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Retirement

Planning your retirement? Join our Retirement forum for advice and help from other Mumsnetters.

How are you spending your retirement funds ?

74 replies

hattie43 · 13/03/2024 18:50

My pension is in a SIPP and although I could retire I'm still working and will do so until I stop enjoying it . A post on another thread got me thinking , the poster was late 50's I think and was saying they are spending a lot of their fund now to travel / hobbies / entertainment whilst they are healthy and mobile and if they only have enough money to watch telly in their 80's so be it .

I've always thought my funds would be used evenly no matter my age but I can see the logic of spending and enjoying whilst physically well to do so .

On the other hand what if you need more for care in later years .

How do others approach this .

OP posts:
sickofbuilders · 18/03/2024 21:36

Our plan (currently) is for me to go at 60 and DH 55 (15 years time). We too plan to front load the spending on travel etc for the first 10 or so years, having seen my parents’ health decline rapidly post-70.

We should have enough to achieve this until I’m around 75 (poss longer) but have a large house with land we are almost finished renovating so plan is to downsize from that when needed.

Not in uk so different rules on paid care (for now) but fuck that, I’ve told DH if I need care I want euthanasing so I’m not too worried re that aspect.

I just want some time travelling with DH once kids are 18 (youngest will be 18 when I’m 60).

That said, if we needed to financially, I could drop to 2 or 3 days a week for a couple of years, same for DH but I don’t think I’d want to delay the fun and travel by too much

ShinyAppleDreamingOfTheSea · 19/03/2024 14:20

HermioneWeasley · 18/03/2024 19:29

There is a distinct pattern of retirement spending - initial years after retiring are high spending - you’re as young and healthy as you’ll be in retirement and people travel, help out kids etc. they then slow down and spending drops as they don’t travel, eat out etc, and then the last few years spike with care costs.

That is what I was told on one of the seminars that I attended - look at your expenditure as a U shape. Obviously some people may not make the final part of the shape - but I would want to have enough money to provide any care I needed so that there is no need for DC to worry. Obviously if this isn't needed then it will be left as inheritance.

Currently on the beginning of our retirement journey - both of us having taken early retirement which was enabled in both cases by inheritance. Prioritising doing what we want at the moment - and we'll get extra funding when our state pension kicks in, in a few years time .

I'm not interested in long haul or luxury holidays but I do enjoy more frequent trips within the UK and Europe - plus a longer holiday in southern Europe in the winter months .

Our house is secure in that we have recently had new windows and a roof - but we have no upstairs bathroom and no spare room for sleeping downstairs so we will need to reconsider this in a few years' time . Current plan is to have an upstairs toilet and basin put in taking some space off the main bedroom.

grannycake · 22/03/2024 10:42

I retired at 66 - I have a state pension and three smaller final salary pensions. We spent the last 10 years of working in future proofing our small house - new roof, windows, new bathroom and boiler. Last year we renovated the ground floor which has given us a kitcjen diner and a snug (which could become a downstairs bedroom if needed.

My DH is 6 yrs younger than me and we also saved enough to cover his state pension for the gap until his pension kicks in another 5 years. He also has a small final salary pension which should kick in this March.

Our passion is travel and we have a motorhome - we do one or two 6 weeks trips a year (Spring & Autumn) and several weekend trips in this country. In order to do this we live frugally the rest of the time but we love it - Denmark last year and Provence and the Alps this Spring. We also visited friends in the Netherlands just after Xmas.

I have worked out that we can travel like this on our savings for about 20 years

AyeupDuck · 27/03/2024 21:53

We will both be retired by late fifties.

Currently slowly sprucing up house to sell in about 2 years.

We will relocate a little and be on the edge of the Peak District, we want a house edge of town not too far from all facilities. We want a large drive so we can have the motorhome we will be buying parked up. We plan to have 2 to 3 months in warmer parts of Europe over winter months, plus do some weeks and weekends away in the UK.

Any motorhome tips @grannycake ?

Once older we will have the occasional cruise or holiday. This has all been planned and we have a huge spreadsheets with various projections. We have defined benefits pensions.

