Pensions Planning: The NUMBER
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I don't think we have CGT issues to worry about as the main gain on the French property has been due to exchange rates, not property value growth in Euros.
I never persuaded my wife to return to work! She makes curtains, blinds and soft furnishings from home now. It's kind of a hobby business but she is extremely good at it and can bring in £10k-£15k pa working just a few hours a day Monday to Friday. She doesn't really run it as a business as she does zero marketing but word of mouth means she always has a steady stream of work. Her profession was Marketing for big corporates but she can't face ever doing that again! She spends half her day running, cycling or swimming (she does triathlons at a decent level).
If I can escape before 55 I will. A nice redundancy payoff in my early 50s would suit me well!
Edit, especially as two of my former colleagues have died of cancer in the last 4 weeks aged 52 and 56 respectively. Life is too short!0 -
She spends half her day running, cycling or swimming (she does triathlons at a decent level).
If I can escape before 55 I will. A nice redundancy payoff in my early 50s would suit me well!
Edit, especially as two of my former colleagues have died of cancer in the last 4 weeks aged 52 and 56 respectively. Life is too short!
I don't think you can underestimate the huge benefits that having time to get/be healthy brings. It is something we struggle with at the moment, aged 51, but DD is just about to enter 6th form so in 2 years she'll be gone and parental taxi duties won't be clogging up our evenings and weekends. Driving lessons start in 6 months so freedom could be sooner than that. Till then its dog walking before work and at the weekend mainly, plus DH has joined a lido to swim.
My boss had a heart attack at Easter - 2 weeks after his 40th birthday. That focused the mind somewhat
A redundancy option would be welcomed here too.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
I've had 3 colleagues die, 2 in their 40's one early 50's.
As you say, focusses the mind.0 -
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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!
PipPip, your initial figure is interesting, I recently worked out 'the number', so I could figure out where we need to be for retirement. I'm 20 years younger than you, and the sums I did came to around £50K P.A between us.
I'm aware 'the number' will most likely change as we go through our lives, and realign to something more like your amended amount of £35-40K PA, however only time will tell!
I've recently joined the CS, and will have a DB pot of around 25K PA if I work till 55 (based on no payrises), and am working on a SIPP and other 'offline' investments to facilitate retiring 10 years before I can claim my DB pension at the reduced age of 65.
If my partner also does the same, we should both be around the 50K figure in DB pension from 65, we just need to store up enough to bridge that 10 year gap!
Thank you for your post, most interesting! :beer:0 -
How do you copy part of a post and put it into a box?
Pip Pip I think you are aiming for too large a fund so could retire before 55. I followed a link on another thread to Kitces.com and ratcheting safe drawdown - gist is 4% pa return increasing by inflation is achievable. Your £1m would give £40k however you’ll get State Pensions later and property proceeds from France to boost your pots so could draw more early.
I and the OH are aiming for early retirement being in partial retirement already waiting for children to finish education. I’ve rejigged figures with the knowledge like you that a ski apartment will be sold down the line to refill the coffers if necessary. The cash-flow forecast that we all need to do is an interesting exercise as other threads discuss the income levels needed/desired at various stages of retirement.
I looked at getting more into OH’s pension so from 55 to SPA we can utilise personal allowances to the full, topped up by ISA income and minimised tax paid. A tough exercise as it involves quite a few guesstimates but it looks like present position is very healthy. Good luck.
I like the idea of ‘the number’ (£30k) but as a minimum to cover day to day expenses and some holidays. As we’ll rely more on investment income rather than fixed I like the concept of any surplus from the previous year being used for more/better holidays/entertainment.0 -
I can see that worked so many thanks and hopefully any of my future posts will be easier to follow.0
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I use the little white text box above where you type your reply. Then copy paste the text into the middle between the 2 quotes
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