Retiring right now

[Retiringrightnow]

I am retiring right now. I have no mortgage or debts and 120k savings. I have index linked pensions that add up to around 40k pa. I have a house that I love in an area that I adore. I live alone with my wee cat. I have 2 kids that I have already helped to buy their own houses. Am i unreasonable feeling insecure?

id mainly defined benefit final salary pensions from various sources. Some came in at 60, tbh I feel some things i did for a good reason ended up helping me. I remortgaged my main home to help my son i bought him a flat near his uni. I ended up not only helping him, at a massive risk to me, but gained from it. Then I sold my own house and made money because i moved to much cheaper place but for me a much nicer place near the sea. I’’ve just been lucky money wise. I now live by the sea in a place i love. Everything was always a risk. I was lucky.

I had the jobs from hell back in the day. Where I was bullied senseless. But earned loads. It took away my mental health. That’s a struggle to this day.

@venusandmars thank you in particular. Many nice people here. I/we will survive ! Love to all.

Sounds like you’re in a fab position and really don’t need to worry. Try to relax and enjoy it.

I think that if your worry is that your savings may not be enough should you need paid assistance in future, you should be able to live reasonably comfortably on less than the £40k pension you have so should still be able to add to that savings pot, especially when you get your state pension in 2-3 years time. You should still be able to travel/take holidays if that’s what you want to do, as you can take advantage of cheaper deals now you are more flexible with your time. And I imagine living by the sea would be a bonus for both your physical and mental health.

I retired 18 months ago now - don’t regret it!

@Retiringrightnow, I totally get you. I don’t work on the NHS bit also have a public-facing role and I will be retired at the end of the month. I turn 60 during September.
im not retiring out of choice but because I can’t continue in my current role and going part time would impact my pension (I know that sounds crazy).
Enjoy every moment. I described in my leaving speech that I was giving myself the gift of time - I hope it will be the same for you too.
All the best.

@vipersnest1 this has been the nicest thread for me. I wish you loveliest retirement xxx

Oh kindly fuck off! Do you think this is funny? The vast majority of the public will have a pension a quarter of yours and are lucky to have £1.20 in savings. What a nasty thing to post about when so many people are genuinely struggling.

@HoskinsChoice i’m sorry.

@HoskinsChoice if it’s any help i was really trying to work out ways for suicide yesterday. I’m going to have to survive though and won’t ever do that.

I worry about this too @Retiringrightnow and I'm a few years off, but I'm not currently working as looking after elderly parent.

I think actually working out your outgoings and then doing some forward projections and scenarios might be useful. It's a fear of the unknown and what ifs that gives me anxiety about the future. I've also worked backwards from decrepitude. I am hoping to be OKish until 80, at which point I downsize to release money for said decrepitude.

It does sound as if you have sufficient funds, but I'd be wary of giving anymore to your kids when retired as you have no means of topping up savings. You need to preserve capital.

Yes i think kids need to be supporting me not me them :-)

How is the OP’s post nasty? Do you mean in regard to what she says about no longer subsidising her adult DC who she has already supported to buy their own homes? You must know that people have different financial positions. There is no need for you to be so rude to her.

There is a lot of petty jealousy on this thread. When you get past 60 you have put in your share and need to think of yourself. You have provided for your children and worked in the NHS so you can pat yourself on the back for having done your duty, You could live another 20 years so there is nothing wrong in arranging your affairs to suit you and provide for your older years.

I retired from employed work at 60 (state pension age then) and immediately went self employed, albeit part time. Im not a person who enjoys pottering about the house and garden or watching daytime TV. I have a cleaner and gardner to do the jobs I dont want to do and make a point of looking after number one.

I retired 2 years ago with a monthly income of £2,200 and no debts - savings of £50000 - I live just fine - cook more from scratch as now have the energy, never been extravagant - my children haven’t needed my financial input but I do treat my 3 grandchildren to things - about £35 per month each. I did pass the process for volunteering at the NHS but realised I loved the freedom of not having to commit to anything after 50 years of work and family life - enjoy it OP

It’s hardly boasting. OP is 64 and got herself in a comfortable situation. I suspect she’s worked hard all her life. Why do you feel the need to tear her down?