AuntieMarys · 27/03/2024 21:57

We have a short break every momth

grannycake · 28/03/2024 06:42

@AyeupDuck Everyone has different priorities on motorhomes. We take a lot of bikes with us so we needed a large garage - this means that our lounge is a bit compromised but we mainly use it for travel overseas so most of our living is outside. If you were doing most of the travelling in UK that would probably be an issue,

Decide on your budget and visit lots of dealers. Used vans hold their value so don't be too worried about the age of the vehicle

You could try hiring a van for a trip and see what you like and what annoys you - we had already had an old van so we knew what we needed

Hope your plans work out and you have a great time in the van

PermanentTemporary · 28/03/2024 06:53

This is an interesting thread. My focus has been on stopping work earlier rather than on being able to do a lot. I'm 55 now and I might be able to retire at 60, though I think realistically I will retire and return part time, perhaps with a break. But I had been thinking that the money I do have would be saved for care costs, having seen the difference it can make. Maybe I need to rethink that...

RaraRachael · 28/03/2024 07:29

Interesting that some people consider putting aside money for care costs
Everybody I know who's retired recently wants to spend as much of their money so it doesn't go on care.

alwaysmovingforwards · 28/03/2024 13:09

I want the money to travel and treat my family so I'll spend it early.
If I get to the point I need care and all I'm good for is sitting in a chair looking out the window waiting for visitors... I'll use the last chunk to book a trip to Switzerland, to see the lakes, wrote letters to people I live, and then a final stop off at Dignitas. 😂

(Joking if anyone finds that morbid, but also not joking. Spending the last few years being kept alive against my body's natural will where I need care just to function as a human being genuinely scares the absolute hell out me. I do think I'll pull the rip cord on my own terms with a final "thanks life, it's been a blast but this body is now fucked, see ya!!").

annieloulou · 15/04/2024 20:12

Seems like most couples here are a similar age and can retire “together” give or take.

DH is 10 years older than me and had an early retirement / redundancy opportunity at 59 which he took, I was 49 at that time.

The idea of front loading in the first 10 years is a good one, but my DH will have used that up by the time I can retire! 🤷🏻‍♀️

We do go on holiday as can now go out of season as DH job was shutdown weeks, and only us two now, I get decent annual leave and we’ve also paid the mortgage off out of DH redundancy, but I don’t think it’s the same as posters on here are talking about in terms of day to day living and being spontaneous around days out, trips etc if you’re both retired.

TwoLeftSocksWithHoles · 15/04/2024 20:21

Electricity,
Then gas,
If there's anything over we buy some food.

Overtheatlantic · 15/04/2024 20:47

Just wondering if anyone has a sibling doing a lot worse in life and with no prospects of retiring? How do you deal with managing your guilt about being able to retire whilst they continue to work themselves into an early grave? I’m in this situation and although nothing is guaranteed it seems unfair.

MyricaGale · 15/04/2024 20:53

alwaysmovingforwards · 28/03/2024 13:09

I want the money to travel and treat my family so I'll spend it early.
If I get to the point I need care and all I'm good for is sitting in a chair looking out the window waiting for visitors... I'll use the last chunk to book a trip to Switzerland, to see the lakes, wrote letters to people I live, and then a final stop off at Dignitas. 😂

(Joking if anyone finds that morbid, but also not joking. Spending the last few years being kept alive against my body's natural will where I need care just to function as a human being genuinely scares the absolute hell out me. I do think I'll pull the rip cord on my own terms with a final "thanks life, it's been a blast but this body is now fucked, see ya!!").

My thoughts exactly ☺️

QueenOfHiraeth · 15/04/2024 21:00

DH and I retired last year but have not been able to travel as we have, between us, 3 elderly parents, in their 90s, who seem to have a rota for being dreadfully ill. Add to that helping with grandchildren and pregnant DD/DIL
I don't have any burning desires for where to travel but do feel like we should be doing more than looking after others!

Sunshineismyfavourite · 15/04/2024 21:05

DH and I retired 2 years ago with private pensions. Put some away in a rainy day fund and have had some amazing holidays over past two years with our lump sums and bought a holiday home in UK. Also now mortgage free. I decided to get a part time job (something I love) so this is topping things up nicely and allowing for more holidays while we are still keen to travel. I've had some serious illness in the past so I'm all for living for the now and yep if we're skint when I'm 80 (if I get there!) then our DCs can send us off on a little coach holiday each summer! DH volunteers in the emergency services (always been his dream) and we spend time looking after our DGCs. So very lucky!

