Retirement Imminent - impact of coronavirus on your plans

DairyQueen

happyandcontented said:

I was planning on finishing in July this year, but as I am now working from home as is DH and we can't travel then I will carry on until we are asked to go back in. I work in tertiary education so that could be September, or it could be later if online teaching continues into the new academic year.
DH was planning on finishing in June next year and probably still will if travel is possible again. If not, he will carry on as his company has indicated that those over 50 who can work from home will do so for the foreseeable future. Walking across the landing to the office is not as arduous as jumping into the car and travelling miles to work.

In terms of finances, we are doing quite well. A no spend travel year will save us c15k and we have had several unexpected cash injections by way of a PPI payout, car accident claim payout and I took my small lump sum from the civil service at 60 in March this year.

We have cash savings reserves which would last us 5 years if we spent wisely and our pension pot is circa1.3m, we will have full SP at 67, our house is mortgage free and we have two newish cars. Our three children are all grown up and have their own homes and good careers so the bank of Mum & Dad is mainly closed! However, we would like to move in the next two years so that will incur costs, as the house we have in mind would need completely redoing to suit our needs and wants.

If travel had not been an issue we would have had to balance that with the house purchase/renovation, but it appears that the adventures we had in mind might have to be placed on hold for some time so that dilemma is probably resolved.

We are actually enjoying spending quality time together and it has been a dry run for retirement, albeit without the outside or travel activities that will entail. I was not definitely decided on finishing in July before the lockdown as I felt I might not be able to fully occupy myself. However, being locked down has proven that I can happily while away several hours reading, sitting in the garden, cooking, pottering and generally keeping busy.  I am also finishing a Literature degree via the OU so that will keep me busy too. I am now quite happy to finish work as I know I will be fine and have so many cancelled activities to rearrange that I will not have time to go back to work!

We have also found time to really count our blessings and help in our local community. We have benefitted from great service from our local small shops. Going forward, we have decided to reduce our reliance on supermarkets and use the shops who went the extra mile for us by providing deliveries which helped us keep our elderly parents supplied with essentials when online shopping deliveries went crazy.

So, in many ways, Covid19 has been a positive experience for us and for our retirement plans, but we appreciate how fortunate that makes us and we don't take anything for granted, as it has also shown us how life can change in an instant.

We also consider ourselves very fortunate that our retirement will not be derailed financially courtesy of coronavirus although I can't say that this black swan has been a positive experience. 

We have two, modest properties and Mr DQ is usually based at property number two during the week to facilitate working. Property two is an urban flat. He is now WFH in the guest room of property one - a very small cottage in a rural area. Neither property will accommodate both of us and all of our stuff and retirement always meant selling both and buying a bigger property.

The old schoolroom desk is too small so a ton of paperwork is now spread across the guest room bed and the radio (my usual domestic chores companion) must be muted. Our neighbours are lovely but both are now WFH and their teenage boys knock-off from schoolwork by lunchtime whilst the adults' work day finishes by 3p.m. The noise from the neighbouring garden kicks-off most days in the middle of Mr DQ's frequent conference calls.

He is desperate to regain the space and relative peace offered by his urban study and I am equally desperate to regain my usual weekday social and volunteering activities, all of which have been suspended.

Elderly mother is severely disabled so I need to continue visits to assist elderly father with her care and that means shielding almost at parents' risk level. Cleaner is unable to visit so I am now cleaning two homes and am the gofer for three (my brother is on the clinically vulnerable list). Cooking is over-rated when it is no longer an optional activity for the chef. The novelty of daily cooking wore off some weeks ago.

If this is a practice run for retirement then I would be very happy to return to work immediately.
(I am not a good person).

[Deleted User]

DairyQueen said:

First point... won't you lose the GMP protection if you transfer to consolidate? 

Second point... can I ask why you were so overweight cash and for so long?

First - yes but it is so small compared to the size of the pot. My career didn't take off until the last six months of employment when I had a massive pay rise. (I was one of those rags to riches stories at the company - I started on £2.60 an hour and left 11 years later on £84k p.a.)
Second - We have decided to move abroad to Spain, being that heavy in cash would guarantee the TFLS this November, which we could then move into more Spanish tax efficient investments ie ISAs and GIA where dividend tax/CGT can be balanced against pension income, the former is taxed less than the later

DairyQueen

crv1963 said:

Covid-19 has actually had a positive effect on our plans! 

