Retirement?

I plan to retire in 2029 after 40 years working for the NHS. I'm looking forward to my Gold Plated Pension (TM Daily Mail) so that I can buy an island and have people wait on me for the rest of my life...if I survive.

You can get an island for less than a one bed flat in an average part of the North https://www.privateislandsonline.com/canada/novascotia/hemlow-island

Presumably you can set the speed limit and make your own laws like no cyclists allowed.

I don’t expect pensions to exist in any meaningful way when the time comes for me to retire. The plan is to just keep working on generating sustainable passive income and hope for the best. Who knows universal income might well be a thing by then.

The state pension probably won't exist as we know it in years to come that's why the government is upping the personal contributions everyone makes,going up to 8%of your salary from next April. The company you work for must have a scheme that they will contribute to and you get tax relief from the government, its virtually free money so why wouldn't you take it? Obviously if you are self employed that's not the case,not sure how it works then.

Stuffing money under the matress or into a savings account with current interest rates will not grow any faster than inflation and be worth less in 30 years time than today if the rates stay low.

I've had a pension since my first job at 16(54 now),then a private scheme now finally a company one that everything is bundled into and its value is going up steadily it can fluctuate depending what the stock market does but the trend is upwards.

I run my own business so unfortunately it’s a little bit different.

The fees for pensions are ridiculously high which means they have to perform really well to make even a modest return its the same for most active funds really. Instead I stick my money in various passive index tracker funds through a SIP and hope for the best.

It's depressing for me thinking I'm probably going to have to work until 2050 before I can retire. That's if I stay in the same job. I have a decent pension at the moment and I've been paying in for 8 years, so I'll have 40 years in by the time I finish but I am not counting my chickens because I am certain the terms of it will have changed by the time I do draw it out. My hope for the shorter term though is that my wife's side of the family has some wealthier relatives so as morbid as it sounds we have to think about that money being passed down and we'll be able to make it work rather than have it sitting in bank accounts. So we are thinking of going into property development and getting some rentals going. It'll most likely be the money is passed to my in-laws and we split the profit, from the money they put in and from me being quite handy and doing the majority of the work myself.

I run my own business so unfortunately it’s a little bit different.

The fees for pensions are ridiculously high which means they have to perform really well to make even a modest return its the same for most active funds really. Instead I stick my money in various passive index tracker funds through a SIP and hope for the best.

Use pension contributions to reduce corporation tax. Its very tax efficient way of saving.

Fees don't have to be high. Where do you get that idea from?

When I was running my own ltd company I was paying into the same personal pension I have now with low fees and about 12% return paid from pre-tax company money saving 20% corporation tax and getting topped up by the government. Nothing not to like about that!!

I run my own business so unfortunately it’s a little bit different.

The fees for pensions are ridiculously high which means they have to perform really well to make even a modest return its the same for most active funds really. Instead I stick my money in various passive index tracker funds through a SIP and hope for the best.

 

Use pension contributions to reduce corporation tax. Its very tax efficient way of saving.

Fees don't have to be high. Where do you get that idea from?

When I was running my own ltd company I was paying into the same personal pension I have now with low fees and about 12% return paid from pre-tax company money saving 20% corporation tax and getting topped up by the government. Nothing not to like about that!!

I sat down with an IFA maybe a 2/3 years ago to go through everything, I don’t remember the exact figures but remember walking away from that meeting thinking that the fees are really high and everyone wants a slice of my cash and the returns in exchange weren’t to impressive. Doing some research and prepared to take some risks I decided I could do a better job myself so put half into property and the rest into a SIP. it’s not the most tax efficient set up but it gives me complete control and if I cock it up and ends up costing me then I know I only have myself to blame and It suits my control freak personality haha.

Seven years ago I had thirty years to go, would retire on 50% of my final salary and I contributed about 6.5% of my salary.

Now I have thirty years to go (despite seven years having passed) I contribute nearly ten percent, the money I paid into the scheme I described before has been frozen and I shall retire with 32/80ths of my career average. No idea how they adjust for inflation on the career average. I am a little bitter about the change.

I run my own business so unfortunately it’s a little bit different.

The fees for pensions are ridiculously high which means they have to perform really well to make even a modest return its the same for most active funds really. Instead I stick my money in various passive index tracker funds through a SIP and hope for the best.

 

Use pension contributions to reduce corporation tax. Its very tax efficient way of saving.

Fees don't have to be high. Where do you get that idea from?

When I was running my own ltd company I was paying into the same personal pension I have now with low fees and about 12% return paid from pre-tax company money saving 20% corporation tax and getting topped up by the government. Nothing not to like about that!!

 

I sat down with an IFA maybe a 2/3 years ago to go through everything, I don’t remember the exact figures but remember walking away from that meeting thinking that the fees are really high and everyone wants a slice of my cash and the returns in exchange weren’t to impressive. Doing some research and prepared to take some risks I decided I could do a better job myself so put half into property and the rest into a SIP. it’s not the most tax efficient set up but it gives me complete control and if I cock it up and ends up costing me then I know I only have myself to blame and It suits my control freak personality haha.