AyeupDuck · 23/04/2024 01:19

@grannycake we took a trip in a hired van and loved it. Was a very top of the range one and we won’t be spending that much but we found out what we did and didn’t like. We plan on hiring another of the sort we think we actually may buy.

AyeupDuck · 23/04/2024 01:22

@Overtheatlantic I have a few sisters and DH has one. My sisters are not well off and no early retirement. They just had low paid work and I do have not sure if it’s guilt but some sort of worry about that. DS sister had 25 years earning a lot of money but is so bad with money she deserves zero consideration, harsh but true.

Runnerinthenight · 23/04/2024 01:50

Interesting thread! Hoping to be approved for flexible retirement, which along with still working half the week would mean an income of a couple of hundred a month less than currently as FT. Plan is to take the max lump sum, which leaves me with a decent pension combined with the state pension at 67. Want to pay off all debts and do home improvements so we don't have any major expenditure again on the house. Want to travel as much as possible while still able.

Dartwarbler · 28/04/2024 16:08

Retired in late 50s due to mental health issues…did the trick as mental health issue now resolved. I live on my own now having divorced at age 57 after 30 years of marriage.

i have DB pension I live off with interest from savings . I do worry about my saving pot as had to spend a lot on my house when I moved in that wasn’t expecting, and there’s still significant work that is needed. But house is adaptable to live downstairs if needed. I probably don’t spend enough in truth, the worry holds me back . I’m not travelling much as I travelled a LOT with work and frankly vowed I’d never got on a plane again unless I had to ! But I’ve not had the courage to plan holidays as a singleton in uk and fear about spending my savings on this. Yet I know when I reach 67 I will be a lot better off, and therefore should be using more of my savings now.

so this is interesting thread about front end loading….like many others my mum and maternal GM both died in late 50s so I have a strong sense of my own morbidity

many people have said about care costs, and seem quite breezy and upbeat about their plans. But what I’ve learnt about care over las 12 months made me bin any such breezy plans. I now regard it as a bit like birth plans - a sop sold to you by NCT etc to make you feel in control but at end of day a lot of the time your plan is merely a best case wish list and can leave you feeling like a failure or disappointed.

My DF is now 87, he was absolutely fine until Covid. He started to get hallucination but this was put down to Charles Bonnet syndrome due to him loosing vision. Then late in 2022, Within a very short space of time his cognitive function declined and we’ve had an awful 18 months with him being moved from pillar to post to diagnose, and then manage his condition. He’s been in nhs facilities for around 7 of those 12 months which he obviously didn’t pay for as they pissed around saying it was a mix of Charles bonnet and delirium - he stayed in the most god awful mental health wards in hospitals. He was finally sectioned, diagnosed properly with LBD and is therefore under a 117 which means he gets nursing funding in part when in private care. But he’s been evicted in effect from the private homes he was discharged to, twice, due to them not being willing to manage his needs as they’ve worsened. He is disturbed, agressive and agitated (not an ounce of aggression on him till this developed) . We’ve now been told he’s on “end of life” palliative care, and he is fading slowly. Whilst he is paying (or his LPOA is) a lot for his care needs,despite the nursing element being covered by nhs funding, he is unlikely to even spend the average amount calculated by government stats. And much of the costs he pays come out of his pension anyway and not his assets. In practice he’ll probably not even spend £50k of his actual savings at this rate.

so my 3 learnings from dealing with this grotesque illness (I use the word deliberately in his case) are these:

