What could you get by on?

[d000hg]

It's a question I have been asking myself a lot recently.

I am 49 and have been pretty crap at contributing to pensions.

I have about £300k in the pot ATM which does not equate to a great annuity using online calculators.

I could (and really should) max out my pension contributions without really noticing however I wonder if it is still worth buying a BTL and just leave it to pay for itself as well.

I have really sucked on the pension front. I left employee-ship in my 20s before I'd even set one up. I created one which has maybe the first year's contribution (5k?) then never bothered, on the basis I had other things to invest in. Still don't really see the attraction but then I don't earn so much that I'm left with loads of retained funds burning a hole in MyCo's bank balance.

[vetran]

I have really sucked on the pension front. I left employee-ship in my 20s before I'd even set one up. I created one which has maybe the first year's contribution (5k?) then never bothered, on the basis I had other things to invest in. Still don't really see the attraction but then I don't earn so much that I'm left with loads of retained funds burning a hole in MyCo's bank balance.

If you are paying tax then a pension is an efficient way to take money out when you hit 55.

[TheDude]

I have really sucked on the pension front. I left employee-ship in my 20s before I'd even set one up. I created one which has maybe the first year's contribution (5k?) then never bothered, on the basis I had other things to invest in. Still don't really see the attraction but then I don't earn so much that I'm left with loads of retained funds burning a hole in MyCo's bank balance.

Our generation missed out on the really good pensions.

I am a member of the local yacht club (sounds posh but I sail dinghies). There are many members who worked for the big local employers (Ford and Shell) who retired in their mid fifties. Some of them think they are financial geniuses but in reality all they did was not to opt out of making pension contributions.

[malvolio]

It's a question I have been asking myself a lot recently.

I am 49 and have been pretty crap at contributing to pensions.

I have about £300k in the pot ATM which does not equate to a great annuity using online calculators.

I could (and really should) max out my pension contributions without really noticing however I wonder if it is still worth buying a BTL and just leave it to pay for itself as well.

You don't have to take out an annuity...

A pot of £300k will turn into an easy £800 a month or so without hitting the capital. That's rather more than an annuity, but you need a good Wealth Manager (or lots of your own expertise if you're that way inclined) to realise that kind of return. Remember it's got to keep going for a long time. I get sufficient from my pot for now (which is actually going up at the moment despite me taking an income from it) but as inflation works its magic over the coming years, there will be a point where I have to start taking the capital out. Obviously the bigger the starting value the more flexibility you have, so start salting way as much as you can afford.

And remember, it's all taxable income... even the Old Age Pension when you get one; they simply take it off your personal allowance.

[woohoo]

There are many like you including IT workers who have moved to Bulgaria.
It's cheaper to live there with a better life style and fly back to the UK when needed.

Sounds appealing but it's we have been looking at Scotland, my family are originally from there and my wife has lots of family still living up that way. We have been up a couple of times to scout for houses and locations. So Bulgaria does sound appealing but I like the cold/wet weather and the views of Scotland, matches my grumpy personality.

[TheDude]

You don't have to take out an annuity...

A pot of £300k will turn into an easy £800 a month or so without hitting the capital. That's rather more than an annuity, but you need a good Wealth Manager (or lots of your own expertise if you're that way inclined) to realise that kind of return. Remember it's got to keep going for a long time. I get sufficient from my pot for now (which is actually going up at the moment despite me taking an income from it) but as inflation works its magic over the coming years, there will be a point where I have to start taking the capital out. Obviously the bigger the starting value the more flexibility you have, so start salting way as much as you can afford.

And remember, it's all taxable income... even the Old Age Pension when you get one; they simply take it off your personal allowance.

Sounds like I should take some independent financial advice.

Rightly or wrongly I have focussed on doing nice things for the family ever since going contracting nearly a decade ago. I reckon I have another ten years left in the game assuming good health.

[woohoo]

It's a question I have been asking myself a lot recently.

I am 49 and have been pretty crap at contributing to pensions.

I have about £300k in the pot ATM which does not equate to a great annuity using online calculators.

I could (and really should) max out my pension contributions without really noticing however I wonder if it is still worth buying a BTL and just leave it to pay for itself as well.

We are near the same age, seems to be a good time to at least semi-retire, fit and active enough to enjoy it. We would still have some income from a couple of sources. Would be good if I could work part time but it's difficult in the programming world, though possible with some of the contacts I have.

[d000hg]

Our generation missed out on the really good pensions.

I am a member of the local yacht club (sounds posh but I sail dinghies). There are many members who worked for the big local employers (Ford and Shell) who retired in their mid fifties. Some of them think they are financial geniuses but in reality all they did was not to opt out of making pension contributions.

Oh some of the pensions are crazy if you were in the public sector. These final-salary pensions where you retire and just keep getting paid forever, on your final salary. I've no idea what sort of ROI you are getting on your contribution but it's clear you're getting FAR more out than you ever put in.

[TheDude]

Oh some of the pensions are crazy if you were in the public sector. These final-salary pensions where you retire and just keep getting paid forever, on your final salary. I've no idea what sort of ROI you are getting on your contribution but it's clear you're getting FAR more out than you ever put in.

Maybe but they quite possibly spent their entire career being unable to afford to do many things - chained to a low salary because the pension scheme was good.

[WTFH]

Sounds appealing but it's we have been looking at Scotland, my family are originally from there and my wife has lots of family still living up that way. We have been up a couple of times to scout for houses and locations. So Bulgaria does sound appealing but I like the cold/wet weather and the views of Scotland, matches my grumpy personality.

The South West is cheaper that the South East. You can get enough land for an orchard/vineyard and to grow your own fruit and veg. About the only drawback is needing a more powerful rifle scope for the cyclists, who are miles from your front door, not just a few metres.

If I was wanting to plan for getting older, I'd be looking at moving from Surrey to Devon...