adds". I'll never quite understand why people (including family and colleagues...) don't fully utilise the wealth that they have?

People might feel that the hassle is worth 360 that can then be spent on something else like another weekend break.

I get that when someone hasn't much set aside for retirement, however when you're pushing > £0.5M surely the act of saving money isn't the issue...?

For us, it comes back to value for money.  Not whether something is affordable or not.

I fully get that. However your original statement suggests that you are happy to suffer (? mild) inconvenience (the ads...) in order to save money. What will you do with the money that you have saved? Will it make a difference to your lifestyle on top of the money you already have? Just like an electron giving off energy when it moves between atomic shells, money only has value when it moves from A to B. 
I can afford an EV and have plenty of excess solar energy with which to charge it. However their cost (compared to a similar spec ICE vehicle) and our ~ 5000 annual mileage means that it's not value for money (for us). I can afford a Tesla Powerwall to soak up the spare solar energy, however its cost, and our annual energy import, means it's not value for money (for us). In these examples I am not compromising on my lifestyle in making the choice not to buy them.
A slightly different example is selling one of our two cars to save money (for other capital projects). This is because now only one of us works, and then only at 70%, and there are only three hours a week when both cars are in use. Now if I had a considerable sum of money squirrelled away then I wouldn't even be considering selling one of my cars, because the convenience of having two, even if only for three hours a week, would outweigh the need for extra cash / save on insurance, car tax etc.
A (very kind and generous) colleague of mine, with a small property empire, lives (with his wife and children) in a 100+ year old house heated by only one fireplace. He could afford double glazing, central heating etc however he prefers (not can't afford) not to, citing jumpers, extra socks etc as better alternatives.

Each to their own, and I'm not criticising you, just merely trying to understand the reasoning. However I am still yet to fathom the rationale of wealthy people who chose to cut back, minimise, do without etc to save money that they will never ever spend.

Inheritance?

pensionpawn

retiringtoosoon said:

pensionpawn said:

Sea_Shell said:

pensionpawn said:

michaels said:

pensionpawn said:

Sea_Shell said:

We've recently dumped Sky for a firestick on Prime!!

Ads are a bit of a pain (on ITV etc) but we'll suck that up for a saving of over £30 a month!!!

With the size of your pots why don't you treat yourselves instead of putting up with the "pain in the a... adds". I'll never quite understand why people (including family and colleagues...) don't fully utilise the wealth that they have?

People might feel that the hassle is worth 360 that can then be spent on something else like another weekend break.

I get that when someone hasn't much set aside for retirement, however when you're pushing > £0.5M surely the act of saving money isn't the issue...?

For us, it comes back to value for money.  Not whether something is affordable or not.

I fully get that. However your original statement suggests that you are happy to suffer (? mild) inconvenience (the ads...) in order to save money. What will you do with the money that you have saved? Will it make a difference to your lifestyle on top of the money you already have? Just like an electron giving off energy when it moves between atomic shells, money only has value when it moves from A to B. 
I can afford an EV and have plenty of excess solar energy with which to charge it. However their cost (compared to a similar spec ICE vehicle) and our ~ 5000 annual mileage means that it's not value for money (for us). I can afford a Tesla Powerwall to soak up the spare solar energy, however its cost, and our annual energy import, means it's not value for money (for us). In these examples I am not compromising on my lifestyle in making the choice not to buy them.
A slightly different example is selling one of our two cars to save money (for other capital projects). This is because now only one of us works, and then only at 70%, and there are only three hours a week when both cars are in use. Now if I had a considerable sum of money squirrelled away then I wouldn't even be considering selling one of my cars, because the convenience of having two, even if only for three hours a week, would outweigh the need for extra cash / save on insurance, car tax etc.
A (very kind and generous) colleague of mine, with a small property empire, lives (with his wife and children) in a 100+ year old house heated by only one fireplace. He could afford double glazing, central heating etc however he prefers (not can't afford) not to, citing jumpers, extra socks etc as better alternatives.

Each to their own, and I'm not criticising you, just merely trying to understand the reasoning. However I am still yet to fathom the rationale of wealthy people who chose to cut back, minimise, do without etc to save money that they will never ever spend.

Inheritance?

House, unless you rent?