  1. decline may happen so fast that you won’t have time to make your way yourself to dignitas or even a uk equivalent if that became an option with a law change at some point. Dad has never had the cognitive abitly to know he had this illness- by time it was diagnosed as dementia he was beyond understanding. I’d always thought that’d be my plan- I’ve seen in practice I may not have awareness or time to do that and so it’s not a plan to defer to. Yep, it is an option for people with physical terminal illnesses …but in case of cognitive decline it is much more difficult to determine at a point when you could do something about it.
  2. you may well kit yourself out with home, adapations etc to avoid having to go into care home, or like me say to my kids “dont put me in a home” but for some people the dementia and other cognitive illnesses are so unmanageable and grotesque that a spouse or live in carer is not an option. Many people with dementias need a DOL (or new equivalent) and that’s not possible by staying in their own home. It is way better to accept this may have to happen, and plan for your wishes in these situations through your LPOA or expression of wishes/advances directive attached to that.
  3. whilst care home fees are at £1500-£2000 a week, it does not mean you’ll be spending all that for 10-15 years languishing in a care home. As these diseases progress often nursing needs come into play, or 117 funding in extreme cases and that’ll reduce costs. “Only” 15% of over 75 year olds will need care home at all. Of those the average stay is 400 nights, with a long tail to 800 nights at the end. This is how the government and parliament worked out the care fee cap at £85k some years ago - it was based on an average so that those who suffered longest were not financially penalised. That would be higher now, but in region of £100k. The cap was pushed out again in terms of implementation but is still in the statute so may be introduced. So, based on average uk home cost, care will not, in almost all cases, completely frazzle away all your life savings including your home. home might need to be sold, but unlikely statistically to have to frazzle its entire cost away. Yep, it’s a hefty amount, but if you don’t have that money in first place you can’t use it!
  4. care home choice is only a choice for some people early in decline, or where dementia is not a factor. When someone is in my dads condition it is literally “beggars can’t be choosers” becuase private care/nursing homes don’t want to pay for care assistance or nurses at ratio he needs to keep him and them and other patients safe. He has been evicted from 2 homes. He was bed blocking in last nhs admission as his home refused to have him back. He was literally, at that time , homeless. Social services found 1 faciltly in the whole of the large local authority which could and would take him with the nursing needs he has. He and we had no choice. So, saying you want to save money so you have a choice of a “nicer” home than a standard basic model is not how it works in a lot of cases. You’ll go where you can, and pay whatever that costs minus what support you get through nursing needs.

I know this is a bit off tangent, but it has made me completely rethink about covering “care costs” ….at the end of the day it’ll be out of my hands and into my LPOA/beneficieries (post death) and in either case I’ll not care. So, I’m focusing on rewriting out what my care preferences would be in my newly realised understanding of how shit it is. And ditching any thoughts about how will I pay for it. Frankly, it won’t be my problem by then.

my focus is on spending money on house to deal with physical decline like immobility. And then on my social life. I’ve put a lot of effort into that to ensure I build a strong network of friends and social activities. I’m an introvert so it didn’t come naturally . But I also know that a big indicator to mental decline and mental illness in the elderly is social isolation. I’m investing a lot of time in joint group activities geared to retirees that ensure those networks will stay until I’m no longer cognitively functioning! Most of groups I go to range from late 50s to 90s so even the older members who are sadly loosing friends, are benefitting from the younger influx coming in and not becoming totally isolated (U3A).

hourstokill · 28/04/2024 16:10

cruising... lots and lots of cruises... until we are both so infirm and immobile we can't physically get on a ship!

then we give the kids permission to pick us a decent care home!

Bignanna · 28/04/2024 16:41

RaraRachael · 28/03/2024 07:29

Interesting that some people consider putting aside money for care costs
Everybody I know who's retired recently wants to spend as much of their money so it doesn't go on care.

Isn’t that regarded as deprivation of assets in some circumstances?

Defiantlynot41 · 28/04/2024 16:57

@Bignanna not necessarily www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

Basically they have to prove intent ie an expectation of care costs (not just in case) and the giving away or spending must be a deliberate intent to avoid care costs

RaraRachael · 28/04/2024 16:58

No idea what deprivation of assets means but nobody can stop you spending your own money.

NewName24 · 28/04/2024 17:26

Excellent post @Dartwarbler
Thank you for taking the time to write all of that out.

LizzieSiddal · 28/04/2024 17:43

NewName24 · 28/04/2024 17:26

Excellent post @Dartwarbler
Thank you for taking the time to write all of that out.

Agree, a really interesting post. Thank you.

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