[Tengocity]

Originally Posted by robwils

Yes, bit wary, but looking into it very carefully. 55 this year so could retire
Just checked and I will have fulfilled the requirements for max state pension at 67 as of this April.

That's my aim- to give myself the option in mid 50s.
I'm learning lots about personal finance along the way too, and i find a lot of the articles in the websites I listed earlier to be very interesting and quite though provoking.

[KRS_SN]

I pay 30%of gross earnings into NHS pension so does Mrs.
7 years to go till I pay off my mortgage(I overpay).
30 years,(me) and 35 years(she) before we reach retirement age (70). Not sure if we will live long enough to enjoy the fruits of the contribution but in case we do we can fund our care in a relatively nice place.
No idea about any other savings investments etc.

[erickonphoenix]

I've been into the ICE movement for nearly 40 years. Infinite Coalescence of Expenses

[Kendo67]

Exactly one year to go before hanging up the spanners , at 55.

Planning on consolidating both pensions and having a blast from 55 -> 67 , kids will get the house if they are lucky and dont go off the rails.

From 67 -> we can live like paupers as i am convinced that the state pension will be means tested by that time and i am not paying into something for 37 years and getting naff all back.

K

[gangzoom]

Originally Posted by KRS_SN

I pay 30%of gross earnings into NHS pension so does Mrs.
7 years to go till I pay off my mortgage(I overpay).......

.........
No idea about any other savings investments etc.

Same here.

By my calculations despite some crazy irresponsible spending (like buying a Tesla outright), living in a totally unnecessary large house, and having a kid, we could be mortgage free by 45 very comfortably based on x2 NHS salaries without having to do any private work.

However I really enjoy my job, coming up to the big 40 am desperate for MORE responses and itching to get onto the executive board even as minor roles. Frankly I cannot believe I get paid for what I do, let alone the amount I get paid. I sometimes wish there was more hours in the day as there is so much stuff I want to do at work but cannot find the time!!

So financially we could easily retire early, but retirement is the last thing I would actually want to do, as for both me and my wife our jobs are our lives .

[MashinBenzin]

Holidays was our relatively big spend before children, and no doubt looming again - for a different reason as school holidays become the time to take a break.

We used to spend £20-£30k per year in the few years before we had our daughter. Imagining that in the pension fund with the growth that the contemporary savings achieved over the period, there is an easy £250k+ that could have been sat in the fund today for an earlier retirement. Wouldn't trade the memories and experiences though.

[isleaiw1]

Originally Posted by gangzoom

Same here.

By my calculations despite some crazy irresponsible spending (like buying a Tesla outright), living in a totally unnecessary large house, and having a kid, we could be mortgage free by 45 very comfortably based on x2 NHS salaries without having to do any private work.

However I really enjoy my job, coming up to the big 40 am desperate for MORE responses and itching to get onto the executive board even as minor roles. Frankly I cannot believe I get paid for what I do, let alone the amount I get paid. I sometimes wish there was more hours in the day as there is so much stuff I want to do at work but cannot find the time!!

So financially we could easily retire early, but retirement is the last thing I would actually want to do, as for both me and my wife our jobs are our lives .

I thought it was because of all you medical types whingeing about pension restrictions with the taper on amount you could pay in that were the reason that the government increased it, no bloody wonder if you are wanting to pay in 30% of your salaries. Even at that I would have thought the 40k cap on contributions (including company contributions) would kick in and it would become taxable....

Get in whilst you can before they restrict tax relief to 20%...

[KRS_SN]

Originally Posted by MashinBenzin

Holidays was our relatively big spend before children, and no doubt looming again - for a different reason as school holidays become the time to take a break.

We used to spend £20-£30k per year in the few years before we had our daughter. Imagining that in the pension fund with the growth that the contemporary savings achieved over the period, there is an easy £250k+ that could have been sat in the fund today for an earlier retirement. Wouldn't trade the memories and experiences though.

year before last
We spent 6.5k on holiday and couldn't forgive myself for it. 2 weeks of sunshine isn't worth that though mrs begs to differ. 20-30k per year thats insane.

[KRS_SN]

Originally Posted by isleaiw1

I thought it was because of all you medical types whingeing about pension restrictions with the taper on amount you could pay in that were the reason that the government increased it, no bloody wonder if you are wanting to pay in 30% of your salaries. Even at that I would have thought the 40k cap on contributions (including company contributions) would kick in and it would become taxable....

