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Original poster

Retirement - what, if anything, are you doing to prepare?

89 replies

Earlybird · 01/08/2008 12:46

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!

OP posts:
expatinscotland · 01/08/2008 12:48

our plan is to work till we are no longer physically able to.

it's the only option available to us and millions of others.

i think peoples' traditional idea of 'retirement' is a failed social construct of the late 20th century for the most part.

Original poster
Earlybird · 01/08/2008 12:48

Should also say that my current retirement planning mostly consists of putting any extra cash toward paying off my mortgage so I can be debt free.

OP posts:
expatinscotland · 01/08/2008 12:49

oh, we'll be debt free.

don't have a mortgage and never will.

have about £4,000 of debt, but will be able to clear that once i get working outside the home again.

Original poster
Earlybird · 01/08/2008 12:58

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.

OP posts:
expatinscotland · 01/08/2008 13:00

they are happily spending every bit of their hard-earned money, early!

i'm very glad they are, too.

they are travelling much and enjoying their retirement.

my mother has offered to help us get a home, but only if we move back to the US.

that will never happen.

i was never, ever truly happy there. no amount of money is worth being unhappy.

Mercy · 01/08/2008 13:05

I was having a mini panic about this the other day tbh.

Dh and I both have occupational pensions but we haven't contributed to them for very long so they won't be worth much anyway.

expatinscotland · 01/08/2008 13:06

don't panic!

at any rate, you won't be alone!

Quattrocento · 01/08/2008 13:19

Retiring at 55. For sured. I will probably be eased out before then in any event.

Pension plans are a ridiculously expensive defined contribution scheme, into which I pay 20% of my gross salary.

It is my largest overhead.

Inheritance is not a particularly secure means of pension provision, given the ages people live to nowadays and their need to fund their own retirements.

I also save money. Not as much as I would like to because of my overheads.

expatinscotland · 01/08/2008 13:21

i'm going to go and work as Quattro's housekeeper.

DH will be the groundskeeper.

mumblechum · 01/08/2008 13:24

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.

Quattrocento · 01/08/2008 13:24

How lovely! I shall look forward to that very much. I'm going to write into your employment contracts that you have to tell us all Tales from Expat's Past every day.

paolosgirl · 01/08/2008 13:28

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

hughjarssss · 01/08/2008 13:29

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.

EffiePerine · 01/08/2008 13:32

work pension (final salary too - for now - which is nice)

little else and DH does not have a pension (feckless bugger )

EffiePerine · 01/08/2008 13:33

would also not rely in inheritance, in fact would actively encourage parents to fritter it all away in their retirement (they're both still working and deserve a nice break!)

paolosgirl · 01/08/2008 13:39

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 !

motherinferior · 01/08/2008 13:50

I have a mixture of pension cover and an ISA - I put around £350 a month into this. It won't be masses, and I need to revise it, but it is not as bad as some people's (lack of) provision.

motherinferior · 01/08/2008 13:51

I'm also anticipating a fair amount of work for journalists in their 60s. If I don't get Alzheimer's.

TheBlonde · 01/08/2008 13:53

I have a pension but only recently started making contributions again (I am SAHM)

I guess I would expect retirement at about 70 years, assuming I start paid work again

popsycal · 01/08/2008 13:54

we both have work pensions
we both have life insurance cover but no lump sum ones
once i get back to work full time, we will start contributing to something more

Original poster
Earlybird · 01/08/2008 15:37

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?

OP posts:
janinlondon · 01/08/2008 16:06

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.

bythepowerofgreyskull · 01/08/2008 16:15

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.

hughjarssss · 01/08/2008 16:17

Was it said that anyone under 30 should pay into a pension as their might not be one when they reach retirement age?

ThingOne · 01/08/2008 16:24

My DH still has a final salary pension scheme with a large empoyer. We praise every year that it remains in place and just hope it'll stay there long enough to be big enough when he retires. He's nearly 44 and has 22 years in the scheme.