1688 days.

andys15

Thrugelmir said:

andys15 said:

I actually want to save £420k in 4 years 7 months. 

Wanting to and can are very different things. Have made an allowance for inflation? 

It’s not a figure plucked out of thin air. It’s a realistic target if I want to. 

It’s depends where I want to put the money as I am saving it. 

I am aware of inflation though. 

ex-pat_scot

I'm sure you have thought of things such as these, but here goes. 
Just to confirm.
1. is it £250 per day, for each working day (220 per year) or every day (365 per year)
2. is it £250 into a pension (where it is tax-deferred) or post tax, into an ISA?
3. State pensions for you both. Do you know how many more years you need to get full SPs, and have you factored this in incl the cost of buying extra years.
4. is the £5000 pm the net that is desired from age 50 to 57?
5. what happens at 57 "drawing my pension".? You've made no mention of this / these.
6. are you splitting the money between both of you, so that you optimise tax?
7. I'm sure there's lots more you can share, that will allow a clearer picture of your approach, and allow some insights/ questions / help
8. if you are not interested in 7. then why are you posting.
9. are you looking to use this as an ongoing thread to track progress -  a bit of a way to hold yourself honest?

Audaxer

ex-pat_scot said:

5. what happens at 57 "drawing my pension".? You've made no mention of this / these.

I also wondered about his pension. If he wants to continue spending £5k per month, he must have a heck of a good pension to drawdown from at 57.

andys15

Cheers expat. 

£250 was just a figure after working out how many days I want to retire in. 

I won’t be putting £250 away each day. I can save between £7500 and £8000 each month. That’s what I have been doing for the past few years to pay my mortgage off ( was the wrong decision but there we go). 

I have asked recently retired people from my profession with similar interests and they are saying they give themselves £5k a month per couple and it’s plenty to live in and have a good standard of living. 

I have a SIPP pension I won’t be able to touch until I am 57. It is currently worth about 1.25 million. 

My wife has a final salary pension. She will take a big hit when retiring early. We will also probably take a hit on the state pension. 

I will put the £8k a month into premium bonds I think and then ISAs. I don’t know. 

Retiring early is a life decision which comes at a huge cost. My wife loses pension money, we lose money on state pension plus we are giving up a combined income of £250k. But we are sure it’s worth it. 

Dazed_and_C0nfused

There is no need to lose out on the State Pension, just make sufficient voluntary contributions till you reach the standard new State Pension amount (or slightly less if the final year doesn't add very much).

And your wife isn't losing any pension, she's going to get what she has contributed for.

Thrugelmir

andys15 said:

My wife has a final salary pension. She will take a big hit when retiring early. 

Don't draw the pension early. Make use of your other "investments" first. 

HeyYeah

£5K per month is quite high (£60k pa), and probably higher than the pension you can get at 57 from your £1.25 mil, especially since you are over your LTA (assuming you don't have any protection). But maybe that is OK or I've missed something.

Well done on paying off your mortgage and saving so much into your pension. I'm another who has paid of their mortgage (or very nearly), although maybe not logical  

It will be interesting to hear of your progress.

andys15

HeyYeah said:

£5K per month is quite high (£60k pa), and probably higher than the pension you can get at 57 from your £1.25 mil, especially since you are over your LTA (assuming you don't have any protection). But maybe that is OK or I've missed something.

Well done on paying off your mortgage and saving so much into your pension. I'm another who has paid of their mortgage (or very nearly), although maybe not logical  

It will be interesting to hear of your progress.

Thanks. I am hoping my pot will be about 2 million by the time I get to 57. Another 12 years or so to grow. 

andys15

Thanks Dazed. I need to look into the state pension. I have worked for 30 years , so about 35 years when I retire. Is that not enough?  

eskbanker

andys15 said:

Thanks Dazed. I need to look into the state pension. I have worked for 30 years , so about 35 years when I retire. Is that not enough?  

Not as clear-cut as that unfortunately, so you both need to check, via https://www.gov.uk/check-state-pension