Pensions Planning: The NUMBER
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Dairy Queen - clearly my desire not to offend has fallen on stony ground. I can only apologise for the offence so obviously caused and repeat that was never my intention.0
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Northamptonblue wrote: »Dairy Queen - clearly my desire not to offend has fallen on stony ground. I can only apologise for the offence so obviously caused and repeat that was never my intention.
Any apology should be directed at the forum for your inappropriate hijacking of the thread. We all make mistakes and you dropped some clangers. I challenged you and then moved on. It's no big deal.
I think you should close this off-base subject and allow the thread to regain its usual flow.
On the upside...
... you can continue using 'nitty gritty' with a clear conscience.
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I just read a reply from myself to this thread in 2010 when I was a 39 year old just beginning to seriously increase my pension contributions. At the time I thought my wife and I needed £50k pa and I would retire at 60. My outlook has changed a little since then. I am now targeting retirement at 55, in 7 years time and have lowered my target income somewhat. I now feel that £35-£40k will be sufficient based on current spending. In fact I see a few people reacted to my suggestion of £50k pa that it sounded like a lot in retirement with no mortgage etc. I agree!
I believe we are on track for this income target. My wife has very little pension, only a £30k pot, and only puts about £5k pa into it. The result of spending the first 7 years of her working life in the Czech Republic earning buttons and 10 years not working raising kids. However, she has kept her NI record up to date and is projected to have a full state pension at 67. My projection also suggests a full state pension at aged 67, so £16k between us in state pensions. I have never been in a DB scheme but my DC pots add up to around £660k currently and I put in £40k pa so in 7 years this should be at about the LTA of £1m. ISAs and other savings add up to about £100k. We have a property in France on which the mortgage will be clear in 5 years that is worth around £250k now. It's a ski apartment so we will use it a lot in early years of retirement and sell it later on. The mortgage on our main home will still be about £100k in 7 years time but the property is worth about £700k. The plan is to sell and move to a cheaper property/area in 7 years time to allow the mortgage to be repaid. It's an expensive to run listed thatch cottage which is not the property we want to live in when we retire. Pretty bored of the corporate life now and I would retire before 55 if I could!0 -
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OldMusicGuy wrote: »That all sounds like a plan and I sympathise!
+1
Actually your situation sounds very similar to mine when in my mid/late 40s...planned to exit a stressful corporate job at 55 ish, but through a combination of good markets, high saving and an exit package escaped a few years earlier. If circumstances are good for you its definitely possible. A lower expendiure rate is the key but do allow yourself the funds to fully enjoy your freedom (travel, hobbies etc)0 -
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blisteringblue wrote: »+2
Although luckily I am a little closer at 50
I've just made the decision to work until the end of the Tax Year when I turn 55 too, so an extra 4 months, how will I cope
1694 days to be exact :rotfl:
2080 approximately. Not that I am counting.
69 pay packets.
I'm not sure about the "exactly when" point. If there's a choice, and I have LTA headroom, then perhaps I should earn £11,850 + £40,000 in that last tax year, so I can use up my nil rate band and also get the full AA contributed as a last gesture of employment.
That would take me 5 months into the tax year ie to end August. I might have to rethink that a little, depending on holiday plans!
Other thoughts include:
- doing a couple of months extra, and contributing all of that additional as charity (via sal sac) to get full tax relief. I figure that two months would get around £21,000 and would go a long way towards a guilt free retirement (better to have that as a significant gift, than doing little bits for charity here and there at much lower return to the charity)
- bonus (if I stay with existing employer) would kick in at the October salary payment- maybe another £5,000 - £10,000 for the taking0 -
doing a couple of months extra, and contributing all of that additional as charity (via sal sac) to get full tax relief. I figure that two months would get around £21,000 and would go a long way towards a guilt free retirement (better to have that as a significant gift, than doing little bits for charity here and there at much lower return to the charity)
That is a fantastic idea.
Consider it spread !0 -
blisteringblue wrote: »+2
Although luckily I am a little closer at 50
I've just made the decision to work until the end of the Tax Year when I turn 55 too, so an extra 4 months, how will I cope
1694 days to be exact :rotfl:
Nearly 2.5k for me unless fate intervenes
I think....0 -
I just read a reply from myself to this thread in 2010 when I was a 39 year old just beginning to seriously increase my pension contributions. At the time I thought my wife and I needed £50k pa and I would retire at 60. My outlook has changed a little since then. I am now targeting retirement at 55, in 7 years time and have lowered my target income somewhat. I now feel that £35-£40k will be sufficient based on current spending. In fact I see a few people reacted to my suggestion of £50k pa that it sounded like a lot in retirement with no mortgage etc. I agree!
I believe we are on track for this income target. My wife has very little pension, only a £30k pot, and only puts about £5k pa into it. The result of spending the first 7 years of her working life in the Czech Republic earning buttons and 10 years not working raising kids. However, she has kept her NI record up to date and is projected to have a full state pension at 67. My projection also suggests a full state pension at aged 67, so £16k between us in state pensions. I have never been in a DB scheme but my DC pots add up to around £660k currently and I put in £40k pa so in 7 years this should be at about the LTA of £1m. ISAs and other savings add up to about £100k. We have a property in France on which the mortgage will be clear in 5 years that is worth around £250k now. It's a ski apartment so we will use it a lot in early years of retirement and sell it later on. The mortgage on our main home will still be about £100k in 7 years time but the property is worth about £700k. The plan is to sell and move to a cheaper property/area in 7 years time to allow the mortgage to be repaid. It's an expensive to run listed thatch cottage which is not the property we want to live in when we retire. Pretty bored of the corporate life now and I would retire before 55 if I could!
Wow you so sound like me and numbers are very similar (no nice French asset (isn't cgt a big issue for that?) for me but no mortgage either). Good to hear that you also anticipate a similar annual income at 55. How did you persuade the DW to go back to work?
I think the current value of the SP is now closer to 8.5k?I think....0
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