Took my DB Pension end April- had served notice end of January before the current situation became so serious. Plan was to retire and then either work agency full time or return to work part time so as not to fall foul of the Pension Scheme Rules and top up with agency part time. Covid-19 has changed plans- Emergency Act cleared me for a retire and return full time, plus continued overtime without impacting on my DB Pension.

Net result, I have usual income plus pension (first payment due 1/6/2020), so we're clearing mortgage with my TFLS and using the remainder for further work age proofing our home- we like where we live and so have no plans to move, although that had crossed our minds. Using income to save the same amount of wife net earnings into her SIPP, and opening a SIPP in my name to save everything that I get taxed at HRT. We plan to draw down whatever is in the SIPPs at a rate equal to our SP until SP starts. My SIPP will likely then be empty but Mrs CRV will likely have enough to carry on draw down just under start of income tax rate for a few years after starting getting her SP.

I took a view- a hunch- that likely fall out from the extra cost to the Govt. may be the TFLS getting some sort of tax laid against it in the future and likely tax relief for HRT will be reduced- things that are always mooted around budget time but I thought I'd mitigate in my own little way. Paying off the mortgage isn't the best use of the TFLS I am sure but the "peace of mind" it affords Mrs CRV is worth it. 

Not withstanding our personal increased risk of catching the virus- both frontline essential workers, it felt wrong to retire completely at the time our skills are required, a personal view I know but one echoed by several other colleagues who have either delayed retirement, retired and returned (like me) or returned from retirement. Personally spending has dropped quite a bit, mainly fuel for travel to work (increased commute) and "meal deals from Tesco". No spend on days out but that has a worse effect on my mother than me- I still get to travel all be it to work.

I have found that I am spending more on mail order plants/ soil delivery and garden supplies- most of which I in turn pass on to Mum- at 81 she is spending around 12-14 hours a day in her garden and now she is pleased it is so large! It also looks good and I post pictures on line for my Uncle (her brother) and other family to see and she feels this brings her closer to them when she is told their comments.

I do miss going down my local on my days off- usually twice per week for a couple of pints and a natter with friends. Lockdown has had no impact on Mrs CRV lifestyle, she has carried on her normal go to work, go home, order hobby supplies on line, do hobbies!

Very pleased to hear that a retirement benefit will go some way to compensating for the extraordinary contribution made by you and others in the health service. Do you now plan to retire when the crisis is over?

happyandcontented

DairyQueen said:

happyandcontented said:

I was planning on finishing in July this year, but as I am now working from home as is DH and we can't travel then I will carry on until we are asked to go back in. I work in tertiary education so that could be September, or it could be later if online teaching continues into the new academic year.
DH was planning on finishing in June next year and probably still will if travel is possible again. If not, he will carry on as his company has indicated that those over 50 who can work from home will do so for the foreseeable future. Walking across the landing to the office is not as arduous as jumping into the car and travelling miles to work.

In terms of finances, we are doing quite well. A no spend travel year will save us c15k and we have had several unexpected cash injections by way of a PPI payout, car accident claim payout and I took my small lump sum from the civil service at 60 in March this year.

We have cash savings reserves which would last us 5 years if we spent wisely and our pension pot is circa1.3m, we will have full SP at 67, our house is mortgage free and we have two newish cars. Our three children are all grown up and have their own homes and good careers so the bank of Mum & Dad is mainly closed! However, we would like to move in the next two years so that will incur costs, as the house we have in mind would need completely redoing to suit our needs and wants.

If travel had not been an issue we would have had to balance that with the house purchase/renovation, but it appears that the adventures we had in mind might have to be placed on hold for some time so that dilemma is probably resolved.

