Volunteering, Board memberships
I do a limited amount of volunteering for a community library, fortunately I can't do much as I have a full time job. All the other trustee board members are retired. It is like a full time job for them without being paid - endless admin, organising staff rotas, office politics, the list goes on. No thanks!
I find the " I wouldn't know what to do with myself in retirement" weird tho I fully accept its a real issue for some and some folk retire, become couch potatoes and thats it.
Ive had a couple of weeks of doing very little I will confess - but thats at least in part recovery after a very demanding trip. Generally I take my time to do things and do a fair amount of just "pottering about" but I also would usually have a walk or cycle ride most days, have a posh brunch once a week, I entertain cooking for folk which is a day at least in prep. Many weeks I will go away overnight to visit folk, I watch every rugby game I can, every few weeks I'll have a trip away somewhere for a couple of nights and of course I have spent almost a year of the last 3 away from home on big trips - none of which have been hugely expensive because I have been either staying with folk or camping.
I have so much I want to do in terms of wandering around the countryside. Its great not to have to rush around and being able to take my time and to take pleasure in simple things. I have bought a canoe that I have not even had time to really use yet. Must get a trip up north oraganised with it.
Winters are harder hence I have been away the last two winters
I do not know how I had time to work even part time as I was the last couple of years 🙂
plenty of opportunity to go and do something that might not pay much but is more fulfilling/relaxing/enjoyable.
this is very much my plan, and I really hope I can find that something later on in the summer/autumn.
I don’t currently feel a desire to get back into the corporate dollar life and the stresses and pressures that go with it, and whilst my pot is not enough to retire right now at age 59, I don’t need anything like the high tax rate salary I was on till very recently.
Thankfully I am in a position to be able to now take a couple of months doing nothing work wise while I come up with the plan, though at the moment I have no idea what it will be !
I had two main things I was going to do when I retired. That was nearly five years ago and I haven't done either of them. I have a couple of voluntary roles (your local Wildlife Trust can always use some help), my car almost never gets used for journeys of less than 5 miles, I walk or cycle instead - which takes time. I walk/hike a fair bit, cycle quite a bit - still getting PRs at nearly 66. There's always something on the bikes that needs fixing/cleaning/upgrading. I spend time on here, and a bit on Bluesky. 3 times a week I do an exercise/physio set that takes about 90 minutes. I work in the garden or the allotment, do stuff around the house. If I go to London to meet friends I make a day of it and visit museums, art galleries, gardens, Serpentine Pavilion, whatever - last time I had a day in London I did 28000 steps as I tend not to use cabs or TfL to get between the various activities. All in all, I struggle to find the time to reduce the size of my books to read pile, and I've no idea what's on daytime TV - or pretty much any TV really. Don't have time to watch it, so I don't pay for any media subs.
It's a fine life.
We both finished at the end of March, I think we both just assumed we would finish together, and up to now i haven't had a minute.
Today has been another day in the hills with 1500m of climbing and 2700 of singletrack descent. Now sat with a glass of wine and a book.
Tjagain what are you going to strap your canoe to to transport it or are you starting from Portobello heading towards the Isle of May? It gets choppy out in the Firth . Three chippies to choose from at Anster
Tjagain what are you going to strap your canoe to to transport it or are you starting from Portobello heading towards the Isle of May? It gets choppy out in the Firth . Three chippies to choose from at Anster
Unfortunately despite being an inflatable canoe its too big and heavy even deflated to put in my trailer for the bike. Bus / train / taxi / hire car depending how far I am going. I do have the river just outside my flat tho but I can't get very far on it. 🙂
Spent today with my mate who was made redundant at 56 a couple of months ago. His wife wants him to find a job, despite them being able to comfortably manage on her salary (her monthly take home is 20% my annual gross salary) and he is feeling somewhat conflicted on the subject.
Being able to catch up with a mate (even me) after getting household tasks done, and then taking the dog out for a walk to a leisurely cafe lunch looked quite a tempting lifestyle, I have to say.
@mwab65
"was that quote for a lifetime or fixed duration annuity?"
