FIRE Girls Pension Diary - Aim High & Dream Big

Firegirl

Yes you’re right, amended in comment.  12 years work to get full state pension and am entitled to it at age 68.

Firegirl

So I got it!

If I retire at 56:

12 * £36000 = £432000

brings me to age 68 so 12 years until I’m 80

36000 - 10636 (SP) = £25364

12 * £25364 = £304368

£432000 + £304368 = £736368

Then after age 80 live on State Pension.

If I reach my goal of £1M I can Draw down £30,000 a year without dipping into the pot if I use 3% as guide. Just a quick general calc as I know this changes based on the 3 phases.

Think I’ll aim for £800,000 as an interm target as @enthusiasticsaver suggests.  

My goodness never thought I’d get this level of understanding in a short time. I know the figures won’t be perfect and things can change but it gives a good indication.

Thanks everyone for your help!!!!

Firegirl

Smudgeismydog said:

Yes, sorry to break it to you firegirl, but based on your current age, your state pension age is 67.

Yes typo😂  it says on pension site 2047 which makes me 68.  I’ve 12 years to work to get full state pension.

enthusiasticsaver

That looks like a pretty good plan.  Check the rules round LTA as well.  Of course those figures are loose but  you will get a personal allowance as well so £36k will amount to more than £30k per year but in 12 years time inflation will mean the figures will need to be reworked anyway. I suggest you set up a spreadsheet and once a year just check on performance of pension/stocks and shares ISAs, rework your number taking inflation into account and map the sources of income as they become clearer for the pension you have with an uplift and your husbands DB pension or are you leaving him to sort out his own arrangements? 

Firegirl

I would love to help my husband sort out his arrangements but he really can’t cope with talking about finances so my approach is to leave him to it. He’ll likely work on anyway as he is passionate about his job.  He’s recently worked out AVCs so he’s saving there rather an a terrible interest cash ISA so that’s a good thing.  Can’t win them all but he’s happy and that’s the main thing 

If I actually get near LTA I’ll be delighted and it looks like they are going to abolish this soon.

Cornish_mum

Hi Firegirl, great thread! I am also a MFW (though now more focused on FIRE too). I am a similar age to you, similar goals for retirement income and will follow your journey with interest. I also have a DH with zero interest but over the past 8 years I have managed to get him on board with being a bit more engaged in our finances. He now will ask me questions like “when are we retiring then?” and seems quite pleased with the answer of ~2038.  CM

swindiff

My current spending and spending in retirement are planned to be pretty similar, just spent in different areas once retired.

Current Spend
Mortgage		£603.00
Nationwide Account Fee		£13.00
Gas & Electric		£250.00
Car Tax		£15.75
Broadband		£64.05
Council Tax		£168.00
Gym Membership		£43.98
Water Rates		£19.00
TV License		£13.25
Mobile Phone Tariff's		£16.00
Cleaning		£70.00
Sky TV		£48.74
Spotify		£10.99
Phone Loan		£17.98
Home Insurance		£20.00
Car insurance (x2)		£32.00
Fuel		£100.00
SIPP		£240.00
Groceries		£600.00
Car Maintenance		£100.00
Fun Money / Incidentals		£1,000.00
Holidays		£300.00
Nat West CC		£94.05
Santander CC		£55.44
Tesco Bank CC		£88.39
Virgin CC		£47.30
Monthly Total		£4,030.92
Annual Total		£48,371.03

The credit cards skew this number a bit, they are all 0% balance transfer cards and the money is sat in an account earning 5%

My Number (retired)
Car Lease		£500.00
Council tax		£168.00
Gas & Electric		£250.00
Sky TV		£48.74
Water Rates		£19.00
Fuel		£60.00
Mobile Phones		£60.00
Home Insurance		£20.00
Car Insurance		£20.00
Car Maintenance		£100.00
TV License		£13.25
Groceries		£600.00
Holidays		£600.00
Property Maintenance		£500.00
Fun Money / Incidentals		£1,000.00
Gym membership		£43.98
Nationwide Account Fee		£13.00
Car Tax		£15.75
Broadband		£64.05
Cleaning		£70.00
Spotify		£10.99
Monthly Total		£4,176.76
Annual Total		£50,121.12

We currently have 2 cars.  Mine is a 10 year old Hyundai.  The plan is to sell that and lease something nice once retired.  We will keep the wife's car as a little runabout giving us access to 2 cars when needed. House is pretty modern, so not really spending anything currently on property maintenance, but budgeting for that in the future.

Sea_Shell

Out of interest @swindiff, what do you put under "fun money / incidentals", if holidays and gym are accounted for separately?

£1000 a month is very generous, compared to your other categories.

swindiff

Meals out, out for drinks with friends, purchasing bits and bobs for the house, clothing, birthday/Christmas gifts etc. It's probably over generous but just need a figure for budgeting purposes.  Anything under that amount ends up in a savings account. 

Firegirl

Cornish_mum said:

Hi Firegirl, great thread! I am also a MFW (though now more focused on FIRE too). I am a similar age to you, similar goals for retirement income and will follow your journey with interest. I also have a DH with zero interest but over the past 8 years I have managed to get him on board with being a bit more engaged in our finances. He now will ask me questions like “when are we retiring then?” and seems quite pleased with the answer of ~2038.  CM

He had a meeting in work about pensions he went to and came to me with loads of great ideas I’d told him 10 years ago and ignored