How much to live on

GunJack

Timescales are what I've been looking at (again) recently, especially as this April our company closed the DB and gave us a relatively generous DC instead. I'm looking at 5 years next month to allow buildup of the new DC to allow me to go at 62 to bridge between DB1 @ 60 (the value of which will be salsac'd into new DC), DB2 @65 and SP @ 67.

Unfortunately we got caught in a mortgage trap after the 2008 GFC (we moved in 2007 ) or I may have been able to go a couple of years earlier, but we are where we are....

Organgrinder

It's been quite a few weeks on the markets. Not huge losses/gains but enough to bother me (it doesn't take much).

Most of this year's gains were wiped out but have now recovered thank goodness. However moving forward I'm probably a bit more cautious than I was. 

However, financial YTD growth on my S&S ISA is still above 5% and year on year growth on my private pension above 19%. 

I've now stoozed over £15,000 too and saved a further £5,000 this year in addition to my personal pension.  The past 2 years have, I think, netted me around £4,000 in free money. I must confess it still amuses me that an ex forum member would say he couldn't afford x y and z and then declare he had no interest in getting free money.

So as ever my how much to live off fluctuates a little but is looking very healthy as I creep towards retirement!

Pat38493

Organgrinder said:

It's been quite a few weeks on the markets. Not huge losses/gains but enough to bother me (it doesn't take much).

Most of this year's gains were wiped out but have now recovered thank goodness. However moving forward I'm probably a bit more cautious than I was. 

What is your investment mix?  From my point of view the markets have been fairly benign this year.  My mix of cash/bonds/equities has so far gone up by 12.8% calendar year to date and 7.2% tax year to date (after adjusting for contributions and withdrawal of some TFC).

There has been a couple of drops of 3-4% but they only lasted a week or two - nothing to write home about as far as I can tell and I will expect much bigger drops than that in future.

I'd be a bit more wary about the current wave of possible irrational exuberance, given the expected economic decisions inbound in the US, but again I don't really see it as a reason to change anything in my approach.

Organgrinder

It's about 40% bonds,40% equities....but split UK and us. 

louby40

Organgrinder can you elaborate on how you've got your £4K of free cash? And I'm so confused with stoozing, is that moving bank accounts for the ££ incentive?

Organgrinder

Yes of course. I switched bank accounts several times, getting incentives of £100-£200 each time.

I did the same with American express getting cashback of over £100.

Stoozing - I have 0% purchase credit cards over 21 months. Broadly speaking I have over £24,000 of credit available.

I spend on the cards but put the money into a 5% tax free ISA. Roughly speaking these will net me over £1,800 over the duration of the cards.

I also use Quidco etc. 

Hope that helps.

louby40

Thanks that's interesting 

Albermarle

Organgrinder said:

It's about 40% bonds,40% equities....but split UK and us. 

The UK stock market continues to underperform, despite noise about it being undervalued. Minus 3% in the last 3 months.
The US stock market continues to outperform ( or at least Big Tech does) despite noise about it being overvalued. Up 10% in 3 months .
Europe ( ex UK)  has been flat. ( Germany up but others down)
Far East has been doing well recently.
Bonds have fell back due to predictions that interest rates will fall more slowly than expected 3 months ago.

If I was you I would be a bit more diversified geographically ( less in UK), and try not to think about short/medium term movements. Investing is a long term game .

Organgrinder

Oh I know it's a long term game......I just check it far too often. 

Returns overall are fine. 20% of the fund is not in US/UK stock. It's managed as I don't have the time nor the expertise to do it. Currently looking like a return of around 8% for the year I think, which is fine. Hardly stellar I know but it's fairly low risk which is what I want, and it's beating inflation.

My pension fund on the other hand has grown 20% in a year. Without any real terms growth this will be more than enough to retire at 61. But if it achieves sufficient real term growth I'll retire at 60. The fund itself is only needed for the years up to SPA as final salary schemes and the state pension give a pension forecast of £35k pa and with Mrs O we'll have over £50k pa between us along with more than enough rainy day money (we think). 

The danger of course is the "one more year" mentality and thinking is X enough of a savings pot. But I think I'm at the point now where I can see the light at the end of the tunnel!

Albermarle

The danger of course is the "one more year" mentality and thinking is X enough of a savings pot. But I think I'm at the point now where I can see the light at the end of the tunnel!

There have been quite a few 'Have I got enough' 'can I retire yet' type threads on the Pensions forum recently, just in case you have not seen them, as they would presumably be of some interest.