It was Lifetime. The detail is that I actually had 3 separate 'pots' with Scottish Widows, totalling ~£320K (it was going up & down a bit while Trump played his Tariff Shenanigans game, obviously). I got a single quote for that total amount from a broker, accepted that, and they then started the paperwork rolling to transfer the 3 pots to the annuity provider. It took a few weeks to get things moving, and they've ended up spread out over a period of perhaps 10-12 days, because they didn't all get cashed in & transferred simultaneously for some reason or other. As I write this, 1 of them has turned into a pension commencing 23rd June, 1 of them commenced 27th June, and I've not yet had the confirmation paperwork for the 3rd. But it'll probably be in tomorrow/Sat post. So far, I've had a small payment from the first of them of about £220 for the period 23rd - 30th June in my bank account.
So I'm actually going to end up with 3 separate pensions being paid, all on the same day at the end of each month, which I expect to be the monthly portion of ~£16.5K, less tax obviously. If it's a few quid off one way or the other, I'm not going to fret.
The "free time" issue only comes up if you enjoy your current job. If you don't then there's plenty of opportunity to go and do something that might not pay much but is more fulfilling/relaxing/enjoyable. That's how I ended up working in a bike shop, then doing bike hire and cyclist transport, becoming a qualified bike mechanic and a licensed taxi driver. I didn't see any of that coming iny retirement thoughts
whats that saying
Choose a job you love, and you will never have to work a day in your life.
Mrs DoD forgot what day it was yesterday and thought it was Tuesday,I DoDplained to her thats what happens to you retirees as your not tied to having to worry about what day it is 🙂
(i’m still kicking the tyres on my retirement date.)
I worried incessantly about how I would fill my time in retirement and kept putting it off. Turns out it isn’t a problem. I have no idea where the time goes but it just does. I have however always been an active person with lots of interests who can’t sit still for long so always find something to do. The old adage about not understanding how I had time to work is true for me. I genuinely don’t know how I got the mundane things in life done while working.
I don’t worry about filling my time, I worry about funding it all.. 😁🙄
having a dog, running and biking, with a bit of trail building and FE (then FC) volunteer work kept me well out of trouble when i was 'self employed', i think i did about 5 weeks work over the course of a year. cocking about with bikes and all the rest of it. i didn't know where i found time to work. i keep looking at the sums. honestly, look at any of the sites that have income/vs expenditure tables and do your maths, then get out when you can. time cannot be bought.
What to do with my time if I didn't work? Blimey. (Leaving aside parents in their 80s with early signs of dementia...)
£40 a year for membership of 2 cycle clubs gives me options to do group rides 7 days a week, on and off road. That's in addition to having time to train for and ride more audax events.
In the summer I could be marshalling 2-3 times a week.
If it's pissing wet I've a gym membership that gives me access to 2 local leisure centres and at least 50 classes a week.
There's yoga, tai chi and pilates to try at the local village hall. Plus walking groups, history group, a wine tasting group...
There are 3-4 local outdoor volunteering groups that look good round here.
I could take my time gardening and decorating rather than squeeze it in on busy weekends.
There's language learning and box sets I've never got around to.
There's committee work I could go back to.
And I suspect loads of stuff I haven't even thought of!
Operation " getthefarkout" is underway. I am 60 later this year and could get VR - hoping for confirmation soon. Mid week picture thread here i come. I am a little concerned about filling my week after 38 years of working - it will take some adjustment - I just need to give myself time to "pivot" (hate that word in business). Get back to some sadly neglected hobbies, friends and walks with the Mrs.
I have done the maths and I reckon I should probably try and pick up something part time to give some slush funds for extras. It won’t be a tax efficient thing to do in this tax year, but I don’t think not working at all till April would be a wise thing for me mentally..
If you're worrying about "tax efficiency" then you can afford to retire. 😂
What to do with my time if I didn't work?
Plenty would keep me occupied, assuming my health keeps reasonably ok, lots of outdoors stuff, travel, visiting friends and family, going to gigs, the list goes on!
The current VSS scheme at my place was tempting, but the figures didn't add up for us with our outgoings in the next few years being quite high, eg ongoing mortgage, university costs, all this means a few more years' work yet for me :-/
Volunteering, Board memberships, visiting family, reading, cooking, studying, museum visiting, wildlife watching, golfing, lunching with wife / friends, learning instrument, planning trips, organising life admin, language learning, writing.......
