Retirement is great!

katejo

sgx2000 said:

katejo said:

43722 said:

I agree that retirement can be great, and so far has worked well for me. However, this does depend on having a sufficient income, bit sure that i would be saying that retirement is great if i could not pursue my interests.

1 friend of mine retired pretty early at 57 last October. She is with a partner who was a high earner (also retired but younger I think). Since retirement, they have been on several holidays. I do wonder how she can be sure that her income will last.

I think the answer to that is to keep a careful eye on your pension incomes.
If in drawdown - perhaps take 3% in periods of high inflation and 4% in periods of low inflation....
(yes I know that is too simplistic - but it cant be too far out)

My thoughts aren't as much about how much I will get. My pension is a university superannuation one so not money purchase. It's more about how long I will be healthy enough to go away on holidays and avoiding my savings being swallowed up in potential care home fees. 

Reddleman79

Retired at 52 from full time employment, which hadn't been enjoyable for many years, after opportunity of voluntary redundancy. Part time for a further four years in an pleasant job totally different from the other one, then full retirement at 56. Way too busy now enjoying myself!

sgx2000

katejo said:

sgx2000 said:

katejo said:

43722 said:

I agree that retirement can be great, and so far has worked well for me. However, this does depend on having a sufficient income, bit sure that i would be saying that retirement is great if i could not pursue my interests.

1 friend of mine retired pretty early at 57 last October. She is with a partner who was a high earner (also retired but younger I think). Since retirement, they have been on several holidays. I do wonder how she can be sure that her income will last.

I think the answer to that is to keep a careful eye on your pension incomes.
If in drawdown - perhaps take 3% in periods of high inflation and 4% in periods of low inflation....
(yes I know that is too simplistic - but it cant be too far out)

My thoughts aren't as much about how much I will get. My pension is a university superannuation one so not money purchase. It's more about how long I will be healthy enough to go away on holidays and avoiding my savings being swallowed up in potential care home fees. 

I have exerienced old age close up in the last few years. 
My mother is 87. Had 4 serious falls in the last 3 years....
She has her own flat in wardened accomodation.
But has needed carers to attend  twice daily....
Because she depleted her savings to less than 20k the local council fund most of the care cost. 
When she can no longer care for herself they will then fund a nursing home.
From what i have seen in the last few years the difference between private nursing homes and state funded is not much....

eastcorkram

sgx2000 said:

katejo said:

sgx2000 said:

katejo said:

43722 said:

I agree that retirement can be great, and so far has worked well for me. However, this does depend on having a sufficient income, bit sure that i would be saying that retirement is great if i could not pursue my interests.

1 friend of mine retired pretty early at 57 last October. She is with a partner who was a high earner (also retired but younger I think). Since retirement, they have been on several holidays. I do wonder how she can be sure that her income will last.

I think the answer to that is to keep a careful eye on your pension incomes.
If in drawdown - perhaps take 3% in periods of high inflation and 4% in periods of low inflation....
(yes I know that is too simplistic - but it cant be too far out)

My thoughts aren't as much about how much I will get. My pension is a university superannuation one so not money purchase. It's more about how long I will be healthy enough to go away on holidays and avoiding my savings being swallowed up in potential care home fees. 

I have exerienced old age close up in the last few years. 
My mother is 87. Had 4 serious falls in the last 3 years....
She has her own flat in wardened accomodation.
But has needed carers to attend  twice daily....
Because she depleted her savings to less than 20k the local council fund most of the care cost. 
When she can no longer care for herself they will then fund a nursing home.
From what i have seen in the last few years the difference between private nursing homes and state funded is not much....

No experience of state funded ones, but the two different ones my father in law was in for the last 3 years of his life, both fully private, were horrendous in pretty much all aspects. That was at an average cost over that three years, of around £1200 per week. 

SouthCoastBoy

sgx2000 said:

katejo said:

sgx2000 said:

katejo said:

43722 said:

I agree that retirement can be great, and so far has worked well for me. However, this does depend on having a sufficient income, bit sure that i would be saying that retirement is great if i could not pursue my interests.

1 friend of mine retired pretty early at 57 last October. She is with a partner who was a high earner (also retired but younger I think). Since retirement, they have been on several holidays. I do wonder how she can be sure that her income will last.

I think the answer to that is to keep a careful eye on your pension incomes.
If in drawdown - perhaps take 3% in periods of high inflation and 4% in periods of low inflation....
(yes I know that is too simplistic - but it cant be too far out)

My thoughts aren't as much about how much I will get. My pension is a university superannuation one so not money purchase. It's more about how long I will be healthy enough to go away on holidays and avoiding my savings being swallowed up in potential care home fees. 

I have exerienced old age close up in the last few years. 
My mother is 87. Had 4 serious falls in the last 3 years....
She has her own flat in wardened accomodation.
But has needed carers to attend  twice daily....
Because she depleted her savings to less than 20k the local council fund most of the care cost. 
When she can no longer care for herself they will then fund a nursing home.
From what i have seen in the last few years the difference between private nursing homes and state funded is not much....

I'd agree with the difference between private and state not being much, if anything, I have experienced both in my immediate family 3 grandparents, my mother and mother in law. In both cases when privately funded they were in with publicly funded residents as well. Ironically one of the best care homes I wanted my mum to go into wasn't available as it was 100% publicly funded only.

Albermarle

Expotter said:

Is this really the case? From BBC  and others this morning:

"People over 50 who left work during the pandemic are "much poorer" in general than other retirees, research suggests.

The Institute for Fiscal Studies (IFS) said 48% of those who retired in 2020-21 were now living in relative poverty.

They were less likely to receive a pension and had lower levels of well-being than other retirees, the IFS found.

