I'm addicted to pension saving and it's leaving me short.

Workerdrone

L9XSS said:

Very interesting reading this thread Workerdrone. I can relate to quite a lot and realised how obsessed I have become to saving for retirement to the point that my life has become somewhat insular. I’m not unhappy as such but realise I need to let go of the reigns and live a little. I’m 57 and plan to retire at 62. I view my SIPP daily which I realise is obsessive and look for ways to add money consistently to it. My salary isn’t large, circa 23k but my projected retirement income in 5 years time is nearly 42k........I really don’t think I will be able to switch from managing on £1500 a month to having this extra spending capacity. I do feel I’m missing out and question every additional spend that is not a fixed cost. its only recently I’ve felt like this. I don’t dislike my work and enjoy the free time I have out of work but I don’t do a lot in my free time and this is holding me back, apart from pouring over spreadsheets, reviewing investments, trading and buying shares, reading and researching the financials, following the business and economic news. I realise I need to reappraise the context of all the above in terms of where I’m at and some lifestyle changes.

I could have written this myself. When my free time holds nothing more exciting than. "I'll update my spreadsheets" or "read the financial news", I feel its time I learned to live again even just for a short period.

Sea_Shell

I have these conversations with DH.

He'll say things like "I never spend any money on ME things"

"Well, want do you want to buy/spend/do for YOU, if you want something buy it"

"I can't think of anything"


So the money stays in savings.

  
 


Our spending is mainly on Joint things (holidays/house/garden) or I spend on me things (Running gear, gym membership etc)

Bluebell1000

If you are thinking of going away, you might like to have a look at Potters rather than Center Parcs as it's all inclusive. My Dad has been and loved it. I'm tempted but we're saving for a trip to Japan at the moment. 

It probably helps that I'm not a fan of coffee 😂 smells better than it tastes. How about looking at local evening classes or sports clubs (some places play for fun rather than competitive) as well, to give you a bit more human contact? 

We are also trying to find a balance between spending and saving for retirement, and my provisional plan is to up the pension savings in about 7 years time. I have a decent DB pension already so we just need to fill the gap between late 50s and 68 ish (at current saving rates we'd be about 3-4 years short for retirement at 56 ish). We can do it via salary sacrifice, so it won't be 'income' for student loan purposes when my son is ready to start uni 👍

IdrisJazz

Like the OP, I am 47. I have always prioritised pension contributions but my pot to date falls short of 250k (though with a small DB scheme its hard to tell exactly).

4 years ago, we relocated to a completely different (and more rural) area and wiped the slate completely clean in terms of commitments and habits. Covid helped with this! We have then rebuilt our busyness much more on our terms. With the kids being older (16 & 10) that has also given us a greater degree of freedom to get out and enjoy life. One thing we do not compromise on is getting out for walks, fresh air and (for me) birdwatching.

One thing I have learned through this time is that while having a comfortable retirement is still a key goal, I will not wait until my retirement to start living. Living doesn't have to involve spending (much) money, but should include things you may be able to do less easily as you get older. For example a sport.

Retirement for me is when I will be able to do more of what I already enjoy doing, not starting things for the first time.

FIREDreamer

Bluebell1000 said:

If you are thinking of going away, you might like to have a look at Potters rather than Center Parcs as it's all inclusive. My Dad has been and loved it. I'm tempted but we're saving for a trip to Japan at the moment. 

It probably helps that I'm not a fan of coffee 😂 smells better than it tastes. How about looking at local evening classes or sports clubs (some places play for fun rather than competitive) as well, to give you a bit more human contact? 

We are also trying to find a balance between spending and saving for retirement, and my provisional plan is to up the pension savings in about 7 years time. I have a decent DB pension already so we just need to fill the gap between late 50s and 68 ish (at current saving rates we'd be about 3-4 years short for retirement at 56 ish). We can do it via salary sacrifice, so it won't be 'income' for student loan purposes when my son is ready to start uni 👍

Even if not salary sacrificed, you can still deduct pension contributions from income. They were happy with my wife’s income being declared as minus £3,600 due to a non earner’s pension contribution.

Bluebell1000

FIREDreamer said:

Bluebell1000 said:

If you are thinking of going away, you might like to have a look at Potters rather than Center Parcs as it's all inclusive. My Dad has been and loved it. I'm tempted but we're saving for a trip to Japan at the moment. 

It probably helps that I'm not a fan of coffee 😂 smells better than it tastes. How about looking at local evening classes or sports clubs (some places play for fun rather than competitive) as well, to give you a bit more human contact? 

We are also trying to find a balance between spending and saving for retirement, and my provisional plan is to up the pension savings in about 7 years time. I have a decent DB pension already so we just need to fill the gap between late 50s and 68 ish (at current saving rates we'd be about 3-4 years short for retirement at 56 ish). We can do it via salary sacrifice, so it won't be 'income' for student loan purposes when my son is ready to start uni 👍

Even if not salary sacrificed, you can still deduct pension contributions from income. They were happy with my wife’s income being declared as minus £3,600 due to a non earner’s pension contribution.

Excellent thanks. I was hoping we'd be able to do something similar for my husband!

michaels

L9XSS said:

Very interesting reading this thread Workerdrone. I can relate to quite a lot and realised how obsessed I have become to saving for retirement to the point that my life has become somewhat insular. I’m not unhappy as such but realise I need to let go of the reigns and live a little. I’m 57 and plan to retire at 62. I view my SIPP daily which I realise is obsessive and look for ways to add money consistently to it. My salary isn’t large, circa 23k but my projected retirement income in 5 years time is nearly 42k........I really don’t think I will be able to switch from managing on £1500 a month to having this extra spending capacity. I do feel I’m missing out and question every additional spend that is not a fixed cost. its only recently I’ve felt like this. I don’t dislike my work and enjoy the free time I have out of work but I don’t do a lot in my free time and this is holding me back, apart from pouring over spreadsheets, reviewing investments, trading and buying shares, reading and researching the financials, following the business and economic news. I realise I need to reappraise the context of all the above in terms of where I’m at and some lifestyle changes.

Why wait 65 years to retire and have such uneven before/after income.  Why not just retire now to even things out a bit?

Workerdrone

Well, Ive done it. Ive spoken with my wife and she is fully supportive. Ive dropped my persona contribution down to 5% from 33.6 and I still get the employers match. It was easier than I thought once I'd rationalised it (And with great thanks to all the supportive people on here) A quick tax calculation shows I should have around £900 extra a month to enjoy in, October and November and December (I was too late for it to take effect for the September pay). So now, I can start and plan things to do. I think the first thing is to take my son out for a "boy day", A nice brunch, then a trip to the Turkish barbers, he can have a haircut and I'll have one of those shaves where they set fire to your ears, then perhaps a bit shopping. He likes to dress smartly even though he's 12 so maybe some new threads and a trip to the toy shop. Then a few family trips to the ice cream parlour, pizza, cinema, crazy golf etc. I have three months to relearn how to take pleasure in things in life. I'll keep you posted.

Sea_Shell

Sounds great!! 


Just on the point of your son (12), is he your only child?   Are you already contributing £x per month into savings for them?   Junior ISA?

Any of this newly "spare" money you don't manage to spend on you, you could gift to him/them.

Workerdrone

Sea_Shell said:

Sounds great!! 


Just on the point of your son (12), is he your only child?   Are you already contributing £x per month into savings for them?   Junior ISA?

Any of this newly "spare" money you don't manage to spend on you, you could gift to him/them.

No we have 2. They both have pensions and junior ISA's. Not to bad. at 12 he has a nett worth of over 10 grand