Thanks Golfie, food for thought. Early 60's, spread out our income so we are both basic rate of tax. This will change for me when I get the old age pension in a few years, which will probably drive the need to sell something as after many years of paying out 40+ percent in tax I absolutely refuse to go there again.
Interesting chatter about spending your savings to prevent the government getting their hands on it. I’m certainly doing that by travelling with no expense spared after years of backpacking and staying in hovels. But the balance between ensuring you have sufficient savings to take up to your nineties is to me a bit daft. I don’t think I’ll be travelling around the world and living it up should I live to that age. I would imagine around the 80s I might take it easy which will mean I won’t be able to spend my income and then my capital will start to increase.
We are looking at spending more on travelling than we had intended, we were going to leave our complete pension pot and house to the kids, but since the budget that would mean the government taking a large chunk of it, so once the consultation period has been completed and the final outcome is confirmed, then it’s chatting to our financial adviser to see how much we need to spend on enjoying ourselves in later life and saying up yours Rachel, already got over a hundred nights booked on cruises, and will probably book a few more before we get to immobile.
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
If you haven't already, also think about 'tenants in common' rather than 'joint tenants'.
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
If you haven't already, also think about 'tenants in common' rather than 'joint tenants'.
Yep, means that they can only go after the 50% owned should you end up in care. Me, should it get to that stage I think I will be investing in a shotgun.
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
During a recent trip to Hawaii, Bill Gates saw a fisherman lying beside his boat, smoking his pipe. Bill Gates: "Why aren't you fishing?" Fisherman: "Because I have caught enough fish for the day." Bill Gates: "Why don't you catch some more?" Fisherman: "What could I do with them?" Bill Gates: "Earn more money. Then you could have a motor fixed to your boat and go into deeper waters and catch more fish. That would bring you more money. Soon you would have enough to buy nylon nets, so more fish, more money. Soon you would have enough to buy two boats, maybe even a fleet of boats. Then you would go rich like me." Fisherman: "What would I do then?" Bill Gates: "Then you could sit back and enjoy life." Fisherman: "What do you think I am doing now?"
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
Again, remember you wont be getting your State Pension until you are 67...maybe 70 in 20 years time.
What have you got in "savings" that would fill the gap from age 60(ish) to.age 67 ? Even if you live frugally you'll probably need £1k pm at the very least.....probably more like £1500 pm. That would need a savings pot of at least £50k & probably nearer to £100k.
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
There is no "7 year rule" when it comes to funding care. Local authorities can go back further if they feel there is deprivation of assets.
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
There is no "7 year rule" when it comes to funding care. Local authorities can go back further if they feel there is deprivation of assets.
That what’s my thoughts where, but just wanted it confirmed.
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
There is no "7 year rule" when it comes to funding care. Local authorities can go back further if they feel there is deprivation of assets.
So if I wanted to leave my house to a charity rather than it going to fund my care how would I do it?
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
Again, remember you wont be getting your State Pension until you are 67...maybe 70 in 20 years time.
What have you got in "savings" that would fill the gap from age 60(ish) to.age 67 ? Even if you live frugally you'll probably need £1k pm at the very least.....probably more like £1500 pm. That would need a savings pot of at least £50k & probably nearer to £100k.
Rent the 3 bed house in West Wickham out. Currently would rent for £2500. Buy a caravan down the coast.
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
Again, remember you wont be getting your State Pension until you are 67...maybe 70 in 20 years time.
What have you got in "savings" that would fill the gap from age 60(ish) to.age 67 ? Even if you live frugally you'll probably need £1k pm at the very least.....probably more like £1500 pm. That would need a savings pot of at least £50k & probably nearer to £100k.
Rent the 3 bed house in West Wickham out. Currently would rent for £2500. Buy a caravan down the coast.
Taxable income. C£30k pa - lose c£3500 in tax gives you £2200 pm. Need a good buffer fund for void periods, repairs & replacements plus other general stuff tenants break or dont look after. Then there are court fees for non payment & eviction. Then when you do get your property back you have to spend thousands just getting it back up to scratch to rent out again.