We are actually enjoying spending quality time together and it has been a dry run for retirement, albeit without the outside or travel activities that will entail. I was not definitely decided on finishing in July before the lockdown as I felt I might not be able to fully occupy myself. However, being locked down has proven that I can happily while away several hours reading, sitting in the garden, cooking, pottering and generally keeping busy.  I am also finishing a Literature degree via the OU so that will keep me busy too. I am now quite happy to finish work as I know I will be fine and have so many cancelled activities to rearrange that I will not have time to go back to work!

We have also found time to really count our blessings and help in our local community. We have benefitted from great service from our local small shops. Going forward, we have decided to reduce our reliance on supermarkets and use the shops who went the extra mile for us by providing deliveries which helped us keep our elderly parents supplied with essentials when online shopping deliveries went crazy.

So, in many ways, Covid19 has been a positive experience for us and for our retirement plans, but we appreciate how fortunate that makes us and we don't take anything for granted, as it has also shown us how life can change in an instant.

We also consider ourselves very fortunate that our retirement will not be derailed financially courtesy of coronavirus although I can't say that this black swan has been a positive experience. 

We have two, modest properties and Mr DQ is usually based at property number two during the week to facilitate working. Property two is an urban flat. He is now WFH in the guest room of property one - a very small cottage in a rural area. Neither property will accommodate both of us and all of our stuff and retirement always meant selling both and buying a bigger property.

The old schoolroom desk is too small so a ton of paperwork is now spread across the guest room bed and the radio (my usual domestic chores companion) must be muted. Our neighbours are lovely but both are now WFH and their teenage boys knock-off from schoolwork by lunchtime whilst the adults' work day finishes by 3p.m. The noise from the neighbouring garden kicks-off most days in the middle of Mr DQ's frequent conference calls.

He is desperate to regain the space and relative peace offered by his urban study and I am equally desperate to regain my usual weekday social and volunteering activities, all of which have been suspended.

Elderly mother is severely disabled so I need to continue visits to assist elderly father with her care and that means shielding almost at parents' risk level. Cleaner is unable to visit so I am now cleaning two homes and am the gofer for three (my brother is on the clinically vulnerable list). Cooking is over-rated when it is no longer an optional activity for the chef. The novelty of daily cooking wore off some weeks ago.

If this is a practice run for retirement then I would be very happy to return to work immediately.
(I am not a good person).

I know what you mean about garden noise! We have a young family next door and although they too are doing schoolwork, it is when we are working. They appear to have their breaks when we do, so then garden reverberates with noise from the trampoline and football and just general 'letting off steam' racket.  In the evenings we love to sit out with a glass of wine and chat, but they are quite noisy then too! Our kids are grown up and I am at the stage where I don't want the sounds of kids playing to disturb my peace. My OH, on the other hand, loves the sound of it and laughingly says I am a grumpy old sod! I don't think I am a very good person either!!

I also miss my cleaner! Like you, we are shielding more than is needed for us as we support elderly relatives with shopping and medication runs.  I have managed to get MIL a priority slot for home deliveries from Tesco by going onto the COVID bit of their website and getting the number for the support team and registering her. I still do all the online ordering as she doesn't use a PC, but it is delivered direct so that means if we can't get up on a specific day she is not left without essentials. It is a very good service.

As for cooking, I agree, the novelty has worn off here too! It is the thinking about what to have, the prep and trying to have a variety of meals, that I find a bit tedious. However, most of what is tedious is COVID restriction related so hopefully, won't exist to the same degree in retirement.

Bravepants

happyandcontented said:

DairyQueen said:

happyandcontented said:

I was planning on finishing in July this year, but as I am now working from home as is DH and we can't travel then I will carry on until we are asked to go back in. I work in tertiary education so that could be September, or it could be later if online teaching continues into the new academic year.
DH was planning on finishing in June next year and probably still will if travel is possible again. If not, he will carry on as his company has indicated that those over 50 who can work from home will do so for the foreseeable future. Walking across the landing to the office is not as arduous as jumping into the car and travelling miles to work.

In terms of finances, we are doing quite well. A no spend travel year will save us c15k and we have had several unexpected cash injections by way of a PPI payout, car accident claim payout and I took my small lump sum from the civil service at 60 in March this year.

