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Pensions and retirement.

F

Fen Canary

Member
Or take up golf, great social sport and people are very accommodating. I'm shit at golf but made quite a few friends around the course.
I’d rather book myself into the Dignitas clinic than take up golf.
I’m hopeless at it and don’t have the patience or inclination to get any better
 
S

Sonyc

Active Member
I think the pension thing is probably my biggest thing I need to research. I didn't realise there were options for what you do with your pot, I'm still torn about taking the 25% tax free lumper, I can see arguments for both sides.
I can feel your quandary of this. Of course you've asked a question that can't really be answered because it's such a personal decision and you will go with your instincts after a good period of research. None of us know how long we will live. We know the average ages for life expectancy. What we often forget is that even if you take say 80 years then it may be preceded by deteriorating health of years. If you've no pre-existing conditions then a positive...plus there's family history that might guide you in terms of grandfathers etc. Then, there are your plans post retirement. More travel? Taking up that hobby you've never given enough too? Things you'd love to acquire ( I don't know...a piece of art, a big piano etc etc!) but couldn't just bring yourself before to invest in it. Would you wish to give your children money before you snuff it? i.e. when they need it. You can give amounts each year without bothering the tax authorities. Warren Buffet wanted to leave himself with just a dollar by the time he was dead and not leave all his money subject to the clutches of the state. I can recall many old people (through my work) who saved and saved and died with £20k unused in the bank. Always a sad thing for me when I think back... (we're talking about working men and women who've saved carefully through their lives and living very frugally). Care home costs took away thousands of my mothers' income and likewise is about to in my wife's mother's case. You can rattle through well over £1000 a week (maybe up to £1500). Hard earned cash.

Then there's the state of the global situation. Is another world war more likely than it was 5 years ago? Is the world economy more brittle and likely to be turbulent? If you're someone who thinks the world is warming what might happen to insurance and financial services? We've had a pandemic, will there be another?(Yes if you read broadly). There were market corrections all throughout the 20th century...are more likely? My intuition is (of course) that there will be more. I'm sure most people would say the same. Does one leave money in the market? I think the NI being up to date is a good idea btw.

Anyway, just a load of random thoughts and I'm trying not to be too miserablist! You may well have asked the question about what to do before death....which of course is the whole point of life after all. For me you can only try and fill your life with contentment, comfort and 'love' now... especially in the hinterland between retirement and death. Money plays a role in that. Money talks and why shouldn't yours? In whatever you decide.

Apologies for a long post. I often read things and then mull them over and by the time I start to write other things come to mind.
 
R

Rock The Boat

Member
I think the pension thing is probably my biggest thing I need to research. I didn't realise there were options for what you do with your pot, I'm still torn about taking the 25% tax free lumper, I can see arguments for both sides.
Like Ricardo says, stuff as much into your pension pot s you can in your final working years to take advantage of the tax break. Taking 25% is a good move because it is tax free and put it into an ISA if you don't need to spend it, because the ISA is tax free too. I chose to put my 25% in a share-based ISA for growth and have been lucky so far as the stock market is doing well (surprisingly). A lot of advisors suggest putting your pot into a cash ISA to reduce the risk, but at the moment Government gilts are in freefall 9which a lot of cash funds invest in) and it is not as risk free as it usually is. But do your own research as we all have different needs and there is a lot of information out there.
 
R

Rock The Boat

Member
Hello my old furry friend. Good to see you over on the dark side. Nice crowd here, you'll find.
 
morty

morty

Moderator
Staff member
Like Ricardo says, stuff as much into your pension pot s you can in your final working years to take advantage of the tax break. Taking 25% is a good move because it is tax free and put it into an ISA if you don't need to spend it, because the ISA is tax free too. I chose to put my 25% in a share-based ISA for growth and have been lucky so far as the stock market is doing well (surprisingly). A lot of advisors suggest putting your pot into a cash ISA to reduce the risk, but at the moment Government gilts are in freefall 9which a lot of cash funds invest in) and it is not as risk free as it usually is. But do your own research as we all have different needs and there is a lot of information out there.
Yeah I have been doing a fair bit of research, I have money in premium bonds, a decent amount in a cash ISA and a small amount in a shares ISA, that isn't doing particularly well, but I can choose where I invest it, so should pay more attention to it. Not sure if I will take the tax free amount or not, as I plan to be maxing my allowance out for the next 3 years.

I paid my mortgage off last year so in the three years I have left before I retire, I plan on saving a fair bit of money, most of it will go in the cash ISA. Once I have more time on my hands I will put some more in the shares ISA and dabble a bit with it.
 
TheGunnShow

TheGunnShow

Member
44 here and I don't want to retire. That said, when I get the residence permit for Germany, my apartment will basically become the prime part of the pension fund as I'll be shovelling a fair bit of the rent into it.

But frankly, as a translator, as long as my faculties work it makes more sense to keep working - keeps the mind active and sharp, and lowers risk of dementia and other brain-related conditions. Just means I take on a bit less work.
 
Ricardo

Ricardo

Active Member
But frankly, as a translator, as long as my faculties work it makes more sense to keep working - keeps the mind active and sharp, and lowers risk of dementia and other brain-related conditions. Just means I take on a bit less work.
Yes, it's sensible to keep active as long as you can. Our bodies will likely give out before our bank accounts. My back and legs are beginning to go but I'm still ok up top.

Unfortunately with Mrs R, it's the other way round with her memory problems. As my dear old mum used to say" it's no fun getting old but it's better than the alternative."
 
T

The Raptor

Member
Slightly different for me. I'm a long way off retirement (I'm 46) and plan to stay as active as long as I can for my own sanity. However I also plan on retiring from Posting sooner rather than later as 25 years pounding the streets is starting to take its toll on my knees/hips.
I need to find a nice job sitting down or find a way of making Lego building pay the bills...
 
morty

morty

Moderator
Staff member
Slightly different for me. I'm a long way off retirement (I'm 46) and plan to stay as active as long as I can for my own sanity. However I also plan on retiring from Posting sooner rather than later as 25 years pounding the streets is starting to take its toll on my knees/hips.
I need to find a nice job sitting down or find a way of making Lego building pay the bills...
This is partly my motivation for finishing early. My job is hard graft, I go to sea for 5 weeks and work a 12 hour shift every day of that. I'm 57 and in reasonable fitness / shape, but I recognise that this body has to last me, and bits really are starting to creak (Don't even start me on knees :p)
 
Fenway Frank

Fenway Frank

Well-Known Member
Slightly different for me. I'm a long way off retirement (I'm 46) and plan to stay as active as long as I can for my own sanity. However I also plan on retiring from Posting sooner rather than later as 25 years pounding the streets is starting to take its toll on my knees/hips.
I need to find a nice job sitting down or find a way of making Lego building pay the bills...
Do you ever wear long trousers?
 
Fenway Frank

Fenway Frank

Well-Known Member
This is partly my motivation for finishing early. My job is hard graft, I go to sea for 5 weeks and work a 12 hour shift every day of that. I'm 57 and in reasonable fitness / shape, but I recognise that this body has to last me, and bits really are starting to creak (Don't even start me on knees :p)
Save your knees for walking football ;)
 
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