A Paupers Pension Tale (Not many nuts to dig up) 7 April at 9:18AM in Pensions, Annuities & Retirement Planning 43 replies 9.8K views

merlin321

I too am one of those on a modest pension pot, but the rules of the game apply to us all.  I fear for those who have no desire to learn about how to build up and spend their pension pots. The handy £2880 trick to add £720 for free is not commonly known among people I know. Today I decided to withdraw a small ufpls to use up my full tax free allowance. What a palava!  With aj bell this requires printing off the forms, all 7 of them. Then trying to understand to strange terminology and incomprehensible questions. Had to phone them to sort it
How my SO will cope if I go first I do not know.

bluenose1

Thanks Gambleruk for starting this thread. Love reading about actual experiences as there is only so much of the financial planning one can do.
You sound like you have a really good lifestyle now retired,  just shows how giving up work can make you so much happier.
I suppose we all have worries about whether we definitely have enough money for unexpected expenses but there comes a point when you just have to take that leap, says me who has decided to do a bit longer!!!
DIY Pensions by John Edwards is a really good book. One of the main things we have done as I am 55 this year is to use savings to maximise my SIPP contributions.
Not sure how old your wife is but definitely worth considering maximising her SIPPs especially if she can pull it out tax free in future years. 

bostonerimus

Being mortgage free is a big asset. You don't need a big pension pot if you don't spend a lot. I would do a detailed budget and see how your actual spending matches with your potential income sources and then adjust. You might find easy places to save and you might decide that some part time work would be useful. Most importantly, this is a joint venture with your wife so make sure you discuss everything and come to joint decisions.

John1965

Great post and an uncanny similarity to my own circumstances! I am 56 soon and had planned to retire at 62 but a number of factors have gradually brought this forward. The past year has given me a useful insight into aspects of retired life as I have had spells working from home. Feel determined to go next year and I am currently working through different financial options none of which will lead to an extravagant lifestyle. I am confident that I can manage on 15k p.a. but I share your anxiety about unforeseen expense. If nothing else the last year has really highlighted the fragility of life and has given me the push to achieve a better balance. Good luck to you and I look forward to your updates.

Whiterose23

The title of this post shouldn’t include the word ‘Pauper’, it should be ‘Average’ or ‘Typical’.
I’d almost given up following this forum as I couldn’t relate to the huge figures being discussed on here but I will be following this. Thanks for the post and refreshing to see your quality of life and the simple things are way more important to you than a huge pension pot.

WYSPECIAL

Great post that I will follow with interest. I can relate to a lot of it but took a part time job after redundancy. I enjoyed it and it was stress free so I went full time. Looks like my date to retire has been pushed back but I’m enjoying work at the moment.

Robert_McGeddon

gambleruk said:

I have always been good with money , I have run a spread sheet for the past 12 months (and can account for every penny I have spent since I first bought a house back in 1992)

This is a very useful financial discipline. I am amazed how many of my friends/acquaintances have little idea. Once you have the evidence of what you spend you have a platform to work from for retirement planning, be it cuts, increased contributions, extra discretional spend available etc.

Takedap

Robert_McGeddon said:

gambleruk said:

I have always been good with money , I have run a spread sheet for the past 12 months (and can account for every penny I have spent since I first bought a house back in 1992)

This is a very useful financial discipline. I am amazed how many of my friends/acquaintances have little idea. Once you have the evidence of what you spend you have a platform to work from for retirement planning, be it cuts, increased contributions, extra discretional spend available etc.

Many years ago, an old boss told me "If you don't measure it, you can't manage it".   Valuable advice.

Amateurretiree

I would say we have a modest/moderate retirement pot. DH has 250 000 in a SIPP, I have a 1400 pa NHS pension. Both now fully retired, I’m 59 DH almost 63.

While we can live on my pension, it’s just bills and food really, not much left over.
We have to be mindful if one uk us is left on our own we do not have the other SP, if I’m first to go DH gets half of my pension, so clearly we have to stay cautious.

Happy to report though we are happy with our lot, looking forward to a Florida holiday with our family as soon as we can, don’t smoke, drink much or have expensive hobbies, and can rein spending in when we need to. I think that’s the secret if I’m honest.

Amateurretiree

Edit, 14000 pa NHS pension.