Looking for advice 5 years from retirement

RichardS

@wjr4 “ Notes: Please note that the figures above are for illustrative purposes only and are not guaranteed. The calculations have been carried out using an assumed growth rate of 5% pa, inflation at 2.5% pa, an annuity rate of 6% pa and assumed continuation of regular contributions where they are currently being made.” from the projection statement 

ColdIron

hallmark said:

LHW99 said:

 I am due the full state pension at 67

Have you actually checked that, and read all the page? You are under transitional rules so could need anything between around 29 and 49 contribution years (from what others have said here).

Is that a typo or am I misunderstanding something?  I thought 35 qualifying years was all anybody needed...

No. You may have been contracted out. I had 42 years and needed to pay an extra year for the full SP

Dazed_and_C0nfused

hallmark said:

LHW99 said:

 I am due the full state pension at 67

Have you actually checked that, and read all the page? You are under transitional rules so could need anything between around 29 and 49 contribution years (from what others have said here).

Is that a typo or am I misunderstanding something?  I thought 35 qualifying years was all anybody needed...

It is for anyone starting to build up qualifying years from 2016.

But the op, like most of the population at the moment, isn't in that situation so they fall under transitional rules and they are specific to each person.

wjr4

RichardS said:

@wjr4 “ Notes: Please note that the figures above are for illustrative purposes only and are not guaranteed. The calculations have been carried out using an assumed growth rate of 5% pa, inflation at 2.5% pa, an annuity rate of 6% pa and assumed continuation of regular contributions where they are currently being made.” from the projection statement 

I think that’s high personally. I wouldn’t be relying on those projections. 

wjr4

RichardS said:

@wjr4 “ Notes: Please note that the figures above are for illustrative purposes only and are not guaranteed. The calculations have been carried out using an assumed growth rate of 5% pa, inflation at 2.5% pa, an annuity rate of 6% pa and assumed continuation of regular contributions where they are currently being made.” from the projection statement 

Have they done a cashflow forecast for you as well? 

Albermarle

hallmark said:

LHW99 said:

 I am due the full state pension at 67

Have you actually checked that, and read all the page? You are under transitional rules so could need anything between around 29 and 49 contribution years (from what others have said here).

Is that a typo or am I misunderstanding something?  I thought 35 qualifying years was all anybody needed...

If you go to the pensions forum there are various permanent threads on state pension issues ( at the top of the first page) .

RichardS

JohnWinder said:

If you decide you’re up for it, Tim Hale’s book Smarter Investing is probably all you need. I think it’s in the west country libraries.

The Little Book of Common Sense Investing is another. You'll get an old edition as a free pdf, and it's worth every penny and more.

‘If You Can’ is a free pdf by W Bernstein, short and sweet.

The Bogleheads' Guide to Investing, by Larimore et al is a 7.2MB pdf. I think it's here: https://ia803405.us.archive.org/23/items/the-bogleheads-guide-to-investing/The Bogleheads' Guide to Investing.pdf

Expected Returns An Investors' Guide to Market Returns by Ilmanen is not such an easy read, but a free 23MB pdf, after you’ve read the others.

The Basics of Investing Basics  A primer for the young retirement investor by A. Dad, is a free pdf written by a father for his daughters, not published as a book I think, but good enough at 40pp.

Investment Strategies for the 21st Century by Frank Armstrong is a 160pp pdf.

The Future of Life-Cycle Saving and Investing by Bodie et al is a 200pp pdf free from the Research Foundation of the CFA Institute. Sensible, but not a first read.

Serious Money, Straight talking about retirement investing, by Richard Ferri is a free 200pp pdf

Unveiling the retirement myth, by Jim Otar is 400pp free pdf written in the clearest well-structured way as an engineer would, but there's a lot of detail for when it comes time to decide how you can live of your investments based on a lot of financial history.

I got my hands on Tim Hale’s book, it’s excellent. Thanks. I was about to buy it on Amazon and then I magically put my Money Saving hat on and ordered it from the library. I am also devouring several YouTube channels and podcasts and am learning a lot.  The overall message I am getting so far though is that I would probably be a lot better off simply investing in a passive global index tracker and choosing a platform with low fees.  I will take my time though as I’m sure there is more to learn 😀

boingy

RichardS said:

 The overall message I am getting so far though is that I would probably be a lot better off simply investing in a passive global index tracker and choosing a platform with low fees. 

Pretty much that. Don't tell everyone though, otherwise you'll make all the IFAs and FAs redundant. 

SouthCoastBoy

RichardS said:

wjr4 said:

Can you actually afford to retire? What income do you need in retirement? As it’ll have to be a lot less than £60k per annum. 

Current projections show income of around £30k (from aged 67) for me and also around £30k for my wife (from aged 67). So my objective is to see if I can afford to bridge the gap between 62 and 67

What final figures are the projections based on? Is that 30k in todays money? 

RichardS

SouthCoastBoy said:

RichardS said:

wjr4 said:

Can you actually afford to retire? What income do you need in retirement? As it’ll have to be a lot less than £60k per annum. 

Current projections show income of around £30k (from aged 67) for me and also around £30k for my wife (from aged 67). So my objective is to see if I can afford to bridge the gap between 62 and 67

What final figures are the projections based on? Is that 30k in todays money? 

Yes, that’s with the full £10k state pension added in remember. It’s £20k from my pot.