Retirement.

Lollipops23

I don't have the luxury of making plans for my retirement. I mean, I have a pension etc, but as far as "locking up and travelling the world" goes, it's pretty unlikely. I have relapsing remitting MS and, while fairly healthy now, I can't plan to be fighting fit at all by 67. If I do it'll only make it harder should things go downhill.

Donald Trump

The Backwards Man wrote: »

Do you ever think about it? I think about it now and again, only 30 years, 97 days and 50 minutes to go for me. I'm going to lock up the house, put it up for sale, travel the world and never look back.

Have you made any plans yet?

Well I plan to retire a bit earlier now.


Especially now that I have your birthday.



Ripe for a bit of the oul' ID theft


Just need to see what a person would have to be on 04-06-2013 @23:10 to have that long til retirement :pac:




BTW, you live in Donegal don't you?

I'm not sure about this travelling the world bit. If you get a good price for your house, you might be able to get a one-way bus ticket to Dublin on the proceeds :pac:

Mutant z

Why do so many waste their time thinking about the future its the here and now that matters.

somefeen

Retirement planning is morbid business.
How long do you expect to live and how much money do you need to tide you over until you die?

I'm just going to make sure I get rich enough that I don't need to worry about it

razorblunt

I'd love to retire at 60.
That's a loose goal I have, but I think I'd volunteer my time with a charity for a couple of mornings a week.

Indeed, I like work to an extent. I'm hoping to be able to retire when I'm early 50s ........ but I might well keep working part time etc and increase my volunteering activity

garbanzo

Is there any view on exactly how much a couple would need per annum to live comfortably on in retirement. Presuming the mortgage is paid off and the kids have flown the coop.

Very interested in the experiences of those who have done it.

Beasty

Another 6 weeks and I'll be down to 4 days a week. A year after that 1 day a week, although it will be nearly another 3 years before I stop work completely (although they may want to keep me on a consultancy - I'm the only one who's been round long enough to know where all the bodies are buried:pac:)

bilbot79

garbanzo wrote: »

Is there any view on exactly how much a couple would need per annum to live comfortably on in retirement. Presuming the mortgage is paid off and the kids have flown the coop.

Very interested in the experiences of those who have done it.

What do you get at the minute for personal spending money..? Eg, I'm fairly secure but give myself 500 a month. If I wasn't saving, mortgaging or siphoning cash to medical bills I could be twice as well off on the state pension.

Atlantic Dawn

For me I hope to be pushing up daisies by 55-60, not arsed by the walking dead scenario and being away with the fairies.

Leg End Reject

Atlantic Dawn wrote: »

For me I hope to be pushing up daisies by 55-60, not arsed by the walking dead scenario and being away with the fairies.

There's a bit of mileage between 55-60 and what you're describing. That'd be a young age to die.

I don't know what age you are, but I would've thought like that in my teens and 20s. Your perception of what constitutes old changes as the years progress. I'd love to retire at 60 and be independent and healthy enough to enjoy life for at least 20 years after that. You'll be dead long enough, there's no hurry to get there.

Trigger Happy

I too would love to retire at 60 and am working to that goal. Still a long way to go thankfully .

anewme

I would have liked to retire at 60, but now coming up towards 50, that does not look like it will be possible. To anyone younger, Id say start that pension as early as you can, no matter how small. Though this day and age, thats a big challenge, given as younger people are trying to buy a home.

The reality is though, retirement comes round quicker than you think,the thinking of "oh, I'll be dead by then" is not realistic as most of you won't, nor will you want to be. It's just another chapter and should be approached like that. Active retirement can bring a great freedom, especially to those who have been workng for "the man" for many years and then some.

Would love to cut hours from 60 and phase myself down then. Maybe take a "nice" little part time job, something like a coffee shop in a garden centre, or one of those older folk you see in B&Q, working just to keep the social aspect going. I would also like to get more involved in Volunteering too.

Ohh and dogs, at least 3.

Richard Hillman

The dream is retire to somewhere on a lake, preferably in the Alps or the Balkans

The reality is I won't be able to afford to retire and hopefully I die before the day I cannot physically work. The misery of physically struggling at work and being a liability to everyone else is death in itself.

CelticRambler

garbanzo wrote: »

Is there any view on exactly how much a couple would need per annum to live comfortably on in retirement. Presuming the mortgage is paid off and the kids have flown the coop.

It all depends on how long your piece of string is! Living "comfortably" means different things to different people. I know there's no-one in my family who would consider my (semi-retired) lifestyle "comfortable", but that's because they're all hard-core consumerists.

