How Much Is Enough To Retire Comfortably?
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- Опубліковано 14 чер 2024
- Today I’m going to be helping you to answer the question that I spend my days answering for my financial planning clients. People who are thinking about retirement come to me with one main question - ‘Do I have enough?’
Working out your retirement number is always a moving feast. The variables change and there are lots of moving parts.
But it’s ADDICTIVE! Working towards this ultimate goal is exciting, challenging, sometimes disheartening, but always worthwhile.
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Chapters:
00:00 Intro
01:07 1 - Types of Pension
03:47 2 - Free Money with Pensions
05:49 3 - How Pensions Are Taxed
06:44 4 - How Pensions Grow
08:24 5 - How you get your money OUT
11:20 Summary
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📫 Leave me a comment below - I read all of them and love hearing from you!
I'm 60. My first wife died at 52. I'm very conscious that you need to get the balance right in all this. You need to enjoy life when you are younger but put some aside. Also you need to be aware that after 80 you are not going to be able to enjoy the proceeds of your savings as much. You actually need the money for say 20 years at age 60 and plan accordingly.
Sorry for your loss, Matt. You’re right - enjoy it while you can while ensuring you can enjoy it for as long as you can.
They always assume income from a rental property when you retire. Last thing I need when I retire is the hassle of maintaining a rental.
I’m with you, Mike - sounds like a lot of hassle to me. I only use it as an example, that’s all!
V little hassle with right management company
Also gives you a purpose on the side in retirement
I agree you don’t want that hassle. I only invest in monthly paying High Dividend funds. Dividend return after tax is 13,3% net. No hassle and asset can be sold daily. Of course the shares will also appreciate throughout time, but that is secondary, but dividends remain the primary goal. If you live from dividends your base amount of savings will never deplete.
remember folks your health is your wealth.
never saw a dead man spend a dime.
Investment is the key to sustaining your financial longevity. And not just an investment but an investment with guaranteed returns.
Thank you, can u give me a pointer the best investment now ? I'm thinking of getting stocks and crypto
@@juanandrea9091 Stocks, forex and crypto are good investment.
But before you go into any investment as newbie, seek a professional guide, it's so important to successfully investor.
Expert Martin Greg is good and competent to help and assist all newbies investors who wants to be profitable and successful.
@@marissamatty2703 sounds interesting, what's the best way to contact him?
@@juanandrea9091 U can mail him directly via 👇
The hardest thing is that once you get into a habit of saving, it is very difficult to then switch to spending when you reach retirement.
This is my dilemma having reached retirement.
100% agree - it’s a lifetime habit - I’ve been a high earner yet always been careful - still working and paying i to retools so but could easily retire on plenty of £. Need to rewire my values and thinking I think - maybe help my kids etc
Really good point. Have numerous arguments with my Mum that she needs be spending to improve her lifestyle/wellbeing. Response is always the same - "Want to leave as much for you as I can" It's admirable but will leave a taint on the estate in my mind.
I struggled with this as well until I realized that a large portion of this "problem" was that we were very content with our frugal lifestyle and it was hard to find ways to increase our happiness with additional spending. So I decided to not worry about it and the "problem" was solved! If we ever come across a way that increased spending will make our lives better our assets stand at the ready but we're done searching for them.
Yes, I'm 2 years away from retirement and am secure with my retirement assets but dread going from an accumulator to a consumer.
@@billl1127 Makes no sense at all. Seek counselling is my advice!
Great video Pete! I wish I knew this when I was a lot younger!
Stumbled on to your channel,glad l did some very useful information to take on in the scary world of pensions and retirement!
Great to see people like Pete on this. Tremendous free advice
Hi Pete, I just found your channel today. I'm loving the videos I've watched so far and I agree that it's fun and exciting to go over your finances and track your progress.
Many Thanks Pete, awesome video as per usual
Hope your keeping well, keep up the the great content !!!
Thanks
John
Cheers John - much appreciated!
Great video quality and excellent introduction! Also, wonderful video with awesome tips.
The more the better thanks for the advice meaningful money. I love this channel!!
Great to have you here, Nick!
Another great clear and easy to understand video thank you
Brilliant advice..thanks Pete...
Thanks for the advice
Thanks for the video.
Best straightforward advice I've had. thank you
Very nice example. It would be nice to do a VDO with a sensitivity analysis based on the uncertainty of the income and to a lesser extent to the expense. Specifically the income components such as rental income and DB Pension have an uncertainty in them, as well as the investing component....
