The Senior Wonder Years!

[Deleted User]

Clowance. Will your mortgage be paid off as you enter retirement or a little afterwards?

Albermarle

Clowance said:

Hi all, just felt inclined to put my far less organised finances to the group. I am getting state pension in a week, yippee! I am still working part time, mostly from home and hope to continue for a while although the job temping for nhs (admin) is insecure. I have a few small pensions already claimed for which I get £4750 before tax, in total my income is going to be nett 14300 not including any earnings. My husband is younger and still working, he will reach state pension age in 3.5 years and he is unlikely to be able to go before this as we have a mortgage taken out 3 years ago for a big extension, but we are overpaying as much as allowed on this and it should be done with in 2 more years. When he retires as best we can work out, his nett income will be £21700; making a total for both of us on todays figures of £36000 nett after full retirement at 66 and 66.5. Our expenses over the last 12 months were 38600 so some cutting back to do there! We have few savings but two kids one still living at home. We already buy quite a bit second hand, like furniture/appliances/ clothes/car (run it into ground having had it for 10-12 years on 4 year old one when bought). We will need a replacement car in 4-6 years, will use OH lump sums for that. Our spending priority is holidays, don't often eat out and hobbies not too expensive. 

So I admire all of you with enough savings to retire early, but sadly not possible for us. 

Do not feel too bad as £36K net puts you ahead of many couples, probably somewhere above average, and should mean quite a nice retirement. As you say though unfortunately will be difficult to retire earlier.
Be aware that posters on a forum like this are not typical of the general public and inevitability many  regular posters will be in a better financial position than the average person. Less so on this board than the Pensions forum itself, but still is probably the case.
Take care to factor inflation in your expenditure calculations,. Although inflation is falling, prices are still going up . From Jan 1st 2023 to say Jan 1st 2025 , you can probably add on 15%. Some of your pensions may be inflation linked, but some may have a cap or not be linked at all.

Jellybaby

Just came across your thread and it feels very appropriate for my circumstances. Have booked marked and will follow with interest.

I'll be 60 and retiring in the Spring. I've been in local government all my working life and will leave with a fairly healthy package - much to my surprise, my request for voluntary redundancy was granted so as well as my lump sum will receive an additional cushion that, if needed, will enhance my annual pension over the years until SP kicks in. 

I was widowed over ten years ago and bringing up two teenagers - now successful adults - learned to be pretty savvy when it came to stretching the pennies never mind the pounds. I'm mortgage free, debt free, and have savings in various forms. I'm not a big spender or one who must have the latest whatever so quite happy with where I am but think I could probably do better and keen to pick up hints and tips from you all.

All my pots and budgets are on paper. Love a notebook and lots of lists!

[Deleted User]

Welcome Jellybaby! Looking  forward to hearing your news and views as time goes on.

[Deleted User]

Albermarle is so right when he says that many posters on some threads are far from typical in terms of pension income. Although I have to say that some of the general information on such threads can be very beneficial.

We all have different lifestyles needs and wants and for most people that can mean some compromises along the way to match aspirations to income. However, it is not just about the money (accepting there must be an minimum that people need to live) but also health, relationships and general well-being.

I know that in the past I spent too much time asking the 'what ifs?' and comparing myself to others (including friends)
unfavourably, especially in terms of wealth. I occasionally still have to give myself a talking too!

None, bar 2, of my lifelong friends went into teaching but had more lucrative careers in several very well paying sectors. In many cases their pension income now exceeds the maximum I and many others used to earn per annum. Yet when we all manage to meet up we all get on so well and the years drop away. Our differing financial circumstances just don't matter. I have also realised that despite their high incomes they are not immune from illness, growing older, family issues and the day to day worries of life.

It took me too long to realise that the quality of your life and relationships are of prime importance.

Now I really do appreciate the fact that I am basically quite healthy, have good friends and close family. I also own my own home, have no debt and really don't have to worry keeping myself clothed and fed. These are all true blessings.

I was looking at 'The Number' Thread on the pensions board earlier this week.(Yes I sometimes wander over there  ) There was a poster who said he would be retiring on about £110000 a year! A while ago I may probably have turned truly green, but now (after checking I had read it correctly) I thought to myself that's quite something and moved on!

Skint_yet_Again

[Deleted User] said:

A busy day yesterday with a good few hours spent working on the garden.  A little shopping trip for some top ups and household miscellaneous bits and pieces. I also checked PB app and found I had won £50 in August which is a nice little extra for the Cash ISA.

Surveys have slowed somewhat. I seem to get plenty of invites but get screened out quite a bit. Maybe less demand for a non-smoking, teetotal, fairly solvent, quite healthy, home owing , southeast living retiree lol !

Talking of health I have signed up for a PSA blood test later this month and joined the Prostate National Screening Programme. I am fine, but knowing two friends who have been affected I thought I would be more proactive in checking things out. It seems similar to the Bowel Cancer Screening. I have participated in this since my mum’s illness 13 years ago, from which she made a full recovery.

I can’t make too many forward plans at the moment as waiting for day surgery date. Nothing major and recovery time should be fairly rapid. I may say more when it happens.

I have also booked a place on this winter’s flu jab programme at the pharmacy attached to my GP surgery.

Nothing notable planned today. The sun is actually shining so probably some more gardening and a forest walk later. Now for those daily exercises! 

Congratulations on the PB win!

I found the same with surveys and often found I was screened out part way through so gave up. 

Also agree with your comments about giving up work / retirement. For me it was all about quality of life / moving to be nearer to family. I don’t have any regrets about leaving work at 55 and my physical and mental health have both improved. 

Miser1964

As with many on this thread, at 59 I've taken slightly retirement from the public sector so was in the age band forced onto Alpha scheme, but am expecting the McLeod judgement to allow me to nominate all my pensionable income to be classed as Classic Plus contributions.