I made lifestyle choices fifteen years ago that set me up for a low-cost retirement today. I'm still well below the state retirement age, so have to engage in a small amount of paid employment to cover the costs of unavoidable bills, but 12k a year and a productive garden is more than enough to fund my low-cost hobbies that combine travel, a social life and live entertainment. Adding a second person wouldn't change that significantly.

anewme

It's a very interesting question as to how much you would need. A lot wpuld depend on your own choices as ceotic rambler says and also how much money you have saved. For example, boiler going will be 2k, youd need a decent cash backup.

They say aim for one third of your salary plus the state pension.

ILoveYourVibes

The Backwards Man wrote: »

Do you ever think about it? I think about it now and again, only 30 years, 97 days and 50 minutes to go for me. I'm going to lock up the house, put it up for sale, travel the world and never look back.

Have you made any plans yet?

Financially I am fine.

As to how i will cope. Or what i will do no...i have no idea.

I try to keep myself healthy for that time though.

ILoveYourVibes

anewme wrote: »

They say aim for one third of your salary plus the state pension.

Aim for two thirds of your salary.

Rackstar

ILoveYourVibes wrote: »

Aim for two thirds of your salary.

Opened retirement thread, read the comment before this about not knowing what to do with time. Then read this comment as "aim for two birds"

ILoveYourVibes

Rackstar wrote: »

Opened retirement thread, read the comment before this about not knowing what to do with time. Then read this comment as "aim for two birds"

I have read this three times and am still lost.

You want to aim for birds to pass the time?;)

Graces7

Geuze wrote: »

Imagine you arrive in Ireland aged 60, from the UK.

You will not get a CSP, as you don't have enough PRSI paid.

You have other income, so you won't get a non-con SP.

I know several people like this.

They do not receive State Pensions.

There are thousands of people like them

That was my situation and I get the UK retirement pension as I am still a UK citizen. It gets topped up here as the cost of living here is far higher than in the UK .

anewme

State pension here is about 12k. I d find that hard to live off.

Galwayguy35

I started paying into my own pension about 4 years go, I'd say the state pension in 25 years will be smaller than it is now so will need every bit of what i'm paying in now.

ytpe2r5bxkn0c1

anewme wrote: »

State pension here is about 12k. I d find that hard to live off.

I know many who live quite well on the state pension. When you house is paid for and your family raised and you get fuel subsidies and the home assistance package you can manage on far less. Many still go on holidays, change their cars, socialise etc when pensioners. A report only this morning on TV was showing how pensioners in the UK are on the poverty line while in other countries, that included Ireland, pensioner poverty is not such an issue.

That said I would encourage everybody to begin a private pension as early as possible.

anewme

Maybe you could manage if you had a back up fund. Fridge breaks? Car breaks down?

I think if it was a couple on a state pension, they would manage better than a single person.,

Its costing me now to pay in as i didnt start early enough. Even then, i will have just an allright fund.

i started paying in as soon as i could and would definitely encourage everyone to do likewise

Galwayguy35

anewme wrote: »

Maybe you could manage if you had a back up fund. Fridge breaks? Car breaks down?

I think if it was a couple on a state pension, they would manage better than a single person.,

Its costing me now to pay in as i didnt start early enough. Even then, i will have just an allright fund.

Yeah I only started one when I was 40, wish now I'd thought of it a few years earlier.

Fingers Mcginty

Looks like the state contributory pension won't kick in for me until I'm 68.
I retire from my job theoretically at 65. What do i do between 65 and 68?
Dole?

ytpe2r5bxkn0c1

Fingers Mcginty wrote: »

Looks like the state contributory pension won't kick in for me until I'm 68.
I retire from my job theoretically at 65. What do i do between 65 and 68?
Dole?

The retirement age on the job will stretch out to 68 by then anyway.


This is why retirement planning is vital. Start a pension plan early, put as much as you can afford in to it, maximise tax benefits, long term returns, and retire early with a decent pension and generous lump sum. Never underestimate the power of compound interest over a couple of decades.

ILoveYourVibes

Dominik Important Busboy wrote: »

Never underestimate the power of compound interest over a couple of decades.

Technically its potential is limitless.

Fingers Mcginty

Dominik Important Busboy wrote: »

The retirement age on the job will stretch out to 68 by then anyway./QUOTE]

Unfortunately I wouldn't practiically be able to do my job at that age.
It's very physical. Realistically 60 would be the absolute cutoff age for me the way i feel at the moment.

CelticRambler

Dominik Important Busboy wrote: »

Start a pension plan early, put as much as you can afford in to it, maximise tax benefits, long term returns, and retire early with a decent pension and generous lump sum. Never underestimate the power of compound interest over a couple of decades.