Brilliant vid..,thank you!!
Thank YOU for watching!
' How much is enough ' , great review thanks Pete ,
I am just about to retire and getting serious about what to do with my various pensions. A bit late I know, but there is something that almost no one seems to take into consideration: One off large expenditures that can hit you after retirement. Examples could be replacing your car, central heating boiler, or house roof. It can be very difficult to deal with these events when you have a fixed income.
I just found your channel. Lots of good stuff. New Sub.
Good to have you here!
Excellent advice
Peter, thank you for your videos.
You are very welcome!
All depends on where you live, whether or not you own your home, and what you consider "comfortable".
Very informative
A mention also for the other benefit of planning, starting off like this. It’s not just about “how much” or “when”. With a very well thought out model, we can start to get a feel for “how”, and cash flows. By which I mean many people struggle with work suddenly ending, income cliff edges, or wealth when state pensions mature (if lucky enough to have a private one earlier). It’s possible to plan eg moving to 4 then 3 days a week - if employer supported - when you know how this effects lifestyle, savings, pensions accrual. What about taking an early pension with a small penalty, if affordable. Using lump sums to tide the gap until state pensions. Using lump sums to buy NI years if missing etc etc.
It offers a degree of control knowing not only when one can retire, but how one can transition into retirement seemlessly*
*noting I know that in life, anything can happen and change everything in an instant - but that fact doesn’t invalidate the premise and benefits of having a plan.
Thanks very much 👍
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Economic downtrend…. In the USA…What economic downtrend… what are you talking about. All my US investments are up significantly 😊
Hello Pete. Love the content! Do you mind me asking what equipment you use to make the videos? Camera, mic, lighting? Am thinking of doing a few videos myself - wouldn't be a rival, I'm a tax professional 🙂 - but haven't a clue about these things.
This is really helpful for me Peter, and you've got a good comic style. Much thanks.
Thank you Lenny, on both counts!
Looks like it's as tiring setting up the equipment as walking up the stairs. 🤣🤣
Thank you that was great
Very welcome!
Thanks Pete, been following you for a while but circumstances are just changing for me, i already have a Royal Naval pension which is paying out and the company i work for i have a pension which is part DB and part DC (been with them 17 years). For several of those years i have applied additional voluntary contributions to my DC part to build additional investment for retirement. Following a grade change my salary is about to increase and looking at whether its better to up my DC contributions and take the benefits of the tax allowance through the company or whether its better not to keep all my eggs in one basket and look to invest elsewhere. I am 57 so not that far way from retirement so its only a matter of time and wondered if there was longevity in time to make an alternate investment an option?
If expenditure = £36K then would my required income/pension stream approx = £40K to allow for tax? If 40 now & retiring at 60, then would I need to increase fund by 8X 9339 = £75K ? To allow for gap until state pens kicks in. If planning to retire at 60, would it not be more realistic to assume 3.25% rather than 4% ? I.e. multiply by 31. Considering these factors could mean the required fund is (31X 15K) + 75K = £540K rather than the £275K suggested.
You’ve correctly identified that there are many variables. Tax is one but depends very much on how you access the money. I’ve gone into a lot more detail in podcast episodes on the same subject, and I deal with decumulation strategies in detail in Meaningful Academy. Limited here by time!
I retired at 60. Im now 67. I have done a pension draw down when the market was up, supplimented my state pension when the markets were down by using my savings. Current combined pensions is £2k per month after tax.
Watched so many of these videos...
Thank you, wish I learnt this stuff I’m school!
My husband is sceptical of the safety of pensions and schemes given the ever changing rules, ideas, schemes and laws of a messy selfish government...
I understand the scepticism, but it has the potential to rob you of all kinds of benefits. Yes, rules change, but usually in the direction of more flexibility, even if that comes at the price of slightly higher taxation.
Hi Pete, just started watching you. Thanks for great & and helpful videos. Apologies if you've been asked this before. Could you say as a guide to having enough pension what percentage that is to what we currently earn? Seems an easier way to gauge as we currently manage that finite figure.
That all depends on your outgoings, Geoff, or your expected outgoing in retirement at least. And it depends on if you're likely to have other, non-pension assets. So if you need £1500pm to live in retirement, and have no other assets, then you'll need enough of a pension fund to cover £1500pm, rising by inflation, for the rest of your life. I'd love to be more clear, but the answer really is 'it depends'!!
