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Treacodactyl
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Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Thu Mar 03, 05 9:13 am Post subject: Retirement

With various people living off the land or planning to do I was wondering about what people plan to do for their retirement?

If you don't earn much but live a happy life this is ideal, but you may not end up with much of a pension. Does this really matter as you should not need much as, hopefully, you will have established somewhere that you can live from comfortably?

I find it a little daft that I cannot use any money in my pension savings to help buy the place that I plan to retire to. This would seem an ideal use for the money to me. (There are a few ways round this but it's not simple).

jema
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 28120
Location: escaped from Swindon

Posted: Thu Mar 03, 05 9:36 am Post subject:
Sore subject with me When I was earning a lot of money I put buckets in equitable life as this was the advice at the time......

Behemoth

Joined: 01 Dec 2004
Posts: 19023
Location: Leeds

Posted: Thu Mar 03, 05 9:50 am Post subject:

It's something that's bothered me. I don't mind cutting back now but I don't want to live in poverty when I retire. We'll probably go down the one full time one part time route to keep the income up and give us some flexibility. There are schemes where you can use the equity in your house now to provide an income but I'm not sure that you can use these under retirement age. I think the deal is that the pension company gets your house when you peg it.

Andy B

Joined: 12 Jan 2005
Posts: 3920
Location: Brum

Posted: Thu Mar 03, 05 10:11 am Post subject:
This is a really serious topic, and one that is going to cause all of us some serious problems in later life. That's if the planet hasn't self destructed first !!!!!!!!

Treacodactyl
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Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Thu Mar 03, 05 12:24 pm Post subject:

Behemoth wrote:

I don't mind cutting back now but I don't want to live in poverty when I retire.

We thought like that but when I think what I would like to do when I retire it wouldn't be much different than now. I.e. have a smallholding with various small income streams. It would make sense if I could use my pension fund to do this, to plant woodland for example. Hopefully by the time I'm an OAP the trees would provide some income.

Behemoth

Joined: 01 Dec 2004
Posts: 19023
Location: Leeds

Posted: Thu Mar 03, 05 1:09 pm Post subject:
It's my longevity that worries me - I hope to be an active OAP but you only need a dodgy hip, dicky ticker, or arthritis and basic stuff like growing your own veg etc become difficult or impossible. Keeping a small holding or self sufficentish lifestyle going is a physical job.

tahir

Joined: 28 Oct 2004
Posts: 45434
Location: Essex

Posted: Thu Mar 03, 05 1:12 pm Post subject:
In those circumstances a younger wife can come in handy... (runs away and hides)

Behemoth

Joined: 01 Dec 2004
Posts: 19023
Location: Leeds

Posted: Thu Mar 03, 05 1:14 pm Post subject:
That would still make it a physical job

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Thu Mar 03, 05 2:11 pm Post subject:

Behemoth wrote:

It's my longevity that worries me - I hope to be an active OAP but you only need a dodgy hip, dicky ticker, or arthritis and basic stuff like growing your own veg etc become difficult or impossible. Keeping a small holding or self sufficentish lifestyle going is a physical job.

That's certainly something to think about. I would like to keep a small pension for bills (council tax etc) and to pay some form of health insurance to cover such problems.

If I'd spent many years building up a smallholding in a good place the last thing I'd want to do is move when I'm old.

It's one of the reasons to have children, they can look after you.

You might be able to buy them on e-bay soon.

Richy Rich

Joined: 24 Mar 2005
Posts: 31
Location: Coventry - Warwickshire....

Posted: Mon Apr 18, 05 1:13 pm Post subject:

jema - you and me both....

I've been paying into pensions and the only GOOD thing I can see from them is that they keep paying until death...

As my employment has been somewhat..... 'different' - it has been close to impossible for me to be able to pay into a pension in a steady rate...

My approach has been to sod the pensions and pay off my mortgage at a faster than normal rate... in fact a VERY fast rate.

However it is then my intention to invest in rental property and use that for pensionable purposes...

I think if you take the risk yourself you have better control on the subsequent consequences. It IS a lot more hard work however but whilst I am young I am happy to shoulder that....

Giving your money to someone else and hoping that they will do what is right for YOU - is a bit dreamy....

thos

Joined: 08 Mar 2005
Posts: 1139
Location: Jauche, Duchy of Brabant (Bourgogne-ci) and Charolles, Duchy of Burgundy (Bourgogne-ça)

Posted: Mon Apr 18, 05 1:45 pm Post subject:

Being an old father with young children I expect I'll be working until 65 or even later if they change the rules. So retirement plans are to sell up and buy a bungalow with just a patio. It must be in a village on a main axis so that the buses will always run. If property prices normalise, it may even be back in Britain.

It is always possible that they may offer me a package to get rid of me but I don't think they would be particularly generous. Early retirement is simply not an option when it is a matter of not only the difference between salary and pension, but also that the pension payable goes up 2% pa per year worked. I can see I would be tempted to work 'just another year' until it's too late.

Pottering in the garden is fun to do as a hobby, but I would hate to have to do it full time. Smallholding to me is a dream that must not become a reality lest it become a nightmare.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Mon Apr 18, 05 8:25 pm Post subject:

Richy Rich wrote:

Giving your money to someone else and hoping that they will do what is right for YOU - is a bit dreamy....

If you have your own personal pension then you can choose where the money goes. Cash, bonds, stocks, property etc via funds.

From next April, I believe, you can also invest in residential propery in your pension via a SIPP. So, you get to buy what you know and get tax relief. There are several other factors to think about but it does make pensions a little more interesting.

The thing about buying residential property to fund your retirement is that if you already own a house with not many other assets you end up putting too many eggs in one basket.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Mon Apr 18, 05 8:30 pm Post subject:

thos wrote:

Pottering in the garden is fun to do as a hobby, but I would hate to have to do it full time. Smallholding to me is a dream that must not become a reality lest it become a nightmare.

If we manage to get a smallholding I would like to run it with retirement in mind. For example plant trees, renovate old woodland, establish an orchard etc. So, while I'm able to I can put in the work and, hopefully, receive a livable income when I retire. Whether it is possible I'm not sure, but I could write a book about it and hopefully that will sell well.

Pilsbury

Joined: 13 Dec 2004
Posts: 5645
Location: East london/Essex

Posted: Mon Apr 18, 05 9:14 pm Post subject:

I am with Richy on this one. Instead of paying £100+ a month into a pension Iput it on my morgage with the hope of cutting the term from 25 years to about 15 there by saving £60,000+ on the intrest payments, If i can do that I will be 45 and own the house out right and have all the morgage money to invest, save or put under the bed till i retire, after that if I need extra money it will be a case of if the kids want the house they can support me , if not use an equity plan to live on.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Mon Apr 18, 05 9:19 pm Post subject:
Paying off the mortgage is a very good way of saving, you basically get a high rate of tax free interest.

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