50 something man seeking to save to retire before 60!

Happy New Year to all!

Apologies for the absence for some time. My updat for December and January Paydays-

Spending I've remained quite disciplined, I still have room for improvement. I managed to have several hundred pounds left over at the end of each month which I then used to purchase items needed or rather wanted for the greenhouse- a self watering pot system so my efforts at growing things doesn't get knocked back by a lack of watering while I am working away, they should last a lifetime so hopefully I'll get my monies worth!

Bills all paid!

Sorting Been busy as usual- used stored wood to make some cold frames for the garden, gave youngest son some Christmas decorations but not made a dent in what we have stored, I can feel a charity shop trip coming on soon!

Saving Spent my petrol money savings on the Christmas meat, had youngest son and Mum over for lunch- sent him back with what was left over and he made a curry!

Savings rate will have to significantly increase!

Other News


Shed Pressed into action for storage so we can start to clear the loft!

House Building Works Loft Conversion Not got a start date for this yet but the builder said he'd aim for mid January- held up by the weather on his other projects!

Garden Works Now have 3 Cold Frames and managed to plant all my bulbs, put some bare rooted Peonies in on Boxing Day.

Greenhouse I've ran a power cable down to it using an extension cable I had kept "just in case" so have a heated propagator on that I got for Christmas, and set the fan heater to keep it frost free only. Onions and Leeks sown New Years Day are already through.

Retirement Plans Sat down with Mrs CRV yesterday to review everything ahead of retiring in May, didn't go quite as well as anticipated!

I have unfortunately underestimated our expenditure and overestimated what our savings will support. We could go in May but would retire to existing rather than living!

Not quite back to the drawing board but a change in plans- we need to have signifcantly more annual income than I thought. My new figures are-

Basic Retirement- 24k pa
Comfortable Retirement- 36k pa
Luxury Retirement- 48k+ pa

The 24k we could just about manage now but with little room for error so we're set on aiming for the 36k figure, that will allow replacement cars/ several holidays and hobbies.

Then the how to reach it problem needed looking at hard. I spoke to NHS Pensions and they didn't send me my requested forecast from August so it will arrive in 10 working days so we know exactly what we will have but approximately 20k pa from my working out.

That will cover all our bills and leave a bit left over.

I then spoke to the agency I worked for some years ago, they have lots of positions on 3 month rolling contracts doing exactly what I do now available on a regular (every 4-6 weeks) basis. So securing a job seems to be okay- I guess I'll become one of Boris Johnsons 19,000 nurses he hopes to retain. The way the NHS Pension works means I have to retire and return or there is no further pension benefit that can be accrued.

I then spoke to an Umbrella Company that handled my agency earnings last time- they sort all the tax and NI out and because of HMRC rules I cannot set myself up as a limited company- they also have an auto enrolled pension scheme. This uses salary sacrifice so I set my level of contributions to my new DC Pension at a level to avoid HR tax.

Mrs CRV wants to continue to work but less hours.

So the plan is 3 wages, NHS Pension- covers the household costs anything left over into cash saving, take the lower pension and higher TFLS, TFLS clears mortgage.

Agency income- covers work expenses, personal spending, SS into my DC pension and put into Mrs CRV SIPP the same amount as her take home pay, anything left over into cash savings.

Mrs CRV income- covers her personal spending and anything left over into cash savings.

In preparing to retire we've already started to spend money on the house and garden from savings- biting the bullet while still earning. TFLS from DC pensions to provide a cash sum to cover any market downturn prior to SP kicking at 67. Then we both draw down our repective pots at the same amount of income we expect from our SP at 67.

Stop drawdown when we reach SPA and continue to save into a SIPP the 2880 pa permited under the rules until 75 to provide money in case of care home/ home help is needed.

We should be able to finally retire before I'm 60 but a lot of saving to do over the next 3 years!

Sorry for the long post- I'll try to remember to not just make a living but to also lead a life!

MrAPJI wrote: »

crv, if delaying your retirement date brings you 'peace of mind' - then it's worth it . I'm sure the time will pass very quickly.

Hi MrAPJI, it isn't just peace of mind, I didn't realise how much the dogs are costing, we spent 6k last year on them including food, medication and vets.

We could just manage if we went now but the idea is to be able to enjoy ourselves not have to spend time watching every penny, although we aren't extravagent or prolific spenders we want to be able to be secure enough not to have to go back to work.

The last 30 years has flown past so probably the next 2 or 3 years will. The time seems to go faster the older I get!

Hello

I've handed in my pension papers with the Trust Pension Officer going through them, proving mine and Mrs CRV identity at the same time. I knew I had a good pension but had an interesting chat with the Pension Officer about it all.

I was told I am at the upper end of the pension scale, not the top that's for the high flyers and board members but with 42/80 accrued consistently at the upper end of clinical work, I am going to get a larger than average pension even with taking the larger TFLS and smaller pension.

Pension Officer told me that they get an average of 3 or 4 people dropping out of the pension scheme every week, normally people that are i) female, ii) in their 20s and iii) say they'll re-join when they are in their 30s, but never do!

SortingGoing to spend today moving things in the loft. It is C shaped and if you imagine it we've had boarded the top and bottom parts of the C. The long backbone of the C will be the conversion. So today I'm sorting Christmas decorations into one part- I've already installed the shelving in anticipation, then I'm moving shelving from my shed into the bottom part and emptying the rest of the loft into that. Have to do it today as tomorrow it gets measured up for the steel sections.

Spending Bought myself a coat with my left over petrol money from January, have bought shelving into the loft and have bought a heat mat for my greenhouse- to provide bottom heating for my plants as they come out of the heated propagator.

Saving Added a little to the build fund - what I had left in my current account at the end of the month, but the fund is now emptying fast as we entered a payment contract with our builder!

Other News

Mums 81st birthday so spoilt her- various things for her garden, some earrings and a day out with lunch.

Greenhouse, plants coming along, keeping an eye on the electricity use, but the heater hasn't come on too much as we seem to be having a mild spell.

Loft Conversion- work has started, the main work begins in earnest from tomorrow as long as I get the sorting done today!

I've booked Mrs CRV a break away to see her Dad in sunnier climes for a week, we had a discussion with the builder over the plans and have told Mrs CRV other than deciding where and how many sockets/ lights/ switches and radiators when they are due to go in we're not deviating from the plans or the costs rapidly rise- was supported by the builder who did say he prefers working from Architects drawings as then everyone including him knows the costs and the timescale.

Have told my manager I'm retiring but not telling colleagues until I hand my notice in at the end of this month. Retire end of April and taking the whole of May off then back into the workplace- wherever that may be in June.

Agency umbrella company setting up my salary sacrifice pension going to transfer my AVC into a SIPP as a start. The IFA who the company use went over my plans for saving, pensions and drawdown and thought I'd covered most things and the plans achievable even with a downturn early into the drawdown as long as I am willing to keep actual ceasing working flexible!

Have a great day everyone, I'm on leave now so will be plugging away at the sorting and gardening!