Depends on your expectations and lifestyle really.
Great video! It's hard to figure out what you think the number should be when you're take inflation into account 20+ years in the future, but overestimating is always a safer bet :)
That intro! 🤩
Glad you like!
For a younger person biggest expense is housing, rent or mortgage, pay off the house, and I think most people are at least half way to retirement because no more rent to pay.
I paid my mortgage off two years ago. I'm now retired at 54.
I don't seem to need a lot of money to live on now the mortgage is gone.
Keep still man!!!
Easier said than done!
I must say as a investor for most of my working life.. this vid is growing on me
Thanks John. May it continue to do so.
This man is excellent
Cheers John - I appreciate it!
As someone 7 yrs into retirement now (July 2022) my biggest worry is the cost of heating my home. If you're a young person it may be sensible to include provision for unforseen pressures such as we're heading into this Winter within your retirement income plan.
Wow! For most people their biggest concern, I think, would be healthcare, especially long term. That can be a nightmare and wipe out the most prepared. In retirement we bought a nice woodstove. About three cords of wood gets us through nicely. Nowadays I get it delivered for about 250.00 a cord. I started out cutting it myself, then I got scraps from a local lumberyard for a few years. They sold scraps by the truckload very cheap ($20.00 a pickup load). Of course, I had to load it and unload it at home. I burn constantly from early November through early April. Even at the $250.00 a cord it's cheap compared to gas. We almost never turn on the furnace. The key, buy an efficient stove (we have a Blazeking Princess) that is bigger than you think you need (so it burns all night).
@@alansach8437 I think the original poster lines in the UK. Here we don't have to worry about the healthcare thing for the most part as we have a National Health Service - you get 'free' healthcare for life. The NHS is not without its issues but it is there. I know roughly how much my brother pays for health insurance in California, it's a disgrace.
@@alansach8437 Bit of an old video, that I've only discovered recently.
Most of the content of this channel will only really apply to the UK pension situation. This video is probably pretty universal.
As ukgroucho says, we have free healthcare in the UK. There can however be big charges for nursing homes which can easilly wipe out savings/property. But these come at the end of life when you are not relying on them to fund yourself. However it may affect a surviving partner, and any legacy you want to pass on.
Woodstoves in the UK tend to be smaller single room units. Full house central heating from a wood burner is less common. And big outdoor wood burners are pretty much unheard of here.
It depends on your expenses and debt
The Twingo just got cool, I think your Yaris makes the list. And personally speaking I think seeing that you own that car makes me have much more trust in you. Odd huh.
What about tax (and ni if under retirement age), it would be interesting to see the after tax and lump sum withdrawals figures and and maybe based on a married couple also?
Of course in this example we need more than £275k if we're 40 and wanting to retire at 60, because we won't get the state pension until about 68. The defined benefit company pension might start slightly earlier, but unlikely to start much earlier unless you can take early retirement, at least without actuarial reduction.
The one thing I always advise people thinking about retiring early is to give at least as much consideration to what you want to do in retirement as you do to the financial side of things.
I retired at 40 (failed as I didn't know what I wanted to do with myself) & again at 48, Had a great 18 months travelling the world but a mate asked me to help him out on a project (& it was in Singapore which I love) then finally retired (to Thailand) at 53...
Had "Enough" money ( i live a simple life so don't need too much) at 40 but it took me till I was in my 50s before I realised what I wanted to do in retirement (which is to Travel :) - Damn this CV19!!! )
I plan to retire early in August this year at 52. I have nothing to retire to except I’m looking forward going to sleep and waking up whatever time I want. Also, I look forward to cooking every day. I’m sure I’ll get bored eventually but I have the rest of my life to figure out what I want to do.
After I retire I’ve got my spot picked out where I’ll setup my tent ⛺️ it’ll be next to my tombstone 🪦
Pay yourself first.
3 most important words, ever.
Couldn’t agree more!
Are your state pensions indexed to inflation in the UK, as our social security benefits are here in the states? I use a bucket system, cash for immediate needs, annuities for guaranteed income (non indexed), a small company pension (non indexed), social security (indexed), and individual retirement account invested (growth). I'm more than covered for inflation, and a big chunk for guaranteed income, of course here (US) a major escalating expense is medical regardless of inflation.
To an extent, yes they are.
What about trusts for what you have? Another video suggestion for crossover amount required
Go Multi Asset and IT's will be part of the portfolio they are allowed to invest in no doubt.
