Thoughts on life, death and when to retire...

boogieman

RandallFlagg said:

boogieman said:

Don’t forget that you may be hit for a reduced company pension pay out if you retire before 60. My company knocked off 5% per year.

Also don’t bank on getting a full state pension as it depends if your pension scheme ever opted you out of paying full NI contributions. If you retire early and therefore have no NI contributions for certain years you’ll lose even more state pension. I have 42 years of contributions but still stand to lose about a third of the full pension payment because my employer opted out and I’ll have 8 non-contributing years by the time I qualify for the pension. You can go on the gov.uk site to get an estimate. 

Btw I retired at 58 and haven’t regretted it a bit. I’d rather be young enough to enjoy my pension. 

I've checked my state pension contributions, no missed years full entitlement

But if you retire early and don’t make any NI contributions between the time you give up work and your pension entitlement date, they will reduce the payout. Don’t assume that just because you’ve paid NI for the 35 qualifying years that you’ll still get the full amount. You can make top-up payments to fill in the missing years, but it’s a balancing act of course: you could pay in £thousands extra and then die the day after you’re able to claim.

The state pension system was completely overhauled in 2016 (to the Govt’s benefit, surprise surprise). The current estimate is that less than 50% of people will ever qualify for a full pension. 

Shrews

It's all very well saving money for old age, but you're rolling the dice on two things

1. You're alive to enjoy it
2. You're fit and well enough to enjoy it

Want to travel the world in your 60's?  If you're getting out of puff climbing the stairs in your 50's then you best be getting fitter, otherwise when you eventually get to walk the Great Wall of China you'll be yearning for your comfy slippers and TV before you've got beyond the first noodle stand.

The time to do that stuff is when you're fit and well.

When you get to your 70's you can live on small amounts of cash as you will be happiest resting your weary legs by pottering in the garden and a high likelihood that if you do manage to walk to the local a couple of halves of Mackeson Stout will do you. It's very unlikely you will be lining up the Jaeger Bombs.

My advice: Go and do everything you want as soon as you can and live off your memories when you're older. Don't wait for Death to come knocking, he won't wait whilst you plead that you haven't seen the Leaning Tower of Pisa yet.

Musicwolf

boogieman said:

But if you retire early and don’t make any NI contributions between the time you give up work and your pension entitlement date, they will reduce the payout. Don’t assume that just because you’ve paid NI for the 35 qualifying years that you’ll still get the full amount. You can make top-up payments to fill in the missing years, but it’s a balancing act of course: you could pay in £thousands extra and then die the day after you’re able to claim.

I’d heard something to this effect a few weeks ago but I’ve not found anything on the gov website to confirm.  Worst case for me is that I’ll need to do something in the next decade but it won’t be anything as stressful as I do today.

RandallFlagg

Shrews said:

It's all very well saving money for old age, but you're rolling the dice on two things

1. You're alive to enjoy it
2. You're fit and well enough to enjoy it

Want to travel the world in your 60's?  If you're getting out of puff climbing the stairs in your 50's then you best be getting fitter, otherwise when you eventually get to walk the Great Wall of China you'll be yearning for your comfy slippers and TV before you've got beyond the first noodle stand.

The time to do that stuff is when you're fit and well.

When you get to your 70's you can live on small amounts of cash as you will be happiest resting your weary legs by pottering in the garden and a high likelihood that if you do manage to walk to the local a couple of halves of Mackeson Stout will do you. It's very unlikely you will be lining up the Jaeger Bombs.

My advice: Go and do everything you want as soon as you can and live off your memories when you're older. Don't wait for Death to come knocking, he won't wait whilst you plead that you haven't seen the Leaning Tower of Pisa yet.

That's it, that's where I'm thinking.

RandallFlagg

boogieman said:

RandallFlagg said:

boogieman said:

Don’t forget that you may be hit for a reduced company pension pay out if you retire before 60. My company knocked off 5% per year.

Also don’t bank on getting a full state pension as it depends if your pension scheme ever opted you out of paying full NI contributions. If you retire early and therefore have no NI contributions for certain years you’ll lose even more state pension. I have 42 years of contributions but still stand to lose about a third of the full pension payment because my employer opted out and I’ll have 8 non-contributing years by the time I qualify for the pension. You can go on the gov.uk site to get an estimate. 

Btw I retired at 58 and haven’t regretted it a bit. I’d rather be young enough to enjoy my pension. 

I've checked my state pension contributions, no missed years full entitlement

But if you retire early and don’t make any NI contributions between the time you give up work and your pension entitlement date, they will reduce the payout. Don’t assume that just because you’ve paid NI for the 35 qualifying years that you’ll still get the full amount. You can make top-up payments to fill in the missing years, but it’s a balancing act of course: you could pay in £thousands extra and then die the day after you’re able to claim.

The state pension system was completely overhauled in 2016 (to the Govt’s benefit, surprise surprise). The current estimate is that less than 50% of people will ever qualify for a full pension. 

Oh well fuck 'em then, I'll liquidate the house and screw the kids inheritance. It would only go into care costs for my missus after I'm gone anyway.

We're all fucked, and each generation is more fucked than the last.

Stavros

Lots of really good advice given already but I would emphasise considering a reduction in your working week as a starter for ten. I did that last year when I was 60 (triggered by similar experiences and feelings as you) and not only does it make you feel better about your job and life generally because you have more time to do the stuff you want to, it also prepares you for when you have a lower income - I’ve decided not to take any pension yet so basically on 3/5 of my previous package. But you learn to live on less.

On the independent financial advisor point, it sounds like you know your onions, but I would say it depends on how much of your pension pot is investible/ within your control, as it’s here you might need some help - which will cost you fees of course. 

Important thing is that you are thinking about it and so can make plans before it’s too late. 

McSwaggerty

Iamnobody said:

I’m 40 now so fuck knows what the state pension age will be (if I live long enough).

I will be well surprised if a State Pension still exists in 28 years time. 

RandallFlagg

So, how are we supposed to plan for early retirement on this information? Below is my result for checking my state pension on the Government website:

Your State Pension summary 

You can get your State Pension on 8 March 2034. Your forecast is

£164.35 a week

£714.63 a month, £8,575.55 a year

Your forecast

• is not a guarantee and is based on the current law
• is based on your National Insurance record up to 5 April 2018
• does not include any increase due to inflation

£164.35 is the most you can get

You cannot improve your forecast any more.

If you’re working you may still need to pay National Insurance contributions until 8 March 2034 as they fund other state benefits and the NHS.

tone1

My biggest problem is that I signed up age 15/16 into paying NI with an agreement that I get a state pension at 65.... So I’ve kept my side of the bargain but the Government have moved the goalposts by 3 years presently so that’s about £15k-£20k I’m being short changed by over a lifetime...if that goes up again to 69 before a pension kicks in, they’ll have taken the piss completely... I would have never agreed to such a deal when I started out.....In fact I’ll probably never vote again based on the fact that whoever you vote for.... ‘The Government always get voted in’ 

Musicwolf

tone1 said:

My biggest problem is that I signed up age 15/16 into paying NI with an agreement that I get a state pension at 65.... So I’ve kept my side of the bargain but the Government have moved the goalposts by 3 years presently so that’s about £15k-£20k I’m being short changed by over a lifetime...if that goes up again to 69 before a pension kicks in, they’ll have taken the piss completely... I would have never agreed to such a deal when I started out.....In fact I’ll probably never vote again based on the fact that whoever you vote for.... ‘The Government always get voted in’ 

The other part of that bargain was that you would retire at 65 but then have the good grace to be dead by 70.  Too many people aren’t keeping to that part of the deal, hence the changes.  Across the population, whatever we draw out of the pot during retirement cannot exceed what we pay in during our working lives.  Since I’m planning on retiring at 56 and then living forever my colleagues probably need to increase their pension contributions 

boogieman

tone1 said:

My biggest problem is that I signed up age 15/16 into paying NI with an agreement that I get a state pension at 65.... So I’ve kept my side of the bargain but the Government have moved the goalposts by 3 years presently so that’s about £15k-£20k I’m being short changed by over a lifetime...if that goes up again to 69 before a pension kicks in, they’ll have taken the piss completely... I would have never agreed to such a deal when I started out.....In fact I’ll probably never vote again based on the fact that whoever you vote for.... ‘The Government always get voted in’ 

Well just consider yourself lucky you’re not a woman born in the mid 1950s, they’ve been screwed out of 6 years of pension they were promised at 60. 

I reckon the Govt will push the state pension age up to 70 next. Then once everyone has had their Workplace Pension going for a few decades they’ll can it completely, because you know, people won’t need a state pension then will they? 

Shrews

Stavros said:

But you learn to live on less.

This is very true.

And when you do do this, you look back at the times when you spent more freely and think what the fck was I spending £100 a month on Galaxy bars for?

Tesco Pizza - 70p last time I saw, reasonable size, definitely a decent meal with a bit of extra cheese on. I also added a little ham and some mushrooms. I'd guess at a quid max with the extra ingredients.

I also bought a Domino's pizza a few weeks back, it cost £15 and I didn't even like the flavour....or base....and it was cold....and I waited 45 minutes for it.

In old age, pottering around the kitchen with time on my side, and lovely memories of when I was fit and healthy filling my head, I'd probably even have an attempt at making my own base. Might even grow some tomatoes to put on it.

Never see it as a given that you'll be around tomorrow, let alone in 30 years time.

 By the way, my name is Death and you'll die on March 21st 2021 along with everybody else contributing on this thread. How you all feeling about your pensions?

VimFuego

I plan on renewing, and then claiming my free Jenny Agutter. 

octatonic

At 47 I have no expectation that the aged pension will be available to me.
I've been self employed or a contractor for most of my working life and have a couple of little businesses that kinda run themselves.
That is my retirement fund.

