Retirement options ?

Occasional salmon fisher

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Before most were closed, private sector DB schemes moved to pensions that were based on average salary over the last 3 years.
Consider myself fortunate to have 2 DB schemes covering 20+ years.
With people living longer, pensions, particularly public sector, are becoming an inverted pyramid.
Once again, the young will be paying.
...... and therefore not able to build up their own pension pot !!
 

keirstream

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I'm pretty much living off my consultancy bunce plus my state pension just now and for the past 3 years. It pays all my living expenses and my various holidays, fishing and otherwise.
So, until such times as the consultancy goes pear shaped or I need to replace my car, I won't need to dig into any of my private pot or investments, both of which are bubbling away nicely thank you very much.:D
I can't stress enough though, the importance of seeing a good independent financial adviser, that is crucial.
It means the difference of scraping a living against being comfortable in your later years.
For the 10 years or so before Covid, the growth was nothing short of phenomenal, even during Covid, quite surprisingly for me, they have held up quite nicely and still showing modest growth.
That would never have happened if I tried to manage the fund myself, the difference between a good professional and a rank amateur who thinks
he is better than what he is defies belief in the money game.
Speculate to accumulate.(y)
But-----------use an I.F.A. to guide you, he will pay you his fees back a hundred times over.:)
 

Chicharito

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Regarding the non-financial part the initial shock of moving from working full time to retirement is somewhat overwhelming for many. Quite a few of my colleagues moved to part time to soften this shock and it worked well for them. I retired at 55 as I had always aimed to do that and thus had planned it in advance including the finances which I will come to. With retirement you must have plans. I always wanted to do voluntary work with wildlife trusts as I love the outdoors. That has been wonderful and on top of that I set myself one or two projects as well as fish a lot when the season is in full swing.
Moving on to the financial side there are 2 aspects to look at. Ideally it is best to have as few liabilities as possible and so paying off the mortgage, car and other debts have to be the focus for these generally cost more than your savings grow. With your pension do not buy an annuity for their rates are dreadful. It is far better to take the 25% tax free cash sum and then, if possible, target a drawdown that takes the income generated from the residue. However, despite this you still need some money for a rainy day for sh*t happens and cars need updating, house repaired/updated, etc. So in conclusion before you take the plunge try and guesstimate how much you think you will need to live on in a year and if pension and savings appear satisfactory go for it.
I have never regretted it and am busier now than when I worked; and love every minute of it.
I worked shifts for nearly all my working life. This gave me plenty of free time on my own and I filled this with fishing, gardening, walking the dogs, going to the caravan etc....
I am quite happy in my own company. For someone used to working 9-5 Mon-Fri and only having the weekend to go shopping and pursuing their hobbies may struggle to adjust. I hated my job but the free time it gave me was compensation enough
1 week off every month to go fishing in Northumberland was my prize. The politics and shift work finally caught up with me and I gladly took voluntary redundancy 5 yrs ago and don't regret it one bit!!
 

salarchaser

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Ive been a local Government pension scheme for 37yrs on the average industrial wage , the scheme was changed from a final salary scheme to career average earnings ( CARE) a number of yrs ago , Ive just turned 60, I have contacted the pension company for figures on taking my pension through early retirement, Im loosing 5% per yr, for every year I go early, on the projected final figures which is a huge chunk, Can I ask a ballpoint figure on those who are retired what people think one would need per annum in £££from a pension , I know thats a broad question and everyone circumstances are different ,
Unfortunately its a 'how long is a piece of string' question.
It needs a desk top exercise to sit down and cost up all you're outgoings, monthly/ annual and any one off items that might occur in coming years (new car).
Dont forget inflation.

An IFA will have a template to help you with the process.
 

rubberwellie

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How does one go about finding a good financial adviser, how exactly do they help and what kind of fees are involved?

I’m about 15 years away from when I would like to retire and have stepped up my planning over the last year, definitely speculating to accumulate but now would probably be a good time to seek advice from a professional.
 

budge

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As salarchaser said it's a bit difficult to generalise on the figure. Pension companies reckon to aim for 60 -70% of final salary. It depends on what you want to do in your retirement. I know people who have completely dropped everything just to retire, no holidays, car sold, no meals out etc If I wanted to do this I could probably exist on half the figure I'm hoping for. What I actually end up with will probably be somewhere between the two figures so some cutbacks will need to be made.
From what I know a loss of 5% per year is about the going rate for early retirement. My neighbour gave up 30% of his pension to retire early about 12 years ago. He has never regretted it.