Question can I use my LISA to buy my first house and then keep paying to use it for my retirement? So withdraw it for ex next year to buy my home to 0 and then do it over again for my pension?
Hi Pete, I'm new to your channel but really enjoying the content and catching up on your posts. May i please ask a question ref money paid into a pension and the actual money claimable on withdrawal? I calculate at lower rate tax level £100 paid in + gov 20%, minus 25% tax free but the rest taxed it comes out at £102 lower rate tax payer or £119 at 40% tax ....is that right??..I've done a good job at confusing myself!!! :0)) many thanks Perry.
£100 paid in would become £125 (100 is 80% of 125).
When you take that out, you would get £31.25 tax free, then the balance of £93.75 would be taxed at 20%, giving you £75net. £31.25 + £75 is £106.25.
If you’re a higher rate tax payer, to get £125 in a pension only costs you £75. (75 is 60% of 125). You’ll get £31.25 out tax free and the the £93.75 would be taxed at 40%, leaving you with £56.25. Add this to the £31.25 and you get a total out of £87.50.
So if you’re a basic rate tax payer, £100 gets you £106.25 out.
If you’re a higher rate tax payer, £75 in gets you £87.50 out.
Obviously best scenario is to be a higher rate tax payer going in and a basic rate payer coming out!
Hey, great and informative video. Sorry if this is a stupid question but could you explain the shortfall/your number principle please? (5mins 50 secs). In the example you identify an £11k pa shortfall which, by applying the 4% rule, adds up to a "your number" figure of £275k. What does the £275k represent? Is that the size of the DC pot required at retirement in order for you not to run out of money?
The £275K represents the pension pot you need to provide you with your 4% income shortfall. Four per cent of £275K is £11,000. Your income shortfall could be your entire desired income (i.e., you have no income and you need £11K pa to live on) or just part of your desired income, but - either way - to source that shortfall from a personal pension, you would need a £275K pot. Hope that helps. And, yes, it is the pension pot which is designed to ensure that you do not run out of money (obviously, it's not guaranteed but it's the minimum 'best figure' for you to aim for).
BE DEBT FREE! Absolute must....
Tell me how. Please.
@@kryptoniteee in a Superman movie there Was a computer programmer that was stealing the fractions of a cent the company computer was rounding over.
The owner was livid! Screaming that he would never find out who it was. Unless they did something really stupid.
Then he looks out the window to see a new red Ferrari pulling into the company garage.
That’s first thing you need to know. Don’t do anything stupid
Stupid defined as you know it is wrong but you do it anyway.
Live within your means. Some couples give each other cars for Christmas. That can be reasonable if your Christmas bonus was over a million dollars. Buy a shiny car and stocks with the rest.
Not spending all of your bonus on a down payment and finance the rest. That would be stupid.
Teach yourself to save. Learn the difference in a fiduciary and an “investment counselor”.
Don’t gamble. Where the odds are against you. Take risks. Not a gamble.
Get good value for your money. If it seems too expensive, it is.
Eliminate reoccurring charges. For instance, propane is sold in the summer for 1/3 of winter rates. Pre buy propane when possible. Avoid payments.
@@davehaggerty3405 would you recommend I buy GME?
@@kryptoniteee “I never recommend” (Charles Dickens)
Just life lessons I have been trying to drum into my kids.
@@kryptoniteee that’s the worst thing you could do. Buy yourself a boring sp500 fund and go from there.
It's money so all of its never enough until something kills off a lot something😟
Why x 25 ...its the 4% rule. He is working out how much 4% is of his shortfall amount. So how much would 100 percent be... 100 ÷4 = 25. So multiple the shortfall by 25 means he can take his 4% of the total each year. Hope this helps as that was the query I had after watching..
Make sure you have state pension full entitlement (buying extra years can be a good deal if it ensures you hit 35 years - after that no more benefit). Then occupational pension; nearly always a very good idea; then Lifetime ISA (if under 40); then personal pension fund investment (or property if you think you will be able to avoid voids, and cope with future taxation levels). Rent a room scheme- with the right tenant- can be very helpful if things are tight. Finally don’t forget a bit of ongoing work if you are capable, can enjoy it, and can fit it in to your busy retired life.