Most of this list sounds like a terrible way to spend your hard earned free time, most of it sounds too much like work to me
Retired at 51, so 5 years ago. My advice would be:
- do not even think about using an IFA unless you fully understand their total cost over the years. And when you do, you will realise how poor value they are when most of the info is in the public domain, and they are not independent.
- do not use online simulator. They don't know you. You know you, so build a big old spreadsheet with all the parameters, inflation, growth, tax, IHT, projected expenses etc ... and play with them making safe(ish) assumptions. Update as you go along.
- understand how to NOT pay tax legally, including on the first 25% of your pension pot as draw down. Understand Pension Tax Relief up to 75 without recycling.
- understand how to NOT pay tax legally, including on the first 25% of your pension pot as draw down. Understand Pension Tax Relief up to 75 without recycling.
As good a place as any to ask. But, the 25% you can take tax-free, do you have to do self-assessment for that and declare/detail it ? Then each year after that if you're taking less than the 25% initially ?
I'll be taking some of my 25% but not all of it as soon as 55, however don't know yet if i'll be taking the remainder of the 25% at all.
Re: the 25% - your Pension provider notifies the Inland Revenue - nothing needed there from you. If you draw down then they will usually deduct the tax from the amounts you draw down. If you decide to start having a pot pay out, the necessary tax is deducted at source by your pension provider, and your tax code updated.
Thanks chap.
Still in holiday mode here, a couple of weeks after rather unexpectedly finishing up, and part way through second week of time away from home with my wife and various of the offspring and partners. Having a lovely time with big walks, nice rides, sunshine and beer in Northumberland.
The odd time will be on Monday, when all are back at work bar me…
Current plan is to spend a few hours early in the week updating my professional CV and LinkedIn stuff, then go swim, ride my bike, walk the dog and see what unfolds over the following week or 2.
I am still entirely undecided on what I want to do, and thankfully have a bit of space to work it all out.
some of the input on here has been invaluable, I’m so glad I resurrected the thread, though perhaps somewhat selfish in doing so, but thank you for all the ideas and experiences 👌
Having started fairly late with a pension, I was looking to be set for retirement whenever the government sees fit.
Worked for the same company man and boy for 22 years, took redundancy and set up my own business 15 years ago - 53 now, soon to be 54. Mrs STR is self employed and has no personal pension. We don't have any savings of note and don't have a big expensive house to downsize when we decide to wind it back (we were just very slow at moving up the property ladder - two houses in 30+ years).
Always earned a fairly decent wage and never struggled to have whatever luxuries we fancied - or frittered a load of money we could have saved...
Have been putting £500/month into the personal pension for a few years now and that was set to mature at circa £250k, so not a huge pot - dented recently by various world events and most recently Mr Trump. Have a lot of work on at the moment, so upped that to £1k/month to lift it to a £500k pot if the input is sustainable for the term. The plan was to work full tilt to 60, then maybe scale it back a bit with easier work for a few years, closer to home - not working away, get a dog, be a bit more chilled until I could actually pack up altogether
The business has taken an upturn over the past few years - with a bit of a set back a couple of years ago, but this year has seen it really go mental. A lot of hard work and a good dose of luck tbf. This year we are set to turn over £2.5 million, with profit projected at £500k. Next year will be potentially similar and the company I contract to has (at this moment) a 7 year portfolio. Mrs STR and I are sole directors/employees of our company
So, the outlook has now changed considerably - maybe now a 3-5 year plan to comfortably put my feet up/travel a lot/whatever. If the work continues indefinitely, will put someone in place to run it all and take a wage to live a nice lifestyle - is the plan, but as ever, always waiting for something to go tits up. Next installment of this story will probably involve me working until I'm 80, or die, whichever comes sooner
Sounds like things are aligning very well for you, great it’s working out in your favour 👍
will put someone in place to run it all
Why not sell the business at the peak - then you have a lump sum with no worries about a future downturn
will put someone in place to run it allWhy not sell the business at the peak - then you have a lump sum with no worries about a future downturn
Because the business as it stands probably has little saleable value. Fixed assets are small and there are no secured contracts for the business on a long term basis. Each contract is won on tender and typically lasts 3-6 months. My personal confidence for future work rests on the fact that 90% of my work over the 15 years in business has been for the same company (a big multi national). I've built a reputation, have a good relationship with the directors and know where I need to be pricing wise.
