Isn't the general rule to only touch pension funds as a last resort?
Sent from my SM-G991B using Tapatalk
Yep, I'm 58 so the actuarial reduction isn't huge. I could fund part time working from now using existing savings but that means resisting the desire to get something sooner rather than later, given it's unfunded.Originally Posted by gunner
Think so but this feels different given the unfunded nature of the scheme and one time opportunity to take a tax free lump sum.
A bird in the hand beats 2 in´t bush.
That’s my take on it!
Sent from my iPhone using TZ-UK mobile app
for those retired in portugal etc, isn't healthcare a potential issue post-brexit? i presume you're no longer covered by the health services in EU countries now?
Think if you are an OAP and established residency in Spain, you get on the national elf system…Being younger we took out private as was required due to Brexit…but in truth it’s been great, no waiting, see a specialist asap, no Co Pay like under many US health insurances, cost 3 of us about 3k pa and covers us globally when on holiday, yup even in the USA, about as cheap as chips used to be!
Correct (depending on country) if you're above State pension age you can apply for S1 form from the NHS, which transfers your rights to the scheme of the country you're in. You do however have to abide by that scheme's rules e.g. in Spain, "NHS" prescriptions are payable items with varying discounts.
How is the CS pension "unfunded"? It's an index-linked DB scheme backed by the government. I know it's a one-time chance to commute into cash, but the income is likely to outperform most other things that you could possibly do with the money. I'd not commute unless you *need* the cash for something.
Last edited by Scepticalist; 22nd May 2023 at 16:33.
I assume ‘unfunded’ as it is not dependant on a Fund, but on the Government of the day.
Civil service and local govt pension schemes are described as unfunded because there is no pot from which to pay the pension benefits, it is simply a commitment from the Govt, hence there being no pot of cash that can be accessed going forward or that would form part of my estate, as well as it being dependant upon the whim of the Govt of the day although I'm not expecting them to renege (I wouldn't put anything past the current incumbents mind).
There are obviously very significant differences between that and an employer scheme where you can transfer the pension pot value (I recall Osborne quickly introduced a law to prevent civil servants etc being able to transfer their pension pots when allowing employees generally to do so because there wasn't a fund to draw on).
I see. Anyway, I think the point stands. As long as you expect to live a decent period into retirement, the income is probably worth more than any commutation unless you really don't need the extra income and want, for example to pass value to your children (spouses usually have a continuing entitlement after the holder dies)
Sent from my SM-G991B using Tapatalk
Someone once told me ‘if you work when you can afford not to it proves nothing but a lack of imagination’
I kinda do pretty much agree with the sentiment.
We moved in 2020 so in the transition period technically pre-brexit. Signed up for PT health national health cover and also took private health cover that carried over existing conditions continuation cover from UK private health insurance and is approx 3K EUR/ annum for a couple.
If you are resident in PT, retired or not, you register with the national state (health) and get the same cover as any national in Portugal. https://www.gov.uk/guidance/living-in-portugal. If you are getting a UK state pension you are entitled to state care paid for by the UK government - apply for form S1
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
We wish we had some now! Great story. Good luck with your plans.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
hmm thank you! im a fair way off being able to retire but its increasingly on my mind, my general notion had been that brexit had scuppered retirement abroad.
So it looks like I've set a date for retirement.
I think I've considered all of the options (pros and cons). All that's left is for me is to take a deep breath and send an email to my manager and get the ball rolling. Next year will be 40 years continual employment and I think I fancy some 'me' time.
Does anyone who left work in their mid-fifties have any polished pearls of wisdom, just in case there is anything I didn't factor in. I have dwelt on this for the last few months and chewed it over in my head and think it's time to act.
Sent through the ether by diddling with radio waves
A week this Friday I will have been retired exactly four years, now halfway through being 57.
I have no financial advice, you can either afford it or you've buggered up.
But regarding lifestyle, get some inexpensive hobbies (or carry on the ones you currently have), exercise, relax. Learn some new things such as a musical instrument for exmple. But don't think you have to fill every day with activities, or achieve a goal every day. On the other hand don’t get in a rut and do nothing day after day either. Saying that, the odd day or two a week doing nothing is rather pleasant after years of toil.
Good luck, you deserve it, and I'm sure you won't regret it. The old saying "I don't know how I had time to work" is sooooo true!
Empty your loft while you have the time and can still get up there.
A few years less than you were looking for but I am close enough that I can chip in a few points :)
1) retirement does not mean not working. It means you have the ability/resources to choose what you do. Looks like you are there on this one, so actually you are retired now but choosing to work ! Once you have done this mentality shift, how you view the hours/time changes a lot (this is where I am right now).
