Discussion
Been having a long chat with the missus about when we'd like to retire and the finances required.
We worked out that if we lived to an average of 75yrs old and wanted to retire at 50 (I'll be 40 mid next year, she's a touch younger) then we'd be looking at 25yrs of SKIING (Spending Kids Inheritance-ing).
Now, a bloody nice time could be had by had by us if we had GBP 100k net a year coming in, saved, interest etc... - That means that we need to have a minimum of GBP 2.5m without it earning any interest saved up and ready to use (I know that the figure would be lower with everything taken into account).
That's a lot of money in anyone's book!
I'm not going to say if that is acheviable by us as it would only detract from the thread and be pointless.
However - it's been an interesting exercise.
What are you looking at. Aims and wishes.
We worked out that if we lived to an average of 75yrs old and wanted to retire at 50 (I'll be 40 mid next year, she's a touch younger) then we'd be looking at 25yrs of SKIING (Spending Kids Inheritance-ing).
Now, a bloody nice time could be had by had by us if we had GBP 100k net a year coming in, saved, interest etc... - That means that we need to have a minimum of GBP 2.5m without it earning any interest saved up and ready to use (I know that the figure would be lower with everything taken into account).
That's a lot of money in anyone's book!
I'm not going to say if that is acheviable by us as it would only detract from the thread and be pointless.
However - it's been an interesting exercise.
What are you looking at. Aims and wishes.
I started my own private pension plan last year aswell as having my work pension. I think i need to go and see a finanical advisor in the near future to make sure everything is going as planned as some of the literature coming through the door is going WAY above my head.
It seems i'm in the minority though amongst my friends with having a pension started! (I'm 26)
(Sorry nothing really to add to the thread - just ramblings)
It seems i'm in the minority though amongst my friends with having a pension started! (I'm 26)
(Sorry nothing really to add to the thread - just ramblings)
johnfm said:
At 26, you have a great chance, if you are disciplined, to really feather your nest. 25 years of fifty quid a week, compounded at 6% will set you up reasonably well.
I will hopefully be able to increase my pay in ammounts as time goes on (Paying off debt at the moment) so my pay in is only £100 a month at the moment. I did however get a once off payment go into my pension from an old pension plan from a previous employer of £1500 so that should make up the deficit (Hopefully!)I think I need to seek some independant advice to make sure my cash is going to the right place.
Is there a guide on how much you should pay in per month versus your wage and your age?
Fittster said:
johnfm said:
At 26, you have a great chance, if you are disciplined, to really feather your nest. 25 years of fifty quid a week, compounded at 6% will set you up reasonably well.
And this 6% is before or after tax and inflation?If he utilises his ISA allowances, or increases his input into company pension there will be tax benefits. I agree, inflation will eat it - but if in it for a 25 year stint, may get better than 6% just by tracking the FTSE.
I'm not an IFA, but I expect it would be better to squirrel away 50 quid a week than spend it on fags and pizza.
danrc said:
Is there a guide on how much you should pay in per month versus your wage and your age?
There are several out there - but they're very scary reading, so I don't bother these days.(One or two sites suggested I needed to be putting away 25% of my net income every month to get anything half decent when I retire.....)
I think there is an awful lot of wishful thinking about retiring early, even if we are fortunate enough as a generation not to encounter any wars,isasters or the like.
The idea that you can work for 30 years and then have 35+ years of leasure is optimtic in the extreme for the vast majority of people.
The idea that you can work for 30 years and then have 35+ years of leasure is optimtic in the extreme for the vast majority of people.
Alfa_75_Steve said:
danrc said:
Is there a guide on how much you should pay in per month versus your wage and your age?
There are several out there - but they're very scary reading, so I don't bother these days.(One or two sites suggested I needed to be putting away 25% of my net income every month to get anything half decent when I retire.....)
johnfm said:
Fittster said:
johnfm said:
At 26, you have a great chance, if you are disciplined, to really feather your nest. 25 years of fifty quid a week, compounded at 6% will set you up reasonably well.
