Retire at 56 ?

Bostonerimus1

TheQuaker said:

FIREDreamer said:

barnstar2077 said:

TheQuaker said:

I've not had too many comments, so I guessing I'm on the right track

Those final salary pensions make it pretty hard to lose tbh! :  ) 

The only way to lose with those figures are death or divorce. 😃

We're not married which I guess is another issue we'll need to address unfortunately!!!

Even more of a reason to sort out pension beneficiaries and wills. If you remain unmarried there might be tax issues with inheritance.

TheQuaker

GenX0212 said:

Looks like there is something off with your calculations when you reach the point of not needing drawdown (where your flexible income is £-ve). E.g. age 67 column M you have grown your DC pot by £11k whereas it should only increase by 1%. You have added the -£11k from column J but that's just money you haven't taken from your DC pot, not money to be added to it.

Have you factored in income tax or is your income required the pre-tax amount?

Looks like you have factored in a fairly low inflation rate (2%?) on your desired income. Try modelling with higher ones as well.

You are taking a significant chunk of monies from your DC pots when 57,58,59 so another suggestion I picked up on this board is to model a market crash by reducing your starting DC pot by 25% to see where that leaves you.

Overall not too dissimilar to my own plans and numbers, you have more DB but I have more DC. If you can do it then pay as much into your DC pots as you possibly can in those final years before retirement.

Ah yes I see what you mean. I guess the assumption is that the excess will be in a savings account or whatever gaining 1%, 4% or the unlikely 7% rather than being spent. Not perfect I suppose.

Income required is pre-tax. A bit above April's minimum  wage each. We've looked at our bills and think we'll be OK on minimum wage and aim to find out for sure this year.

Next step is to stress test as you and others say with inflation and crashes. I'll dig out some historical numbers and have a play.

The OH is sick of me obsessing about pensions and I've only just started this new hobby

TheQuaker

Bostonerimus1 said:

TheQuaker said:

FIREDreamer said:

barnstar2077 said:

TheQuaker said:

I've not had too many comments, so I guessing I'm on the right track

Those final salary pensions make it pretty hard to lose tbh! :  ) 

The only way to lose with those figures are death or divorce. 😃

We're not married which I guess is another issue we'll need to address unfortunately!!!

Even more of a reason to sort out pension beneficiaries and wills. If you remain unmarried there might be tax issues with inheritance.

Yes, I'm finding it's all so overly complicated. For a reason I guess - to bamboozle the working man! Once I get a handle on all this  I can hopefully revert back from being a grown up! Maybe there's no going back !!!

cfw1994

TheQuaker said:

GenX0212 said:

Looks like there is something off with your calculations when you reach the point of not needing drawdown (where your flexible income is £-ve). E.g. age 67 column M you have grown your DC pot by £11k whereas it should only increase by 1%. You have added the -£11k from column J but that's just money you haven't taken from your DC pot, not money to be added to it.

Have you factored in income tax or is your income required the pre-tax amount?

Looks like you have factored in a fairly low inflation rate (2%?) on your desired income. Try modelling with higher ones as well.

You are taking a significant chunk of monies from your DC pots when 57,58,59 so another suggestion I picked up on this board is to model a market crash by reducing your starting DC pot by 25% to see where that leaves you.

Overall not too dissimilar to my own plans and numbers, you have more DB but I have more DC. If you can do it then pay as much into your DC pots as you possibly can in those final years before retirement.

Ah yes I see what you mean. I guess the assumption is that the excess will be in a savings account or whatever gaining 1%, 4% or the unlikely 7% rather than being spent. Not perfect I suppose.

Income required is pre-tax. A bit above April's minimum  wage each. We've looked at our bills and think we'll be OK on minimum wage and aim to find out for sure this year.

Next step is to stress test as you and others say with inflation and crashes. I'll dig out some historical numbers and have a play.

The OH is sick of me obsessing about pensions and I've only just started this new hobby

It’s a fun hobby for some….I still dip in here, despite having stepped away 4 years ago…once the pension/savings are the only income, it is almost more obsessive 🫣🤣
Handy to keep the partner onboard with it all, I would suggest 🤷‍♂️

& on the point of not being married: we went a couple of weeks ago to witness two friends get their civil partnership, or as they called it, “secure the pensions day”.  Very short ‘ceremony’ & a nice lunch afterwards. 

Defo worth sorting out with something you are both happy with: our pals wanted absolutely minimal fuss; another pair who did it a few years back got more dressed up, & our daughter went to one and gave a reading for their friends.
Good luck!

cfw1994

Also: to be properly obsessed, you need to model things with other people spreadsheets whilst building your own 😉

https://www.guiide.co.uk is a decent way to check numbers.
https://whatapalaver.co.uk/retirement-planning-couples Is another useful one.
https://www.cfiresim.com is a third.

That’s your Sunday ruined 🤣💪

TheQuaker

cfw1994 said:

TheQuaker said:

GenX0212 said:

Looks like there is something off with your calculations when you reach the point of not needing drawdown (where your flexible income is £-ve). E.g. age 67 column M you have grown your DC pot by £11k whereas it should only increase by 1%. You have added the -£11k from column J but that's just money you haven't taken from your DC pot, not money to be added to it.

Have you factored in income tax or is your income required the pre-tax amount?

Looks like you have factored in a fairly low inflation rate (2%?) on your desired income. Try modelling with higher ones as well.

You are taking a significant chunk of monies from your DC pots when 57,58,59 so another suggestion I picked up on this board is to model a market crash by reducing your starting DC pot by 25% to see where that leaves you.

Overall not too dissimilar to my own plans and numbers, you have more DB but I have more DC. If you can do it then pay as much into your DC pots as you possibly can in those final years before retirement.

Ah yes I see what you mean. I guess the assumption is that the excess will be in a savings account or whatever gaining 1%, 4% or the unlikely 7% rather than being spent. Not perfect I suppose.

Income required is pre-tax. A bit above April's minimum  wage each. We've looked at our bills and think we'll be OK on minimum wage and aim to find out for sure this year.

Next step is to stress test as you and others say with inflation and crashes. I'll dig out some historical numbers and have a play.

The OH is sick of me obsessing about pensions and I've only just started this new hobby

It’s a fun hobby for some….I still dip in here, despite having stepped away 4 years ago…once the pension/savings are the only income, it is almost more obsessive 🫣🤣
Handy to keep the partner onboard with it all, I would suggest 🤷‍♂️

& on the point of not being married: we went a couple of weeks ago to witness two friends get their civil partnership, or as they called it, “secure the pensions day”.  Very short ‘ceremony’ & a nice lunch afterwards. 

Defo worth sorting out with something you are both happy with: our pals wanted absolutely minimal fuss; another pair who did it a few years back got more dressed up, & our daughter went to one and gave a reading for their friends.
Good luck!

"Secure the pensions day". Like that   I'm deffo one for minimal fuss and minimal cost! Don't want to affect that early Retirement...

TheQuaker

cfw1994 said:

Also: to be properly obsessed, you need to model things with other people spreadsheets whilst building your own 😉

https://www.guiide.co.uk is a decent way to check numbers.
https://whatapalaver.co.uk/retirement-planning-couples Is another useful one.
https://www.cfiresim.com is a third.

That’s your Sunday ruined 🤣💪

Or saved depending what she's got planned for me today Thanks for the links, will investigate....