How much to live on

CanalBoatTime

[Deleted User] said:

When do child maintenance and benefits end?

Will reduce next September (will need to negotiate, but banking on halving), and probably stop altogether 2 years later (Sept 2027).  So I’ll be taking an increasing amount out of DC pot (which makes the sums that much more interesting!).
You’re right, it’s going to get close, but my “back of a fag packet” sums seem to mirror Guiide’s, hitting a low of £75k @ 67 when state pension clicks in.  (SP 11.5k) + (DB 7k) + (3% SWR x 75) = £20,750
I hope my sums are right!  £25k including kids, and £20k by the time they start earning their own way!
I may have to look for a part time job!

I’m ignoring inflation (and not sure how much that will affect things.  DB will go up, SP will go up, but then so will cost of living, but not necessarily my DC pot.
Guiide has suggested a small ish annuity, but I’m not sure…

CanalBoatTime

Organgrinder said:

I'm not expert, but looks like you have it covered.

Keep monitoring the situation. And good luck for your retirement.

It’s just good to have someone else look at my thinking/sums!  As for monitoring the situation, I’m obsessing over it, but still not sure I’ll see/understand the mistakes.

Organgrinder

CanalBoatTime said:

[Deleted User] said:

When do child maintenance and benefits end?

Will reduce next September (will need to negotiate, but banking on halving), and probably stop altogether 2 years later (Sept 2027).  So I’ll be taking an increasing amount out of DC pot (which makes the sums that much more interesting!).
You’re right, it’s going to get close, but my “back of a fag packet” sums seem to mirror Guiide’s, hitting a low of £75k @ 67 when state pension clicks in.  (SP 11.5k) + (DB 7k) + (3% SWR x 75) = £20,750
I hope my sums are right!  £25k including kids, and £20k by the time they start earning their own way!
I may have to look for a part time job!

I’m ignoring inflation (and not sure how much that will affect things.  DB will go up, SP will go up, but then so will cost of living, but not necessarily my DC pot.
Guiide has suggested a small ish annuity, but I’m not sure…

Your DC pot should, given current conditions improve. You may wish to move it into lower risk funds.

But.....ensure you avail yourself of the many opportunities there are for additional income. It can make a huge difference and mean you can treat yourself or feel things are manageable.

I'm fortunate to feel my planning is comfortable and I could do without the above. But I choose to do so because it means I can travel more frequently etc.

CanalBoatTime

I am sure I’m missing out on the extras.  I have swapped bank accounts and set up a couple of extras, but I haven’t done anything else, will have a read through to try to find the alternative “tricks”!
Lower risk funds seem like a good idea, at least for some of it, but I’m not sure I will know what I’m looking at once I start!  I have had a meeting with My Wealth through work, but their cut looks huge, so I might just have to wing it and hope!  Bulk of DC is currently with Aviva Mixed Investment (40-85% Shares) which seem like cheap rates (0.18%).  They’ve said I can draw down from there, so may transfer other (older) pots into it.  I have a Pension wise appointment booked, don’t know if they will be any help.       

QrizB

CanalBoatTime said:

 I’ve recently applied (not heard back yet) for voluntary redundancy (compulsory redundancies to follow).  I’m 55, and feel like I’ve rushed the decision, but think I can make it work ...
I hope my sums are right!  £25k including kids, and £20k by the time they start earning their own way!

It's that end-of-year check-the-spreadsheets time and we're currently spending something like £3.5k a month. That includes two adults (self and OH) and two dependent kids (one at uni, the other in 6th form college), so we might drop back to £2.5k a month once they can stand on their own feet.

When is that, exactly? When they're 25? 30? 40?

I'm also mid-50s but not quite set to retire. I'll be dropping back to 3/4 time in the New Year, though, which is a step in the right direction. A couple more years and I should be ready, provided macroeconomics don't throw a spanner in my plans.

robatwork

CanalBoatTime said:

  I have a Pension wise appointment booked, don’t know if they will be any help.       

I'm not saying don't do the appointment, but the level of "guidance" that pensionwise will offer is generally tailored to people who would never visit a pensions or financial forum. Chances are you won't learn anything you don't already know or haven't seen on this thread. 

Albermarle

robatwork said:

CanalBoatTime said:

  I have a Pension wise appointment booked, don’t know if they will be any help.       

I'm not saying don't do the appointment, but the level of "guidance" that pensionwise will offer is generally tailored to people who would never visit a pensions or financial forum. Chances are you won't learn anything you don't already know or haven't seen on this thread. 

Plus they will learn even more if they read this forum regularly. Lots of threads about drawdown, 'have I got enough' etc 

Pensions, annuities & retirement planning — MoneySavingExpert Forum

kempiejon

robatwork said:

CanalBoatTime said:

  I have a Pension wise appointment booked, don’t know if they will be any help.       

I'm not saying don't do the appointment, but the level of "guidance" that pensionwise will offer is generally tailored to people who would never visit a pensions or financial forum. Chances are you won't learn anything you don't already know or haven't seen on this thread. 

It is handy to marshal your thoughts for the interview. I found having my plans and knowledge reaffirmed was reassuring. We went over the finer points of the small pots which I hadn't previously paid much heed to.
Yeah, I didn't learn much new but I got the piece of mind that I was about right and there's a download to keep.

Albermarle

kempiejon said:

robatwork said:

CanalBoatTime said:

  I have a Pension wise appointment booked, don’t know if they will be any help.       

I'm not saying don't do the appointment, but the level of "guidance" that pensionwise will offer is generally tailored to people who would never visit a pensions or financial forum. Chances are you won't learn anything you don't already know or haven't seen on this thread. 

It is handy to marshal your thoughts for the interview. I found having my plans and knowledge reaffirmed was reassuring. We went over the finer points of the small pots which I hadn't previously paid much heed to.
Yeah, I didn't learn much new but I got the piece of mind that I was about right and there's a download to keep.

You just have to be aware that they can not offer any personal financial advice ( you have to pay for that). They can offer guidance, give out info, point you in the right direction etc. A bit like these forums !

robatwork

Albermarle said:

kempiejon said:

robatwork said:

CanalBoatTime said:

  I have a Pension wise appointment booked, don’t know if they will be any help.       

I'm not saying don't do the appointment, but the level of "guidance" that pensionwise will offer is generally tailored to people who would never visit a pensions or financial forum. Chances are you won't learn anything you don't already know or haven't seen on this thread. 

It is handy to marshal your thoughts for the interview. I found having my plans and knowledge reaffirmed was reassuring. We went over the finer points of the small pots which I hadn't previously paid much heed to.
Yeah, I didn't learn much new but I got the piece of mind that I was about right and there's a download to keep.

You just have to be aware that they can not offer any personal financial advice ( you have to pay for that). They can offer guidance, give out info, point you in the right direction etc. A bit like these forums !

These forums, particularly the Pensions you one referred to above, give much better advice (with a small a) than pensionwise. PW will couch everything in terms that they can't recommend funds, or whether to go into drawdown, or what percentage you should keep in cash, gilts, bonds, pork bellies. But people on these forums can and will, especially on what not to do and will gladly warn against certain schemes or funds that a (paid for) advisor may be steering them towards for reasons not entirely in the posters interest.

The vast majority here, particularly those posting for many years including the one or two IFAs who give their time for nothing more than altruism, are just passing on their expertise because they like being helpful.