When I was a lad in my twenties, I listened to the wisdome of the ancients and did just that as soon as I got a proper job. Subsequently, I saw my projected returns drop and drop and drop and drop as interest rates headed towards zero. One day I sat down and worked through the figures, and decided it wasn't worth putting anything more into the pot.

That was the real start of my retirement planning, which culminated in the previously mentioned lifestyle change five years later. In hindsight (and reviewing my annual pension statement), I don't believe the compound interest on the amount I would have paid in over the last 15 years would have come anywhere close to the real-world benefit I have now and will have in the future, and inflation has reduced the principle to a meaningless amount.

Seeing the massive deficits in the pension funds of every country I've worked in, I think the wisdom of the ancients was (and still is) wrong for the times we live in, and an awful lot of people are going to find their retirement plans a lot less comfortable than they were led to expect.

CelticRambler

CelticRambler wrote: »

When I was a lad in my twenties, I listened to the wisdome of the ancients and did just that as soon as I got a proper job. Subsequently, I saw my projected returns drop and drop and drop and drop as interest rates headed towards zero. One day I sat down and worked through the figures, and decided it wasn't worth putting anything more into the pot.

That was the real start of my retirement planning, which culminated in the previously mentioned lifestyle change five years later. In hindsight (and reviewing my annual pension statement), I don't believe the compound interest on the amount I would have paid in over the last 15 years would have come anywhere close to the real-world benefit I have now and will have in the future, and inflation has reduced the principle to a meaningless amount.

Seeing the massive deficits in the pension funds of every country I've worked in, I think the wisdom of the ancients was (and still is) wrong for the times we live in, and an awful lot of people are going to find their retirement plans a lot less comfortable than they were led to expect.

were you not invested in equities
were your projected returns fund values or 'this is how much you would have per annum'? the latter would sink like a stone if interest rates are low but you're not obliged to buy an annuity anyway

Planet X

Depends on what risk level you pitch your Pensions Plan at?
Low, medium or high risk. Your call.

ILoveYourVibes

Planet X wrote: »

Depends on what risk level you pitch your Pensions Plan at?
Low, medium or high risk. Your call.

Ideally you should have a lil of all three.

Dont count your eggs before they are hatched and don't put your eggs in one basket :P

Mad_maxx

anewme wrote: »

State pension here is about 12k. I d find that hard to live off.

Every expense bar food and clothing is subsidised to a large or small degree, it's worth double that when you add all up

ytpe2r5bxkn0c1

CelticRambler wrote: »

When I was a lad in my twenties, I listened to the wisdome of the ancients and did just that as soon as I got a proper job. Subsequently, I saw my projected returns drop and drop and drop and drop as interest rates headed towards zero. One day I sat down and worked through the figures, and decided it wasn't worth putting anything more into the pot.

That was the real start of my retirement planning, which culminated in the previously mentioned lifestyle change five years later. In hindsight (and reviewing my annual pension statement), I don't believe the compound interest on the amount I would have paid in over the last 15 years would have come anywhere close to the real-world benefit I have now and will have in the future, and inflation has reduced the principle to a meaningless amount.

Seeing the massive deficits in the pension funds of every country I've worked in, I think the wisdom of the ancients was (and still is) wrong for the times we live in, and an awful lot of people are going to find their retirement plans a lot less comfortable than they were led to expect.

Nor sure what all that was about but I started my pension early, ensured good management and returns over a 30 year accumulating. I then retired over 20 years ago at the age of 54 on a considerable pension plus a high six figure lump sum. So, as I say, not sure what your point is.

ytpe2r5bxkn0c1

ILoveYourVibes wrote: »

Ideally you should have a lil of all three.

Dont count your eggs before they are hatched and don't put your eggs in one basket :P

Correct, but you taper it as you get closer to retirement.

Mad_maxx

Augeo wrote: »

S&p500 and ftse100 type index or etf funds should be the most risk any investors take in Imo. Anything else is gambling not investing.

Indeed, a lot of people often refer to their "pension" having been wiped out due to the likes of Anglo having gone under

Owning a stock portfolio of a dozen Irish stocks isn't and never was a pension, no one with a real proper pension saw it wiped out, if you were sixty six the day lehmans collapsed, it didn't matter as you would have reduced stock exposure for the last ten years prior to retirement

Squall Leonhart

Dominik Important Busboy wrote: »

Nor sure what all that was about but I started my pension early, ensured good management and returns over a 30 year accumulating. I then retired over 20 years ago at the age of 54 on a considerable pension plus a high six figure lump sum. So, as I say, not sure what your point is.

I was 29 when I started paying in to a pension, I'd suspect 30 years accumulating for me won't have nearly as much a return as your 30 years, some of the interest rates you invested through were crazy (I appreciate the flip side of this was the staggering interest in a mortgage).