Renting's a mugs game unless you own multiple properties & have deep pockets.
As mentioned above, Equity release could be a better option if you dont have dependants you want to leave your money to once you're gone.
Or use a pension.......the very thing that's out there designed to give you tax efficient income in retirement. Or an ISA. Or both.
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
There is no "7 year rule" when it comes to funding care. Local authorities can go back further if they feel there is deprivation of assets.
So if I wanted to leave my house to a charity rather than it going to fund my care how would I do it?
You can't. You can leave your Estate to anyone you like in a Will, but still alive and in a care home & your assets run out then the Local Authority have the power to sell your home to pay for your care.
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
There is no "7 year rule" when it comes to funding care. Local authorities can go back further if they feel there is deprivation of assets.
So if I wanted to leave my house to a charity rather than it going to fund my care how would I do it?
You can't. You can leave your Estate to anyone you like in a Will, but still alive and in a care home & your assets run out then the Local Authority have the power to sell your home to pay for your care.
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
Again, remember you wont be getting your State Pension until you are 67...maybe 70 in 20 years time.
What have you got in "savings" that would fill the gap from age 60(ish) to.age 67 ? Even if you live frugally you'll probably need £1k pm at the very least.....probably more like £1500 pm. That would need a savings pot of at least £50k & probably nearer to £100k.
Rent the 3 bed house in West Wickham out. Currently would rent for £2500. Buy a caravan down the coast.
Taxable income. C£30k pa - lose c£3500 in tax gives you £2200 pm. Need a good buffer fund for void periods, repairs & replacements plus other general stuff tenants break or dont look after. Then there are court fees for non payment & eviction. Then when you do get your property back you have to spend thousands just getting it back up to scratch to rent out again.
Renting's a mugs game unless you own multiple properties & have deep pockets.
As mentioned above, Equity release could be a better option if you dont have dependants you want to leave your money to once you're gone.
Or use a pension.......the very thing that's out there designed to give you tax efficient income in retirement. Or an ISA. Or both.
Will the tax allowance not be going up in the next 10 years?
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
Again, remember you wont be getting your State Pension until you are 67...maybe 70 in 20 years time.
What have you got in "savings" that would fill the gap from age 60(ish) to.age 67 ? Even if you live frugally you'll probably need £1k pm at the very least.....probably more like £1500 pm. That would need a savings pot of at least £50k & probably nearer to £100k.
Rent the 3 bed house in West Wickham out. Currently would rent for £2500. Buy a caravan down the coast.
Taxable income. C£30k pa - lose c£3500 in tax gives you £2200 pm. Need a good buffer fund for void periods, repairs & replacements plus other general stuff tenants break or dont look after. Then there are court fees for non payment & eviction. Then when you do get your property back you have to spend thousands just getting it back up to scratch to rent out again.
Renting's a mugs game unless you own multiple properties & have deep pockets.
As mentioned above, Equity release could be a better option if you dont have dependants you want to leave your money to once you're gone.
Or use a pension.......the very thing that's out there designed to give you tax efficient income in retirement. Or an ISA. Or both.
Will the tax allowance not be going up in the next 10 years?
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
Again, remember you wont be getting your State Pension until you are 67...maybe 70 in 20 years time.
What have you got in "savings" that would fill the gap from age 60(ish) to.age 67 ? Even if you live frugally you'll probably need £1k pm at the very least.....probably more like £1500 pm. That would need a savings pot of at least £50k & probably nearer to £100k.
Rent the 3 bed house in West Wickham out. Currently would rent for £2500. Buy a caravan down the coast.
Do you still need a 3 bedroom house ?
If not, would you consider downsizing, invest the difference between the sale & a smaller property ( maybe that caravan ) ?
