State Pension Age Speculated To Rise To 75-81

[council dweller]

" A decent bird"

You smooth bugger you CCC !!

[dougless]

" A decent bird"

You smooth bugger you CCC !!

Not Bird, Burd. Burd is ironic and at the same time friendly, affectionate even. Bird is just plain sexist.

[ccc]

Not Bird, Burd. Burd is ironic and at the same time friendly, affectionate even. Bird is just plain sexist.

This man gets it ^

[council dweller]

.....but I am sexist though.

[ccc]

.....but I am sexist though.

I am sexist, misandrist and misogynistic.

The holy trinity.

[council dweller]

In my case I was `brought up` in the eighties. Didn't know what was going on but I knew it could get me laid.

[porca misèria]

So you retired at age 56 ?

I assume you realise how amazing that is ?

It's looking less amazing with time. They've printed such a wall of money I could do something similar: buy a middling house for cash and have enough in the pension pot to buy an annuity of £10k. How that works out then depends on inflation, and how much purchasing power the £10k retains over the decade or so between 56 and state pension age.

What seems more impressive is those HPCers retired in their 40s. Or are about to do so and have chronicled their own progress in a blog. I guess they too have pots inflated by the secondary effects of money-printing.

[SarahBell]

But how much will you get?

https://www.gov.uk/new-state-pension/your-national-insurance-record-and-your-state-pension

You’ll usually need to have 10 qualifying years on your National Insurance record to get any new State Pension.

You may get less than the new full State Pension if you were contracted out before 6 April 2016.

You may get more than the new full State Pension if you’ve built up enough National Insurance contributions towards the Additional State Pension.

You’ll need 35 qualifying years to get the new full State Pension if you don’t have a National Insurance record before 6 April 2016.

[council dweller]

So Sarah...

In my case Born in 1959, can I get a full pension?

[SarahBell]

So Sarah...

In my case Born in 1959, can I get a full pension?

You’ll be able to claim the new State Pension if you’re:

a man born on or after 6 April 1951

a woman born on or after 6 April 1953

The earliest you can get the new State Pension is when you reach State Pension age.

You’ll usually need at least 10 qualifying years on your National Insurance record to get any State Pension. They don’t have to be 10 qualifying years in a row.

This means for 10 years at least one or more of the following applied to you:

you were working and paid National Insurance contributions

you were getting National Insurance credits, eg for unemployment, sickness or as a parent or carer

you were paying voluntary National Insurance contributions

If you’ve lived or worked abroad you may still be able to get some new State Pension.

You may also qualify if you’ve paid married women’s or widow’s reduced rate contributions.

[council dweller]

Thanks Sarah...

In fact I`ve got only 18 years of payments but I am getting `for life` benefits (I had a stroke)which should see me through to 66.

I`m really lucky !

[wish I could afford one]

...

What seems more impressive is those HPCers retired in their 40s. Or are about to do so and have chronicled their own progress in a blog. I guess they too have pots inflated by the secondary effects of money-printing.

As someone who didn't get into BTL for wealth building - call me old fashioned - this is where my wealth has come from since 2007:

- 68% has come from savings from work in the productive economy

- 32% has come from capital growth, dividends and interest.

The capital growth, dividends and interest has compounded up at a rate of only 5.8% annualised. I've never calculated it but I'd guess divi's and interest have probably averaged 3.5% of that. So the 'secondary effects of money-printing' have probably contributed all of 2.3% annualised. Offset that against inflation of 2.5% and I hardly have a pot inflated by the secondary effects of money-printing.

My secret is working bl**dy hard, living well below my means, giving the least amount possible to the financial services sector and avoiding as much tax as possible. Today, I have a little over £900k stashed away so I don't see this dynamic changing much between now and FIRE which is now less than a year away.

[sPinwheel]

Today, I have a little over £900k stashed away

Can I borrow £10?

[wish I could afford one]

Can I borrow £10?

I think you've asked me that question before :-) The answer this time is the same as last time...