I cannot see the same levels again, feels we are somewhat on the top end of a curve. I suppose if at worst I get back what is paid in, I'll still be on to a winner of sorts taking current tax relief into account.

anewme

Fingers Mcginty wrote: »

Looks like the state contributory pension won't kick in for me until I'm 68.
I retire from my job theoretically at 65. What do i do between 65 and 68?
Dole?

Im the same.

Firstly you qualify for the jobs seekers. This will be based on your payments in (what used to be stamps) That lasts for I think 14 months. After that, you go onto the one thats means tested for the remaining 2 years. I will get nothing from that as i will have a few bob saved.

The people caught out most by this will be lower middle class, not wealthy enough to have a good pension pot, but not poor enough to qualify for social welfare.

The only thing for me to try to bridge it is to pay more in now, when i can get the tax break.

CelticRambler

Dominik Important Busboy wrote: »

I then retired over 20 years ago at the age of 54 on a considerable pension plus a high six figure lump sum. So, as I say, not sure what your point is.

That's exactly my point! What worked for you (and the advice based upon it) isn't working for people contributing now. My lifestyle change turned a low 5-figure lump sum into a medium-sized 6-figure lump sum "overnight"; meanwhile the another 5-figure lump sum - in a balanced pension portfolio promised to me in about another 10 years - has lost 10% of its value (to me) since last year, thanks to the incompetence of Cameron, May & Johnson.

At the age of less than 54, I have covered my future needs in terms of accommodation, food and heat for the next 54 years without being dependent on someone else's political or investment decisions.

The_Brood

What I don't understand is where are we in the current generation going to live when we retire? Buying a home is next to impossible these days unless you are on top salary. Can only make rent. So...is the country prepared for mass elderly homelessness at the end of this when retirement age hits?

anewme

The_Brood wrote: »

What I don't understand is where are we in the current generation going to live when we retire? Buying a home is next to impossible these days unless you are on top salary. Can only make rent. So...is the country prepared for mass elderly homelessness at the end of this when retirement age hits?

Thats a real ticking time bomb.

So are this generation expected to pay into a pension fund that wont even cover their rent? Why would they do that?

CelticRambler

The_Brood wrote: »

So...is the country prepared for mass elderly homelessness at the end of this when retirement age hits?

Simple answer: no.

It's yet another part of the problem that isn't being addressed, along with the ever-increasing cost of healthcare for an ever-aging population. It's not just an Irish problem, though - most Western economies are facing the same unsustainable future. The whole "old age pension" thing was invented as a way to tide people over while they got their affairs in order and then died. They were never meant to live longer drawing their pensions than they'd spent working (a particularly severe problem these days in France).

The_Brood

The_Brood wrote: »

What I don't understand is where are we in the current generation going to live when we retire? Buying a home is next to impossible these days unless you are on top salary. Can only make rent. So...is the country prepared for mass elderly homelessness at the end of this when retirement age hits?

Ye will get HAP or similar if you can't house yourself. The have nots are usually looked after to be fair.

anewme

Augeo wrote: »

The_Brood wrote: »

What I don't understand is where are we in the current generation going to live when we retire? Buying a home is next to impossible these days unless you are on top salary. Can only make rent. So...is the country prepared for mass elderly homelessness at the end of this when retirement age hits?

Ye will get HAP or similar if you can't house yourself. The have nots are usually looked after to be fair.

I think its a different point though.

Theres no incentive for people to pay into a private pension if all they are covering with it is rent.

CelticRambler

anewme wrote: »

I think its a different point though.

Theres no incentive for people to pay into a private pension if all they are covering with it is rent.

Well, in a way it's the same point: people are persuaded to pay into a private pension on the basis that they'll have a great lifestyle after they retire. So they sign up, pay in and that's as far forwards as they think about it.

The "timebomb" will go off when this generation comes to retire at 65, 68, 70, 72, 75 and realises that their contributions over so many years will cover either medical or housing expenses, but not both, and there'll be precious little left over to pay for luxuries like travel, boilers, food, etc.

So yes, they'll be signing up for HAP - or whatever equivalent is around at the time - and be a whole new generation living on benefits. The irony will be that they're probably the folk who currently moan about a certain section of the younger generation living on benefits.

anewme

They’d be mad to start a pension in those circumstances. No incentive. Better to spend it. 40 years working to end up equal or worse off than the social welfare.

anewme

anewme wrote: »

I think its a different point though.

Theres no incentive for people to pay into a private pension if all they are covering with it is rent.

...... Many folk see the upside in not being dependent or reliant on what might be provided to them in X decades time.

Many others don't.....such is life.