Retirement Planning / Pensions

[Mandy Lifeboats]

32 minutes ago, ferguson1 said:

Cards on the table, I really haven’t looked into or wouldn’t have a clue about investing or additional pension options? Head in the sand really.

I’m 48 and have been a civil servant for almost 28 years at various grades. No real idea of my workplace pension pot at present but I know that monthly contributions have and continue to be made.

 

We are both on civil service pensions.  
 

The old scheme was in place until 2021 and is very simple.  For every year of service you get 1/80 of your final salary as a yearly pension.  You also get a lump sum.  Both payable at 60.

After 2021 it’s more complicated.  For every year of service you get about 2.5% of that years salary as a yearly pension. But payable at 67. 
 

 

[ender4]

7 minutes ago, Mandy Lifeboats said:

 The old scheme was in place until 2021 and is very simple.  For every year of service you get 1/80 of your final salary as a yearly pension.  You also get a lump sum.  Both payable at 60.

Wow that’s amazing!

[Mandy Lifeboats]

10 minutes ago, ender4 said:

Wow that’s amazing!

I know.  

In addition to the 1/80 of your final salary per year of service you ALSO get 3 years pension as a lump sum at 60. 

The flipside is that my salary isn't on par with the private sector.  

[Xela]

1 hour ago, chrisp65 said:

No idea how much it costs to rent a Lamborghini Urus, but that’s what he was off to Bristol to drive around in this weekend.

I will confess, my sympathy for his housing problems did kinda diminish.

To rent a Urus for a weekend is going to be between £2k - £3k

 

[Davkaus]

Yeah, it will vary by role but I'd need to take a 30-40% pay cut to do my job in the civil service, have to remind myself of that when I see the pensions!

[Davkaus]

If you're going to rent a lambo it shouldn't be a **** SUV. May as well get one of their tractors

[Xela]

59 minutes ago, ender4 said:

We would get £25k tax free allowance between the 2 of us so only need £45k gross?  

State pension of £20k, so need another £25k. £25k x25 is £625k. So that’s just over £300k each required either in a pension pot or savings by the time we retire. Is that about right?

 

Ok, I think that might be doable once kids have grown up and don’t have a mortgage anymore.

I'm not a financial advisor, i've just read a few FIRE blogs they always talk about needing the 25x yearly expenses, but they are usually retiring earlier than you plan to. You might need less as are you really going to be needing £45k gross at 80 years old? 

I'm in a different boat, I have no kids and don't want any. So, my plan is to run my pension pot down to zero. I don't need to leave a property/inheritance for anyone. My strategy will be different to lot of others on here who have kids. 

[Xela]

2 hours ago, sidcow said:

YOLO.

Yes, YOLO and that doesn't end when you are 28. You get to 58 and still feel fine and dandy with the world and enjoying yourself but start thinking that maybe you wouldn't like to spend the next 20 years working your fingers to the bone. 

And regardless of what you may have thought at 28 you really don't feel like life is anywhere close to over and would like to continue participating in it. 

YOLO is true the whole of your life, not just the first third of it. 

I agree in principle, but you have to have a bit of a life when you are younger as well. There is a balance to be had. I could have got on the property ladder a few years earlier, but I spent, at a very rough guess, around £30k on trips away with the lads over a 6-7 year period. I was still saving as well, so I did have a plan. Today, I cherish those memories I made on those trips. If anything, i wish I'd done a few more, but hindsight is a wonderful thing. 

[ender4]

1 minute ago, Xela said:

I agree in principle, but you have to have a bit of a life when you are younger as well. There is a balance to be had. I could have got on the property ladder a few years earlier, but I spent, at a very rough guess, around £30k on trips away with the lads over a 6-7 year period. I was still saving as well, so I did have a plan. Today, I cherish those memories I made on those trips. If anything, i wish I'd done a few more, but hindsight is a wonderful thing. 

Yep same here, I was always really sensible with my money.  Now thinking I should have spent more on nice holidays before we had kids.  It’s hard to have the time, inclination and opportunity to do big adventurous holidays with kids.

[tonyh29]

5 minutes ago, Xela said:

I'm not a financial advisor, i've just read a few FIRE blogs they always talk about needing the 25x yearly expenses, but they are usually retiring earlier than you plan to. You might need less as are you really going to be needing £45k gross at 80 years old? 

I'm in a different boat, I have no kids and don't want any. So, my plan is to run my pension pot down to zero. I don't need to leave a property/inheritance for anyone. My strategy will be different to lot of others on here who have kids. 

