Retirement, how much?

[Dirk]

It's a bit like doctors often being cited as the heaviest smokers and drinkers. They don't act on their own advice.

I wouldn't take lifestyle health advice from an alcoholic smoker - would you?

 

[yello]

My previous doc (now retired) enjoys his whisky, and is known to consume more than the RDA. His choice even if not his advice, he knows the 'mistakes' he's making. Fine by me!

IFAs, horses for courses. I accept there are good ones and that someone could establish a long and beneficial relationship, friendship even, with one is enviable. I suspect for the rest of us, they are unknown quantities. I've spoken to would-be charmer types (who think showing you pics of their kids is the way to go) and a couple who have tried shock tactics ("you're hemorrhaging money") In the current financial climate, I think you have to ask yourself whether they could earn you/save you more than they'd cost.

BTW, my wife and I (like many people I suspect) lost a significant sum in 2008 after following financial advice. We'd more-or-less broken even some years later but it messed up our budgets big time. Still, no real harm done.

We've all our savings in boring (ISA type) savings accounts now (as we approach retirement age) and don't do anything 'clever' with it. They fund our day-to-day at the moment so ease of access is important.

We both have personal pension schemes (and are due full state pensions in 5 years or so) but the options on those personal schemes frankly do my head in. I do not understand pensions at all so we might have to get advice there. What I do know is that we will rely on BOTH our state pensions come the time. When one or other of us pops our clogs (and I suspect it'll be me first) then the other will struggle financially - so the current thinking is to hold back on taking my personal pensions and use them more as life insurance. But, as I say, we have to look at that.

Re outgoings, we live on around €12k pa, vehicles accounting for around 20-25% of that. Go car free and we could significantly reduce expenditure. We're rent/mortgage free with no kids and live frugally. Should a storm take our roof off though then we'd be reliant on insurance picking up the tab!

 

[Ming the Merciless]

Some good stuff in this thread.
On the topic of what you need…clearly that is very personal for everyone. I stepped away from my role in IT last May, & plan for an income around 70% of what we had when earning. So okay so far, but early days!
Main reason to take some of the 25% TFLS (tax free lump sum) would be if you were nudging the LTA (lifetime allowance). Otherwise you are more than likely better off taking it as part of each monthly draw….

For frugal living, this poster shares a lot of detail on her journey on MSE here. A good forum for retirement questions, I would suggest!
Another thread over 10 years old is The Number one here, where many people have outlined what they need to live on.

On the topic of IFAs…clearly PaulSB has one he is very happy with, & that is important.
I have another pal who is equally happy with his St James Place advisor. Even thought they were independent: NO! I think he secretly likes the annual lunch and cosy chat…..it’s his money 🤷‍♂️
SJP have a terrible reputation for fees, & their funds don’t feature highly in the best funds tables. Google them for more tales of woe….6% *exit* fee when people wise up and decide to move 😳

We chose not to have one: our affairs are reasonably straightforward, although we are lucky to have a holiday home: we do have an accountant who helps with returns for me.
There is a finance sub-forum on Pistonheads (I know: I like cars and cycles, what can I say🤪): forum is sponsored by a company based in Nottingham. A decent bunch, I know the main couple of fellas there. They have a few threads where they will offer free guidance to people there. Guidance can sometimes be as helpful as advice: more so if that advice comes from a tied firm of FAs 😉

The key is to getting decent information for you.
Someone mentioned a bank offering financial advice: I suggest you go along, learn what you can and then think what to do.

I believe the options should only be to have an Independent Financial Advisor, or to DIY. Those who are not independent have their own vested interests at heart. I’d also avoid any company with “wealth management” in their blurb…..it isn’t always your wealth they want to manage 🤣

A close relative had the offer of “free” financial advice from her work (a local authority), & asked me to join in. After a while, it was clear to me he was not independent (confirmed later).
He ‘produced’ a 94-page document to persuade her to go further, moving a perfectly decent low cost Aviva DC pot to them….even though, deep in the document, it was clear his projections showed her to be better off NOT paying them the 3% fee, & leaving it where it was!

That frugal living thread is fascinating. Particularly the one claiming bigger house means bigger electricity bills. Well no, not unless they leave the lights on in every room, and are using 100W halogen bulbs, as their sofa is 100m from the bulbs. They said they have gas and I am assuming that’s mostly heating. A tv or kettle consumes the same no matter which house it is in.

My gas plus electric currently comes to £500 a year. How some of them claim £1,000 a month on fuel bills I have no idea. Maybe they have the heating whacked up to 22C all day long and wander round in shorts and T-shirts in the winter?

One claimed a spend of £36,000 a year was frugal. I’d disagree. That’s about the net income of someone earning £50-60,000 a year and well above the level of frugal.