We have cash savings reserves which would last us 5 years if we spent wisely and our pension pot is circa1.3m, we will have full SP at 67, our house is mortgage free and we have two newish cars. Our three children are all grown up and have their own homes and good careers so the bank of Mum & Dad is mainly closed! However, we would like to move in the next two years so that will incur costs, as the house we have in mind would need completely redoing to suit our needs and wants.

If travel had not been an issue we would have had to balance that with the house purchase/renovation, but it appears that the adventures we had in mind might have to be placed on hold for some time so that dilemma is probably resolved.

We are actually enjoying spending quality time together and it has been a dry run for retirement, albeit without the outside or travel activities that will entail. I was not definitely decided on finishing in July before the lockdown as I felt I might not be able to fully occupy myself. However, being locked down has proven that I can happily while away several hours reading, sitting in the garden, cooking, pottering and generally keeping busy.  I am also finishing a Literature degree via the OU so that will keep me busy too. I am now quite happy to finish work as I know I will be fine and have so many cancelled activities to rearrange that I will not have time to go back to work!

We have also found time to really count our blessings and help in our local community. We have benefitted from great service from our local small shops. Going forward, we have decided to reduce our reliance on supermarkets and use the shops who went the extra mile for us by providing deliveries which helped us keep our elderly parents supplied with essentials when online shopping deliveries went crazy.

So, in many ways, Covid19 has been a positive experience for us and for our retirement plans, but we appreciate how fortunate that makes us and we don't take anything for granted, as it has also shown us how life can change in an instant.

We also consider ourselves very fortunate that our retirement will not be derailed financially courtesy of coronavirus although I can't say that this black swan has been a positive experience. 

We have two, modest properties and Mr DQ is usually based at property number two during the week to facilitate working. Property two is an urban flat. He is now WFH in the guest room of property one - a very small cottage in a rural area. Neither property will accommodate both of us and all of our stuff and retirement always meant selling both and buying a bigger property.

The old schoolroom desk is too small so a ton of paperwork is now spread across the guest room bed and the radio (my usual domestic chores companion) must be muted. Our neighbours are lovely but both are now WFH and their teenage boys knock-off from schoolwork by lunchtime whilst the adults' work day finishes by 3p.m. The noise from the neighbouring garden kicks-off most days in the middle of Mr DQ's frequent conference calls.

He is desperate to regain the space and relative peace offered by his urban study and I am equally desperate to regain my usual weekday social and volunteering activities, all of which have been suspended.

Elderly mother is severely disabled so I need to continue visits to assist elderly father with her care and that means shielding almost at parents' risk level. Cleaner is unable to visit so I am now cleaning two homes and am the gofer for three (my brother is on the clinically vulnerable list). Cooking is over-rated when it is no longer an optional activity for the chef. The novelty of daily cooking wore off some weeks ago.

If this is a practice run for retirement then I would be very happy to return to work immediately.
(I am not a good person).

I know what you mean about garden noise! We have a young family next door and although they too are doing schoolwork, it is when we are working. They appear to have their breaks when we do, so then garden reverberates with noise from the trampoline and football and just general 'letting off steam' racket.  In the evenings we love to sit out with a glass of wine and chat, but they are quite noisy then too! Our kids are grown up and I am at the stage where I don't want the sounds of kids playing to disturb my peace. My OH, on the other hand, loves the sound of it and laughingly says I am a grumpy old sod! I don't think I am a very good person either!!

I also miss my cleaner! Like you, we are shielding more than is needed for us as we support elderly relatives with shopping and medication runs.  I have managed to get MIL a priority slot for home deliveries from Tesco by going onto the COVID bit of their website and getting the number for the support team and registering her. I still do all the online ordering as she doesn't use a PC, but it is delivered direct so that means if we can't get up on a specific day she is not left without essentials. It is a very good service.

As for cooking, I agree, the novelty has worn off here too! It is the thinking about what to have, the prep and trying to have a variety of meals, that I find a bit tedious. However, most of what is tedious is COVID restriction related so hopefully, won't exist to the same degree in retirement.

