When did you feel financially secure?

Bostonerimus1

BridgetTheCat said:

DB pensions help a lot.

I think I felt totally secure when my DB pension started paying out, but it came in phases. Paying off the mortgage was a big event and then realizing that I had enough DB, annuity and rental income to easily cover my expenses and "FU" amounts of money in DC and general investments.

Cobbler_tone

Workerdrone said:

BridgetTheCat said:

DB pensions help a lot.

I suppose cashing the final sum in for an annuity would probably do a similar thing. I just cant right now see myself handing over a big pot for a yearly amount. mind you, if a lot of it is going to end up with a government who wastes it I might as well

It must be something strange with the human mindset. e.g. MOST people would take their DB of £20k a year as opposed to going through the hoops to get their hands on £400k. Whilst many people would struggle to part with £400k to buy an annuity offering the same protection, albeit at often a lower rate.

It is probably because most people don't feel as though they had the transfer value of a DB pension sitting in an account. I wonder how many people would 'cash in' their state pension if they could?!

subjecttocontract

The feeling of financial security can be a long way off for some people:

* One guy I met had been married 3 times and taken to the cleaners each time. He had to virtually start afresh after each divorce so he was a way off feeling financially secure.

* Another guy had 1 child at university and another 2 younger siblings looking to start university. It was mega expensive for him and it didn't leave him much spare at the end of the month, so he was a long way from feeling financially secure for at least the next 6 or 7 years.

NormalNorman

We split a windfall between clearing mortgage and boosting wife's pension over a few tax periods. That process started just before our 1.x% deal came to an end with huge hikes on the horizon.

But what made myself feel personally/mentally more secure was a evening job with the council. One that offered more shifts if need be. Getting paid 24 times instead of 12 is good, lol! 

Aylesbury_Duck

Cobbler_tone said:

Workerdrone said:

BridgetTheCat said:

DB pensions help a lot.

I suppose cashing the final sum in for an annuity would probably do a similar thing. I just cant right now see myself handing over a big pot for a yearly amount. mind you, if a lot of it is going to end up with a government who wastes it I might as well

 I wonder how many people would 'cash in' their state pension if they could?!

"I won't tell anyone, but there would be signs."  

I would envisage a whole load of 60-somethings driving convertible sports cars to and from their Spanish villa.  And then coming back to the UK once they've blown all their money and complaining that the government does nothing to support them.

GenX0212

A couple of years back I looked at my pension pot and thought not bad but I if start maxing out my contributions in so far as I can then maybe early retirement can be achievable.

Since then I upped my AVC's to £18k a year and reinvested my annual bonus's on top of my max salary sacrifice contributions.
Three years on and my active pot has near doubled from £300k to £600k, some good investment performance and the exponential curve beginning to kick in on the investment returns. So planning on retiring next year and hoping for continued good growth in the meantime.

i think it's a question of what you feel is financially secure for yourself. For me it's having a projected income in early retirement which is the same as my current take home pay.

If you are planning on an early retirement then my advice would be stash everything you can into your pension pot for the next few years, especially if you are currently paying higher rate tax.

squirrelpie

Workerdrone said:

BridgetTheCat said:

DB pensions help a lot.

I suppose cashing the final sum in for an annuity would probably do a similar thing. I just cant right now see myself handing over a big pot for a yearly amount. mind you, if a lot of it is going to end up with a government who wastes it I might as well

You wouldn't have to hand over the whole of your pension pot, but having some secure, regular income in addition to your state pension can be very reassuring, and lets you take a more relaxed attitude to the rest of your pot.

FIREDreamer

I annuitised the remainder of my pot in June due to inheritance tax implications. I got an RPI linked annuity with a 20 year guarantee at age 61 at a rate of 5.2% just before that provider reduced its rate by 15%.

I have no pension pot left to speak of, 4 figures, and I now feel very secure. Doing the £3,600 gross round Robin as I have been retired a year.

Retirement Provisions: 2 DB pensions and 2 index linked annuities, one JL with a 10 year guarantee and one SL with a 20 year guarantee.

GunJack

I recon mortgage paid and pensions in payment will do it for me.

Albermarle

Cobbler_tone said:

Probably stating the obvious but money in isolation won't bring security, happiness or contentment. People like Stephen Barlett talk about it a lot. A millionaire at 23 but didn't bring him happiness. If he had made different business decisions I'm sure it wouldn't have guaranteed security either. How many lottery (pools winners in the old days) end up skint due to poor decision making? Or many having damaged relationships and unhappiness due to the windfall.
You see relatively wealthy people pop up on here but I am sure some of those with just their state pension are happier with a secure roof over their head.
I guess having money and relative security takes one of our worries away.

As Spike Milligan once said:

' Money can not buy you happiness, but it does bring you a more pleasant form of misery ' 

Or as someone else said:

'Money can not buy you happiness, but the lack of money can make you miserable'