OP - have you done a written budget that covers absolutely everything?

I think your in good shape.

The pension is secure. The savings will grow. How do you have them invested? Are they generating a good return?

Opting to retire is just about the money at work you have a routine and purpose
it can be unnerving thinking this money has to last me the rest of my entire life life you simply don’t know

What a dreadful post, we are all different and worry about different things.

honesty , why do people tear down anyone whose done well for themselves , such a lot of jealousy and nastiness for anyone with more than £2.47 on this forum . Money does not protect you from all of life’s struggles , you aren’t suddenly immune to stress loneliness etc . OP go and enjoy your retirement, yes it will be a change and as someone who retired last year I would suggest getting a structure and purpose to your day , it’s a big contrast to going out to work but absolutely no regrets .

I have a very rough budget with meal plans for the week.

I have as much as possible in ISAs and will transfer in 20k each year from non isa accounts. I had maximum in NS and I until recently as used that to buy new car. I could probably invest more wisely but don’t want any risk. I had been on 40% tax so could only earn 500 interest on savings pa before paying 40% tax on any additional interest. Post retirement I will be able to earn 1000 interest pa before paying 20% interest on the rest. I will be reducing my tax as much as possible from now on.

I have a very rough budget with meal plans for the week

That is good. But I also think with your financial position it's important to really enjoy your retirement - make the most of every part of it.

If this week you fancy salmon and scallops - go for it! There are probably bigger things you could cut down on than choosing bargain chicken nuggets to stay within your food budget.

I have a financial advisor, who manages my ISA and pension, and they have a giant chart with my income / expenditure (I had to give this to them). It plots possible capital growth, factors in when I'll get my state pension. It did have potential inheritance but care home fees have swallowed that so we've taken it out.

The reality for me is that there will be be 18 months when I'm eating into my capital. Then state pension kicks in and things are back on a positive keel. Also FA predictions show that, in general, level of spending decreases a lot after age 80. So it becomes quite difficult to spend the same amount of money as you did 15 years earlier when you were 65.

Utlimately, the big asset is your property. Is it somewhere suitable for you to live forever (ground floor bedroom / accessable shower / manageable garden / level walk to shops etc). Start thinking and planning for that now.

@venusandmars I definitely agree. Eating and drinking are one of life’s pleasures and I’ll not economise with cheap chicken nuggets. Because it’s just me and the cat at home it’s not madly expensive to buy good quality steaks whether beef or salmon. I don’t go out much so don’t spend much in restaurants and I never get take aways.Having dinner in the evening is something to look forward to. I don’t eat a lot and never have lunch but when I do I make it something nice.
I moved to new cheaper area quite recently into a new build and it is perfect for me but slightly bigger than I need. I moved here because of the nearby coastline and I swim there every day when I can. It’s a cheaper area but suits me much better. I feel very lucky to have found it. But i could easily downsize within the area if I want to. Now that I know the area well it would be very doable. But I’ll probably stay where I am for a couple more years anyway.
I might try and find a financial advisor I am very wary of them though. I’ve kept finances very straightforward but I’m sure i could do something much better finance wise.
It’s quite a unsetting time tbh. So much to think about. Thank you so much for all your advice!

It is unsettling. It's one of the big life changes we make.

People focus on leaving home, and starting a family and there is so much positive advice and support at those phases. Not so much at our stage of life...

It sounds like you've made some great choices. Enjoy your swimming!

Re a Financial Advisor - yes, be wary. I wasn't, I just walked into the office of one near to where I Iive which means I have my annual review face to face. But it has all turned out great. There were assessments about how much risk I was willing to take (I know you said no risk, but that is the equivalent of putting your cash in a biscuit tin under the bed!)

How does one get a 40k a year pension at 64?