A Paupers Pension Tale (Not many nuts to dig up)

gambleruk

c'est_moi said:

I don't know if this is the correct place for me or not 

Definitely the correct place for you, great story which I and I am sure many others have enjoyed reading, I think Michaels comment about it not being the correct thread was tongue in cheek due to the amount he mentioned. 
Many thanks for sharing and please feel free to keep contributing  

CloesUnc

c'est_moi said:

I don't know if this is the correct place for me or not - I was just sharing my experiences of taking the jump from the diving board over three years before I could access my pension. I don't have a pension pot really as I understand it as it is public sector. The reason for me sharing it on here was to say that despite my reservations the last 6 months have taught me that it is possible to live on one salary after nearly 30 years of living on two - and losing the one which was by far the highest. I know that the key factors for me were paying off the mortgage early, saving like crazy whilst we could and most importantly having a supportive partner in a job they love.

I know that by no standards am a 'pauper'. This thread just struck a chord with me because when I read other FIRE threads I am genuinely amazed at how much money some people will need in their retirement. What we currently live on, and even more so what we will have at age 55 and the 67 when state pension kicks in, is far more than many families have to live on. And we are just a couple with no rent or mortgage to pay.

I suppose I shared my story on here for all of those who are, like I was, trapped in a job they hate and feeling like it they will be suffering for years. I cannot begin to tell you how good it felt to give in my notice. Once I sat down and did the maths and realised that we really could live on what we already had - it was like a huge weight lifted of my shoulders.

Your story parallels mine pretty accurately. My partner and I probably have a little more put aside/accrued than you and your story is inspiring. My partner will continue working, while I'm about to leap from the diving board I think - two years until I'm 55, but I reckon I'm just about ready to stick two fingers up at work. 

pensionpawn

barnstar2077 said:

michaels said:

c'est_moi said:

This is a great thread, and it struck so many chords with me.

I posted a couple of years back about my own plans to leave work well before my retirement date and I had some lovely positive comments, and some not so positive. At the time I changed some details as I didn't want to make myself too easy to spot by people in work. But now I have finally gone and done it I can be more accurate with the details!

This is my story. I left work after 29 and a half years last December. I was aged 51. I have a pension I can start to claim in three years time. This will give me about £1200 per month. In addition I will get my lump sum of c. 32K. My husband is still working, at he is bringing home £1400 a month. The plan was to live off our savings (c £150 000) for the three and a half years until my pension kicked in. As it happens we have been living quite easily off my husband's salary so far. Covid has of course helped to reduce costs - no commute costs have saved £150 on petrol per month! Plus we would have probably spent an extra 3 - 4 K on holidays abroad. We have still had/will have 4 UK holidays this year instead though.

I have not yet paid in for a full state pension and will pay in to make up the extra years, but there is no rush to do that yet. I have half heartedly looked for a PT job but to be honest I am enjoying the stress free life I now have, though I would not rule it out. I do 'earn' about £25 per week on online surveys etc, and use this to pay for treats like funding my hobbies, but I have not even spent all of that so far. We are mortgage free - paid it off four years early to allow that savings pot to amass. My main worry is major work needing to be done to the house, and I can't pretend that does not give me anxious thoughts, but that is what the savings and lump sum are there for. We still run two pretty new cars and really could get rid of one of them if need be.

I Have to say that I have not had one second of regret of walking away from work and I know how very lucky I am. I am now only 52 and my time is entirely my own - even though covid has put many of our plans on hold. My hobbies are cheap - geocahing, sea glass collecting, walking, sewing, reading, gardening. I love having unlimited time to do them. I love not having that constant nagging voice in my head reminding me that I need to be doing things from work. My job was making me ill and my work place was becoming increasingly toxic. In the end my well being was more important than money. I am lucky I have a very supportive husband and my job paid well enough to provide me with enough cash in the savings and a decent pension, even taking it early.

