Retirement, how much?

[mikeIow]

Some good stuff in this thread.
On the topic of what you need…clearly that is very personal for everyone. I stepped away from my role in IT last May, & plan for an income around 70% of what we had when earning. So okay so far, but early days!
Main reason to take some of the 25% TFLS (tax free lump sum) would be if you were nudging the LTA (lifetime allowance). Otherwise you are more than likely better off taking it as part of each monthly draw….

For frugal living, this poster shares a lot of detail on her journey on MSE here. A good forum for retirement questions, I would suggest!
Another thread over 10 years old is The Number one here, where many people have outlined what they need to live on.

On the topic of IFAs…clearly PaulSB has one he is very happy with, & that is important.
I have another pal who is equally happy with his St James Place advisor. Even thought they were independent: NO! I think he secretly likes the annual lunch and cosy chat…..it’s his money 🤷‍♂️
SJP have a terrible reputation for fees, & their funds don’t feature highly in the best funds tables. Google them for more tales of woe….6% *exit* fee when people wise up and decide to move 😳

We chose not to have one: our affairs are reasonably straightforward, although we are lucky to have a holiday home: we do have an accountant who helps with returns for me.
There is a finance sub-forum on Pistonheads (I know: I like cars and cycles, what can I say🤪): forum is sponsored by a company based in Nottingham. A decent bunch, I know the main couple of fellas there. They have a few threads where they will offer free guidance to people there. Guidance can sometimes be as helpful as advice: more so if that advice comes from a tied firm of FAs 😉

The key is to getting decent information for you.
Someone mentioned a bank offering financial advice: I suggest you go along, learn what you can and then think what to do.

I believe the options should only be to have an Independent Financial Advisor, or to DIY. Those who are not independent have their own vested interests at heart. I’d also avoid any company with “wealth management” in their blurb…..it isn’t always your wealth they want to manage 🤣

A close relative had the offer of “free” financial advice from her work (a local authority), & asked me to join in. After a while, it was clear to me he was not independent (confirmed later).
He ‘produced’ a 94-page document to persuade her to go further, moving a perfectly decent low cost Aviva DC pot to them….even though, deep in the document, it was clear his projections showed her to be better off NOT paying them the 3% fee, & leaving it where it was!

 

[oldfatfool]

@oldfatfool that's my intention with the non-teaching pensions I have. The Teacher's Pension comes with a lump sum, as does SWMBO's NHS pension.

Of course the £12.5k personal allowance is made up of the sum of all income including state pension but not some benefits (attendance allowance being one I believe). Most defined benefit pensions will allow a tax free lump sum withdrawal at the expense of income, so taking 25% tax free loses 25% of income. In this case imo it is usually beneficial to take the lump sum as to recoup the amount you have to live for xx years to break even (+any tax liability) and unless there is a pension or lump sum payable to a partner on death then the scheme ends with death with no assets.



Disclaimer, again this is just to the best of my knowledge and doesn't constitute advice.

 

[oldfatfool]

Another factor to take into account when taking an income from pension and to offset tax liability if you are lucky enough to have large savings is that all income over personal allowance also reduces the amount of tax free interest you can earn. https://www.gov.uk/apply-tax-free-interest-on-savings
So if I am reading that correctly if your income is at your personal tax allowance you can also earn upto 6000 pa in interest tax free. This would potentially give each individual c£22,666 tax free a year income from savings interest and draw down pension.

 

[Ming the Merciless]

Interesting what you find out. I‘ve just seen the state pension gets paid on a different day of the week based on last two numeric digits of your NI number. My 67th birthday will be the day before my state pension pay day How perfect.

 

[ColinJ]

Interesting what you find out. I‘ve just seen the state pension gets paid on a different day of the week based on last two numeric digits of your NI number. My 67th birthday will be the day before my state pension pay day How perfect.

I found that out recently too.

I wrote to the pensions people before Christmas to say that I would rather be paid weekly than every 4 weeks but I haven't heard back yet. I don't intend to get so close to being broke that the exact timing of pension payments would matter, but I have had to get used to managing money week by week over the past few years and might as well stick to that.