But, it could all end after the next job for whatever reason, there are unfortunately no guarantees. I'm an electrician by trade though, so will always have work.
There is the possibility of tying the company into a framework agreement which would possibly add a saleable value
If you are making 500K profit then why isn't the business putting 60K a year into you and your wife's pension. Add in counting back unused contributions and the reduction in corporation tax and it seems the obvious thing to do
If you are making 500K profit then why isn't the business putting 60K a year into you and your wife's pension. Add in counting back unused contributions and the reduction in corporation tax and it seems the obvious thing to do
Because this is the first year of making big profit and the bank balance has only looked very good for a few months so far. I generally spend something prior to year end anyway - a couple of vehicles year end just past. At some point this year, it's definitely a discussion I'll be having with my pension adviser. I was going to make a £20k lump sum contribution a couple of years ago, but needed the cash in the bank for cash flow - I like to make sure there's a big cushion before disposing of big amounts. Was £50k into the overdraft paying wages 6 months ago (knowing that the money was coming in though).
Actually at my last pension review, my adviser was pushing towards putting cash into property rather than upping the pension massively. A conversation will be had with a proper financial adviser at some point.
I think you really do need to get some advice. As company directors having even one year of shovelling money into a pension x2 as higher rate taxpayers is huge in terms of uplift through tax efficiency and huge in compounding interest over a few years.
Congratulations on the business success. I'd second the maxing out pension contributions for you both - with countback for previous years. If you are likely to be a taxpayer when drawing your pension (and most will be with the full state pension at the personal threshold), pension saving is tax deferred not tax avoided. BUT... you will get compound growth before that tax has to be paid (and may pay tax at a lower marginal rate than you claimed when paying in), so pensions are the most effective savings scheme. If you are very close to retirement age, then this is moot and an ISA or property might be a better option. But IANAFA, but I do save everything I can into my pension at the expense of other things for that tax deferral. I originally planned for this to be IHT free to the kids, but now I will be spending it instead. Probably on them 😉
One point, don't pay yourself too much, because once your threshold income exceeds £200,000, your allowance reduces by £1 for every £2 your adjusted income rises above £260,000. The minimum this can taper to is £10,000
Bear in mind that pension/ISA reform is prime target for Reeves this autumn, so unless you want to fund the freeloaders to an even greater extent, then I would be getting it sorted ASAP.
So unless you want to fund the freeloaders to an even greater extent, then I would be getting it sorted ASAP
Unfortunately if you want to invest in a pension some of it will inevitably end up in the pockets of bankers and the like.
I saw nickjb's reply before jamz's, and thought it odd. Reading jamz's afterwards made me realise Nick's was excellent.
but I do save everything I can into my pension at the expense of other things for that tax deferral.
I always have been and will probably continue to be in the live for the moment camp.
If I want something now, I'll have it, rather than saving it for a day when I might be dead.
Obviously I want to have a bit put away and with the way things are panning out that could be a bit more than I'd planned for - and for that, I will take advice
Well, that’s first week of not working, after 2 weeks of planned holiday, just about completed.
still not really decided what I want to do but am feeling like the idea of something part time, interesting and keeping the mind challenged may be the way to go. Have had a look at a few non exec board type things, government, police, health service, charities etc, generally 3-5 days per month and well rewarded, am thinking a couple of those types of things could work, and help supplement the funds a bit…
Part time jobs are tricky for me... It's mostly bar work or cleaning work I can see.. And I couldn't do that as I'd end up chinning the customers, lol.
I'm looking into van driving but I don't really want to go self employed like Uber or Amazon as I don't want to be pratting about with tax declarations and all that crap.
Just refreshing to bring onto same page as the ‘redundansized’ thread…
week 2 here, still pondering part time options.
Get back to work you lazy slackers, early retirement is a selfish indulgence according to the Grauniad! Work till you croak of stress or exhaustion, it's what your country expects 🙄
Get back to work you lazy slackers, early retirement is a selfish indulgence according to the Grauniad! Work till you croak of stress or exhaustion, it's what your country expects 🙄
Having had my updated civil service forecast last week, croaking of stress is looking the most likely option
Having had my updated civil service forecast last week, croaking of stress is looking the most likely option
☹️
Because this is the first year of making big profit and the bank balance has only looked very good for a few months so far
NP. You can make pension contributions and take advantage of past underused years. This has been a great boon.
