Another planning for retirement post
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I read a lot of the posts on hear and a few mention spreadsheets. Any suggestions for what data goes into them, are there any examples to copy? thanks0
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jerrysimon wrote: »A point often overlooked and always well made. I took my pension this year at 56.5 years old with a reduction of 2.8K/year. However drawing my pension early meant I will have drawn 60.2K in 3.5 years which would take me 13 years (I would be 70 before being in credit) to gain back assuming I had carried on and left at 60. This includes added years and pension I would have accrued.
Jerry
Looking at the reduction alone. At 2% CPI in 13 years time the £2.8k will have risen to £3.6k. By the time you are 80 over £4.2k. CPI is currently well above 2%. Compounding is the key. Jam today or more jam tomorrow.0 -
Thrugelmir wrote: »Looking at the reduction alone. At 2% CPI in 13 years time the £2.8k will have risen to £3.6k. By the time you are 80 over £4.2k. CPI is currently well above 2%. Compounding is the key. Jam today or more jam tomorrow.
Jam today, PLUS the free time you now have because you retired earlier, or more jam tomorrow, but not that extra time. It's a time vs jam balancing act!"For every complicated problem, there is always a simple, wrong answer"0 -
Jam today, PLUS the free time you now have because you retired earlier, or more jam tomorrow, but not that extra time. It's a time vs jam balancing act!
Agreed. There seems to be a lot of aversion to early retirement reductions but they're there as an option because a lot of people don't want to be working until their normal retirement age and may not have other bridging arrangements available. They should also be cost-neutral to the pension fund so an 'average' member should receive the same value if they retire early or not.0 -
If one is happy with one spoon of jam daily there is no point in holding off jam today so that tomorrow one has enough of it for two spoons dailyThe word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
If i did transfer my pot and it grew at say 4% a year and i took 25% tax free at 60. How much would it have to continue to grow for me to take £19000 a year without me touching my remains pot? sorry if this a bit confusing0
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satrdayboy wrote: »If i did transfer my pot and it grew at say 4% a year and i took 25% tax free at 60. How much would it have to continue to grow for me to take £19000 a year without me touching my remains pot? sorry if this a bit confusing
remaining not remains, typo sorry0 -
You can Google compund return and drawdown calculators and play with changing numbers.The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
If one is happy with one spoon of jam daily there is no point in holding off jam today so that tomorrow one has enough of it for two spoons daily
If one wants one spoon of jam daily but eats 2 spoons because they are greedy for a whole week, what happens the next day? Week? month?0 -
The other end of alimentary canal gets stickyThe word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0
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