I have found that I have needed far less money than I though I would in retirement. I know that big. unexpected bills will come our way, but I have also experienced the pure joy of being able to make last minute plans because the weather is great and because I have just been in the mood to go out there and enjoy life on my terms.

IT would need about 720k++ DC pot too get £1200 per month from age 55.  Not sure this is the right thread.

Not if you plan on running the pot down.  None one lives for ever!

Our thoughts exactly. We have no intention of being the richest people in the graveyard. Our strategy all along is the contribute as much as we can in the present (without compromising our lifestyle in the present) to establish as quickly as possible from 55 the minimum* sized pots required (taking account of two full SPs from 67) to support withdrawal (one via UFPLS) at our personal allowance (as a minimum) to depletion at around 85 (the age my parents checked out). The house (at least 50% of it) will go to the kids, the pension (what we don't give to the kids along the way) is ours! SP (plus accrued savings) from 85 is fine with us, especially given the lifestyle we witnessed from our parents nearing that age. We will have a 12 month cash buffer each, plough £3k6 back into one of our pots pa, and will save what we don't spend.
You only have a finite number of 'active' years to enjoy your retirement finances and it's more important to us to be using them enjoying all the things we can't fit in now around work, rather than continuing to work longer to generate a larger pot that we're unlikely to need / spend.
* of course, for everyone this is a best estimate based on what growth you hope to achieve and your spending requirements. Twice as much may turn out to be not enough, half the amount may turn out to be more than you ever needed. For us, better to run out of money (i.e. have to live off SP) than run out of time!

c'est_moi

My thoughts exactly! I'd rather run out of money than time. Even at 52 I feel the aches and pains I didn't 10 years ago. Right now I can still get out and do what I love - walking coastal paths, enjoying concerts and theatre (precovid of course), visiting NT properties. Since I left work I can do all of these things to my hearts content. I just love all of this time that I feel I gifted to myself. If one of my children phones and fancies a meet up I can just do it, no squeezing it in weeks in advance. I can make dental and hair appointments as soon as they have one available - no need to check the calendar first.

Who knows what may come in the future. But if I do have mobility issues at least I can take comfort in all of the adeventures I am having right now.

SouthCoastBoy

I think th op may be one of those pension millionaires. Two 15k final salary pensions plus 110k pension pot will equate to not far off a million 

gambleruk

SouthCoastBoy said:

I think th op may be one of those pension millionaires. Two 15k final salary pensions plus 110k pension pot will equate to not far off a million 

Lol I assure I am not and the two 15k pensions are just bog standard dc pensions pots, my old work one and the wife's current one which will hopefully grow in the next few years so 16 years is a long bridge to sp but been a great journey so far  

SouthCoastBoy

What do you mean by 15k dc pensions? Is that the amount in the pot or projected values?

gambleruk

Amount in the pots at the moment, my wife's is obviously on going but no more contributions to mine.

SouthCoastBoy

Sorry I totally misinterpreted your original post my apologies. Hope you enjoy a long retirement. I wish I had the confidence to retire.

bluenose1

c'est_moi said:

My thoughts exactly! I'd rather run out of money than time. Even at 52 I feel the aches and pains I didn't 10 years ago. Right now I can still get out and do what I love - walking coastal paths, enjoying concerts and theatre (precovid of course), visiting NT properties. Since I left work I can do all of these things to my hearts content. I just love all of this time that I feel I gifted to myself. If one of my children phones and fancies a meet up I can just do it, no squeezing it in weeks in advance. I can make dental and hair appointments as soon as they have one available - no need to check the calendar first.

Who knows what may come in the future. But if I do have mobility issues at least I can take comfort in all of the adeventures I am having right now.

Read an interesting book Die With Zero recommended by Ermine at SimpleLivingSomerset. Good argument against saving too much and retiring too late to spend what you have.

SimpleLivingSomerset is my all time favourite retirement blog, well worth a browse.

https://simplelivingsomerset.wordpress.com/