Im 45 in a few months have 116k in company and private pensions pay combined £449 a month into it inc tax relief my state pension age is 67 currently so i have 23 yrs to retirement i was looking at 25k a yr income with state and private pension combined what ideally do i need in the pot ball part figure to not have to work in retirement , i intend to put payrise in to my pension as i dont want to pay extra child maintenance and when my mortgauge comes down i will put 50 % in to the pension pot each month .
It depends...
That’s a very good question for plenty of debate; however, it is hard to even calculate because it’s mostly dependent on your cost of living now, savings rate and where you live.
Look at SF, California… even professionals can’t afford their rents or housing there.
Good video and great to keep it simple so the 4% rule is the key. However it's best to work with net income post tax and NI and the reduction in these numbers post retirement can have quite a major effect on "the number"
So I'd say try to estimate net income now and post retirement if you can...
4% rule only been calculated for American investments doesn’t work for U.K., European investments you could come unstuck.
Great video as always. One thing though is the way I've worked out my number is by projecting the potential inflation rate based on the rise in the state pension. I'm 37 so I have 30 years or so until I hit state pension age. The state pension amount has increased by 3.5 times since 1991 (30 year period) so I times my overall retirement number by this which comes to the scary number of £4m (for myself and my partner)! Daunting I know but rather aim high, hope for the best but plan for the worse. This will predominantly be made up of the state pension (hopefully), private/workplace pension, Stocks and Shares ISA, rental income and potential profits from bitcoin and gold
Bitcoin....are you insane....
May i ask what glasses you wear ? they seem to get darker and lighter depending on the light, and the frame looks good, thanks.
They’re by Silhouette. They are photochromic lenses. They’re not cheap but they are super-light and comfortable - worth every penny
Great video. Question. What happens if you calculate your expenses (or desired) is less than the target income?is that still considered a shortfall?
Hi Shadowz - not 100% sure I understand the question. Are you asking if your expenses are less than your expected income? In which case, no - I wouldn’t call that a shortfall. More like a great result!
@@MeaningfulMoney exactly what I meant. Thanks for all. Like the videos
I have a company DB pension and receive the full U.K. state pension. I also have a SIPP which I can vary the income I receive from it. The biggest issue is the tax threshold if I go above a certain amount I get taxed at 40% instead of 20% so even if I wanted to work effectively I would lose nearly half my salary in tax. This is s massive dis-incentive biggest issue people forget about when retiring is tax. Although you do stop paying NI contributions which is a bonus
Good Video - thanks. Of course, one thing we old codgers didn't factor in was the increased cost of energy. Once retired, you will spend at least 50% more time at home. You either fork out or freeze! Great! And I won't mention my Stakeholder pension with Scottish Widows. Lost 15% this year, 10% last year and they still charge me a 0.8% "management" fee! I simply can't afford to take it, hoping it will make something in the years to come. Not sure if I'll last that long! Luckily I have the state pension and a DB pension so I am not on the bread line.
It should be renamed the 'mismanagement fee'.
How much for retirement? There are some big numbers quoted in the comments so I will go the opposite 6K per year.
Before I retired 2 years ago I challenged myself to put away 50% of my monthly income into stocks which is quite easy since I live frugal without debt. I work as an account executive, and make over $20000. $10000 goes into dividends, and the other $10000 covers my my food plus living expenses. I am seeing improvements in my portfolio, dividends look certain, but I have to attribute this to only to guidance of a licensed wealth strategist who allocates funds to a plethora of assets. I have to stay disciplined, and remember that I’m in it for the long term. Just got my first property and hopefully looking to get another down the road. Good luck to everyone and thanks for the great video.
Well, I've gotten into a plethora of assets with $70k spread across stocks index funds, and ETFs, for the long term. I've been investing with help from a pro fund manager, Herman W Jonas who oversees my investments. Now I sit back and reap my dividends while I just reinvest from time to time.
@@Freddyyyy266
That idea is applicable in all aspects of life. With experienced hands, you generally, get things done more efficiently. Smart people know this already.
I'm am old dog and I'm not big on learning new tricks. After so many years of trial and error, I finally found what works best for me, both financially and emotionally.... and Herman is the perfect sounding board for me. He is far and away the best I have come across. He is all focused on teaching and making sure that I make profit. What more could I ask for?
Sure,
Hermanw jonas (a Gma!L
Classic Bot interaction, very organic
Depends on what you need to feel comfortable.
Some people feel comfortable without a car.