2) going from 100% job to 0% can work for some people but not all. If you can manage to get a transition period (as regards time commitments etc) so you can see what works for you is best and then update plans accordingly. Clearly this is not always achievable but in your case rather than sending an email and taking the big jump how about a discussion around transition options? There is no downside on that conversation. Worst case you leave as per present assumption (this is an upside from now being in position identified in 1) ie its now your choice to work on your terms)
3) have at least a plan of what you are going to be doing with your time whatever that may be.
4) plan for ‘culture shock’ 3-6 months after you stop. First few months are fun, and then after that what ?? Particularly if that time is in winter and then weather is **it. Be self aware to manage yourself and those around you. It’s a big change so be honest and open with those around you and do not hide/ignore/trivialise it.
Anyway you are now in a great position, work is no longer a ‘have to’, the freedom to choose is great !
Being an artisan horny-handed son of toil, retirement to me means that I am doing exactly what I did before retirement but that nobody is paying me for it.
53 sounds good to me. That gives me 7yrs to line a few things up and convince the wife.
Go for it and best of luck. On the assumption you get everything paid off plus have savings it's surprising how little you can live on and still enjoy life.
Our pensions are less than a third of what we were earning working because of starting them at 55 but we manage fine.
When you start to think about perhaps doing a little voluntary work, you COULD stand in a BHF shop for a 7 hour shift, which takes a much better man than I, or...
something like Citizens Advice will keep your brain ticking; your colleagues will be smart and engaged, you will learn new stuff and have some of that people interaction you will def miss from 'work';
if you do something sporty, it will keep you fit for free and you may even get a t-shirt or car-park pass thrown in... (I ahem 'coach' racquet sports sessions for the local Council, which is essentially remembering to bring the shuttles and listening to stories about grandchildren. Love it).
Good luck, sir! As many have said, you will (hopefully) soon find the money side the most minor consideration.
I'm 3 months in to early retirement now and loving every minute of it at age 58 (nearly 59). We worked our way in to it by paying a lot in to my pension so that we've been living on our retirement level of income for a few years now. So there was never going to be a financial shock, in fact I gave myself a net pay rise way bigger than I have received in the past decade at work. I know lots of people who retired early and only one or two seemed to regret it due to boredom - these people didn't seem to have any hobbies or interests before they retired though. I have a number of hobbies myself, my wife has several of her own, and we have things we enjoy doing together as well - a perfect mix.
Quite a few years ago my Aunty got made redundant from a manual job she'd had for years. She realised she didn't need to work, house paid off, kids left home, husband died a few years ago, so she volunteered at Citizens Advice.
Anyway, she ended up working there in a paid role, put herself through the OU and got a degree in law.
Sent from my Pixel 4a using Tapatalk
That's a lovely story - thank you!
Is there such a product (and if so can anyone recommend) an app that monitors spending by type - groceries, utilities, maintenance, social, etc.?
Our bank's (Bank of Scotland) app is very rudimentary. Keen to start monitoring expenditure with one eye on retirement in a few years time and budgeting based on current spend. Thanks
Pen & paper will work (or a pencil & paper)
I am self employed and use excel to log business expenditure, with a calendar to schedule my time, flag up annual bills, and budget for holiday downtime during the weeks when I have no income.
Monitoring outgoing is useful to log the cost of consumables, home office bills, and the cost of miles traveled in the car.
Excel would work in a home setting to identify where all the money goes, and identify potential savings.
For example, switching broadband or mobile phone providers.
Last edited by Reeny; 21st July 2023 at 12:56. Reason: Android phone spell checker is rubbish
I would guess any app would require you to input the info manually or else it would need direct access to your accounts
Monzo pretty good at monitoring your spending but obviously only via monzo( also 3.7% on savings)
https://monzo.com/blog/2018/08/21/budget-with-monzo
Pen and paper- reminds me fondly of my late folks- dad had an A4 note book that he’d rule off and keep a running total of all expenditures- real old school
Last edited by lewie; 21st July 2023 at 08:38.
I used Wave Accounting (https://www.waveapps.com) when I ran my own business. It was connected to my bank account and could break down income / spend into relevant categories (automatically to a degree once it was learning).
Worked well for me for 3 years, was able to really keep track of the business financial position. In theory shouldn’t be any different from a personal banking process. Salary can be your invoice for money in etc.
Good luck.
Open Banking will allow you to grant access to transaction info safely and you can pull the plug at any time. They won't have any access to make payments etc.
I’ve never found one so use my own excel sheet to give an overview of spending across two accounts and two credit cards.
Takes 30 minutes or so each month but it gives me exactly what I want and the process makes me check for any bogus transactions.
I had hoped that there would be an open banking app that could replace this but sadly not as far as I know.
