I keep thinking I need to pay more attention to this because it is not as far off as it once was!
Would love to hear of what provisions people have made. Also, if you've got a pension or other retirement fund, have you made changes in how it is invested given the recent economic downturn, and if so, to what?
Any general ideas about the age you anticipate retiring?
I keep thinking I haven't done nearly enough, and what I have done is shrinking dramatically due to the market downturn, as the cost of living rises. Help!
expat - you have posted eloquently about your life, your choices, and your family....so it seems as if I 'know' you. Forgive me if this sounds too intimate coming from an internet 'pal'...I have thought to myself that your financial situation will likely ease dramatically when you inherit from your folks (who sound fairly prosperous from what you have posted in the past).
Maybe that is how many will survive/set themselves up for retirement - with a 'windfall' nestegg provided by the death of their parents - especially if those parents own a home.
We're aiming to retire at 55, (9 years from now) but that's more based on the assumption that dh will be put out to grass at around that time. When the mortgage is cleared in 2 or 3 years we'll start paying quite big chunks into his pension fund as you don't pay tax on bonuses if you transfer them directly into a pension.
I wouldn't particularly mind carrying on both working pt if we want/need to, I think retirement could be quite boring if we didn't have work or some sort of project on the go.
We don't even think about inheritance from our parents, both from very modest backgrounds.
We both have pension funds through work - mine is an NHS one, which is nice. And yes, I do appreciate that everyone else is paying for it, as dh reminds me on an almost daily basis! We've also got various insurance policies - critcial illness etc etc which I know are not linked to the pension.
We'll also (hopefully) inherit a fair amount from parents - although that will be an lovely extra iykwim
We both occupational pensions which we top up with AVC'S. Dp also pays into a scheme with work. He will be able to retire early and then the money he has payed in (plus intrest) will be payed back to him until he is old enough to claim the pension. Our mortgage will also be payed off by then.
I agree with Quatt. regarding inheritance being unstable, many homes have to be sold to pay for long term care of the homeowner. This happened to my dp's nan.
We are also considering paying into a private pension as there will probably be no state pension by the time we qualify for it.
DH's parents are not in a position to enjoy their retirement, sadly. He's had Parkinsons for the last 18 years, and now also has terminal cancer. She is his full time carer, although they do now get additional free nursing care as we all live in Scotland. Their pension income alone (and they have other income) exceeds our joint income !
When/how to plan retirement is a real challenge isn't it? Employers often don't want older workers for a variety of reasons: they tend to be on higher salaries, or don't have the energy deemed necessary for demanding jobs, or are viewed as 'set in their ways', etc. If you're made redundant after 50, it is my impression that it's much more difficult to find work - is that an accurate impression? Yet with life expectancies and medical advances, we are capable of working longer and often need to for financial reasons.
What age can you start drawing a state pension? Presumably there are financial incentives/advantages to starting at a later age?
The State Pension age is currently 65 for men and 60 for women. However, the State Pension age for women is changing - it will rise gradually from age 60 to 65 from 2010 to 2020.
From 6 April 2020, the State Pension age for both men and women will be 65.
The State Pension age for both men and women is to increase from 65 to 68 between 2024 and 2046, with each change phased in over two consecutive years in each decade. The first increase, from 65 to 66, will be phased in between April 2024 and April 2026; the second, from 66 to 67, will be phased in between April 2034 and April 2036; and the third, from 67 to 68, between April 2044 and April 2046.
we are hoping that DH will retire in about 20 years time, he has put lots into his pension, years where we have enough I have bought stakeholder pensions. I have a tiny 1 bed house that I own and I am hoping that by the time we retire I will have paid off the £30,000 mortgage and any rent from the property will be my income. I put money aside each month into a savings account. Basically the plan is to be mortgage free on the houses and then whatever income we have we should be able to live on.
The kids will be provided for at University by the outlaws so shouldn't have to worry about that too much.