If you think you'll last seven years and have enough available now, you could give some to your kids and potentially reduce the IHT impact that way
That’s is being thought about, but something that we need to get clarified is the effect of donating lumps of money to the kids, if we should need care in later life, we are both in our early 70’s so that care problem could well fall into the 7 year period. But all this will be investigated once the final rules are in place (another thing we are thinking of is giving the house to kids, and then paying them the going rate, but neither of us are really keen to do that, as we both think the care problem could raise its ugly head).
There is no "7 year rule" when it comes to funding care. Local authorities can go back further if they feel there is deprivation of assets.
So if I wanted to leave my house to a charity rather than it going to fund my care how would I do it?
You can't. You can leave your Estate to anyone you like in a Will, but still alive and in a care home & your assets run out then the Local Authority have the power to sell your home to pay for your care.
Blimey. How often do they do this?
All the time. Our friend has just lost her Dad. Her Mum has been in a care home for about nine years. Luckily she persuaded her parents to put their flat as tenants in common or some such. When sold half will go to the council to pay for her Mums care (about 150k) and the other half into her father’s estate. Her Dad was just about to join his wife in the care home too and if he had and lived say five years the whole 300k would have gone to the council for their joint care.
Guess you need to look at your overall annual outgoings, monthly spend, holidays, insurances etc and what extra stuff you would like to do in retirement as a starting point. Everybody is different, no real basic numbers would fit all.
A drawdown figure of around 4% is usually said to be sufficient enough for your funds to stay steady & not deplete too rapidly. So in your case you could look at taking an annual income of around £33k.
However, this is just a "finger in the air" figure and as you are looking at retiring 10 years before any State pension is due and maybe having to use your pension fund for 30+ years it should be seen as a rough guide only & your drawdown amount reviewed at least once a year.
The main point is that being in Drawdown versus buying an annuity means you can alter the amount you take out to suit your needs & circumstances. For the first 10 years (before you start taking your State pension) you could take out £40k or even £50k pa, knowing that this can be reduced in time. However, 1 bad year (like we had in 2020 during Covid, or 2022 when both Equities & Bonds fell 20%) could see your fund depleted much more than you bargained for.
I agree with your point that too many people are told they need £x in retirement & which is more than they probably need. A single person should (and do) survive on £15k pa (assuming no mortgage or rent) and £25k pa for a couple.
But each to their own and only you can decide how much you are going to need & for how long. Also depends on any other savings you might have & any inheritance's that might be coming your way.
Can you lot on here do me a favour? Live your retirements for me. Apart from the house there's no pension pot for me, not much savings at the moment either. Hitting 50 this year I've gone a bit mad. I've always done a manual job and I'm starting to feel the aches and pains. Me and another mate are always joking about it down the pub. I'm determined to retire at 60 even if it means I've only got £25 a week to live on. I think most days to myself what physical state will I be in when I'm 65. My retirement won't be much, and it doesn't really bother me as i will get by. It brings a smile to me face though when I read about the retirement plans some of you have. Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do. Otherwise that day may never come.
Again, remember you wont be getting your State Pension until you are 67...maybe 70 in 20 years time.
What have you got in "savings" that would fill the gap from age 60(ish) to.age 67 ? Even if you live frugally you'll probably need £1k pm at the very least.....probably more like £1500 pm. That would need a savings pot of at least £50k & probably nearer to £100k.
Rent the 3 bed house in West Wickham out. Currently would rent for £2500. Buy a caravan down the coast.
Do you still need a 3 bedroom house ?
If not, would you consider downsizing, invest the difference between the sale & a smaller property ( maybe that caravan ) ?
Morning. In 10 years time when I'm 60, we will probably do this. Sell the 3 bed, move down the coast into a smaller property. My views change weekly though, which drives the wife mad.
I’m only skimming this thread , so don’t understand what happens when people need care and can’t afford it in later life What is the protocol ? why does it appear people don’t want to pay for it , someone has to imo if you have assets then that should be used to pay for stuff what am I missing here , sorry to sound insensitive but is it usually free of charge but now isn’t,if people have assets, due to the life expectancy demographics of the country .