And this 6% is before or after tax and inflation?If he utilises his ISA allowances, or increases his input into company pension there will be tax benefits. I agree, inflation will eat it - but if in it for a 25 year stint, may get better than 6% just by tracking the FTSE.
I'm not an IFA, but I expect it would be better to squirrel away 50 quid a week than spend it on fags and pizza.
"the S&P500 index is back to where it was in 1997, which is 11 years ago!
So, it seems that there are people who made no money by investing in the S&P500 in 11 years, although there are a few people who are still making money if they bought the stocks in 2003, but there are a Whole Freaking Lot (WFL) of people who have lost a lot of money in the S&P500 since 1997! The damned thing was 30% higher than it is now, twice in the last few years!
And yet there are still people who seriously think that they can fund a retirement by not only making no money, but usually losing a lot of money, and then have the little bit of money that is left be debased by over half its buying power in those same ten years? Hahaha! The average "betting my retirement in the stock market" moron has lost over two-thirds of his, or her, buying power in the last ten years! Hahaha!
In effect, they invested enough for a whole pizza, and now they lost so much (mostly due to inflation) with their stock market investments that they only have enough in their retirement account to pay for a third of a pizza! Hahaha!"
We are all f
ked and is without thinking about any Black Swans.Edited by Fittster on Saturday 4th October 19:25
Fittster said:
I think there is an awful lot of wishful thinking about retiring early, even if we are fortunate enough as a generation not to encounter any wars,isasters or the like.
The idea that you can work for 30 years and then have 35+ years of leasure is optimtic in the extreme for the vast majority of people.
I know - that's what was the scary bit - and we're 'only' looking at 25yrs of going wrinkly!The idea that you can work for 30 years and then have 35+ years of leasure is optimtic in the extreme for the vast majority of people.
I actualy have the view that I'd like to work for longer but work less. Sort of... work for 8 months of the year and then spend the rest having nice holidays and experiences.
I'm also aware that I may get hit by a bus tomorrow so make the most of it while you can...
On a slightly different take - the concept of retiring rather than the size of a pension pot - I see the difference after retirement as fitting work around long holidays and extended breaks rather than fitting holidays and breaks around work. Mostly because the kind of work I do is very enjoyable (for me anyway) and keeps the brain alive and it wouldn't take a lot of it to make a meaningful contribution to enjoying activities in the much larger timeslot of 'retirement'.
A while ago I wrote this simple spreadsheet [MS Excel XP] to give him a rough idea of how much to save. Unfortunately, as a struggling artist, he hasn't even started yet.
http://www.incredible.force9.co.uk/misc/SavingForA...
Feel free to play with it. Hints on what to change are in the embedded comments.
http://www.incredible.force9.co.uk/misc/SavingForA...
Feel free to play with it. Hints on what to change are in the embedded comments.
Edited by driverrob on Sunday 5th October 20:00
driverrob]A while ago I wrote this simple spreadsheet [MS Excel XP said:
to give hime a rough idea of how much to save. Unfortunately, as a struggling artist, he hasn't even started yet.
http://www.incredible.force9.co.uk/misc/SavingForA...
Feel free to play with it. Hints on what to change are in the embedded comments.
He's the unfortunate one? The state will look after him, its the people who save that will be screwed.http://www.incredible.force9.co.uk/misc/SavingForA...
Feel free to play with it. Hints on what to change are in the embedded comments.
Asterix said:
I actualy have the view that I'd like to work for longer but work less. Sort of... work for 8 months of the year and then spend the rest having nice holidays and experiences.
I'm also aware that I may get hit by a bus tomorrow so make the most of it while you can...
I've been doing that for the last few years, its called contracting. Just finishing a six month holiday after an 18month contract, but usually the contracts and the holidays have been shorter than that.I'm also aware that I may get hit by a bus tomorrow so make the most of it while you can...
Can still see me doing it in my 70s. Its a great way to live.
Fittster said:
He's the unfortunate one? The state will look after him, its the people who save that will be screwed.
Don't kid yourself.He won't have paid off a mortgage so he'll still be paying rent.
State pension plus benefits still won't come close to a company or private pension with bonuses/interest on vaious savings.
The best you can say is that he will be used to living in near poverty.
Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff