I think I am doing okay aged 47

michaels

ex-pat_scot said:

Workerdrone said:

ex-pat_scot said:

Workerdrone said:  

It would be nice to see someone who has got there share their year on year fund balances :-)

. It would be nice to see someone who has got there share their year on year fund balances :-)

Not quite there yet.

Figures for comparison: (sorry as ever about tabulation).
Tax year end - age - pot value.

Apr-15	45	£ 262,492
Apr-16	46	£                  297,300
Apr-17	47	£                  396,128
Apr-18	48	£                  492,495
Apr-19	49	£                  563,958
Apr-20	50	£                  615,946
Apr-21	51	£                  833,840
Sep-21	52	£                  910,038

Wow! Thank you. I am extremely grateful. That's inspiring. An astounding set of gains in 7+ years. For balance (and for us none risk averse plebs, my gross is £36900 a year, with £14688 going into pension annually). I am assuming yours is greater (No insult intended, I just want to learn). Would you be offended if I enquired more as to your situation.  I am inspired. And of course I welcome anyone else to be as candid.

Sure. Veiled behind the veneer of internet invisibility!

I have a small DB entitlement, which I value at TV (£60,000 approx) from 2003 and thereabouts.
I have a SIPP with all non-current pensions, which has not had contributions since I consolidated in 2013 or so. It's all in VWRL now, although it was initially in a range of decent single company shares.
I started contributing to current GPPP scheme in 2015 with approx £30,000 in that year then £40,000 thereafter.
The GPPP is fully invested in a global diversified tracker for both existing funds and new contributions.
My gross has hovered around £130,000 or so since then, so it's a no-brainer for me to pile into pension under sal sac, to bring adjusted gross to £100,000. (If I took the slice between £100,000 and £130,000 as monthly income, instead of pension, then I would receive under £13,000 cash. Instead I get £40,000 into my pension including er contribution and some refunded er NI).

I am aware I have greatly benefitted from QE, raging bull market, Brexit (holding overseas equities gave me a 20% boost in 2016 when sterling depreciated after the vote). I do not expect returns to continue in the same vein, but then again did not expect the returns we've had.

I have broadly converging lines on the graph. Total pot, LTA and age.
I've got a couple more years before I hit earliest access age of 55.
A lot can (and will) happen before then, both in my family and the whimsical toying of the market / investment gods.

I expect to slow or stop depending on the following events / factors:
- hitting or approaching LTA. Might be next year or in 5 years. Who knows. Current trajectory has me hitting it around age 53.5 or so, but I do not expect the market to behave rationally even in the next couple of years.
- family challenge. No idea what's going to happen with aging parents.  Recent health chaos of close family members have reminded us of the fragility of life and health, and the need to be able to drop everything (including work) when something happens.
- work. Stable. Been in same / similar role in consulting for a decade. I'm in huge demand, as is my line of business and my firm. We and our clients simply cannot get any decent candidates for the many vacancies at the moment.  I've got great creds with clients and could easily step across to them (or a competitor) with minimal hiccup, if current job disappeared. (it's always possible for highly - paid roles even if fee-earning, and I've seen plenty of good people suddenly vanish from the firm)
- continue contributing the full £40,000 AA regardless of pot value. I'm getting roughly 70% effective relief on my contributions, so even if I were to blow the LTA then I'd still be ahead.  
- even above LTA I will continue to salsac the full AA whilst employed
- I dont have much savings, which is acknowledged weakness, but I could get sufficient credit (along with contracting or other work) to tide me along to 55 and pension access.
- I still have considerable monthly commitments for my children's uni and school fees, and these soak up the monthly net income (roughly £5,250 per month), and will continue for the next few years in varying amounts depending on which children are studying at which level.
- my wife's earnings don't quite use up PA, so there's little point in diverting my contributions and instead filling her pot, even if she will pay no tax in retirement.
- I still have the thorny issue of a decent mortgage, and will possibly remortgage offset IO before I then offset with PCLS cash.