I believe if you have more than 23grand of cash/assets you have to pay for it until you run out(or get down to 23 grand?), then government pays for it or if you don’t have any money at all the government pays for it
I believe if you have more than 23grand of cash/assets you have to pay for it until you run out(or get down to 23 grand?), then government pays for it or if you don’t have any money at all the government pays for it
Comments
If you haven't already, also think about 'tenants in common' rather than 'joint tenants'.
Live your retirements for me.
Apart from the house there's no pension pot for me, not much savings at the moment either.
Hitting 50 this year I've gone a bit mad.
I've always done a manual job and I'm starting to feel the aches and pains.
Me and another mate are always joking about it down the pub.
I'm determined to retire at 60 even if it means I've only got £25 a week to live on.
I think most days to myself what physical state will I be in when I'm 65.
My retirement won't be much, and it doesn't really bother me as i will get by.
It brings a smile to me face though when I read about the retirement plans some of you have.
Enjoy your retirements and if you've got the money try not to put off what you've always wanted to do.
Otherwise that day may never come.
During a recent trip to Hawaii, Bill Gates saw a fisherman lying beside his boat, smoking his pipe.
Bill Gates: "Why aren't you fishing?"
Fisherman: "Because I have caught enough fish for the day."
Bill Gates: "Why don't you catch some more?"
Fisherman: "What could I do with them?"
Bill Gates: "Earn more money. Then you could have a motor fixed to your boat and go into deeper waters and catch more fish. That would bring you more money. Soon you would have enough to buy nylon nets, so more fish, more money. Soon you would have enough to buy two boats, maybe even a fleet of boats. Then you would go rich like me."
Fisherman: "What would I do then?"
Bill Gates: "Then you could sit back and enjoy life."
Fisherman: "What do you think I am doing now?"
What have you got in "savings" that would fill the gap from age 60(ish) to.age 67 ? Even if you live frugally you'll probably need £1k pm at the very least.....probably more like £1500 pm. That would need a savings pot of at least £50k & probably nearer to £100k.
Buy a caravan down the coast.
Renting's a mugs game unless you own multiple properties & have deep pockets.
As mentioned above, Equity release could be a better option if you dont have dependants you want to leave your money to once you're gone.
Or use a pension.......the very thing that's out there designed to give you tax efficient income in retirement. Or an ISA. Or both.
If not, would you consider downsizing, invest the difference between the sale & a smaller property ( maybe that caravan ) ?
what amount of pension savings do you think k you could live off if you were to retire at 57
Im asking because I read somewhere that people are over cautious in this regard when it comes to draw down .
A bit simplistic, but an easy way to think about it and adapt.
https://www.investopedia.com/terms/f/four-percent-rule.asp
However, this is just a "finger in the air" figure and as you are looking at retiring 10 years before any State pension is due and maybe having to use your pension fund for 30+ years it should be seen as a rough guide only & your drawdown amount reviewed at least once a year.
The main point is that being in Drawdown versus buying an annuity means you can alter the amount you take out to suit your needs & circumstances. For the first 10 years (before you start taking your State pension) you could take out £40k or even £50k pa, knowing that this can be reduced in time. However, 1 bad year (like we had in 2020 during Covid, or 2022 when both Equities & Bonds fell 20%) could see your fund depleted much more than you bargained for.
I agree with your point that too many people are told they need £x in retirement & which is more than they probably need. A single person should (and do) survive on £15k pa (assuming no mortgage or rent) and £25k pa for a couple.
But each to their own and only you can decide how much you are going to need & for how long. Also depends on any other savings you might have & any inheritance's that might be coming your way.
In 10 years time when I'm 60, we will probably do this.
Sell the 3 bed, move down the coast into a smaller property.
My views change weekly though, which drives the wife mad.
What is the protocol ?
why does it appear people don’t want to pay for it , someone has to
imo if you have assets then that should be used to pay for stuff
what am I missing here , sorry to sound insensitive but is it usually free of charge but now isn’t,if people have assets, due to the life expectancy demographics of the country .