Couple that with once I get seriously ill I intend on taking a short trip to Switzerland if assisted suicide isn't legal in whatever country I happen to retire in.
I don't fancy taking 5 years to die in agony of cancer like my mum is.

RandallFlagg

Shrews said:

Stavros said:

But you learn to live on less.

This is very true.

And when you do do this, you look back at the times when you spent more freely and think what the fck was I spending £100 a month on Galaxy bars for?

Tesco Pizza - 70p last time I saw, reasonable size, definitely a decent meal with a bit of extra cheese on. I also added a little ham and some mushrooms. I'd guess at a quid max with the extra ingredients.

I also bought a Domino's pizza a few weeks back, it cost £15 and I didn't even like the flavour....or base....and it was cold....and I waited 45 minutes for it.

In old age, pottering around the kitchen with time on my side, and lovely memories of when I was fit and healthy filling my head, I'd probably even have an attempt at making my own base. Might even grow some tomatoes to put on it.

Never see it as a given that you'll be around tomorrow, let alone in 30 years time.

 By the way, my name is Death and you'll die on March 21st 2021 along with everybody else contributing on this thread. How you all feeling about your pensions?

Pottering around in the kitchen making cheap home made pizzas, while looking out at the birds on the bird feeder, listening to Test Match Special before curling up with a good book, with the cat on my lap and a glass or wine sounds like heaven to me,

RaymondLin

Shrews said:

Stavros said:

But you learn to live on less.

This is very true.

And when you do do this, you look back at the times when you spent more freely and think what the fck was I spending £100 a month on Galaxy bars for?

Tesco Pizza - 70p last time I saw, reasonable size, definitely a decent meal with a bit of extra cheese on. I also added a little ham and some mushrooms. I'd guess at a quid max with the extra ingredients.

I also bought a Domino's pizza a few weeks back, it cost £15 and I didn't even like the flavour....or base....and it was cold....and I waited 45 minutes for it.

In old age, pottering around the kitchen with time on my side, and lovely memories of when I was fit and healthy filling my head, I'd probably even have an attempt at making my own base. Might even grow some tomatoes to put on it.

Never see it as a given that you'll be around tomorrow, let alone in 30 years time.

 By the way, my name is Death and you'll die on March 21st 2021 along with everybody else contributing on this thread. How you all feeling about your pensions?

I do that now, tonight was tinned sardines in spaghetti, with a handful of cheese on top. that's it.  Sardines are like 45p a tin, I put 2 in, cost £1.50 max and I was stuffed.

paulnb57

I was lucky enough to retire at 55 and draw my work pension, we had hammered the morgage payments and settled early, the day after I retired I went back Part Time 19 hours a week.....

Life is great, money isn't everything, retire as soon as you can afford to, life isn't a rehearsal....

revsorg

I asked our accountant of 15 years and who I trust completely to recommend a financial advisor.

The bloke he recommended manages my pension wrapper and unless I misunderstand the way it works I pay him a fixed annual fee and there is no way for him to touch my money.

Had he recommended any sort of setup that enabled him to handle my cash I would have politely declined his services.

Kebabkid

I'm 55 and I'm currently up for redundancy, although negotiations continue. I've worked for the same company since 1984 but took a 1.5 year break (to do music professionally) and returned to them in 1991, so that's a fair old innings there. I love my job, what I do, my team etc and have it working for me e.g. 4 days working at home and one day in the office.

Yeah, the redundancy package is ok but that won't last more than 2 years if used to manage bills etc. Plus, at my age, I don't fancy going out into the job market as everything I've done has been around the music industry, which isn't particularly buoyant at the moment and where graduates who want to move on from job to job and are happy to start off on £22K are their preferred choice of employee.

There's nothing else I'm dying to do.  Do I take the package as it might not come around again for another 10 years, and this is a major reshuffle at work, or stick it out if I'm lucky enough to get a new role? If I was 59 or over 60, I'd just go for redundancy, retire, but at 55, I feel I'm on that last 10 year home run and had coordinated things to work out nicely for me and the family at 65.

A recent article said that in your 50s, you should only be working 3 days a week. I don't know about that.

We'd love to downsize, well, be mortgage free, and move out of London to somewhere like Suffolk, or maybe even abroad. Alas, I have an elderly parent close by who will not move with us and as an only child, I'm responsible for her, which is fair enough.

Brexit throws up it's own worries and I just feel you can't make future, well, long-term plans anymore. Add to that, I've lost people younger than me and I'm seeing quite a decline in mental health with colleagues, family and friends and you do start to wonder more about work/life balance and what direction to go in and how to make the best life for you and your family. With a teenage son still at school, you have to always have your responsible hat on, but I find things so uncertain in this day and age

57Deluxe

My Mum has just had a stroke and is hospitalised... there are guys in the ward that are younger than me... S0 - Stop work, lose the stress and enjoy life cos you never know when it will all be taken away from you...

Oh and reduce your salt intake!