Trampolines and noisy neighbours' kids seems to be a universal constant! I think kids, and adults too, don't realise that the local environment reaches way beyond the apparent "bubble" of their own backyard space, and things can be overheard at quite a distance. We live in a Victorian terrace property and a few weeks ago I was in my back garden and I could hear one of the kids from a few houses down mithering his mum for something. She promptly replied from the bathroom "HANG ON! I'M TRYING TO HAVE A POO!" I nearly choked on my beer!  

MaxiRobriguez

I'm miles away from retirement, but my contribution to the thread is thus:

We often advise that market investments are for the long-term, 5-10 years plus, so don't invest if you need access to the cash within such a timeframe.

That applies to people approaching retirement as well. Access to the cash is coming up, and so the portfolio should be balanced in such a way that you can take money from the portfolio without being forced to sell assets. Closer you are to retirement, more that ability needs to be in place.

If people can do that, iCOVID shouldn't have impacted their plans.

cfw1994

MaxiRobriguez said:

I'm miles away from retirement, but my contribution to the thread is thus:

We often advise that market investments are for the long-term, 5-10 years plus, so don't invest if you need access to the cash within such a timeframe.

That applies to people approaching retirement as well. Access to the cash is coming up, and so the portfolio should be balanced in such a way that you can take money from the portfolio without being forced to sell assets. Closer you are to retirement, more that ability needs to be in place.

If people can do that, iCOVID shouldn't have impacted their plans.

I broadly agree.....but the key really is in the balancing.   
Someone mentioned being mostly in cash for something like 18 months earlier...clearly there can be good reasons for that, but at the same time, there was a LOT of growth in the markets over that period, far more than the dips so far this year......
The old adage of having your age in % terms safely in bonds (or similar) is now a bit dated.
If you want to enjoy a 30+ year retirement (not too beyond the realms of possibility!), then my view is that you still need a reasonable amount of "skin in the game" of long term investments.   Many people assess their "risk profile" very low, perhaps due to concerns over not understanding the markets.
Definitely have enough in low risk places (cash, or premium bonds could cover this well IMHO) to cover you for 12-36 months (depending on attitude to risk!), but keep in mind the fact that you might still want growth in those pots.

MaxiRobriguez

cfw1994 said:

MaxiRobriguez said:

I'm miles away from retirement, but my contribution to the thread is thus:

We often advise that market investments are for the long-term, 5-10 years plus, so don't invest if you need access to the cash within such a timeframe.

That applies to people approaching retirement as well. Access to the cash is coming up, and so the portfolio should be balanced in such a way that you can take money from the portfolio without being forced to sell assets. Closer you are to retirement, more that ability needs to be in place.

If people can do that, iCOVID shouldn't have impacted their plans.

I broadly agree.....but the key really is in the balancing.   
Someone mentioned being mostly in cash for something like 18 months earlier...clearly there can be good reasons for that, but at the same time, there was a LOT of growth in the markets over that period, far more than the dips so far this year......
The old adage of having your age in % terms safely in bonds (or similar) is now a bit dated.
If you want to enjoy a 30+ year retirement (not too beyond the realms of possibility!), then my view is that you still need a reasonable amount of "skin in the game" of long term investments.   Many people assess their "risk profile" very low, perhaps due to concerns over not understanding the markets.
Definitely have enough in low risk places (cash, or premium bonds could cover this well IMHO) to cover you for 12-36 months (depending on attitude to risk!), but keep in mind the fact that you might still want growth in those pots.

Agree with this, wasn't necessarily saying go lower risk, but carry a cash balance in the years up to and then including retirement that will last three years, so you don't have to sell down your higher risk equities which you'll still need for the rest of the portfolio for what will for some be another 30+ years.

[Deleted User]

cfw1994 said:

MaxiRobriguez said:

I'm miles away from retirement, but my contribution to the thread is thus:

We often advise that market investments are for the long-term, 5-10 years plus, so don't invest if you need access to the cash within such a timeframe.

That applies to people approaching retirement as well. Access to the cash is coming up, and so the portfolio should be balanced in such a way that you can take money from the portfolio without being forced to sell assets. Closer you are to retirement, more that ability needs to be in place.

If people can do that, iCOVID shouldn't have impacted their plans.