[Kiwi Toast]

You've been earning 5.8% annual return, with I think a reasonable level of risk. People should be asking if they can lend you money! (Or alternatively just copy your portfolio)

[wish I could afford one]

You've been earning 5.8% annual return, with I think a reasonable level of risk. People should be asking if they can lend you money! (Or alternatively just copy your portfolio)

I really haven't backed the risk truck up. My strategy has never been about huge investment returns as I really did want to give myself a high probability of FIRE in less than 10 years. Today my portfolio consists of:

- 13.3% cash (inc P2P)

- 24.9% bonds (NS&I ILSC's. Index Linked Gilts and Corporate)

- 10.1% property (Industrial and Commercial)

- 4.8% gold

- 11.6% international equity (Europe, US and Japan trackers)

- 4.9% emerging market equity (trackers)

- 10.3% Australia equity (a mistake in hindsight, was originally planned to be my FIRE location)

- 20.2% UK equity (trackers)

So nothing exotic or special, just low cost.

[Pop321]

I think you've asked me that question before :-) The answer this time is the same as last time...

They now need to scroll old posts and threads to find your old response to remind them what the answer was. ?

That's an impressive save from real earned money. Not easy to earn that. Also saving it and living below your means is difficult for many people even when 'the means' are as substantial as yours. Many zombie walk into spending what they earn.

And retirement can come earlier if the question we ask ourselves is what do I need to live on when I retire? Rather than the bizarre question many people ask which is 'well, what do I earn now?'

It's a good effort I doubt many could match.

Ps can you lend me £10? ?

[wish I could afford one]

They now need to scroll old posts and threads to find your old response to remind them what the answer was.

That's an impressive save from real earned money. Not easy to earn that. Also saving it and living below your means is difficult for many people even when 'the means' are as substantial as yours. Many zombie walk into spending what they earn.

And retirement can come earlier if the question we ask ourselves is what do I need to live on when I retire? Rather than the bizarre question many people ask which is 'well, what do I earn now?'

It's a good effort I doubt many could match.

Ps can you lend me £10?

It's been a real positive journey for me is all I can say. I keep the blog up to hopefully show people what can be done if they start and show determination. They're really the only two traits required. The rest is just learning the method.

On the earnings front. I've had people challenge me in the past that the only reason I can do what I'm doing is because of my earnings. The funny thing is when I started on my journey I didn't earn anywhere near what I earn now. In fact on my blog I was very transparent, laid out how I was going to earn more and then went and did it. My method is not easy and is hard work but it's not revolutionary.

On the retirement front. I agree entirely. Last year I spent £24k. 63% of that was rent and council tax. I live in an expensive part of the UK as it enables me to maximise savings (earnings less tax less spending). In FIRE I'm planning on EUR25k (plus a paid for home) which will enable me to live the life of Riley if I so choose. None of that comes anywhere near my earnings today.

[Pop321]

i tend to use HPC to just vent my disbelief at 118 but been on holiday last week and searched around a little more.

Can you share where your blog is. And apologies for my ignorance.

[wish I could afford one]

i tend to use HPC to just vent my disbelief at 118 but been on holiday last week and searched around a little more.

Can you share where your blog is. And apologies for my ignorance.

Blog is Retirement Investing Today. Started it in 2009 but have been on my FIRE journey since late 2007.

Are you starting to think of Plan B's?

[silver surfer]

I keep the blog up to hopefully show people what can be done if they start and show determination. They're really the only two traits required. The rest is just learning the method.

On the earnings front. I've had people challenge me in the past that the only reason I can do what I'm doing is because of my earnings. The funny thing is when I started on my journey I didn't earn anywhere near what I earn now. In fact on my blog I was very transparent, laid out how I was going to earn more and then went and did it. My method is not easy and is hard work but it's not revolutionary.

On the retirement front. I agree entirely. Last year I spent £24k. 63% of that was rent and council tax. I live in an expensive part of the UK as it enables me to maximise savings (earnings less tax less spending). In FIRE I'm planning on EUR25k (plus a paid for home) which will enable me to live the life of Riley if I so choose. None of that comes anywhere near my earnings today.