Nebulous2

Kim1965 said:

I was Polar opposite to most on this site up to four years ago. I sat down one day to figure out my pensions and came to the conclusion there was no way i could ever retire.i had no debts, always over paid my mortgage. 
 Then i started looking at the spending lifestyle i was looking to support. I had been with the same insurance companies for 20 yrs, the same energy supplier, phone company etc, had 3 duplicate norton subscriptions, 2 netflix, paying 6 insurance covers for mobile phones no longer in the house, i could go on but i think you get the picture.
I now have a much better handle on the finances, but could be better still. I have learned that its not what you earn, its what you spend. I can  cope with ads on my music Channel.

I left school in 1980 and a distant relative took me aside when I got my first job. He said, "I want to tell you something important, it's not what you make that matters, it's what you do with it. One man will spend £120 a week on himself and have nothing to show for it. Another man will keep a wife and family on £80 a week, and still be able to lay something by." 

That made a mark, as he was someone I respected. I didn't always live by it, but I always came back to it. 

michaels

Our pension investments are down 6.7% YoY in cash terms so about 17.5% in real terms. (As a large proportion of our spend is on food and energy actually our inflation rate is probably higher)

Assume they make up 50% of our retirement income (the rest coming form state pension) and we are about 9% worse off every year for life going forwards.

Luckily there are also good years where investment gains outstrip inflation and we become better off.

LHW99

michaels said:

Our pension investments are down 6.7% YoY in cash terms so about 17.5% in real terms. (As a large proportion of our spend is on food and energy actually our inflation rate is probably higher)

Assume they make up 50% of our retirement income (the rest coming form state pension) and we are about 9% worse off every year for life going forwards.

Luckily there are also good years where investment gains outstrip inflation and we become better off.

We are down (ISA's + SIPPS) a whisker over 3% this year, so still well below inflation. However the average over the past 8 years is +6% so it'll do.

AlanP_2

Investments down 7.5% this calendar year. Not great, but could have been a lot worse.

Roger175

Well I seem to be one of the lucky ones. My Pensions are up 9.22% this year and my S&S Isas up 8.67%. Both year on year and adjusted to remove money added this year.

Mind you, I have little invested in funds and invest mostly in FTSE100 high yield individual shares (all dividends reinvested, although not necessarily, in fact very rarely, in the same company). I seem to have avoided many of the losses others have experienced this year, probably because I am not overly exposed to global markets, but I would fully accept that there have been years where I have missed out on the significant rises some global funds have made in recent years.  

NedS

Roger175 said:

Well I seem to be one of the lucky ones. My Pensions are up 9.22% this year and my S&S Isas up 8.67%. Both year on year and adjusted to remove money added this year.

Mind you, I have little invested in funds and invest mostly in FTSE100 high yield individual shares (all dividends reinvested, although not necessarily, in fact very rarely, in the same company). I seem to have avoided many of the losses others have experienced this year, probably because I am not overly exposed to global markets, but I would fully accept that there have been years where I have missed out on the significant rises some global funds have made in recent years.  

Exactly the same here, and I'm up 6.76% full year (2022) - not bad in a difficult year when global equity trackers were down 9%
Perhaps more importantly for me than total return, is the knowledge that my portfolio produced reliable cash streams of £1200/month so I know (when I retire) that my bills are covered, even when markets are down and I'm not a forced seller at distressed prices.

L9XSS

Moved my SIPP portfolio to cash in early November 2021.......just a hunch.....not trying to time the market, but did avoid the falls of 10/15/20% that some have felt. As interest rates rose so did the interest on my cash in my SIPP. I have moved about 40% back into funds and EFTs and will drip feed more, however I will leave 30% in cash in this SIPP whilst I’m getting a 3.2% rate. Continuing to work PT paying into work pension and adding £300 plus HMRC uplift into my SIPP. Mortgage is paid off. At 56 my income is 23k pa, At 60 my income will be around 43k p/a (DB pension plus PT work). At 62 retire. Unearned income should be around 40k p/a. 
Problem might be spending it, due to years of saving and overpaying mortgage.

pensionpawn

L9XSS said:

Moved my SIPP portfolio to cash in early November 2021.......just a hunch.....not trying to time the market, but did avoid the falls of 10/15/20% that some have felt. As interest rates rose so did the interest on my cash in my SIPP. I have moved about 40% back into funds and EFTs and will drip feed more, however I will leave 30% in cash in this SIPP whilst I’m getting a 3.2% rate. Continuing to work PT paying into work pension and adding £300 plus HMRC uplift into my SIPP. Mortgage is paid off. At 56 my income is 23k pa, At 60 my income will be around 43k p/a (DB pension plus PT work). At 62 retire. Unearned income should be around 40k p/a. 
Problem might be spending it, due to years of saving and overpaying mortgage.

Retire earlier?