FIRE Girls Pension Diary - Aim High & Dream Big

Roger175

https://forums.moneysavingexpert.com/discussion/comment/81950406#Comment_81950406

Firegirl

That's some growth you've noted there, well done! Obviously we've seen a recent period of incredibly healthy returns, which won't last and there will be periods when your returns will be negative, but it's good to be well ahead of the curve at this stage.

Incidentally, there is an error in the editing of your original figures (2nd post in this thread) - your age 46- 2025 has the same target figure as 2026 - ie the £420,061, should read £364,427.

Firegirl

Thanks for pointing out the error. @Roger175 I’ll update that now.

You’re def right, there will be years that don’t look so good. I’m taking the win for this year. It will be interesting to look back on too. Also a good reminder to expect ups and downs in retirement when it comes.

Have a lovely Easter weekend everyone!

Firegirl

https://forums.moneysavingexpert.com/discussion/comment/81825912#Comment_81825912

@MEL1981 I’ve decided to take the hit this year and change closer to scenario 2. There’s been chatter of jobs being made redundant so it’s time to fill up the ISA as much as possible so I can live on that until retirement age!

barnstar2077

https://forums.moneysavingexpert.com/discussion/comment/81950406#Comment_81950406

Well done! I am on target too, in fact I seem to just keep increasing my target lol. I'm starting to think I might just be better off picking an age and pulling the trigger then! : )

Firegirl

@barnstar2077 it’s so hard to decide when to pull the trigger. Not to early and not to late 😆 Well done to you too for being on target too! 🎯

It’s hard not to keep increasing the target. I more think about what I’m gonna do with myself. I like to keep my brain busy so I’m not ready to retire yet. I’m thinking maybe 52 or maybe go part time when I’m 50. I’m sure I’ll know when I get there.

Problem is, I have a business/social enterprise idea that might keep me in the job for longer to get that off the ground, if I actually do it! (I’m thought about it for about 20 years 😆)

barnstar2077

https://forums.moneysavingexpert.com/discussion/comment/81956805#Comment_81956805

Plenty of ways to keep your brain busy without working!

michaels

https://forums.moneysavingexpert.com/discussion/comment/81956805#Comment_81956805

Thing is a £1m, for example set 5 years ago is probably more like 1.25m now with inflation- and then even more because of exceeding the tfls limit and some of the drawdown being at 40%

Storcko14

One way is to think in today's money all the time. When I started the journey in the late 90s, £0.5m was my enough number. But in late 90s money. By the time I got there it was more than double that but in 2020s cash so the buying power was roughly the same. I didn't consciously think about increasing the target - my accumulation rate was essentially the same give or take a few exceptional years but the nominal value of those ££s increased naturally.

One thing I should have done differently is to adapt the plan to better load balance our SIPPs to mitigate TFLS limits and freezing of the PA. That would have made avoiding HRT easier - something to consider if you have a partner.

Firegirl

@barnstar2077 I enjoy hobbies but I’ve spent my whole life being a wheeler dealer type and I can’t see that stopping. Maybe an age will come where I’ll be settled and content….but the price of coffee and cake is so high!!!! I think soon it will be £20 for a wee coffee out!

@michaels you got me thinking. Looked back over the last few decades

1M in 1996 is the equivalent of £2,033,784 today

1M in 2006 is the equivalent of £1,751,038 today

1M in 2016 is the equivalent of £1, 390, 446 today

Source:https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator

Threw it into AI and asked it:

Taking into account previous inflation. If I think I need 1 million to retire then how much will I actually need in 10 years time and it said ‘If you think you need £1,000,000 today, you’ll need roughly: £1.35M – £1.4M in 10 years’ 😳

@Storcko14 my husband works in the council so I assume he has a good pension. He does not like to talk about money so I just leave him to it. Neither of us are big spenders so it’s not an issue our lack of comms. He did have a meeting recently and is now doing some AVCs but honestly no clue what’s going on there😆

I think my new plan of blasting my ISA now will make me feel better about tax when I’m drawing down my pension. I think I need to have funds available in my ISA to last me between when I finish work and 57. Psychologically I think I’m better to pay it now too because I have an income. When I fully retire I think paying tax will be more of a psychological challenge.

Hope you’re all having a great weekend!

cfw1994

Having a ‘decent’ ISA stash when you retire is a pretty useful thing, imho.

It is definitely nice to have access to tax-free cash on demand….