Good for you. I retired when I'd just turned 56. I'm kicking myself now because if I knew then what I know now I'd have retired much much earlier. Sadly I was a scaredy cat, frightened that I'd run out of money. What I've found is that you can live really well on far less than I'd assumed, and there are still casual earning opportunities out there to keep the pot topped up.

[wish I could afford one]

Good for you. I retired when I'd just turned 56. I'm kicking myself now because if I knew then what I know now I'd have retired much much earlier. Sadly I was a scaredy cat, frightened that I'd run out of money. What I've found is that you can live really well on far less than I'd assumed, and there are still casual earning opportunities out there to keep the pot topped up.

That comment put a smile on my face. I should be retiring at age 44 (unless GFC 2 occurs) and I say exactly the same thing. I wasted my time until age 34 with debt, money waste, frivalous spending and consumption.

[Frugal Git]

I think wishicouldaffordones terrific strategy is adaptable for (almost) anyone IF they choose to and without the need for that substantial income. It is all about cutting your cloth in accordance. My gross is 30k pa as I only work 3 days a week out of choice. So relatively chicken feed.

I sock away ~18k of that into a SIPP and live on the remainder (which still leaves a bit of a surplus). So i pay very little tax - circa 3% of gross. Before I started doing that - about 3 years ago, I was living a much more consumerist life, bought everything I could ever need (other than a house), and stuffed everything above into Stocks and shares isas.

If I keep this up I'll have about eight years I'll have (in today's money - and I really don't see inflation coming now, but am hedged if so) 30 years worth of living expenses in the SIPP, and 20 years worth outside of that (which more than covers me till I get access to the SIPP cash). That should continue to grow anyway simply because I like investing as a hobby. I aim for a withdrawal rate of less than annual growth. Whatevers left can go to my nephews and nieces tax free under the current rules.

I'm way more aggressive/risk taking on the investment front though, and am beginning to think I already have enough capital and hopefully knowledge to simply manage what I have without going out and sitting in an office any longer. Originally my plan was to just stay semi retired as it were working part time - but I'm beginning to tire of seeing actual working for a living getting increasingly little reward. As the great man above says - get on the side of capital, not labour.

I'm not missing out on anything. I'll never have kids now so my FIRE target can be substantially lower. Quite honestly in some ways I have house price inflation to thank for all this. I'd probably have been a drone if we hadn't had it.

Edited March 27, 2016 by Frugal Git

[Pop321]

Blog is Retirement Investing Today. Started it in 2009 but have been on my FIRE journey since late 2007.

Are you starting to think of Plan B's?

I won't stray from the thread but FIRE was always my aim. My version of retirement differs from most. I enjoy manual labour eg decorating/tiling/plastering and intend to 'retire' at 50 from a finance role I have been in since I was 18. However I will continue work for the physical and mental challenge rather than a need for money. Most of my friends are in building trades but they have done it all their lives and that's a very different path and physically hard work over a lifetime.

My job pays quite well and the pension at 62 is 4 times what I get a 50......but enough is enough. I nearly left at 40 but discovered and fell into the trap that 20/30's earned money is for food, heating and kids but in my 40's it was for wealth creation and my salary increased substantially too. But 50 is enough for me....the stress, difficulty booking a nice holiday, worry about work when not at work takes it toll.

I am looking forward to working in tranches eg 3 months on, then 9 months off.

Will read your blog. Thx.

[wish I could afford one]

...I aim for a withdrawal rate of less than annual growth. ...

...Quite honestly in some ways I have house price inflation to thank for all this. I'd probably have been a drone if we hadn't had it.

Good post FG and I know we've had some good discussion in the past but just wanted to comment on two of your points.

I'm trying to be a little more extreme than your withdrawing annual growth by trying to live off the dividends and interest. This is because for me at least I think I would find it difficult to sell down assets during a severe bear market. My divi yield (after netting off current house purchase wealth) is 3.8% today and I'm looking to draw down at 2.5%. This hopefully means by saving some of the divi's in the good times and by having 3 years of cash for the bad times I should be well on my way.

I came to HPC at about the same time I enacted my Plan B. At the time my focus was just trying to afford a home for my family which was Plan A. As the years went on Plan A disappeared but Plan B now actually looks far more interesting and enjoyable from where I sit today.