How much do YOU need to retire, right here, right now in the current economic climate ?

[Sackboii]

1 hour ago, scottbeard said:

Pun intended....?

Sadly not, but well observed..!

[Sackboii]

24 minutes ago, sexton said:

Yep. " Don't go to New York go to Seattle. Your new ticket is at the airport."

This.

Strangely, Seattle was one of the decent and more regular destinations. But there were plenty more really shitty places I went to, including the Middle East, Asia, Africa and South America.

Australia and New Zealand were about the only places I’ve never been.

[Lagarde's Drift]

1 hour ago, Nomadd said:

Maybe they needed those four fivers to buy some magazines? Woodland Survival, Sailing World, Electricity & Logistics Monthly and Gardener's Wold - Special Edition: Start Your Own Vegetable Patch.

My optimistic self thinks that OAP was a billionaire and just wanted a few fivers to give to their grandchildren.

[longgone]

By retirement i will be asking for 4 candles rather than 4 fivers. 

[Sackboii]

12 minutes ago, longgone said:

By retirement i will be asking for 4 candles rather than 4 fivers. 

😁

And for any of our younger viewers who may not have seen it, here it is:

 

[longgone]

8 minutes ago, Sackboii said:

😁

And for any of our younger viewers who may not have seen it, here it is:

 

Can't go wrong with peas or bill hooks 

[Nomadd]

2 hours ago, regprentice said:

So its entirely possible for a bank account to offer interest rates which exceed inflation.

Not over the long-term of a typical pension horizon of 30+ years.

[Lagarde's Drift]

1 hour ago, sexton said:

You will be. Champagne and rich food will give you heartburn and keep you awake most of the night.

Since I retired 30 years ago I've been on one flight and am hoping I don't ever have to take another.

 

1 hour ago, Sackboii said:

That's my view too. I don't mind one, maybe two a year. But having spent most of my career jetting off to far-flung places around the world on a very regular basis, if I never step on another aircraft again I really wouldn't give a flying-f00k.

 

1 hour ago, AThirdWay said:

We restrict ourselves to 3hr flight times max!

I hate flying too the whole lot incl airports the whole jazz is ****** and costs too much. But I see the world as my oyster and would include space if I was a billionaire, so I hate narrow horizons even more. Living under a rock counting pennies and beans ain't my scene. 

If I achieve my aim of high pension income but then reduce my spending then that's much better than the other way round? Downside is pursuing a career then working more and longer than u wanted. Solution is to do something u enjoy and gives u transferable skills.

[Bear Necessities]

2 hours ago, AThirdWay said:

We restrict ourselves to 3hr flight times max!

Crete's nice though

 

If you don't mind throwing your bog roll in a bin!

[kzb]

4 hours ago, Sackboii said:

No, these are the actual annual increase from the actual DB schemes. I used the 7.5%-8.0% as the baseline because that's the worst performing one. In reality, these are the actual increase for DB#1 and DB#2 based on the previous year's figures:

DB#1	% inc. pa		DB#2	% inc. pa
11/03/2019	7.29%		01/11/2019	2.79%
11/03/2020	5.72%		01/11/2020	1.61%
14/04/2021	5.43%		01/11/2021	3.77%
11/03/2022	7.80%		01/11/2022	17.54%

I don't have 2023 figures yet, but it will be interesting.

 

Crikey they're good ones.  They can't be state sector ?

[AThirdWay]

1 hour ago, Bear Necessities said:

Crete's nice though

 

If you don't mind throwing your bog roll in a bin!

Malta's good as well, we stretch that 3hrs to reach.

[Sackboii]

6 minutes ago, kzb said:

Crikey they're good ones.  They can't be state sector ?

No.

DB#1 from 1992-1995 (paid into it for 3 years). A 1/60th final salary scheme.

DB#2 from 1985-1990 (paid into it for 5 years). A 1/40th final salary scheme.

Each one in terms of value is looking almost as much as a state pension in it's own right. Not sure what's happened with DB#2, a 17.5% increase over the previous year, but I'm not complaining!

[winkie]

4 hours ago, AThirdWay said:

This! I'm off to the West coast and borders for a week this month, a week in Portugal (hiring bikes) in May.

My advice is skewed as I have an army pension as well as my pension pot but, for what it's worth...

I found that I needed far less than I thought I would. Once you're mortgage free then your regular expenses are very low. Direct debits total < £500 per month, we also save £250 a month for unexpected costs. My partner has finally retired, she's 59, and has approx. 300k in her private pension, I have about the same. We could easily live on £2.5k a month, carefully managed to minimise tax liabilities, so that works out nicely with the 20x figure previously quoted. 

When you take into account the army pension, future state pensions (65 for me, 67 for the better half) and the rental income we have from our previous respective flats (boo! hiss!), we are very comfortable. The archetypal boomers I'm afraid. But.... We could easily live on our pension pots alone.