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bassfly

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Lots of considerations when thinking of retirement. I managed to get a reasonable private pension which along with my state pension pays the bills and some. If by the time you come to retire and you have no debt (morgage, credit cards and the like) it amazing how little you need. My fishing trips, holidays and the need to purchase a new vehicle every so often I finance from monies invested when I was working.
Lots of people when they retire seem to think that they need loads of money stashed away for a rainy day but I know people that made their children well off.
All can can say about that is that there are no pockets in shrouds so spend it and enjoy your retirement. Like me.
 

keirstream

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How does one go about finding a good financial adviser, how exactly do they help and what kind of fees are involved?

I’m about 15 years away from when I would like to retire and have stepped up my planning over the last year, definitely speculating to accumulate but now would probably be a good time to seek advice from a professional.
The one I use is no more than a good cast across the Clyde from where you live and I consider him the best.
I had a couple before him who were nowhere in the same league and pretty much tried to sell me on the same products.
The one I have had now for 20 odd years follows the fund managers, monitors their strengths and weaknesses, and, most importantly, their efficiency in managing big chunks of cash. Not only that, he lets me know regularly what is going on in the murky world of investment bonds, stocks, shares and pension portfolios, has a proper sit down cup of coffee annual review with me and advises what to move, where and when, to keep ahead of the market.
He is really on the ball and I never have to pay his fees as they are all agreed and built into the returns.
Wonderful service, can't praise him highly enough. (y)
 

rubberwellie

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The one I use is no more than a good cast across the Clyde from where you live and I consider him the best.
I had a couple before him who were nowhere in the same league and pretty much tried to sell me on the same products.
The one I have had now for 20 odd years follows the fund managers, monitors their strengths and weaknesses, and, most importantly, their efficiency in managing big chunks of cash. Not only that, he lets me know regularly what is going on in the murky world of investment bonds, stocks, shares and pension portfolios, has a proper sit down cup of coffee annual review with me and advises what to move, where and when, to keep ahead of the market.
He is really on the ball and I never have to pay his fees as they are all agreed and built into the returns.
Wonderful service, can't praise him highly enough. (y)
Sounds ideal. Thanks for the detailed response. PM incoming 👍
 

Occasional salmon fisher

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Been doing some analysis of a family member's pension arrangements and also looking at my own recently.

Despite extensive internet searches, I can't seem to find any easy way to compare a pension fund's performance with other similar funds or alternatives ?

I know most people are in the same boat - even if they know how their pension fund is peforming, they don't know how that compares with alternatives.

It is probably only possible for specialist IFAs but does anyone know a good website/reference to make these comparisons ?

Thanks in advance if anyone does.
 

pjthunt

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Been doing some analysis of a family member's pension arrangements and also looking at my own recently.

Despite extensive internet searches, I can't seem to find any easy way to compare a pension fund's performance with other similar funds or alternatives ?

I know most people are in the same boat - even if they know how their pension fund is peforming, they don't know how that compares with alternatives.

It is probably only possible for specialist IFAs but does anyone know a good website/reference to make these comparisons ?

Thanks in advance if anyone does.
Normally your pension provider should produce with these type of comparisons, if not I would chase them. It my be that they may just compare your funds with the with the FTSE100, FTSE250 etc., or they may be a little bit more sophisticated and take into account your / their investing style and compare it to other funds which invest with the same philosophy. If you have any further questions, please feel free to contact me.
PS I am not a salesman, or financial adviser
 

Occasional salmon fisher

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Normally your pension provider should produce with these type of comparisons, if not I would chase them. It my be that they may just compare your funds with the with the FTSE100, FTSE250 etc., or they may be a little bit more sophisticated and take into account your / their investing style and compare it to other funds which invest with the same philosophy. If you have any further questions, please feel free to contact me.
PS I am not a salesman, or financial adviser
Thanks, I have recently sent them an e-mail asking for comparisons/benchmarking and more detail about exactly what their funds invest in.