Get in whilst you can before they restrict tax relief to 20%...

Accountant tells me think after a certain limit I get to keep 33p on a pound earned. So I Don't do overtime.
Also pretty sure that will breach the pension pot much earlier than 70 and may be forced to retire. The NHS lost a lot of senior experienced doctors to that trap hence any government concessions

[KRS_SN]

Originally Posted by gangzoom

Same here.

By my calculations despite some crazy irresponsible spending (like buying a Tesla outright), living in a totally unnecessary large house, and having a kid, we could be mortgage free by 45 very comfortably based on x2 NHS salaries without having to do any private work.

However I really enjoy my job, coming up to the big 40 am desperate for MORE responses and itching to get onto the executive board even as minor roles. Frankly I cannot believe I get paid for what I do, let alone the amount I get paid. I sometimes wish there was more hours in the day as there is so much stuff I want to do at work but cannot find the time!!

So financially we could easily retire early, but retirement is the last thing I would actually want to do, as for both me and my wife our jobs are our lives .

Agree with most of what you have said. I love my job and it gets easier with experience. Talking to people I have known for over a decade and helping them. 3 kids on my side so financially much weaker (nursery and after school fees etc means just about can buy food outright car no chance.)

[isleaiw1]

Originally Posted by KRS_SN

Accountant tells me think after a certain limit I get to keep 33p on a pound earned. So I Don't do overtime.
Also pretty sure that will breach the pension pot much earlier than 70 and may be forced to retire. The NHS lost a lot of senior experienced doctors to that trap hence any government concessions

At least you get paid overtime, I do lots and get no extra!

Once you hit the tax limit you go into an ISA not a pension, it has to be from net pay but then what you take out is tax free so given you are likely to be a tax payer when your retire (and potentially 40% tax payer) not such a bad option....

I still struggle with the logic "I cant get Higher rate tax relief on my pension contributions so I will pack up work...", it sounds like an excuse being used for people who just wanted to retire but needed to justify it....

[KRS_SN]

Originally Posted by isleaiw1

At least you get paid overtime, I do lots and get no extra!

Once you hit the tax limit you go into an ISA not a pension, it has to be from net pay but then what you take out is tax free so given you are likely to be a tax payer when your retire (and potentially 40% tax payer) not such a bad option....

I still struggle with the logic "I cant get Higher rate tax relief on my pension contributions so I will pack up work...", it sounds like an excuse being used for people who just wanted to retire but needed to justify it....

Not being paid for overtime seems inhuman isn't it even illegal?
ISA thanks for the tip. I have heard about ISA but no idea so will look it up.
My partner told me 10 years ago when working full time he was told if he continued in the pension scheme effectively would face a 50k initial penalisation for continuing to work and ongoing penalties yearly as pot was full.
He promptly retired rejoined at half his hours draws his pension and overall earns the same as he did before which I suppose is smart but that's 40 years of experience that is gone to half time. He is enjoying life though. You are right people who are used to working continually see financial penalties and its a lighbulb moment to reduce hours or retire.

[isleaiw1]

Originally Posted by KRS_SN

Not being paid for overtime seems inhuman isn't it even illegal?

Of course, its called management in the private sector..!

[Tengocity]

Originally Posted by Kendo67

Exactly one year to go before hanging up the spanners , at 55.

Planning on consolidating both pensions and having a blast from 55 -> 67 , kids will get the house if they are lucky and dont go off the rails.

From 67 -> we can live like paupers as i am convinced that the state pension will be means tested by that time and i am not paying into something for 37 years and getting naff all back.

K

I actually think that's a sensible approach and one of the things I was reading recently talked about the stages of retirement, and how expenditure in those early years whilst people are still fit and healthy, is very different to later on when one naturally slows down and is less active.

I was thinking that maybe using drawdown early on makes sense, but then buying an annuity later might be the way to do it.

[Kendo67]

Originally Posted by Tengocity

I actually think that's a sensible approach and one of the things I was reading recently talked about the stages of retirement, and how expenditure in those early years whilst people are still fit and healthy, is very different to later on when one naturally slows down and is less active.

Seen and heard of it too many times , parents (inc. my own) scrimping and saving all their working days and latterly they have neither the health nor incentive to enjoy what they have accumulated in pensions / savings / investments.

I listen to the older guys in work regarding their pensions and feel like giving them a shake when they talk about just getting by on their pension in retirement by drawing down by just enough whilst leaving their "pot" to be topped up every year with investments. Why , just do what you want it and enjoy it as you have worked hard for it over the last 40 years.