The Revolut allows you to code expenses which is good.
https://www.thetimes.co.uk/money-men...-retire-early/
Sent through the ether by diddling with radio waves
Early retirement phase 2.0
We have spare cash in the bank, so rather than leaving it there to rot we are investing some in a second property here in Portugal. Should return something between 6% and 10% after expenses depending on rental income and of course capital gains in longer term.
The world could end and Portugal turn into a Moroccan desert - but we will probably be dead before then.
Just want to spread investments. Already have a stock / bond backed pension fund I haven’t needed to touch yet so a property seems a reasonable option.
What do you think?
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
If it actually returns >6% then it's not a bad shout. Just make sure you've factored everything in.
I’m a landlord … property and tenants are a PITA, I’m planning to exit.
If I want property investments I’d buy some REITs.
Whenever I make any major decisions I literally write down all the pro's and con's and if I can live with the con's and the pro's are worthwhile I'll maybe go ahead.
Are you planning to live in Portugal forever?
What's the taxation system like?
What's the rental market like?
What's the legal situation with tenants over there?
What do agents charge?
How much cash will you have left?
Do you have children you may consider gifting money to at anytime in the near future?
What percentage of your overall assets will be in property if you do this?
Can you get a similar return elsewhere?
Any chance the money could be needed elsewhere?
Can you be bothered with the hassle that 'may' come with renting?
Property is illiquid - right now more illiquid than normal.
Only you know your overall circumstances and if all the negatives you can think of are offset by the positives.
There's loads more I'm sure, that's just off the top of my head.
Better to retire early and in good health if you can, by the time my parents both retired and got their dream motorhome it was too late
We did they very same thing this morning. Upshot is - The positives out weighs the negatives. My wife is the level headed one in the marriage (else I’d probably still be living in a shared rental flat myself). We have enough spare cash so want to spread it over various asset classes and have enough liquid cash for unknowns.
Our lawyer drafted the promissory contract yesterday. Signed by all parties today and 10% deposit paid to vendors. Completion set for Monday - just struggling with UK banks as they won’t let me pay large amounts of my own cash to my lawyer. I have two working days to give them a kicking if they won’t hand over the my cash.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
That moved fast … yesterday you were fielding for input. Today it’s bought. If only the UK system could move with such pace.
Congrats Martyn. I am still planning on popping over to see you first week in September. Will drop you a line on WhatsApp to see if you are available.
I have finally decided that April next year is it for me. Will have just turned 58 and for a variety of reasons I am settled on that date to call it a day!! Took me three years to get to that decision but I am definitively there and started the conversation with my employer.
Sent from my iPhone using Tapatalk
Congratulations on your decision!
How do you feel now that you’ve decided? How did your employer take it?
Also, congratulations to you Martyn on moving so quickly. Amazing what can be done. Hope it all works out well.
well done on being decisive. 6-10% does sound decent, who knows where stocks will go. a lot of my money is sitting in cash at 4.5%-ish which is not optimal i know, but everything else is a risk
Congrats and best of luck to you.
Im sure there is a calculation and your pension income will be included but on face value I would want to use any tax free allowance, including marriage tax free allowance if possible (and if it still exists) first.
Early retirement is something I had never given much thought to until last year. But for some reason, work has increasingly felt like an imposition on my time, rather than a source of interest and challenge. This has led to long conversations with my wife to understand what we each want from retirement and the creation of many 'what if' scenarios to see whether retirement is a feasible goal in the medium term. Thankfully it is, we now have a clear plan and vision for our future and I plan to ditch my job in late 2024 and sail off into the sunset when I turn 55.
It's that, or look for another job to get my mojo back but that sounds like too much effort.
Thanks Martyn for this thread, the many interesting perspectives help to form your own ideas and plans and sense-check your thinking.
https://r.tapatalk.com/shareLink/top...ink_source=app
Sent through the ether by diddling with radio waves
Excellent!
I always felt like I would continue working, at least part time for as long as possible., but I’ve recently been wondering what steps I would need to take to retire a lot earlier than planned and still maintain a reasonable standard of living in my older age.
It's just a matter of time...
Thanks Scott, it's a nice feeling but knowing you have a plan makes it hard to stay focussed on work. For a long time, I too thought I would dabble in PT work once I retired but now I am not so sure. We will be financially independent so working for money holds no appeal. Volunteering on the other hand is something I want to get fully involved with. Helping other people feels like the most rewarding thing I can do with my time and experience. It's still a little while off so when I get there I may feel completely different, or prefer to keep working but right now, my mind is pretty clear.
Well that's it. Email sent to my manager. Taking holidays and owed lieu days into account, my last day at work (after 25 years here and nearly 40 years in total) will be the 25th September.
I felt sick with nerves sending it but I feel that I've done the right thing.
Sent through the ether by diddling with radio waves
Posting Permissions
Reply With Quote
