Retirement and pensions is it worth it

LHW99

Simplistic but as there isn't enough property it almost seems unfair to own a second one and rent it out.

It appears so, but then it will never be the case that everyone will be able to afford (or maybe want) to buy. Where are enough rented properties going to come from if it becomes uneconomic for smaller landlords to continue?

Cus

LHW99 said:

Simplistic but as there isn't enough property it almost seems unfair to own a second one and rent it out.

It appears so, but then it will never be the case that everyone will be able to afford (or maybe want) to buy. Where are enough rented properties going to come from if it becomes uneconomic for smaller landlords to continue?

We will probably end up with no smaller landlords, and lots of properties owned by huge companies that rent them out, and then we will just put our money into their shares blindly as we all invest in passive index trackers...😁

Early_Retire_Free

bigdec said:

A friend of mine at work has done a rough calculation on what will happen when she reaches retirement age . Basically even with the state pension and the small amount  she would receive from her work pension she is going to have to continue working to cover her bills and pay her rent .If she did stop working then  would not have enough to survive and I think she has resigned herself to the fact she may never be able to retire.

I don't really understand the question but if I might rephrase "will saving into a pension provide me with the retirement that I want".  The earlier in life someone can address those questions, the more chance they have of receiving a favourable outcome.

The irrefutable fact is that saving into a retirement scheme is (probably) the most efficient (from a tax perspective) use of money available for saving.

So the first step is to to try and define the retirement that you want, which may or may not include work.  Once that's been defined (even loosly) then the next step is to work out what that might cost and, what sort of retirement pot that might require to fund it.  A financial advisor can help with that. 

If current financial circumstances don't allow any room for saving, then the viable choices are increase income (better / second job / get all allowances possible) or reduce costs.

These may seem like flippant / over simplistic responses but my recommendation is, start with a simple framework and then add complexity as you understand more.

jim8888

Don't knock working in retirement! It provides social contact, mental stimulation, a sense of fulfilment, a service to the community (possibly) and a host of other positives. Unless you really hate the job or aren't fit enough to do it. 

SouthCoastBoy

jim8888 said:

Don't knock working in retirement! It provides social contact, mental stimulation, a sense of fulfilment, a service to the community (possibly) and a host of other positives. Unless you really hate the job or aren't fit enough to do it. 

Isn't that an oxymoron? How can you be retired if you are working?

hugheskevi

SouthCoastBoy said:

jim8888 said:

Don't knock working in retirement! It provides social contact, mental stimulation, a sense of fulfilment, a service to the community (possibly) and a host of other positives. Unless you really hate the job or aren't fit enough to do it. 

Isn't that an oxymoron? How can you be retired if you are working?

I think that to some extent almost all retired people 'work' - but there is a distinction to be drawn between paid and unpaid work, and work undertaken by choice and from necessity.

For example, a retired person could look after their grandchildren (unpaid), volunteer in a local wildlife centre (unpaid), decide to work a couple of shifts at Tesco (paid) despite not needing the money, and so on. All of these are useful contributions to society and have a value and so could be considered work.

For me the key defining difference between retired and not retired would be if paid work was being undertaken due to a need to meet a funding shortfall, or even just to have a bit more spending money. If the paid work is not being done from necessity, the fact it is paid work is incidental - it is being done for pleasure.

Nebulous2

SouthCoastBoy said:

jim8888 said:

Don't knock working in retirement! It provides social contact, mental stimulation, a sense of fulfilment, a service to the community (possibly) and a host of other positives. Unless you really hate the job or aren't fit enough to do it. 

Isn't that an oxymoron? How can you be retired if you are working?

I've posted repeatedly that I retired without enough thought about what I was going to do with myself, and very quickly took a part time job. I've cut back on that, and am now working one day a week - so how would you describe that? 

If asked for my status I say:- "I'm retired, although I took a part-time job, and I work one day a week." 

Bostonerimus1

SouthCoastBoy said:

jim8888 said:

Don't knock working in retirement! It provides social contact, mental stimulation, a sense of fulfilment, a service to the community (possibly) and a host of other positives. Unless you really hate the job or aren't fit enough to do it. 

Isn't that an oxymoron? How can you be retired if you are working?

Retirement is more of a state of mind rather than defined by what you do day to day. I left my last full time job 10 years ago, then, after 4 years, an old colleague asked me to get involved with his start up company. I said ok and now "work" maybe 10 to 15 hours a week, but as I don't need the money and do what I like when I like I really don't consider it "work" at all. I mentor some young engineers and drink a lot of coffee.

SouthCoastBoy

I think my definition of retired is not performing paid work. 

Cus

SouthCoastBoy said:

I think my definition of retired is not performing paid work. 

I would agree with that definition. I know people who have never had to work for money as they could have lived without the paid employment but did a job anyway. They would not identify as retired.