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  • FIRST POST
    • excelpaul
    • By excelpaul 19th Nov 16, 11:08 AM
    • 161Posts
    • 538Thanks
    excelpaul
    Everyday Ordinary Man Approaching Full Retirement at 59.
    • #1
    • 19th Nov 16, 11:08 AM
    Everyday Ordinary Man Approaching Full Retirement at 59. 19th Nov 16 at 11:08 AM
    I am setting up this thread as an ordinary everyday man moving towards full retirement.
    I say ordinary, in the sense that I am neither poor nor extremely well off. I have been reading these forums for several years especially the sections about savings and investment.
    Of course they provide lots of great support and advice but for the most part for people whose savings and pensions are the stuff of dreams for most of us. I do not say that as a criticism just as a point of fact. Indeed I nearly fell into the trap of measuring myself against other people in these threads and found myself becoming a little bitter and envious which I know is irrational! In my heart of hearts I know I am extremely fortunate. So I decided to set up this thread as therapy, a reality check and a genuine place for discussion for everyday folk approaching or into retirement. The emphasis initially will be on implications for finance and life plans for the next phase of our lives. It is not for advice but more for the sharing of ideas and experiences of other everyday folk. Let us see where it goes!

    First of some background about myself. I taught full time for 35 years until August 31st this year. I am now working just under two and a half days a week until next June when the plan is to finish completely. By then I will be just shy of my 59th birthday. I took phased retirement at 55 and the rest of my pension at 58 albeit reduced. I took the maximum lump sum as it suited my needs. Of course such a decision was met by derision from the pension experts in the other place but to me quality of life has become much more important than maximising returns! I am very fortunate in having a defined benefit pension that is index linked. It was reduced owing to taking it early and also taking the maximum lump sum. I also have a very small annuity that pays the grand total of 37 after tax a month! However it is better than nothing! I have recently received a state pension forecast which owing to being contracted out for nearly all my working life is currently 119.54 a week from the age of 66 (due in 2024) As I am working until next June I will add another year ‘contracted in’ this amount. When I finish work next June my income will be about 1350 a month after tax until 2024 (all at current prices) Quite interesting that although I will have contributed for 40 years to the state pension they only include(at the moment) the 35 ‘contracted out’ years in my pension calculation and none of the others!

    I co-own a house with my mother. My grandmother lives with us too, who is still going at the grand age of 101. Hopefully this means I may be retired for quite a while! My total share of the house will allow me in this area to buy myself a decent house in the future. (After other members of the family have received their share of the proceeds of the current one) Sounds morbid to talk like that but one has to be practical. I am debt free and the house is mortgage free too. We did some upgrades recently and have plans in hand to redo the drive and the kitchen in the next 2 to years. I may also need to change my car in the next couple of years. I have a lovely extended family that includes several nephews and nieces who are very special to me. Unfortunately I lost one of my sisters four years ago at the age of 42. She left 4 children. Such a tragic event certainly makes you re-address your priorities! Other illnesses in the family also provide timely reminders to enjoy life rather than worry too much about the finances!

    I used part of my pension lump sum to clear the mortgage and all other debts. I had some left over and have done the following with it.
    • A Loyalty Saver. Easy access and includes emergency fund.
    • Cash ISA
    • S&S ISA (See this as long term and will not look at it for 8 years!)
    • Premium Bonds
    • Nationwide Regular Saver (5% at moment! Started with 500. Can add 500 a month for a year only)
    • Personal Current Account
    • Joint current account for all household expenses. (We all contribute each month to this)
    Hopefully by next June I will have total savings and investments of just under 50000 before my income drops by 50% as I give up work completely. It sounds healthy but I am planning on being around a long-time! I also want to travel. Any constructive comments about any of the above most welcome.

    I do feel guilty about not having managed to save more during my working life but things happen. For example, I lost a lot of money during the property crash in London in the 1980s. Interest rates on mortgages were then 15%! I had to borrow to sell! Fortunately that is all behind me now and I have been fortunate to work solidly for 36 years. When I entered teaching I had little idea about the pension scheme. I do feel fortunate now.

    To my shame I do worry about money and probably should not. I suppose as we approach retirement we all get nervous about the regular salary stopping. Of course I could always do supply in an emergency but after 36 years I feel I have done my bit! It’s just in the past I went through some close financial calls. I do want to enjoy my retirement and tick some things off the to do list!
    I have planned my finances for after June 2017 and after all expenses and spending money should still be able to save some money each month.
    I also want to spend some savings travelling. I am keen to do the train journey across the Canadian Rockies as well as maybe spend some time renting a property in Cyprus an absolute favourite place of mine! We are fortunate that also my mother and grandmother also have adequate pension provision.

    So that is my introduction. I am now just off to walk the dogs and then meet one of my nephews. I am fortunate that I live in a semi-rural area with plenty of countryside around me. Weather not looking too promising though. Have some schoolwork also to do. Working part-time has been great for getting the garden organised and actually being ahead with the Christmas shopping! As 2017 approaches I now need to plan more activities and long term aims for the retirement years.

    I do hope you will join me on my journey and feel able to share aspects of yours too!

    Thanks for reading.
    Last edited by excelpaul; 19-11-2016 at 7:00 PM.
Page 24
    • bugslett
    • By bugslett 4th Mar 19, 10:34 AM
    • 270 Posts
    • 991 Thanks
    bugslett
    Unfortunately I can't really add any numbers until I actually close the business. You probably haven't seen, but I gave my customer notice last year and currently have 43 more operational days to go and then a few weeks closing the business, selling assets, getting money in and paying invoices.