- when I get to 55 I will take stock. Survey the land, the family situation and the finances.
It is likely that I'll be able to use the pension to generate roughly £4,000 net per month, with the two state pensions coming on stream further down the line.
Whilst I haven't set a fixed "number", I rather expect that will be enough. It's hard to be too precise, as family expenditure will morph significantly over the next decade as we transition the last of the teenagers into further education and adulthood.

Summary:
- surfing the returns. Continuing in the same direction for the next few years, at the least.
- alert to risks but not unduly worried about finances
- likely to hit 55 in a strong position, and to have options at that point (but not before).

I am similar asset wise and asset growth over the last 5 years but have done it from a much lower salary and utilising all the tools available plus not believing in private education for social cohesion reasons means much lower expenditure. However I have cleared my mortgage but could use it as a credit line of up to 300k which means I could easily go before 55 if I decide time is worth more than income. Historic SWR suggests with 2x full SP plus 900k pot plus a few other small income streams we could get from 51 to 95 with 39k pa gross.

Am looking into moving into civil service short term to convert some of the DC to db at preferential rates.

ex-pat_scot

michaels said:

ex-pat_scot said:

Sure. Veiled behind the veneer of internet invisibility!



Summary:
- surfing the returns. Continuing in the same direction for the next few years, at the least.
- alert to risks but not unduly worried about finances
- likely to hit 55 in a strong position, and to have options at that point (but not before).

I am similar asset wise and asset growth over the last 5 years but have done it from a much lower salary and utilising all the tools available plus not believing in private education for social cohesion reasons means much lower expenditure. However I have cleared my mortgage but could use it as a credit line of up to 300k which means I could easily go before 55 if I decide time is worth more than income. Historic SWR suggests with 2x full SP plus 900k pot plus a few other small income streams we could get from 51 to 95 with 39k pa gross.

Am looking into moving into civil service short term to convert some of the DC to db at preferential rates.

My children did/do/will do private only for 6th form, as the fab local state school stops at 16.
I have several at uni, and their loans are restricted owing to my salary, so I top up considerably.
The amounts for withdrawal are similar to you @michaels - @michaels whether it is £3,500 or £4,000 per month will depend largely on how much discretionary spend on holidays etc, as I am sure we could exist (not enjoy!) on much lower. Over the 40 years+ there will be lots of noise in the returns, but should be in the right ballpark.

Diplodicus

TimSynths said:

Diplodicus said:

Looks like you are doing ok, TimSynths!
I recommend sharesave schemes: not many unlosable bets in life but that is one. And don't rush to realise your profit at the end of term. One of my 3 year sharescheme options is now worth six figures.

I do the sharesave schemes- sadly i'm yet to win big, but I haven't lost money but I am in the banking sector

Unlucky. Banking has not been at the growth end of shares since the GFC. But even a doggedly depressed stock like Lloyds can offer opportunities for the sharesave investor: counting in the discount offer price to employees, its shares have doubled over the last year, with no risk. 

And they say every dog has its day!

TimSynths

Diplodicus said:

TimSynths said:

Diplodicus said:

Looks like you are doing ok, TimSynths!
I recommend sharesave schemes: not many unlosable bets in life but that is one. And don't rush to realise your profit at the end of term. One of my 3 year sharescheme options is now worth six figures.

I do the sharesave schemes- sadly i'm yet to win big, but I haven't lost money but I am in the banking sector

Unlucky. Banking has not been at the growth end of shares since the GFC. But even a doggedly depressed stock like Lloyds can offer opportunities for the sharesave investor: counting in the discount offer price to employees, its shares have doubled over the last year, with no risk. 

And they say every dog has its day!

This is true and at least I get a savings payout every Jan, current scheme I need the share price to increase 5p to return a profit by years end- so I think I will just be getting my money back on this one, however over the next three years one must come good...

MallyGirl

I have done very well with sharesave. I did once have to transfer shares to OH to avoid CGT. Husband hasn't lost any (you can't unless you count miniscule interest) but hasn't always gained much - but he does have the share match thing going too. His sharesave allows him to change his mind and buy back in within 6 months of maturity which he has done once now - share price climbed up for a bit and he was able to take advantage.

Diplodicus

The other good thing about sharesave is that it is a route into owning individual shares (which many on here are chary of) while offering protection against a poor spell.