Only 180 paydays to go before I retire! And that'll only happen if I get my act together now. I'll report back next year when I'll have 180 paydays till retirement!
There might be a jump at some point in the future where the remaining paydays his 120 and hopefully it'll be in less than 5 years and no more than 7 🤔
If we all worked longer, what are the youngsters going to do. Nah, certainly planning on going in my early 60's
The youngsters can do other things. It's not like there is some limited number of things to be done.
Four months in and loving every minute.
Back in the UK for a month and then back out to Europe for another MTB trip.
60 months to go. My pension has been so beaten up that it is a shadow of what was promised when I started. Galling to know folk leaving now with enough of a lump sum to buy a house and I'll be going with enough to buy a second hand mid sized Korean family car with high mileage and a few dings.
60 months to go. My pension has been so beaten up that it is a shadow of what was promised when I started.
If you’re unhappy with your pension provider, or a financial adviser has given you poor advice, you might be able to claim compensation for any money you’ve lost and the stress it’s caused. Here’s how to do it, step-by-step.
Get back to work you lazy slackers, early retirement is a selfish indulgence according to the Grauniad! Work till you croak of stress or exhaustion, it's what your country expects 🙄
great letter in response!
I agree that the original article was a load of rubbish and asking people to carry on working isn't the answer. I do take exception to part of that letter though:
"It’s true to recognise that we’re in an advantageous position that others aren’t, but few of us have the luxurious boardroom pensions he suggests we have. Rather, many of us reached the position by long working hours, and saving for such a retirement. Putting money into saving for a future, rather than buying a new car each year, doesn’t make me responsible for low growth of the UK economy. "
All my parents/step parents retired early and trot this out as though:
a. We don't work long hours.
b. We all constantly buy new cars (insert luxury item of the moment, flat screen telly, mobile phone, avocado on toast, blah blah) - we don't, because we can't afford it.
c. They did any financial planning whatsoever rather than just getting to the age where they could press the 'take final salary pension' button.
d. They conveniently brush over the fact they all hit the jackpot on property.
When I explained to my dad that to achieve what he describes as a modest final salary pension of £1200/month whould have needed to save at least £300k on top of paying off the mortgage his mind was blown. Absolutely no way he would have got anywhere near that with the job he had. It might not be a boardroom pension but it is still luxurious compared to what will be achiebvable for many in similar careers.
Agreed, and I think combining the misconceptions therein, along with the utopia pushed by the pension companies that retiring with a pot under 500k, and not kicking close to 1M, is going to leave you well short, is causing a load of worry, much of which has no solution other than taking the leap of faith.
Agreed, and I think combining the misconceptions therein, along with the utopia pushed by the pension companies that retiring with a pot under 500k, and not kicking close to 1M, is going to leave you well short, is causing a load of worry, much of which has no solution other than taking the leap of faith.
I think having a mortgage is one of the biggest factors in when you can or cannot retire. If i didn't have one, the day i turn 55 i could retire without too much in the way of worries, but sadly i do, so i'll work until viable to not have one. Moving to a smaller home could make that work, but arguably next year we're moving to a bigger one 😀
Companies closed final salary pensions because the contributions per employee were about 3x that required* for defined contribution pensions. When I explained this to friends when they closed ours a couple of years ago, they were shocked at just how valuable their pensions were. The combination of increased housing costs and lower pension contributions is the timebomb for this working generation. The government are hoping to take a tax cut (see IHT on pension pots), rather than intergenerational wealth transfer. Retire early if you can. Downsize. Transfer wealth to help the kids early. Live relatively modestly.
*Typical final salary pension accumulation is 1/60th - 1/80th of salary per year and HMRC valuation for annuity tax purposes is a factor of 20x hence the constribution is 1/3 to 1/4 of annual salary. To be compared with 5-8% that most companies will pay, the savings to the company are obvious.
My last employer was one of the last to cancel its dB pension. They always quoted that it cost 35% of pensionable salary to provide it. It's just unsustainable to have kept it going.
It's just about to pay out for me and was generous. There's an even better one where I worked before, it is indexed to rpi so although I earned less, for the same qualifying years, it's going to pay out roughly double, albeit 2 years later.
State pension is ok, a payback of c3 years to buy the gap years. The gap years are increasing in price too.
You have to remember with these pensions that a decade or two ago the pension funds were in massive surplus and they were allowed by the government to maker a pensions contribution holiday ie not pay in for a while. Come the downturn lo and behold - your pension is now unnaffordable and we have to close the scheme.
You have to remember with these pensions that a decade or two ago the pension funds were in massive surplus and they were allowed by the government to maker a pensions contribution holiday ie not pay in for a while. Come the downturn lo and behold - your pension is now unnaffordable and we have to close the scheme.
Not quite true. Stupidly, HMRC rules only allowed a 5% surplus to a pension scheme so employers took a contribution holiday when the stock market was booming. Obviously HMRC didn't believe in putting away for a rainy day.
In theory the contributions could have been given to employees as salary/bonus but guess what........
Thankfully for the rest of us there is ever decreasing liability around final salary pensions now
Thankfully for the rest of us there is ever decreasing liability around final salary pensions now
The contributions made by NHS, Teachers, Civil Servants, Police, Armed Forces employees will dwarf the returns to be achieved.
The final salary scheme I was in was about 33% of my salary. It was unlikely that I would have achieved a similar equivalent salary increase by moving company to the same role, which was one reason for staying. Now it's closed there is no such incentive to stay. Total remuneration is always more than salary, and that includes the public sector. It's just that most people do not understand the valuation of a pension scheme (other than defined contributions) as part of the total remuneration.
That Guardian article is really basic. Read it earlier but didn't want to insult anyone's intelligence by posting to it here.
Some of it stating the obvious:
Retiring early means covering the years before the state pension kicks in
and
Little warns against cashing in the 25% tax-free pension lump sum too early: “Taking it all at once in your 50s can deplete your pot quickly. Taking it in tranches makes it last longer.”
And some of it stating complete bollocks:
The state pension is now just under £12,000 a year. “If it increased by 2.5% per year over a period of 10 years, then that would be about £150,000 extra that would need to be saved into a pension to cover that period if you were looking to retire early,”
You have to remember with these pensions that a decade or two ago the pension funds were in massive surplus and they were allowed by the government to maker a pensions contribution holiday
I get a pretty decent pension from an ex-employer. They took a pension holiday in the 90's, and then since the crash of the early 2000s the scheme has been a few hundred million short. I'm hoping the company stays afloat as if they go down my pension goes with them. It does mean that the UK arm hasn't paid any tax for 20 years because any profits go to propping up the pension scheme.
And some of it stating complete bollocks:
The state pension is now just under £12,000 a year. “If it increased by 2.5% per year over a period of 10 years, then that would be about £150,000 extra that would need to be saved into a pension to cover that period if you were looking to retire early,”
Help me with your working on that? I think language isn't great but I think my interpretation matches what I'd describe the situation as.
If you retire before your state pension age, and you intend to have the same standard of life as when you are at state pension age you need to be funding the £12k pa of state pension out of your own money. Which with an inflation of 2.5% turns 10x12=120 into more like £150k. [deleted, brain fart....personal allowances are frozen, pension is linked]
The language of having to "save" it - I guess if you have say £100k saved beforehand then you're declining by 12k + inflation each year but also increasing by whatever the investment is returning so the £150k needed isn't necessarily saved up before you start but has still to come from somewhere and is therefore in excess to what you'd need to cover your extra if you only retired at state pension age?
In the end, it's costing you about £150k of savings and investment returns.
onewheel - i think if your ex-employer goes bust and you have a pension in payment you are pretty fully covered to keep at least 90% of the payment. needs checking.
and you intend to have the same standard of life as when you are at state pension age you need to be funding the £12k pa of state pension out of your own money.
I think it would be very risky to assume that a full non-means-tested state pension will be available.
More Guardian bollocks
"Beware that gaps in your NI record to raise children or care for others can mean you fall short of the 35 years needed for the full state pension."
Up to age 12 you get NI credits for raising children.
https://www.nidirect.gov.uk/articles/getting-credits-towards-your-state-pension#toc-2
I think it would be very risky to assume that a full non-means-tested state pension will be available.
I agree but that's not the point being contested. If anything that means that you'll need even more (double edged - the more you save now the less state pension you get, so why bother??)
More Guardian bollocks
"Beware that gaps in your NI record to raise children or care for others can mean you fall short of the 35 years needed for the full state pension."