I've spent the last week  consolidating ISA and savings to be getting at least 4.5% and paying interest monthly to boost income. I'm quite internet savvy but even so the variety of login processes, apps and authentication mechanisms is very annoying. It's unfortunate that the NS&I website is one of the most awkward.

Lily8

Hi all, nice to read others circumstances and plans. Thanks for your response Albermarle. You are one of the people that have helped me too. Current plan is to carry on for now. And as you say, hopefully  reassess once Oh's state pension kicks in.  I'm not sure how to do a statement but can see I need to get one in place. But I can give net figures of income and rough expenditure. Oh net monthly pension £1511.42. My net earnings and pension £1479.24 (£552.82 of which is my pension).

OH also has a small  dc pension pot of £21k that matures this year. Not sure what to do about  that but a little bonus for us.

Council tax £216.00 x10

Water rates £92.81 x10

Car Ins/Breakdown £20.66

House & buildings insurance £21.76

TV Licence £13.25

Virgin internet/tv/phone package £110.75

Gas/Elec £196.71

Denplan for 2 people £59.95 (Dentist went private sadly)

Union £9.76

O2 pay as you go for 2 mobile phones £20.00

Postcode lottery £12.00

Lottery £10.00

4 year old car bought from savings this year.  Think it will be the last one as the roads are mad!  We have free bus/train passes now in our area so we use public transport more.

Food shopping varies and is an area we definitely need to address as we just tend to buy without thinking. Maybe £130 weekly with wine. Guilty pleasure is  M&S treats at the weekend.

Also clothes, hair, petrol etc just paid as and when needed.

Any advice on how you all budget and plan future expenditure I would be grateful to learn.

Only tend to have an odd lunch out weekly these days together or with friends.

Last holiday was 2018. Currently trying to get the major jobs sorted on the house. Boiler replaced this year so hopefully will save a little with that.

Sound a right miserable pair don't we! But we are planning a few UK city breaks over the next few year.

Have a lovely weekend everyone

[Deleted User]

Lily8 Many thanks for your detailed and informative post.

Having looked at your figures, when you both are receiving your state pensions you will have a joint pension income of over £40000(at today's prices) per annum net which should be comfortable enough for you. In fact when OH claims his state pension your income without your part -time job allowing for tax would be in the region of £2700 plus a month. So maybe you will not have to work to state pension age after all!

Most of your expenses look very reasonable but it  would be a good idea to budget for the things you say 'are paid for as needed'.

If you read my earlier posts you will see how I have budgets and pots for most things. My current budget runs from July 2023 to end of June 2024. I receive my state pension in July 2024. I calculated my expected total income after tax and then created my budget. As I knew I would have one year with just my occupational pension after fully retiring before receiving the state pension I did fill several pots beforehand to ensure financially things would go smoothly. The details are in my previous posts.

So yes it looks very doable for you both. However, I strongly suggest you sit down and create a more detailed financial plan so that you know the money is there for the things that are 'paid for as needed!'  I take it you have savings and some money put by for 'emergencies'?

There are many different approaches to budgeting and I am sure others will be along with their ideas and suggestions.

Your lifestyle and the activities that you enjoy are very personal to you. You don't have to justify them to anyone!

Have a good weekend.

Albermarle

Lily8 said:

Hi all, nice to read others circumstances and plans. Thanks for your response Albermarle. You are one of the people that have helped me too. Current plan is to carry on for now. And as you say, hopefully  reassess once Oh's state pension kicks in.  I'm not sure how to do a statement but can see I need to get one in place. But I can give net figures of income and rough expenditure. Oh net monthly pension £1511.42. My net earnings and pension £1479.24 (£552.82 of which is my pension).

OH also has a small  dc pension pot of £21k that matures this year. Not sure what to do about  that but a little bonus for us.

Council tax £216.00 x10

Water rates £92.81 x10

Car Ins/Breakdown £20.66

House & buildings insurance £21.76

TV Licence £13.25

Virgin internet/tv/phone package £110.75

Gas/Elec £196.71

Denplan for 2 people £59.95 (Dentist went private sadly)

Union £9.76

O2 pay as you go for 2 mobile phones £20.00

Postcode lottery £12.00

Lottery £10.00

4 year old car bought from savings this year.  Think it will be the last one as the roads are mad!  We have free bus/train passes now in our area so we use public transport more.

Food shopping varies and is an area we definitely need to address as we just tend to buy without thinking. Maybe £130 weekly with wine. Guilty pleasure is  M&S treats at the weekend.

Also clothes, hair, petrol etc just paid as and when needed.

Any advice on how you all budget and plan future expenditure I would be grateful to learn.

Only tend to have an odd lunch out weekly these days together or with friends.

Last holiday was 2018. Currently trying to get the major jobs sorted on the house. Boiler replaced this year so hopefully will save a little with that.

Sound a right miserable pair don't we! But we are planning a few UK city breaks over the next few year.

Have a lovely weekend everyone

Regarding the comment in bold.
DC pots do not normally mature. Often they have a retirement age associated with them, but this is purely arbitrary. You can take them from age 55 ( soon rising to 57), or not take them at all and leave them to someone.
Or leave it a few years and take it later etc. Just be careful taking it all out at once as 75% will add to his current taxable income.
If it is an old pension, your withdrawal options may be quite limited ie buy an annuity or take it all as a lump sum . If this is the case you might be better to transfer it out to a more modern flexible provider.
You can ask specific questions on the Pensions board. Despite some big figures being mentioned on there, they will be happy to comment on a £25K pension, or even a £2.5K one.
In fact the majority of the threads seem to be questions about topping up the state pension !