1 brick at a time

longway2go

Just. Quick update, my savings have been building nicely which is a good job as we now need to do quite a bit of work on our BTL. It has meant that my focus has to be on building a pot for that. I am yet to get a quote but thinking it will be around 5k so it's going to pretty much wipe out the saving and maybe more.  I believe we will sell it although we still need to be sure on this and if we do I should have funds to make a large OP. So even though its not something now its building for the future. 
My original driver was always to have no mortgage and I still have that goal in mind although my view is becoming a bit more holistic now and I am considering other things to do with the money we have such as investing, EF and pensions as well as OP the mortgage. I don't have a final plan yet but what I do know is that my financial situation is so much better since starting this thread and really having a focus and that will remain.
Merry Christmas 

Grogged

Merry Christmas!
We've taken a similar journey, it was all about being debt free (basically no mortgage and paying now or the CC in full) and savings rich.
This has changed to being debt neutral and retirement happy.
For us this means still being able to pay the mortgage if we have to at the start of retirement.
In essence the idea is for the retirement pots to replace today's income as soon as possible.
It makes more sense to us to have a comfortable retirement and invest early for it than to reduce the time the pension pot will be actively growing and compounding by shortening the mortgage.
We still OP, just not as aggressively as we used to.
I think your plans make a lot of sense, you're adapting to still reach your goal. Whether you keep or sell your BTL, it's part of your journey and will help you reach your goal.
ATB, G.

longway2go

Thanks G, that's really interesting and helpful.  I still have lots to learn about retirement calcs etc but glad my head is moving towards an understanding of it all. 

MovingForwards

It will all work out in the end LW2G, even if you decide not to sell, it's prompted the need for a savings pot.

With retirement plans I worked backwards. Looked at my spreadsheet and removed mortgage related payments, everything to do with work and savings. That gave me the monthly outgoings I need on retirement; the mortgage would be paid off and savings will be where I want them to be.

Then I looked at existing pensions and state pension, compared that to monthly outgoings.
- I'm one of the lucky ones where full state pension (SP) is more than enough to cover them and leave leftovers.

I suspect you will have a gap between outgoings and pensions from work / SP. That's the figure you need to plug. 

A pension calculator will allow you to see how much is needed to be put away between now and retirement. Each year that's delayed, more needs to be added to make up the difference.

Sounds long-winded and complicated, but isn't really. Each Christmas I review finances and adjust my ¹/3 balance with savings, mortgage O/Ps and pension.

longway2go

Thanks MF, ai think I may be looking to you and G for some guidance once the BTL situation is sorted if that would be OK. 

MovingForwards

I'm only a beginner LW2G, but crunched numbers and am happy to provide links to places I've used to get me where I am now x

longway2go

Thanks MF it's a great starting place of you wouldn't mind. 

savingholmes

Good luck with your planning. Weigh up the benefits of a stocks and shares isa where you can access the money easily if needed versus a pension arrangement where you might have to wait to access it.

longway2go

Hi SH, thank you, good point. I need to have a look at a range of products. 

savingholmes

It depends whether you are a higher rate tax payer too how much of a draw the paying tax free into pension is - and whether you plan to draw enough money to take you over the tax threshold later in life. It can be worth letting your money going in pre-tax - and getting the growth on the tax back element. However depending on how big your other savings pots are - there is merit in putting your money into some kind of ISA after tax and letting it grow in the knowledge that you will be able to withdraw as much as you want, when you want, tax free.