My advice would be do it if the figures are right, you only get one go at this my friend. I can promise you that, when you are about to pop, you won't be thinking of the last piece of work you did for someone else!!! 😁

Good for you, sounds very doable.....have a spectacular holiday creating new experiences. Life is for living.

Edited April 19, 2023 by winkie

[kzb]

4 hours ago, Sackboii said:

No.

DB#1 from 1992-1995 (paid into it for 3 years). A 1/60th final salary scheme.

DB#2 from 1985-1990 (paid into it for 5 years). A 1/40th final salary scheme.

Each one in terms of value is looking almost as much as a state pension in it's own right. Not sure what's happened with DB#2, a 17.5% increase over the previous year, but I'm not complaining!

I've got two, put together they'll  give me slightly over £1000 a month (although one of them has a tax free lump sum of over £20k, hence I believe I can retire at 65 instead of waiting for state pension age).  Total service was about 24 years.  So you see these state pensions are not as gold plated as often presented.

[Nick Cash]

12 hours ago, Sackboii said:

Pensions seriously underperforming inflation which by this mornings news is still the seriously worrying thing.

Great for savings and HPC though..

My fathers pension statement arrived a few weeks ago. Pension increased by RPI (13% roughly I think). Capped at 7.5% as per the “contract”. 
 

So their food bills for them and their live in carers have increased by 19.1% (not capped!). The care bills have increased by 16% (so far another review due this month).  He pays income tax on his pension (frozen thresholds) and capital gains tax is slashed as of this financial year.

And he has no idea where he is or frankly who he was. 

[Nick Cash]

6 hours ago, longgone said:

Can't go wrong with peas or bill hooks 

Only surpassed by the squash sketch. IMO.

[onlooker]

7 hours ago, longgone said:

Can't go wrong with peas or bill hooks 

P's can cause confusion

 

[Nomadd]

19 minutes ago, Nick Cash said:

Only surpassed by the squash sketch. IMO.

Your nuts, my lord.

 

[Nick Cash]

3 minutes ago, Nomadd said:

Your nuts, my lord.

 

Not bad, but nothing, I repeat nothing will ever be better than “in your ruddy Burtons suit”. 

[scottbeard]

On 18/04/2023 at 12:39, Sackboii said:

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 ?

I realise I never answered the original question.

I'd ideally like my wife and I to have a joint pot (pensions and savings) of around £1.6m at age 55 as a minimum before I'd be happy to retire, so about £800k each, but that's assuming no debts (including mortgage) to clear.

On 18/04/2023 at 12:39, Sackboii said:

For me, the big unknown is inflation.

For me too.  That's why, despite @Nomaddscoffing at the idea, I would want to sink the bulk of my pension savings into a CPI-linked annuity (ideally with 50% spouse's pension and 10 year guarantee, so it's not completely lost if I were perchance to die early.)

[Sackboii]

7 minutes ago, scottbeard said:

I'd ideally like my wife and I to have a joint pot (pensions and savings) of around £1.6m at age 55 as a minimum before I'd be happy to retire, so about £800k each, but that's assuming no debts (including mortgage) to clear.

Is that in today’s money or in 11 years time when you reach 55 ?

[scottbeard]

47 minutes ago, Sackboii said:

Is that in today’s money or in 11 years time when you reach 55 ?

In today's money.

It's all very personal though - there is no "right answer" and some people would consider that way too much or way too little.

[winkie]

9 hours ago, Nick Cash said:

My fathers pension statement arrived a few weeks ago. Pension increased by RPI (13% roughly I think). Capped at 7.5% as per the “contract”. 
 

So their food bills for them and their live in carers have increased by 19.1% (not capped!). The care bills have increased by 16% (so far another review due this month).  He pays income tax on his pension (frozen thresholds) and capital gains tax is slashed as of this financial year.

And he has no idea where he is or frankly who he was. 

I am not surprised....I will not be quiet, and will continue to mention one reason, big reason is BREXIT.....

 

We were told food and shoes cheaper, we were told our lives will be much improved...... everything they said was the opposite ...... People have been fooled and lied to.... consequences, take it, will have to take it and suck it.....those that voted it are those most likely to have the biggest negative impact from it.......we did not need it at this time, those that can will try and reduce the negatives most are having to deal with.....others will not be so fortunate.

 

Capped pensions and high inflation ~5% higher than that of similar contemporaries mean we are getting poorer as a country, well most of the people are....not all by all means.

 

Inflation far higher than wage increases, and stock market flat.

 

 

 

 

 

Edited April 20, 2023 by winkie

[micawber]

8 hours ago, scottbeard said:

In today's money.

It's all very personal though - there is no "right answer" and some people would consider that way too much or way too little.

It's so personal. I only needed half that in order to retire at 51. We're comfortable but don't discretionary spend to excess. The more easily you're pleased - the less you need. Don't forget to factor in any additional sums from downsizing and inheritance.

[micawber]

I do like the fact that the more you can save for retirement, the less you get used to living on while working, the easier it is to retire early. Get used to living off a retirement level income in the 2/3 years before you pull the trigger.