Sackboii Posted April 18, 2023 Share Posted April 18, 2023 As per subject. Lets say you are approaching 55, the age at which (for now) you can start to access your pension pot(s).. In an ideal world, taking out of the equation whether or not you would want to, how much would you need to cover your everyday and monthly/annual expenses and have a reasonably decent standard of living ? Has anyone not yet close to this age started to give this any thought ? I know I have been doing so for at least 3-4 years already (I will be 55 late this year). But somehow, although I am a technical and scientific person and have been all my working life, I can't help but continue to think that my extensive calculations on what is actually needed to give up work completely is missing something.. Just wondering what others think/are thinking/or perhaps it will start to make you think ? For me, the big unknown is inflation. If only a crystal ball was available... Quote Link to comment Share on other sites More sharing options...
Lagarde's Drift Posted April 18, 2023 Share Posted April 18, 2023 I'm thinking that you need to consult a financial and/or advisor and pay for advice. You don't have to take it, but it gives you indicative numbers for your situation. Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 18, 2023 Author Share Posted April 18, 2023 (edited) 5 minutes ago, Lagarde's Drift said: I'm thinking that you need to consult a financial and/or advisor and pay for advice. You don't have to take it, but it gives you indicative numbers for your situation. I was expecting that someone would suggest this - and of course, it is good advice, and I may well do so at some point before pulling the actual trigger. The problem with most of these types is that they assume when you retire that people want to go off travelling the world or on cruises or on several other expensive holidays a year, new car every few years, pay off their mortgage, help their kids out with costs of buying houses and weddings etc etc and as a result come up with an exorbitantly large figure.. None of the above applies to me. Yes, I will go on holiday, might help the kids out if needed (but they don't need it having done very well with highly paid careers). Thus, my calculations and projections suggest I need far less than I actually have. But the closer I get, still the more reticent I feel.. Edited April 18, 2023 by Sackboii Quote Link to comment Share on other sites More sharing options...
shlomo Posted April 18, 2023 Share Posted April 18, 2023 11 minutes ago, Sackboii said: As per subject. Lets say you are approaching 55, the age at which (for now) you can start to access your pension pot(s).. In an ideal world, taking out of the equation whether or not you would want to, how much would you need to cover your everyday and monthly/annual expenses and have a reasonably decent standard of living ? Has anyone not yet close to this age started to give this any thought ? I know I have been doing so for at least 3-4 years already (I will be 55 late this year). But somehow, although I am a technical and scientific person and have been all my working life, I can't help but continue to think that my extensive calculations on what is actually needed to give up work completely is missing something.. Just wondering what others think/are thinking/or perhaps it will start to make you think ? For me, the big unknown is inflation. If only a crystal ball was available... You could retire at 55 but most pension companies have a penalty if you take before your 60th birthday, well mine did. Quote Link to comment Share on other sites More sharing options...
longgone Posted April 18, 2023 Share Posted April 18, 2023 A rich wife should do it. Quote Link to comment Share on other sites More sharing options...
winkie Posted April 18, 2023 Share Posted April 18, 2023 All depends, different people require a different amount of money a month to live from, are used to a certain standard of living.....have just themselves to support or others to support?.....anyone retiring should have some savings behind them for unforseen circumstances..... maybe a travel fund if that is what planning to do and income can only support day to day living.....so many factors to consider, but don't fear not having enough, if do will continue working and end up having more than enough money and not enough time or health to enjoy it. Quote Link to comment Share on other sites More sharing options...
Lagarde's Drift Posted April 18, 2023 Share Posted April 18, 2023 12 minutes ago, Sackboii said: I was expecting that someone would suggest this - and of course, it is good advice, and I may well do so at some point before pulling the actual trigger. The problem with most of these types is that they assume when you retire that people want to go off travelling the world or on cruises or on several other expensive holidays a year, new car every few years, pay off their mortgage, help their kids out with costs of buying houses and weddings etc etc and as a result come up with an exorbitantly large figure.. None of the above applies to me. Yes, I will go on holiday, might help the kids out if needed (but they don't need it having done very well with highly paid careers). Thus, my calculations and projections suggest I need far less than I actually have. But the closer I get, still the more reticent I feel.. Why would someone you pay to give you bespoke advice do the exact opposite? Are you the one with the assumptions? Quote Link to comment Share on other sites More sharing options...
Nick Cash Posted April 18, 2023 Share Posted April 18, 2023 5 minutes ago, longgone said: A rich wife should do it. Yup! Trouble is she’s not keen on stopping work completely. Quote Link to comment Share on other sites More sharing options...
mynamehere Posted April 18, 2023 Share Posted April 18, 2023 Very roughly, multiply your required annual net income by 20. Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted April 18, 2023 Share Posted April 18, 2023 24 minutes ago, Sackboii said: As per subject. Lets say you are approaching 55, the age at which (for now) you can start to access your pension pot(s).. In an ideal world, taking out of the equation whether or not you would want to, how much would you need to cover your everyday and monthly/annual expenses and have a reasonably decent standard of living ? Has anyone not yet close to this age started to give this any thought ? I know I have been doing so for at least 3-4 years already (I will be 55 late this year). But somehow, although I am a technical and scientific person and have been all my working life, I can't help but continue to think that my extensive calculations on what is actually needed to give up work completely is missing something.. Just wondering what others think/are thinking/or perhaps it will start to make you think ? For me, the big unknown is inflation. If only a crystal ball was available... 10 slaves. Â Quote Link to comment Share on other sites More sharing options...