I'm looking to take early retirement in the coming months I'm 62 I've got the full amount of natural insurance allowance 35 years. Will i still receive my state pension when I reach 66 although I've returned early
HI Kevin. You’ll receive your state pension at 66 and no earlier, even though you’ve paid the 35 years NI contributions.
Hi Pete, just discovered your channel - it’s great! Just trying to work out my own number. As a teacher, I’ll be in receipt of a DB pension. If I take it sooner then the amount per year goes down. Therefore I was thinking of retiring at 60 but not taking the teachers pension until 68. Does that sound like a sensible option? How would that effect the calculation? Many thanks!
When a colleague took early retirement he had things worked out regarding when he would take his pension so he wouldn't pay any tax for 3 years.
Unless you don't make it to 68, hopefully we all will but I'll be doing more traveling before then, and hopefully not too much power washing pathways around the house. 😂
Hi Pete. I will within a year be 66 years of age. I have full pension contributions, over 35 years, and have a private pension pot of around £120.000. House is long paid off, no mortgage, or IOU. I am looking to downsize so I may have £ 100 to £200 thousand left. What would your advice be for my wife and me to live a comfortable life? I want to make the most of spending my savings and not leave it to the government to take what's left if I say pass on within 5 to 10 years.
Did you get your answer? Also, are you White, or a Muslim?
Stop wasting time retire! Go out and live while you still can.
I used an S&S LISA to save more my house deposit and since closed the account. Can I open an account with another provider, to save for retirement?
Yes. You just won't be able to access it penalty free until age 60.
Great video, thank you. My circumstances are different to most people's and because of my circumstances I won't be retiring at 66. I would love to chat with you, at your convenience.
Hi John. There’s a page on my website which covers how we might work together: meaningfulmoney.tv/work-with-pete
Did I read that a single person recently needs £10,500 per annum according to an industry company ?
There was an interesting bit of qualitative research which suggested The various levels of income needed in retirement for three tiers of lifestyle.
For a single person I believe they suggested 13,000 was enough for a simple lifestyle and 19,000 was a comfortable lifestyle (we’re comfortable includes one or two European holidays a year and some eating out et cetera)
For couples it was 19,000 for a simple/basic lifestyle, 26,000 I think for a comfortable lifestyle and something like 41,000 for a luxurious lifestyle - where this means new cars every 4 years, regular eating out and annual long haul holidays)
Does your calculator works for Canadian retirement planning?
Nope, not really. It’s tied to the UK tax system.
Hey, Pete! Greetings from across the pond. Great video … But , your steering wheel is on the wrong side of your vehicle!
Hahaha, Marty. Maybe I get that looked at! Thanks for being here…
@@MeaningfulMoney HAA HAA HAA! Thanks for your channel. Love UA-cam - it knows no boundary! Glad I found you here
Laugh I nearly did British humor
0:28 it's a cool car in that is not tying you down to huge overheads and stressing your finances. I know people who drive "cool" cars buy spending more than 100% of their disposable income on it. That then tell themselves they are living the dream.
Do you have idea about German Financial and tax systems, or this Retirement planning tool be used for Germany. I am trying to find good information in English so I can have an idea of retirement and take home money when I stop working. Say I have around 20+ years of work left before retirement so I have time to think about it
Sorry Hamza, I’m UK-based, and as far as I know, the tool I use here isn’t available in Germany. Look for a Certified Financial Planner (CFP) licensee adviser in your country - they should be able to help
Is this calculation from aged 60 or 67? Aged 60 you'd have no access to State Pension and DB pension would be reduced.
Eating bread and water and living in a Cardboard box, how much money do I need to retire on? So my question is a dumb question just like asking in general how much money do I need to retire as no one knows.
Vegan diet without oils?
But do you take into consideration how long that pot will last? Is that why you x 25 because you assume 25years?
Ive already reached 275k in the pot at age 33
I wouldn't trust stocks and shares as far as I can throw them, since an FA mismanaged my private portfolio for his own commission gains, plus their volatility, and there are plenty of examples of peoples pension funds disappearing.
I now own a letting portfolio, wherein the income and capital appreciates in line with inflation, and more, thereby keeping pace with the increasing cost of living. I also built my portfolio income to provide 50% more income than I needed, to cover an extreme vacancy allowance. Being an expat, I also discounted the NI pension, since it discriminates against me living in Thailand, and will be frozen, ultimately making it an insignificant sum in years to come. Now comfortably retired, even before pension age, 8 years early.
Living abroad with a 3% -rule will be the answer for me..North America is too crazy now..