Sorry mate but either you were given bad advice or you misunderstood.

If you're a ltd company and not using pension contributions to reduce corporation tax you are over paying your company tax and missing out in 20% tax reduction.

Ltd company or not, if you're not contributing to a pension you are missing out on the 25% government top up...

And if youre managing your own investment portfolio, unless that's your line of work, you're probably wasting time you could be using to make your own business more successful and unlikely to have a well balanced resilient portfolio.

Not wishing to preach, it's your money and your future, but you really should spend a bit of time researching. I can give you a referral to the company I use for my pension and other savings if you like. You'd get some freebies and so would I.

In my case I have property, private pension and now a work pension as well as various other investments. Certainly worth diversifying your investment portfolio and in your case that means getting a personal pension.

15% pension here, 5% contribution, 10% from the company, which I think is pretty good.

I have no faith in the state pension though so as I get older and I pay my mortgage down, I'm going to try and expand my property portfolio to act as my real retirement fund.

My lack of faith stems from the fact right from the beginning schools don't explain mortgages, pensions, or anything like that. When I was in school it was all "uni, uni, you must go to uni". But the schools only wanted this to boost their statistics.

I knew of apprenticeships but none were advertised and I wasn't told how to find/apply for them. When I did ask I'd get a patronising response from teachers about why I didn't want to go to uni, and the message was "do it yourself". Not useful when a few months prior I had to put my hand up and ask to go to the toilet.

Ironically, the apprenticeship I ended up on got me to Beng with 0 debt. But it took a couple of years of stabbing in the dark in every direction to find it. So when I retire I might well offer to do seminars at schools for those wanting a good career without 3-5 years of uni and the crippling debt.

Do the maths add up? If you put 10% a year of a 50k salary for 40 years you'd have £200k. Which, if you live another 20 years from 66 (to 86) is £10k a year, £840 a month or so. Hopefully you'd have paid your mortgage off by then so that would cover council tax, some food, and the odd bike service... Not great.

and that's quite generous, 50k for 40 years is not likely for a large amount of the population and most wont ever see 50k/year!

Each year that passed after my 55th birthday, I would look into the cost/benifit of retiring. Each year I got the same result! In the end, I just retired (early) and found that we can manage on my pension(s), especially now the State Pension has started to be paid to me.

As I recall, life was 'harder' back in the days when we first had a mortgage - 150% of our annual income was used and the monthly fee was only just short of my monthly pay!

Bottom line - we managed and we are 'managing' again today.

Plus side - Not having to commute daily - Living a more pleasant and peaceful life - doing what we want to do, when we want to do it. RIDING THE BIKE MORE!

I say dont worrie about it . When your time come to retire RETIRE just do it as all your life you would have come across this sort of debate .

I want a bike can't afford it f**k it buy it did paid for it

I want a car can't afford it f**k it buy it I did paid for it

Want to get married can't afford it f**k it did it regregated it lol

Want to buy a house can't afford it bought it loved it

Mrs wanted kids can't afford it f**ked it had them really reregreated it

Kids wanted to go to collage can't afford it they paid we helped they got good jobs loved it .

Holidays cant afford it we did it loved it

Time to retire can't afford

JUST FECKING DO IT ..

I say dont worrie about it . When your time come to retire RETIRE just do it as all your life you would have come across this sort of debate .

I want a bike can't afford it f**k it buy it did paid for it

I want a car can't afford it f**k it buy it I did paid for it

Want to get married can't afford it f**k it did it regregated it lol

Want to buy a house can't afford it bought it loved it

Mrs wanted kids can't afford it f**ked it had them really reregreated it

Kids wanted to go to collage can't afford it they paid we helped they got good jobs loved it .

Holidays cant afford it we did it loved it

Time to retire can't afford

JUST FECKING DO IT ..

On that basis I want to retire now!

should I just do it?

I'm not sure who will pay for my mortgage, car, bikes, council tax, food, internet etc etc but feck it I'm going to do it ...................

I say dont worrie about it . When your time come to retire RETIRE just do it as all your life you would have come across this sort of debate .

I want a bike can't afford it f**k it buy it did paid for it

I want a car can't afford it f**k it buy it I did paid for it

Want to get married can't afford it f**k it did it regregated it lol

Want to buy a house can't afford it bought it loved it

Mrs wanted kids can't afford it f**ked it had them really reregreated it

Kids wanted to go to collage can't afford it they paid we helped they got good jobs loved it .

Holidays cant afford it we did it loved it

Time to retire can't afford

JUST FECKING DO IT ..

Like it. It’s ballsy. Teetering on disastrous but ballsy.

Something always turns up..... mostly

Need to have a realistic plan rather than just winging it.