    Theory is that I will have 400k ish in the pension pot by this time next year and minimum 250, probably more from the close of the business. Actually it should be quite a bit more but as long as I have 250k in cash, that's my minimum.

    I'm going to book a meeting with my IFA today and see what he suggests, taking money out of the pension, leaving it all there until I want to take it. As I have no dependents, I'm quite happy running money down with the intention of leaving just enough to pay for my funeral
    Yes I'm bugslet, I lost my original log in details and old e-mail address.
    • Preciselyme
    • By Preciselyme 6th Mar 19, 12:40 PM
    • 3 Posts
    • 1 Thanks
    Preciselyme
    Make share shorting illegal in the UK
    When I retired I put my pot into ISAs and a SIPP. The state pension is not much and annuities are a joke and IFAs come in all sorts of guises so I try and make my money work as best I can. One major shareholding I had (Versarien on AIM) recently took a big tumble. It was not because of company problems but is a share that is expected to perform in the future. Where fundamentals like earnings are not reflected in the price, people known as shorters decide they can make some money by shorting the share. They borrow shares in the company with a promise to pay for them in due course. They immediately sell them even though they do not yet own them. At the same time they spread doom and gloom around the various discussion forums. With the selling, the shares take a dip. Coupled with seeing doom and gloom posts, the ordinary investor gets worried and sells out of fear thinking something has happened. This additional selling may trigger stop losses whereby shares of other holders are automatically sold. Once this has happened, the shorters then pay for their shares at a much lower price. Since they already sold before buying, they now pocket the difference of the initial value to the cheaper sold value. This has just legally mugged ordinary shareholders. Unethical ?. Yes and countries such as Germany, France, Spain, Italy and many more have made this practice illegal. The UK allow this. A petition has been started to get the UK to stop this practice. Please sign if you agree and pass to others who may not have read this. I am just an ordinary small investor. hxxps://petition.parliament.uk/petitions/242399 (Copy and paste the url and change xx to tt)
    • excelpaul
    • By excelpaul 19th May 19, 7:00 AM
    • 161 Posts
    • 538 Thanks
    excelpaul
    Just an update from me. Just checked state pension forecast. Now up to about 143 a week with another 5 years to go to try and reach just over 167. Owing to being contracted out for so many years they say my maximum will be 167.97. Only 63p short of absolute maximum so I will cope! Returning to work enabled 2018/2019 to count as full NI Year without additional contributions. When I stop working I will pay voluntary contributions to reach my maximum!

    One teaching contract finishes in June and the other at the end of August. In my former school head has already asked me about next year which is encouraging. I have requested some part-time days and will see what happens. Great knowing that if offered it's a bonus but not essential to maintain lifestyle.

    Really worth paying into new teacher's pension. In one year I have accrued another 500 per year index linked for life payable from age 66. It all adds up!

    Recent calculations show me on course to have guaranteed pension income of nearly 28000 from age 66.All this will be index linked. Am pleased with that! Really worth sticking with my career and making sure I keep up those NI payments.

    Will review work options in September 2020. Considering just invigilating from then on. Have done a spreadsheet until 2024. Should be able to do most things I want up until then using teachers pension, invigilation money and dipping into savings. The latter are not extensive but sufficient and there for the ages 62 to 66! After 66 with state pension and extra teachers pension things will be very comfortable.

    Still saving a certain amount every month to cover Christmas and annual bills. This reduces monthly DDs considerably and keeps costs down. Also drip feed 100 into low risk S&S ISA monthly. This is doing well at the moment.

    Hope everyone is well. Would appreciate comments on my plans and updates on yours!
    • crv1963
    • By crv1963 19th May 19, 7:28 AM
    • 898 Posts
    • 2,004 Thanks
    crv1963
    Your plans sound good.

    I am working additional 3 years- 8 months into it- to get the maximum possible NHS pension of 45/80 ths. I have returned to shift work as the shift allowances are also pensionable and I am enjoying days off during the week. As an effect of working the additional three years I also pay enough NI years to get full SP.

    We're saving into a SIPP for Mrs CRV, to boost her pot. This is planned to be able to be drawn down to zero 57-67 when SP kicks in.

    Good to hear your news and plans Paul!
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
    • bournefree
    • By bournefree 19th May 19, 8:01 AM
    • 118 Posts
    • 299 Thanks
    bournefree
    Good to hear from you Paul. My TP works out at 26K and I am paying in class 3 voluntary contributions until I reach State Pension age. I should then have around 34K in total. Any additional work is a bonus.
    MFW #59 2017 target met, now mortgage free!
    • Katiehound
    • By Katiehound 23rd May 19, 5:22 PM
    • 4,769 Posts
    • 39,542 Thanks
    Katiehound
    Glad to hear you are happy working!
    However just to say if you have any exotic/far flung etc places on your bucket list don't wait to save the money! Reason I say that is I have been to India ( Golden triangle +) this year and really really wish I had been years ago when climbing stairs etc were a good deal easier than with my 2 replacement knees and I had more stamina!
    So earn the money- yes, but enjoy spending some of it . (No pockets in shrouds!)
    Being polite and pleasant doesn't cost anything!
    If you found my posting helpful please hit the "Thanks" button!
    Many thanks

    2018 Wombling : Entrant 8 ..6470cc+3045mm (3.04.5) + RK 8.03
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