I broadly agree.....but the key really is in the balancing.   
Someone mentioned being mostly in cash for something like 18 months earlier...clearly there can be good reasons for that, but at the same time, there was a LOT of growth in the markets over that period, far more than the dips so far this year......
The old adage of having your age in % terms safely in bonds (or similar) is now a bit dated.
If you want to enjoy a 30+ year retirement (not too beyond the realms of possibility!), then my view is that you still need a reasonable amount of "skin in the game" of long term investments.   Many people assess their "risk profile" very low, perhaps due to concerns over not understanding the markets.
Definitely have enough in low risk places (cash, or premium bonds could cover this well IMHO) to cover you for 12-36 months (depending on attitude to risk!), but keep in mind the fact that you might still want growth in those pots.

The cash was me, if I had left it where it was, I went in 26/7/18, and based on today then the falls in the DC 1 (we will call it) is currently -8.491%, DC 2 the amount is -4.841%
All of them are in the lifestyle standard strategy for those Company DC pots.
The cash growth on those are DC 2 1.267%, DC 3 0.689% (DC 3 attracts charges which the company doesn't pay)
I have been putting monthly into DC 3 on a different strategy and on average it is break even at 0%
I know the numbers because I have been tracking them daily.
I never got around to changing the retirement date back then.
As mentioned I know I was going abroad so planned to invest my TFLS when I retired in more tax efficient ways than pension income and I had a number and the cash was my guaranteed number.
This might not be for anybody else - but it suited me

crv1963

DairyQueen said:

crv1963 said:

Covid-19 has actually had a positive effect on our plans! 

Took my DB Pension end April- had served notice end of January before the current situation became so serious. Plan was to retire and then either work agency full time or return to work part time so as not to fall foul of the Pension Scheme Rules and top up with agency part time. Covid-19 has changed plans- Emergency Act cleared me for a retire and return full time, plus continued overtime without impacting on my DB Pension.

Net result, I have usual income plus pension (first payment due 1/6/2020), so we're clearing mortgage with my TFLS and using the remainder for further work age proofing our home- we like where we live and so have no plans to move, although that had crossed our minds. Using income to save the same amount of wife net earnings into her SIPP, and opening a SIPP in my name to save everything that I get taxed at HRT. We plan to draw down whatever is in the SIPPs at a rate equal to our SP until SP starts. My SIPP will likely then be empty but Mrs CRV will likely have enough to carry on draw down just under start of income tax rate for a few years after starting getting her SP.

I took a view- a hunch- that likely fall out from the extra cost to the Govt. may be the TFLS getting some sort of tax laid against it in the future and likely tax relief for HRT will be reduced- things that are always mooted around budget time but I thought I'd mitigate in my own little way. Paying off the mortgage isn't the best use of the TFLS I am sure but the "peace of mind" it affords Mrs CRV is worth it. 

Not withstanding our personal increased risk of catching the virus- both frontline essential workers, it felt wrong to retire completely at the time our skills are required, a personal view I know but one echoed by several other colleagues who have either delayed retirement, retired and returned (like me) or returned from retirement. Personally spending has dropped quite a bit, mainly fuel for travel to work (increased commute) and "meal deals from Tesco". No spend on days out but that has a worse effect on my mother than me- I still get to travel all be it to work.

I have found that I am spending more on mail order plants/ soil delivery and garden supplies- most of which I in turn pass on to Mum- at 81 she is spending around 12-14 hours a day in her garden and now she is pleased it is so large! It also looks good and I post pictures on line for my Uncle (her brother) and other family to see and she feels this brings her closer to them when she is told their comments.

I do miss going down my local on my days off- usually twice per week for a couple of pints and a natter with friends. Lockdown has had no impact on Mrs CRV lifestyle, she has carried on her normal go to work, go home, order hobby supplies on line, do hobbies!

Very pleased to hear that a retirement benefit will go some way to compensating for the extraordinary contribution made by you and others in the health service. Do you now plan to retire when the crisis is over?

To be honest I'm not sure. Mrs CRV will probably retire at her 55 or 56, I actually really enjoy my work but not the targets and endless blurb. I hope to go by age 60, I know I can fill my time constructively and travel abroad may be a safe possibility by then.