 

[cougie uk]

That frugal living thread is fascinating. Particularly the one claiming bigger house means bigger electricity bills. Well no, not unless they leave the lights on in every room, and are using 100W halogen bulbs, as their sofa is 100m from the bulbs. They said they have gas and I am assuming that’s mostly heating. A tv or kettle consumes the same no matter which house it is in.

My gas plus electric currently comes to £500 a year. How some of them claim £1,000 a month on fuel bills I have no idea. Maybe they have the heating whacked up to 22C all day long and wander round in shorts and T-shirts in the winter?

One claimed a spend of £36,000 a year was frugal. I’d disagree. That’s about the net income of someone earning £50-60,000 a year and well above the level of frugal.

That's a very decent tariff you're on there !

 

[Ming the Merciless]

That's a very decent tariff you're on there !

It wasn’t much work to find it. What you find is most are lazy, don’t know what their consumption is, and therefore which tariff best suits their usage. I suspect it’ll jump like the rest when energy price caps lift in April.

 

[ebikeerwidnes]

Finding you consumption is easy enough - it is on the bills!
Only time I have had a problem with it was just after I got swapped to EDF and had no access to a bill for about 6 months!

Still - lots of people never even check!

 

[BoldonLad]

That frugal living thread is fascinating. Particularly the one claiming bigger house means bigger electricity bills. Well no, not unless they leave the lights on in every room, and are using 100W halogen bulbs, as their sofa is 100m from the bulbs. They said they have gas and I am assuming that’s mostly heating. A tv or kettle consumes the same no matter which house it is in.

My gas plus electric currently comes to £500 a year. How some of them claim £1,000 a month on fuel bills I have no idea. Maybe they have the heating whacked up to 22C all day long and wander round in shorts and T-shirts in the winter?

One claimed a spend of £36,000 a year was frugal. I’d disagree. That’s about the net income of someone earning £50-60,000 a year and well above the level of frugal.

£500?, is your heating included in that? We pay £900pa, it will double if ever I talk in my sleep and tell Mrs @BoldonLad how to operate the heating controls!

 

[Ming the Merciless]

£500?, is your heating included in that? We pay £900pa, it will double if ever I talk in my sleep and tell Mrs @BoldonLad how to operate the heating controls!

Yep that’s gas and electric. All the radiators have thermostats. We don’t heat rooms we are not using.

 

[Drago]

I wouldn't take lifestyle health advice from an alcoholic smoker - would you?

I would if I liked fags and booze!

 

[cougie uk]

Finding you consumption is easy enough - it is on the bills!
Only time I have had a problem with it was just after I got swapped to EDF and had no access to a bill for about 6 months!

Still - lots of people never even check!

It wasn’t much work to find it. What you find is most are lazy, don’t know what their consumption is, and therefore which tariff best suits their usage. I suspect it’ll jump like the rest when energy price caps lift in April.

We've been switching suppliers for a few years now but your energy bill is a lot lower than ours. I do follow my wife around the house turning off lights and attempting to stop her fiddling with the thermostat though.

 

[PaulSB]

@cougie uk I know I forgot to answer your question and can't find it now. Apologies. Overall my IFA charges 0.85% pa of my pension pot to manage all of our finances. My pot is about 45% of our total investments and I would stress, again, I'm a very ordinary bloke. For this I get a full 12 months support any time I wish by any communication method I choose plus an annual face to face. My IFA insists on this. Currently she is:

• Setting up a pension for my granddaughter who is one year old
• Reinvesting different aspects of my pension pot
• Reinvesting funds in trust for my son who is in lifetime care
• Investigating how we can invest for my granddaughter's 25th birthday gift
• Sorting my wife's state pension
• Given me rock solid projections for 25 years

That's cost me less than £2000 for 2022 with 11 months to go.

I got a big hug when I arrived and another big one when I left. In all seriousness though as a tiny financial man to have a true professional, CEO of her company care for and support me and my family is worth every penny........even if others think an IFA is a rip off.

She even follows me on Strava!!!!!! Really.

 

[Dirk]

@PaulSB
Curious as to why you would pay someone to sort out your wife's State Pension. It's easy to do it yourself online, and if you have any queries the telephone operatives are very helpful.
MrsD just sorted hers out and applied with no real effort.

 

[Alex321]

@PaulSB
Curious as to why you would pay someone to sort out your wife's State Pension. It's easy to do it yourself online, and if you have any queries the telephone operatives are very helpful.
MrsD just sorted hers out and applied with no real effort.

Well from what he says, that is effectively free, so why not?

 

[Dirk]

Well from what he says, that is effectively free, so why not?

Er....he says it's part of a package that's costing circa 2K this year. How is that 'effectively free' ?

 

[Alex321]

Er....he says it's part of a package that's costing circa 2K this year. How is that 'effectively free' ?

Because the amount he is charged is 0.85% of his pension pot.

Anything which is not part of that pot is no additional charge, so is effectively free.