I’ve got kids and I’m still planning on running mine down to zero   
 

I’ve always planned for 55 but tbh I like my job and my clients and I hate the idea of letting them down , so I’ll maybe go to 57 and around 56 start discussing an exit plan with clients , assuming they haven’t ditched me in the meantime .

my first job back when I was 17 I paid £50 a month into a pension for a short time , then changed jobs … even though I hadn’t paid into it for over 40 years and it was just a run of the mill standard life type  pension , it ended  up having a transfer value of £80k … so essentially the earlier you can start and the longer you can leave it the more it makes, but that’s easier said than done for youngsters now where houses or rents are massive compared to my younger days 

 

[chrisp65]

33 minutes ago, Xela said:

To rent a Urus for a weekend is going to be between £2k - £3k

 

Yep, I’ve looked it up since and I think he one he has is from Bristol and is £2040 

30 minutes ago, Davkaus said:

If you're going to rent a lambo it shouldn't be a **** SUV. May as well get one of their tractors

I made that very point, that it was the world’s most pointless vehicle and they’d have done better with the tractor

[sidcow]

1 hour ago, Xela said:

I agree in principle, but you have to have a bit of a life when you are younger as well. There is a balance to be had. I could have got on the property ladder a few years earlier, but I spent, at a very rough guess, around £30k on trips away with the lads over a 6-7 year period. I was still saving as well, so I did have a plan. Today, I cherish those memories I made on those trips. If anything, i wish I'd done a few more, but hindsight is a wonderful thing. 

And you've always got that rash to remind you as well. Happy Days. 

[Xela]

53 minutes ago, sidcow said:

And you've always got that rash to remind you as well. Happy Days. 

I like to call it my love tattoo.

 

[Rugeley Villa]

Xela what would it take for me to be the main beneficiary of your will ?

[sidcow]

20 minutes ago, Rugeley Villa said:

Xela what would it take for me to be the main beneficiary of your will ?

It will involve his love tattoo 

[Rugeley Villa]

12 minutes ago, sidcow said:

It will involve his love tattoo 

Maybe I could rub some moisturiser on it for him 

Edited June 4, 2023 by Rugeley Villa

[magnkarl]

Another thing to consider doing is renting out stuff to top off your pensions.

My wife, clever as she is, is renting out our daughter's old baby equipment that my granddaughter no longer uses. You'd be amazed at how much people are willing to pay for a pram pack or other baby holiday equipment if they don't have to buy it. With the money she makes from this she goes to a spa twice a year with her girlfriends, and from looking at the pictures when they get back they don't scrimp on the expenses.

In any case, side hustles, if manageable without taking up too much time - is a great way to create some slack in your general money situation and allow you to pay off more debt\spoil yourself\invest.

[Rugeley Villa]

I’ve set up a sipp with Vanguard. 100% equity fund big US and UK tilt . I do have a target date retirement fund with them too but I’m hoping to leave that until as late as possible. My Sipp hopefully will help me during my 60s along with my state pension all being well. That’s the plan anyway. 

[Xela]

On 18/09/2023 at 17:25, Rugeley Villa said:

I’ve set up a sipp with Vanguard. 100% equity fund big US and UK tilt . I do have a target date retirement fund with them too but I’m hoping to leave that until as late as possible. My Sipp hopefully will help me during my 60s along with my state pension all being well. That’s the plan anyway. 

Its good that you have a plan! 

My pension (work) is invested 100% into global equities (L&G I think) and my personal investment account is 100% into global equities (HSBC All World index). Try and keep a few years salary as cash, which is getting decent returns now in savings accounts.

I found myself on a pension seminar at work last week, and while I'm a way off it yet, it was good to hear i'm doing the 'right things' at the moment.Making sure I utilise all the employer contributions in my work pension etc.

[Rugeley Villa]

30 minutes ago, Xela said:

Its good that you have a plan! 

My pension (work) is invested 100% into global equities (L&G I think) and my personal investment account is 100% into global equities (HSBC All World index). Try and keep a few years salary as cash, which is getting decent returns now in savings accounts.

I found myself on a pension seminar at work last week, and while I'm a way off it yet, it was good to hear i'm doing the 'right things' at the moment.Making sure I utilise all the employer contributions in my work pension etc.

Can’t afford not to have a plan I think. Started later than I would have liked but at least I’ve been paying into something the last few years.  I suspect you’re on a decent salary so to have a few years salary in the bank as back up puts you in a good position .