 

[Ming the Merciless]

I found that out recently too.

I wrote to the pensions people before Christmas to say that I would rather be paid weekly than every 4 weeks but I haven't heard back yet. I don't intend to get so close to being broke that the exact timing of pension payments would matter, but I have had to get used to managing money week by week over the past few years and might as well stick to that.

Yeah but now I know I can plan my drugs, high class hookers, and alcohol binge for my 67th and know that I’ll be able to pay for it the next morning..

 

[ebikeerwidnes]

Yeah but now I know I can plan my drugs, high class hookers, and alcohol binge for my 67th and know that I’ll be able to pay for it the next morning..

WOW

High class hookers must charge less than I thought!!!

but I do wonder whether those people - and the drug 'salespeople' - will accept a bank transfer the next day

in my experience - sorry - I mean - from what I have heard - those professions prefer cash up front

 

[Dave7]

WOW

High class hookers must charge less than I thought!!!

but I do wonder whether those people - and the drug 'salespeople' - will accept a bank transfer the next day

in my experience - sorry - I mean - from what I have heard - those professions prefer cash up front

I once worked for a company that insisted on entertaining.. This was in the 70s.
After a night out one of the managers took 2 customers to his hotel and got 3
"ladies" to come with them.
Once the fun started he (seriously) asked "I assume you accept credit card"?
Apparently they were dressed and gone within a minute.

 

[ebikeerwidnes]

I once worked for a company that insisted on entertaining.. This was in the 70s.
After a night out one of the managers took 2 customers to his hotel and got 3
"ladies" to come with them.
Once the fun started he (seriously) asked "I assume you accept credit card"?
Apparently they were dressed and gone within a minute.

Ridiculous on so many levels!

In the 80s I worked for a big company in their IT department
Apparently some suppliers tended to take people out for the evening - drink, food, drink followed by a 'lap dance club' or similar. At that time I was too junior to be involved with suppliers
but a woman I worked with was on occasion
apparently a lot of suppliers were confused when a woman was involved in the discussions - because their whole concept of 'entertaining' potential clients involved stuff like that
Those type of suppliers tended to get kicked because the department manager considered that he would rather talk about the project and how the supplier can help it - than look at some strangers boobs!

 

[Ming the Merciless]

I once worked for a company that insisted on entertaining.. This was in the 70s.
After a night out one of the managers took 2 customers to his hotel and got 3
"ladies" to come with them.
Once the fun started he (seriously) asked "I assume you accept credit card"?
Apparently they were dressed and gone within a minute.

The customers?

 

[mr_cellophane]

Ridiculous on so many levels!

In the 80s I worked for a big company in their IT department
Apparently some suppliers tended to take people out for the evening - drink, food, drink followed by a 'lap dance club' or similar. At that time I was too junior to be involved with suppliers
but a woman I worked with was on occasion
apparently a lot of suppliers were confused when a woman was involved in the discussions - because their whole concept of 'entertaining' potential clients involved stuff like that
Those type of suppliers tended to get kicked because the department manager considered that he would rather talk about the project and how the supplier can help it - than look at some strangers boobs!

Wasn't that an episode of IT Crowd ?

 

[Dirk]

If Financial Advisers are as good as they claim, how come they never seem to retire early?
I asked this question of one once and was met with an embarrassing silence.

 

[Flick of the Elbow]

If Financial Advisers are as good as they claim, how come they never seem to retire early?
I asked this question of one once and was met with an embarrassing silence.

The trouble is, if a FA flouted their wealth in front of you, you’d be well annoyed that it was the rip off fees that you were paying that were funding such a lifestyle

 

[Dirk]

The trouble is, if a FA flouted their wealth in front of you, you’d be well annoyed that it was the rip off fees that you were paying that were funding such a lifestyle

How do you know that?
I might actually be impressed at their competence.

 

[Moodyman]

If Financial Advisers are as good as they claim, how come they never seem to retire early?
I asked this question of one once and was met with an embarrassing silence.

It's a bit like doctors often being cited as the heaviest smokers and drinkers. They don't act on their own advice.