Up to age 12 you get NI credits for raising children.
Not sure why Guardian is getting a slamming for a basic article that is essentially factually correct - especially as the earlier quote is attributed to someone else entirely but anyway......
Yes, you get credits for raising children if you are claiming child benefit. If you aren't, and since those limits came in a number of people are not registering since they'll get nothing, then you don't automatically. You have to apply to have them added. Article would have been better if it had made that clear but in that light "Beware that gaps in your NI record to raise children or care for others can mean you fall short of the 35 years needed" doesn't meet my threshold for bollocks.
What’s missing from that article, and most, is some simple data on what size of pension pots actually work for different people and scenarios. Up till six months ago I was in the media trap of thinking I had to strive for a £1M pension pot to retire at 60, as that is the common default in these articles.
Some honest posting on here has evidenced many people making it work well on half that or less, in some cases with a modest top up from some part time work. That has encouraged me, finding myself in a not wholly voluntary retirement position with maybe 50 - 60% of that golden number at nearly 60. I am fortunate with house paid, no debt and wife working part time mind you.
I think it would be very risky to assume that a full non-means-tested state pension will be available.
That's going to be a very difficult thing to change quickly without a huge amount of dissent. The Waaspi women campaign drags ever on and as far as I can see the changes were flagged up many years in advance. Who of us *doesn't* know that the retirement age is going to be older than it is now by the time we get there (see that link)?
People are planning their retirement - the amount they save/the things they forego - based on receiving a state pension as well. If they've saved enough that the combination makes them wealthy that was their choice.
Means testing what are considered 'universal benefits' also breaks the 'we all pay, we all benefit' element of taxation. Whats needed is a major rejig of our tax system and merging of employee national insurance and income tax. Given that NI isn't in any real sense hypothecated and state pensions are funded from tax income each year not some big pot of saved money just make pensioners pay tax (and effectively NI) like everyone else on their total income.
Ultimately, despite all the moaning in the right wing press, the reality is that middle income earners in the UK (whether retired or not) don't pay enough tax to support the services we want. You cant get good services and pensions by just taxing the very rich - the middle needs to pay more (and they do in the European countries many of us visit)
Keeping options open here. 56 in January. Son has decided he's moving out soon - assuming he get's a full time job (grand plans). I'm still looking to go early 60's. Just checking two of my 'spare' pensions and they have recovered nicely from the Trump shenanigans and have grown since January (big dip up until April).
Help me with your working on that? I think language isn't great but I think my interpretation matches what I'd describe the situation as.
I agree with what you wrote after this. Basically you may need to allocate £150k to this top-up, but you don't need £150k saved up front in order to do this... you only need perhaps £95k or £100k. ( CBA do do the maths)
What’s missing from that article, and most, is some simple data on what size of pension pots actually work for different people and scenarios. Up till six months ago I was in the media trap of thinking I had to strive for a £1M pension pot to retire at 60, as that is the common default in these articles.
Maybe this has been covered in previous posts but from all the examples I've see (James Shack YouTube etc) everyone has a plan, and then they get care costs, which is like your finances getting a punch in the head from Mike Tyson.
Few people need more than 2y of care (vast majority is much less of course), which makes a dent in the estate for sure but won't actually overwhelm it.
Agreed, and I think combining the misconceptions therein, along with the utopia pushed by the pension companies that retiring with a pot under 500k, and not kicking close to 1M, is going to leave you well short, is causing a load of worry, much of which has no solution other than taking the leap of faith.
Wealthy, middle and upper class finance company who make money of people saving money encouraging more people to save more money shocker....
Agreed that so many articles focus on 'needing' £30-40k a year income from their pension - and that is frightening when you see the figures behind it. I started too late, and even bunging £700 a month (A frikking month) into a pension now at age 51 I will not have saved 'enough' according to these companies. The last one told me I should be looking to retire on about 3/4 of my current salary - which would take me into £50k a year income territory! FFS.
All ignore the houses, other savings, working slowly into retirement etc.
I personally am aiming to earn as much as I can now age 50-60ish and then start winding down part time and other jobs. I personally would be quite happy with a couple of Tesco till shifts when I am in my 60's if I can wind down a bit and have a few more days out between that - but not many CEO's as I am would share that view....and the pension companies certainly do not understand that view.