I think at some point I will need to find an IFA to go through it all.
 

tenet

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The days of a single company pension are all but done. Most providers offer multi manager platforms whereby say Scottish Widows, Standard Life etc control the mechanics of the pension but the investor can select a whole host of underlying funds from the various investment houses. I mentioned upthread about Hargreaves Lansdown but Chelsea Financial, Scottish Widows and a host of others have very easy to navigate websites that give past performance on the funds offered, charges and generic advice.
Another very important point to note is not necessarily to take the pension (annuity) offered by the provider but to look at the open market unless, that is, the scheme offers guaranteed rates. Smokers and those with underlying health issues can often get better rates as annuities are the opposite of life assurance.
 

budge

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My annual statements used to come with a nice little booklet detailing the fund performance and investment markets. All I get now is a couple of sheets of A4 with the current value and last year's value

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Bawheid

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I officially retired 10 days ago @58. Pensions not worth much but I have saved my ass off for 10 years. I think the main thing stopping other blokes of my age from doing it despite having the same assets is thinking youre gonna live forever. As long as my missus is ok after I pop my clogs I good with that.
I sat for months going over the finances and how much I need to live on etc etc. Ok just one more year of work I kept saying, for what though?

Covid, high BP and unresolved cardiac issues did it for me. Life too short to be spending any more breaths than required at work.

I'll manage, I get decent pocket money every month, enough to buy a licence and pay my club dues every year and enough savings for me and the missus to go to Florida every year for a few weeks.

Having missed most of the good days every season due to my job, I am so looking forward to be able to jump in the car anytime the river looks favourable.

Im also gonna take up Sea Angling during the winter

Annual holidays, fishing, chilling and copious amounts of gin. Whats not to like?

I'm loving the lack of stress
 

Bawheid

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Anyone on here taken the plunge into retirement recently ? I'm in a bit of a dilemma on whether I can afford to retire early this year. I'm in a job that I no longer enjoy but obviously it pays the bills. My pension pot has surprisingly grown quite well this year but not enough to provide a decent annuity with the abysmal rates available.
Just wondering if anyone has gone down the drawdown route ? It looks very tempting.

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Yes mate I took a tax free lump and will take just under the tax free threshold every year until state retirement age by which time my pension will be gone but I have a wee bit of savings and a rental property so I think Im good. Woulldn't touch an annuity with a bargepole YMMV though.
 

budge

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I officially retired 10 days ago @58. Pensions not worth much but I have saved my ass off for 10 years. I think the main thing stopping other blokes of my age from doing it despite having the same assets is thinking youre gonna live forever. As long as my missus is ok after I pop my clogs I good with that.
I sat for months going over the finances and how much I need to live on etc etc. Ok just one more year of work I kept saying, for what though?

Covid, high BP and unresolved cardiac issues did it for me. Life too short to be spending any more breaths than required at work.

I'll manage, I get decent pocket money every month, enough to buy a licence and pay my club dues every year and enough savings for me and the missus to go to Florida every year for a few weeks.

Having missed most of the good days every season due to my job, I am so looking forward to be able to jump in the car anytime the river looks favourable.

Im also gonna take up Sea Angling during the winter

Annual holidays, fishing, chilling and copious amounts of gin. Whats not to like?

I'm loving the lack of stress
Sounds very familiar mate, well done on taking the plunge. I still haven't made a decision yet, maybe when spring kicks in it will help me decide.

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country_est

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Retired age 58, 4 years ago this month.
A good IFA is a must, wasnt expecting to retire till 60, but IFA did the numbers and 2 pensions from the late 80's and 90,s were worth a lot more than i thought. Converted 1 to drawdown that lasted till I was 60 then went to the 2DB pensions i had. The last 2 pensions i had for the last 2 jobs (5 Years) were worth nothing so just cashed them in for a holiday.
so living ok and even if eating into the savings for big holidays this last year has seen 0 capital expense, but get state pension in 4 years so that will be a boost plus expect to spend less as i get older.

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Bawheid

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In this age of low returns you have to be very careful choosing an IFA and the products they recommend. I was quoted £3k fee plus an annual 0.75% maintenance cost, on yer bike pal. In the end I choose to do my own thing with much much lower costs. Try an get an IFA on recommendation, there's a lot of chancers out there!
 

Hoddom

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I had some Nationwide wealth manager bloke advise me on investments. The fees and management charges he was talking about seemed very high to me. Looked to me like a 100k investment would likely be worth around 95 after a year! What kinda fees and charges are about right?

my best investment return so far? Some penny shares, but, Premium bonds did well. Won £590 last year🤩 Gonna retire on it😂😂
 

Occasional salmon fisher

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The brochures seem to talk about annual increases in the fund of 5 or 6% (defined contribution scheme). The reality seems to very different. Most people can probably forget annuities unless you claim to be a heavy smoker and drinker, the annual figure is very low. 25.% tax free then annual drawdowns is the realistic option
 
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