longgone Posted April 18, 2023 Share Posted April 18, 2023 2 minutes ago, Nick Cash said: Yup! Trouble is she’s not keen on stopping work completely. Win win then. Quote Link to comment Share on other sites More sharing options...
longgone Posted April 18, 2023 Share Posted April 18, 2023 2 minutes ago, TheCountOfNowhere said: 10 slaves.  10 BTL's 🤣 Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 18, 2023 Author Share Posted April 18, 2023 2 minutes ago, mynamehere said: Very roughly, multiply your required annual net income by 20. Yes, that's the old '4% rule'. Already at that or slightly above. Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 18, 2023 Author Share Posted April 18, 2023 6 minutes ago, Lagarde's Drift said: Why would someone you pay to give you bespoke advice do the exact opposite? Are you the one with the assumptions? That's true - I guess I don't want to pay someone to tell me what I already think/know.. But as I said, will probably do so before actual trigger-pulling. Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 18, 2023 Author Share Posted April 18, 2023 6 minutes ago, Nick Cash said: Yup! Trouble is she’s not keen on stopping work completely. On the one hand, giving it up entirely and doing what *I* want, when *I* want, is what's driving me to seriously do it ASAP. On the other, I had already thought of part time/consultancy work if needed or I get bored (highly unlikely I think..). Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 18, 2023 Author Share Posted April 18, 2023 6 minutes ago, TheCountOfNowhere said: 10 slaves. 4 minutes ago, longgone said: 10 BTL's 🤣 Tantamount to the same thing over the past 20 years I reckon. Not so much now and for the next few years I suspect! Quote Link to comment Share on other sites More sharing options...
winkie Posted April 18, 2023 Share Posted April 18, 2023 4 minutes ago, Sackboii said: Yes, that's the old '4% rule'. Already at that or slightly above. Just do it. Quote Link to comment Share on other sites More sharing options...
spyguy Posted April 18, 2023 Share Posted April 18, 2023 Oh.... 55 is tought one. Way too young - unless you are circling lifes toilet pan. You need to work out how much you want and how much youve got. Im working on roughtly ~5% drawn down from pension from 65. If you reture earleir thne you need to draw down less. A lto lot less. 3% from 55 should be OK. The smart thing to do would be to look for a PT job to take you to earning limits. Â Â Â Â Quote Link to comment Share on other sites More sharing options...
winkie Posted April 18, 2023 Share Posted April 18, 2023 20 minutes ago, spyguy said: Oh.... 55 is tought one. Way too young - unless you are circling lifes toilet pan. You need to work out how much you want and how much youve got. Im working on roughtly ~5% drawn down from pension from 65. If you reture earleir thne you need to draw down less. A lto lot less. 3% from 55 should be OK. The smart thing to do would be to look for a PT job to take you to earning limits.  Everyone is different, wants different and needs different things....just because a person retires doesn't mean they can never work again.....for money or voluntary. Quote Link to comment Share on other sites More sharing options...
Sackboii Posted April 18, 2023 Author Share Posted April 18, 2023 46 minutes ago, spyguy said: Oh.... 55 is tought one. Way too young - unless you are circling lifes toilet pan. You need to work out how much you want and how much youve got. Im working on roughtly ~5% drawn down from pension from 65. If you reture earleir thne you need to draw down less. A lto lot less. 3% from 55 should be OK. The smart thing to do would be to look for a PT job to take you to earning limits. 3% still puts me into paying basic rate tax from the outset at 55, something which I am not going to do. I think I’ll be ok. Quote Link to comment Share on other sites More sharing options...
Bear Necessities Posted April 18, 2023 Share Posted April 18, 2023 I was calculating mine the other day to see if I could retire at 45. Trouble is I'm over 40 already (so that would be a no, then) Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted April 18, 2023 Share Posted April 18, 2023 I'm struggling with this too, am approaching 48 this year. I've decided to focus on doing work I enjoy rather than maximise my income, and work later. Is that an option for you? Quote Link to comment Share on other sites More sharing options...
winkie Posted April 18, 2023 Share Posted April 18, 2023 2 minutes ago, Sackboii said: 3% still puts me into paying basic rate tax from the outset at 55, something which I am not going to do. I think I’ll be ok. When retiring.... health always come before money.... doesn't matter how much money have, not got health got nothing. Quote Link to comment Share on other sites More sharing options...
winkie Posted April 18, 2023 Share Posted April 18, 2023 1 minute ago, the_duke_of_hazzard said: I'm struggling with this too, am approaching 48 this year. I've decided to focus on doing work I enjoy rather than maximise my income, and work later. Is that an option for you? Wind down slowly, do fewer hours, embrace freedom when your job no longer owns you. Quote Link to comment Share on other sites More sharing options...
Nick Cash Posted April 18, 2023 Share Posted April 18, 2023 People around you will start having health issues at 55. Some will die at 65. It might be you. If you can afford it, then retire (to some extent). By 60 try only to work if you want to. I’m 59 soon. Too many friends gone or struggling. Quote Link to comment Share on other sites More sharing options...
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