My dad always had company cars and always said he really fancied a Jaguar when he retired , so he retired and over time bought Nissan Pimeras x2 then Notes x2 , he never got his Jag even though the cost would never have been an issue but he had his sensible head on. My mum suffered really badly with arthritis and was crippled from October -> March with the cold damp weather , we would tell her every year to go abroad with dad for a few months to get some heat in her bones but they never bothered saying it was too much bother with "all that waiting around in airports" ??

She would rather live between two rooms in the big old house with the gas fire blazing than spend three hours in a plane to get some of her mobility back .

We dont intend to be stupid with our retirement but if we have the health and finances to tick some boxes then why not. Both our kids have done really well by us and never really wanted for much, but not spoiled, since they were born and now hopefully have their financial heads screwed on.

There will come a time , soon enough, when the cars / watches / luxuries dont matter but until then - why not.

K

[MashinBenzin]

Originally Posted by isleaiw1

Of course, its called management in the private sector..!

+1

I can't imagine being paid overtime, or stopping work because that's the end of the hours I've been paid for.

[Tengocity]

Originally Posted by MashinBenzin

+1

I can't imagine being paid overtime, or stopping work because that's the end of the hours I've been paid for.

That's because most of us in those kind of jobs aren't "paid by the hour", rather paid to do a job, based (ideally) on achieving certain objectives, however long that takes.

[MashinBenzin]

Originally Posted by KRS_SN

year before last
We spent 6.5k on holiday and couldn't forgive myself for it. 2 weeks of sunshine isn't worth that though mrs begs to differ. 20-30k per year thats insane.

It was more than two weeks a year

Always knew it was time bound, let's go to as many nice places as we can, before we have children. Three holidays abroad plus long weekends in the UK.

We did stay in some properly luxurious hotels, but also took some holidays that were much, much, cheaper. A good mix of places and experiences.

That's what this thread is all about, though. Experiences "now" or heavily fund the future at the expense of today.

Keeping the 320d for 7 years helped keep the discretionary spend pot for holidays too.

[MashinBenzin]

Originally Posted by Tengocity

That's because most of us in those kind of jobs aren't "paid by the hour", rather paid to do a job, based (ideally) on achieving certain objectives, however long that takes.

Yep, exactly.

[Scoobyd]

Your working life is the time for saving (accumulation) and your retired life is the time for spending what you've accumulated (decumulation)!

It's frustrating when I see people who are retired with more than enough to see them through still worrying about saving each month and what they spend it on. Money is such a psychological thing though. Very individual.

The other thing that's important to remember is that retirement isn't just about money alone. It's about mindset. Having a retirement plan. Knowing what you want to do with your life.

I see people sitting on stacks of money but they have no interests, no hobbies. I also see many struggle with the adjustment of working hard all their life, having a purpose, a routine, and when that switch is suddenly switched off the drop in mental capacity can be scary. That's where a phased retirement can be helpful for some. Reducing hours, days etc. Easing yourself into retirement.

Yes we need the money to live the life we want, but we also need to know the life we want to live!

[robwils]

Originally Posted by Tengocity

That's my aim- to give myself the option in mid 50s.
I'm learning lots about personal finance along the way too, and i find a lot of the articles in the websites I listed earlier to be very interesting and quite though provoking.

I read (well actually listened on audible) your money or your life, which although very extreme is quite thought provoking.
Part of the reason I’ve been doing some research into my pension etc. And thinking about personal finances.
Keep thinking that I don’t need to keep working the next 7 years until works pension kicks in without reduction.

Means a different lifestyle though as you pointed out in the FIRE methodology by reducing outgoings a fair bit.

Still love that banana M3 I have in garage

[Tengocity]

Originally Posted by robwils

I read (well actually listened on audible) your money or your life, which although very extreme is quite thought provoking.
Part of the reason I’ve been doing some research into my pension etc. And thinking about personal finances.
Keep thinking that I don’t need to keep working the next 7 years until works pension kicks in without reduction.

Means a different lifestyle though as you pointed out in the FIRE methodology by reducing outgoings a fair bit.

Still love that banana M3 I have in garage

Yes it does, but I can see that in some ways through lock down living over the last year that I really wouldn't miss some of the things I spend money on. Or spent money on previously.

Even by just not going to work I realise how much money you waste on lunches, coffees, travel, work clothes etc