It said disruption from the pandemic and perceived health risks may have forced many to leave work early.

Older workers between the ages of 50 and 70 who left in the first year of the pandemic were "not retiring in comfort", the IFS said, compared with those who had retired even just a year earlier.

The report, which was funded by the Joseph Rowntree Foundation, found that those who had retired in 2020-21 cut their spending on food by about £60 per week on average.

Nearly half (49%) had no access to either private or state pensions, compared with 43% of those who were newly inactive in 2019-20.

For a couple to be classified as being in "relative poverty" they would receive an income of less than £15,400.

The study noted that older people who stop working often never re-enter the workforce. "This group may be experiencing long-term poverty and greater hardship in the current cost of living crisis," it said."

https://www.bbc.co.uk/news/business-66120867

You  missed an important part of the article.

IFS director Paul Johnson told the BBC's Today programme that those who left the workforce in 2020-21 were "much poorer" compared with those who had retired a year later.

"Roll on a year and you've still got a lot more people than usual leaving the labour market but they look much more like pre-pandemic and they're more likely to be the people playing golf, relatively well-off, with a private pension," he said.

The issue seems to be people in their 50's, leaving the workforce during the peak of Covid/lockdowns, possibly partly involuntarily, or though  fear of disease, or other unknown reasons. Remember that some employers ( textile firms in Leicester for example) flouted all the rules and put employees in danger. A lot of these seem to have 'retired' with inadequate means, so probably 'retired' earlier than planned ( or more likely there was no planning at all) and then inflation hit as well. 

The retirees when Covid was winding down in 21/22 were more typical. Like me in fact, although I do not play golf !

pensionpawn

trevjl said:

I can go now if I want (60 and a half), been back at work 7 weeks after 6 months on the sick. Thoroughly enjoyed the time off (ignoring the illness) but still went back , Why ? I have no idea, I just really need that kick up the jacksie to chuck it all in.
I am going down to 3 day week in a couple of weeks time though.

This is the way..... Mrs PP did this first, dropping to 4 and then 3 days a week and eventually 0 days a week over an 18 month period just before turning 57. I'm doing the same, and including leave, I'm only "in the office" 27 weeks a year! However my job allows me to bank days and take time off in chunks, with a month off at a time around the default. Christmas leave now is December, I take September off for a late, cheap holiday etc whilst salary sacrificing almost down to my personal allowance, drawing from my pot if needed. Life is good especially as work knows that if they pi$$ me off I just walk, which with a 4 week notice period and banked days, could leave them in a tight spot. I'll keep going whilst I still enjoy my core job (I don't get the crap tasks now) and as I keep on reminding my colleagues "when the fun stops, stop!" lol..

pensionpawn

Ebeneezer9 said:

Johnnyy_Boy said:

I am coming up to 68, got more than enough money and still go to work because I enjoy it. At the moment it would seem very strange not working. Just thought I would give the other side 😉

I’m due to retire March2027 but concerned about the impact on my mental health.  I love every aspect of my job, get a massive kick from passing on my knowledge and skills to apprentices and even enjoy my hour commute on various TFL transport networks.  If my health is good enough I would like to carry on working ( arthritis  ) but if I have to retire I will miss good people, and the challenge of delivering results.  I can’t bear the thought of doing relatively nothing all day, just having a weekend off work drives me insane with boredom leading to depression. My OH is eight years younger and will not retire till 2035, by which time I will be 75 (if I’m still about) and probably a miserable curmudgeonly pain in the rear.

Surely you only retire due to inability (age / health, the original reason for pension payments) to do the job or when you have other interests that work is preventing you for following, and you have the finances that allow you to leave employment? My father had to retire at 65 in the 1980's, however I believe that has now changed for the majority?

pensionpawn

Albermarle said:

sgx2000 said:

I never understood the attitude
'I will carry on working'
What! 
Wait until you start becoming weaker / unwell and can no longer do the things you would like to do in retirement???

For me the only fear I have of retiring is that the money could run out...
I think I just need to somehow get over that...

I think the point being made is that some people would just prefer to keep working . That is what they actually want to do 'in retirement'
Some people love their jobs and/or do not have many outside interests. So for them carrying on is the preferred option.

Everybody is different !

Indeed. There is a subtle difference between retiring and becoming fiscally independent. I made sure that my management was fully aware that I became fiscally independent on turning 55. Work became much more relaxed after that. Health willing, I'll retire when I want to and management knows that may be suddenly depending on their decisions!

GibbsRule_No3.

Just turned 69, single, same job for 52 years, regular income, not highly paid, two DB pensions started at 60, SP started at 65 and 8 months, all in payment, so I know how much a year I will have until I die when I do eventually retire. Dropped down to three day week just after 60, was expecting to retire when SP kicked in but Covid happened, so why retire, in fact I was one of the first to volunteer to go back on site, did not like working from home, especially as they had to invent a home working job as I am a printer.  I really thought they knew what they were doing with my position when I retired, so did put my papers in, only to find they did not know, so I asked if they wanted me to do 2 days a week, they were happy with that, gives them a chance to see how much printing, rather than digital will be needed now after Covid. I am still fit (fingers crossed) get a nice little bit of extra money for doing trips and purchases, while building up savings to spread across the years when I do finally retire.  I’ve told them to tell me when they want me to go, unless I do get to a stage when I decide I’ve really had enough. Best of both worlds. I do like my job, so probably helps. Easily fill the non work days. One of my friends of the same age also does a couple of little jobs, while her sister will say she is retired, does in reality bake cakes for her nephew’s bakery at least twice a week, so in my eyes she is not retired. I do think retirement is easier if you are financially viable and won’t have money worries, with the job I have I’ve always known the difference between working and retirement was very small, once the SP kicked in.