My plans have just radically changed ,new job with ups
Good luck!
Yes really pleased ,decent wage and hopefully job security ,could be close to last job
Was out today very happy with it ,could definitely see ,and probably this will be my last proper job
hello I'm treating myself to early retirement in April I'll be 63 i will be living off my own resources savings until my state pension starts at 66 my savings usage will be 6480 per year will i still pay income tax also will i have to notify the tax office of my decision to retire early sorry its a bit long winded
Savings? Do you mean money in the bank, as opposed to invested? If so then no, you won’t be taxed for taking your own money out of the bank and spending it.
The example seems like a lot of spending money each month especially assuming a mortgage is paid off
This is a good and informative video and I know personal finance is subject to each individual circumstance however I do think the property and DB pension should be removed from this. I think it would help people like myself to identify the “real world” figures required. Also it might be worth also calculating personal expenses you are already paying including bills etc.
Inflation goes up and down. But over a 20 year time frame your looking at 3% growth so if you earn say £20,000 today to have the same buying power in 20 years time you’ll need £40,000 roughly. 3% growth is what’s needed to keep the economy going so all prices double ever 20-24 years that’s capitalism.
Yeah. My parents worked for 35 years for a company then died at 64 and 66 . The company kept the pension. Second you won’t need much when you are 75+ because more than lightly you’ll have slowed down and be shuffling around with a heart condition, so cannot travel.
My husband is the same way. Worked for 40 years saving and investing heavily. He passed away after one and half year after he retirement. So sad. I'll have a meeting with my lawyer and account next week, talking about reducing tax...!
Already got net 1 million (not Turkish lira 🇹🇷) in 8 x bricks and mortar, so we hope that'll be enough.
So, as long as I can:
Pay my rent.
Buy some basic food.
A few smokes (ciggies).
The odd drink.
The bills..water, electric, ,etc., things like that. I'm fine.
People who say: "I want hundreds or thousands of pounds for holidays or fancy cars." Are just plain greedy.
' WOW ' what an eye opener ' you are providing people with lots of information but ' is my state pension comprised in any way be cause i have a private pension ? , keep up the great work ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,Alex
I presume you mean ‘compromised’? If so, then no, having a personal pension doesn’t affect your state pension. If you contracted out of SERPS in years gone by, you may have an additional pension through a private pension that may otherwise have been paid by the state, but if that’s true, you’ll likely know about it, and it will be reflected in your state pension forecast.
Yet....One day I believe it will.
Is your state pension dependent on your income in the UK? In Australia we don't get the State pension once our income is over a certain limit.
To get a state pension you in the U.K. have to have a minimum of 10 years where you paid into so called National Insurance contributions your employer will do that automatically for you. To get the maximum state pension you have to have 40 years. Everyone gets it regardless of earnings
@@TheWinstn60 it's 35 years for max state pension in UK.
@@petermorris3665 yes thanks I was wrong
Well if you move your pensions to PensionBee like I did in 2021, you'll have nothing to retire on as they have decimated mine by a fortune, any advice on how to report them to see if I can get compensated for it. They are abysmal to be quite honest.
Have they lost money or has your pension been affected by market conditions, which will be temporary. But if you answered risk questions a certain way and they invested according to that then you probably won’t have any kind of claim on them. Check carefully the stuff you signed, and if you feel you have a complaint, take it to them.
Def don't go to pension bee
After living on under £6K a year for 12 years due to ill health I'll be very happy with just my state pension.
agreed ill health affects wealth
Since 2008, my partner has had his state & employer pensions, and I have lived off savings. Household spending and anything we do together (including holidays) is paid from a joint account, into which we each pay £300 a month. This is seldom all spent, and the excess is kept for emergencies. Personal expenses (mostly clothes and hobbies) are paid individually. We don't stint ourselves (we bought a new car for cash 4 years ago), but I bet I haven't spent over £6k in any of these 13 years (excluding the annual £2,880 to my SIPP, so the government can add its £720!). My ISAs and SIPP have grown in this time, and my state pension arrives next month. What am I supposed to do with it?! How could I ever spend £36k pa?! In my best paid years of working, I never made more than £25k, and most of that ended up in the SIPP or the ISA. ,
How can you possibly live on under 6k?
@@simonch5140 Easily, granted not through choice.
@@simonch5140 Sometimes life gets in the way and you'll have no choice. I'm on zero income or benefits for almost 2 years now and I'm still here.