Retirement

[shabba]

Hi all

Very random but I'd be interested to get peoples thoughts on retirement and the finacial side of it. What does those at different ages think their plan will be, how much do you think about the finacial side?

Those in retirement do you have any thoughts in hindsight?

Its something I really struggle with - how much do I need, is it enough or too much (i.e not enjoying today). So difficult as you really don't want to be poor, and IF you retired at 65 and lived 20 years you'd need a 400k pot to give yourself just 20k a year, even with a paid off mortage that doesn't go that far (bills would account for at least half that). Likely you want a fair amount to enjoy the first 10 years, then probably naturally start to do less as you get older.

I guess many don't think about it, or might be counting on getting an inheritance, planning to downsize or release equity in their house etc.

[Mauswara]

Two observations from a late sixties retiree.

First, it probably won't be much fun if you don't have a mortgage free home.

And second, there is never enough time to do things, how did I ever find time to work for a living.

[Andym]

Two observations from a late sixties retiree.

First, it probably won't be much fun if you don't have a mortgage free home.

And second, there is never enough time to do things, how did I ever find time to work for a living.

I’d agree with that. Never enough time. I’m fortunate that my pension was ok. And also the state pension bring an old man of 70. As an ex teacher, my pension is a strange one, as no government ever invested a penny of our pension contributions, there is no pension fund.

I’d paid off my mortgage several years earlier, and transport costs are significantly reduced when not going to work every day, not needing 2 cars etc. I’ve had a free bus pass for about 3 years too. Only used it twice, there aren’t any buses in rural Suffolk! But I haven’t had to change my spending plans (I don’t think we have ever been extravagant though). My wife still Keri’s dragging me away on cruise holidays, my younger son still Jerrod asking for more money for his latest disaster, and I seem to survive. The short answer is I think you can adapt to a reduced income assuming you have few overheads (mortgages, car deals, etc etc).

[shabba]

Thanks both, fully agree the mortage needs to go before retirement - I'm fairly on top of that even though it seems a big old amount still left, but I guess its not big in terms of what we paid for the house.

I have no commute costs as work from home and own my car outright so really my spending is just bills, holidays, things for the kids and some savings/investing - oh and all the big ticket items the house needs (badly needs new bathrooms, windows need replacing etc).

I also fear how old I'll be before the state pension is there, and what it'll be like - so trying not to rely on that.

It's so tricky, you could end up dead at 70, or live to 90, its very hard to know!

[Andym]

It's so tricky, you could end up dead at 70, or live to 90, its very hard to know!

That is the really important part. My dad was a newsagent, had no pension cost from the state pension. Worked until he was 69 and promptly died. My brother died on his 59th birthday without retiring. I decided to go at 57, losing 15% of my pension. My wife kept working until she was 60 by which time my sister pension was nearly kicking in. But I’ve seen too many people die before or soon after retiring. .