Mine is take some of my pension pot next year when I'm 55 (25% of the pot tax free) and put towards a business plan to generate some income later into retirement.Continue working until I'm 60, thrash as much as i can afford into the pension and then see how the funds are.

Obviously taking some of the pension at 55 will reduce what I can take at full retirement but why wait until then to access it , who knows how long any of us are going to live.

Money is there to be used and enjoyed, spent too many of my earlier years just getting by, i'm not going to be like that in later life.

Luv being retired, 50 years of work, now reaping the benefits, but you have to be in 2 pension pots, don't know how anyone can survive on the state pension

I'm 30 in February. Get paid a decent wage, pay into a "very decent" (so I am told) pension, don't have kids, and have been in private rent accommodation for the past 12 years.

Pretty sure I won't actually reach retirement age (whenever that will be in 30+ years time). My current plan is to hopefully buy a house in the next few years, then withdraw as much as I possibly can from my pensions as a lump sum, as soon as I can. So I can then pay off as much of my mortgage as possible. Then if I actually reach retirement age, I'll simply make do on the state pension - or starve/freeze.

If I hadn't been paying into a pension the past 8 years, I would have been able to save for a decent house deposit much quicker. However, because of employer contributions it made more sense to wait it out and use it to hopefully pay of the end of my mortgage, rather than start it off

I hate maths at the best of times, but pensions simply depress me. I simply see it as a big pot of money I'm meant to be looking forward to enjoying. Instead I simply see it as money I could better use now to get out of a sucky financial situation.

Hi @spanner long time no hear.

Hi @spanner long time no hear.

Cheers matey ,Yeh , life deals some curved balls, but everything fine now, dropped a few stone in my exile, but fitter and heathier now , even done a 10k run, life is good

I'm 30 in February. Get paid a decent wage, pay into a "very decent" (so I am told) pension, don't have kids, and have been in private rent accommodation for the past 12 years.

Pretty sure I won't actually reach retirement age (whenever that will be in 30+ years time). My current plan is to hopefully buy a house in the next few years, then withdraw as much as I possibly can from my pensions as a lump sum, as soon as I can. So I can then pay off as much of my mortgage as possible. Then if I actually reach retirement age, I'll simply make do on the state pension - or starve/freeze.

If I hadn't been paying into a pension the past 8 years, I would have been able to save for a decent house deposit much quicker. However, because of employer contributions it made more sense to wait it out and use it to hopefully pay of the end of my mortgage, rather than start it off

I hate maths at the best of times, but pensions simply depress me. I simply see it as a big pot of money I'm meant to be looking forward to enjoying. Instead I simply see it as money I could better use now to get out of a sucky financial situation.

Hi , what I would suggest to any younger person deciding on getting a mortgage is , get the best you can afford, get it over 30years repayment and forget about trying to pay it off fast, after 20years your payments will be a lot lower than now, enjoy that time and after 20years put more into a pension plan ready for retirement, I know its a millstone but you will then you will have the benefits

If saving for your first home, take a look at lifetime ISAs.

Lifetime isa

I'm 30 in February. Get paid a decent wage, pay into a "very decent" (so I am told) pension, don't have kids, and have been in private rent accommodation for the past 12 years.

Pretty sure I won't actually reach retirement age (whenever that will be in 30+ years time). My current plan is to hopefully buy a house in the next few years, then withdraw as much as I possibly can from my pensions as a lump sum, as soon as I can. So I can then pay off as much of my mortgage as possible. Then if I actually reach retirement age, I'll simply make do on the state pension - or starve/freeze.

If I hadn't been paying into a pension the past 8 years, I would have been able to save for a decent house deposit much quicker. However, because of employer contributions it made more sense to wait it out and use it to hopefully pay of the end of my mortgage, rather than start it off

I hate maths at the best of times, but pensions simply depress me. I simply see it as a big pot of money I'm meant to be looking forward to enjoying. Instead I simply see it as money I could better use now to get out of a sucky financial situation.

 

Hi , what I would suggest to any younger person deciding on getting a mortgage is , get the best you can afford, get it over 30years repayment and forget about trying to pay it off fast, after 20years your payments will be a lot lower than now, enjoy that time and after 20years put more into a pension plan ready for retirement, I know its a millstone but you will then you will have the benefits

That's what we did pretty mu had. Scrimped and saved to buy a flat in London. 30 year mortgage. Over half way through now. Our mortgage is less than half rents round here and hopefully we'll sell next year and move out to a nice house, pay down mortgage early and save the extra after that.

Cheers matey ,Yeh , life deals some curved balls, but everything fine now, dropped a few stone in my exile, but fitter and heathier now , even done a 10k run, life is good

YAAAY spanner is back!!

If saving for your first home, take a look at lifetime ISAs.

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Or help to buy ISA

both have benefits best reading up about them both

Welcome back [mention]spanner[/mention] we was wondering where you had gotten to

Thursday is my last day at work. Then I start my early retirement.