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4 hours ago, forgottenmemorie said:

For those that are currently happily married.

Did you factor in a divorce into the scenario where you wife takes half your assets?

So long as she takes the paper half I will be happy ;)

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10 hours ago, vand said:

My wife earns far more than me and has a far bigger pension!

 

7 hours ago, KDave said:

So long as she takes the paper half I will be happy ;)

Looks like you've got it all figured out.. :)

 

I'd just hate to see a women just get it all, after you've been hustling for years in precious metals..

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On ‎10‎/‎04‎/‎2017 at 20:31, Pete said:

To live "comfortably" you will need a lot more than this - maybe double - assuming you don't have a mortgage ?

There's a debate about this on another forum I visit - how much someone needs to live comfortably. I suppose it depends on your definition of comfortable. If it's eating out at restaurants regularly and playing golf, then maybe you would need £34,000 p/a. If it's just living within your means, eating healthily, running a car etc then I don't think someone would need anywhere near that, assuming as you say there are no housing costs to cover.

The topic on the other forum was started with a claim that you could live comfortably off £600/month after bills, essentially £150 per week spending money. There was quite a spectrum of opinions, with some saying they do that now while others said that would barely cover their lunches.

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I think you can live comfortly on about £1k/month after bills

My plan is to retier in 15Years or somethink like that

I plan to own my own house fully paid for and have about 3-400k £ put aside

That should let me live a quiet life in southern Europe when I get old ( or older I should say) :ph34r:

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You can't disassociate the macro from the micro, and if, as a society, we can't already live within our means then it's a bogus question about a wage required to "live comfortably" no matter what your level of income is the answer will always be "more than I currently earn".

 

Edited by vand

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Living below means is key but not always easy to do. The other key and the only way I can retire or rather, for the plan I have to work is if I have no rent to pay. That is key for the average bloke to retire I think, owning some shelter. The alternative is building up a fund to generate yield enough to cover that expense but in reality the risk of losing that fund to events outside of one's control is always there. There are pros and cons to both options. 

One way of looking at saving from wages is the more you can save, the more you are achieving that key of living below your means. If you save 20% of take home pay, then after 20 years you will have saved 4 years worth of income, which is really worth 5 years of retirement. 4 years worth of income and 1 year because you are used to living on 80%. This increases exponentially the more you can save and we are talking principle alone, no gains or dividends.

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On 06/07/2017 at 10:54, KDave said:

One way of looking at saving from wages is the more you can save, the more you are achieving that key of living below your means. If you save 20% of take home pay, then after 20 years you will have saved 4 years worth of income, which is really worth 5 years of retirement. 4 years worth of income and 1 year because you are used to living on 80%. This increases exponentially the more you can save and we are talking principle alone, no gains or dividends.

You definitely don't want to be saving cash.
Contribute up to 20% of gross pay into a SIPP and invest in dividend paying equities with dividends automatically reinvested.
With the tax relief from the government you will not be paying 20% of take home pay.
In the SIPP you should readily see 5% compound growth.

The data show here assumes £500 paid per month into a SIPP.
Each year £6000 is paid into the SIPP which grows at 5% ( choosing the right funds you could do much better )
At the end of 20 years your fund is over £200,000

596534d99bcb6_ScreenShot2017-07-11at21_24_48.png.0377cd421e5afaed68d3b09c5f68fc69.png

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Good post I completely agree, cash is a poor way to save for retirement. Personally I only previously held cash in HTB ISA's (I had a couple of them, one in the wifes name) which have since provided a good 25% return on contributions and 4% each on the balance per year calculated monthly. Not a bad return on cash but these are the exception. I also hold some physical cash, losing value each year, I see the loss as the price of insurance, and keep a bank balance which has a tiny yield, also losing value each year but is there for 'emergencies'. Not part of the retirement plan :) 

A SIPP is well worth it if you don't think you will need the flexibility ISA's offer, purely because of the tax break. I have chosen ISA's until now to invest and it was the right choice as I did need to cash out some of it, but longer term and for the majority of retirement money, a SIPP is the better vehicle of choice purely for the tax relief. If you want to keep the flexibility and get the tax relief too, investing lump sums from an ISA into a SIPP appears to be a good idea If you can keep fees low, though I need to look into this. I don't yet have a SIPP as last time I looked I preferred what ISA's had to offer, but the 25% lump sum back tax free on the way out, its difficult to say no. I will have a look at some providers and see if they will let me have the best of both worlds. Fees will be the key I think. 

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21 minutes ago, breaktwister said:

Watch the USA for the huge public pension ponzi that is about to collapse.  When this happens you will see gubmints around the world scale back on their pension promises.  You cannot rely on ever receiving a state pension

That is the fundamental flaw in most people's retirement plans.  It's the height of folly to assume that the government will provide a state pension, as in its current form, in the future.  They can't afford pensions now, let alone in 20 years time when the baby boomers are all still alive and drawing final salary pensions from the state coffers. 

State pensions won't exist past 2040.

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On 2/28/2016 at 16:11, vand said:

Such an important topic, this, and one that most people have absolutely no plan for. Read a fairly recent article that said the average man has something like £54k pension pot, compared to women who have something like £9k. I don't want to start a battle of the sexes, but that seems breathtakingly negligent for one of those groups.

I'm 39 and have been contribution to a company/personal pension for one form or another for 16 years, and during that time have managed to save up the equivilent of about x1 year's salary. I'm aiming for x4 salary by the time I retire, but that won't be for a long, long time.  At the end, I do believe that despite the p**s poor low annuities, pensions are worthwhile.. between the tax relief and my employer contributions, I figure that for every £100 I give up in my net pay, I get £250 into my pension pot. That's a 150% risk free return right from day one. Yet people will forego pension contributions, take the income tax hit, and then go "invest" what's left over it on taxable assets or, worse, spend it on day-to-day tat.

 

Bumping the pension thread.

I got my latest pension statement through and the pot is now up to 60k, of which 35k is cash, 10k in JPM commodities fund, and 15k in various other equity funds. The big cash position will be put to use when we are in the midst of the next bear market. Really happy with this.

 

Between mine & employer contributions I'm putting in about 16% of my salary each year.   None us us know for sure what the future holds for pension funds, but I know I'd always rather have a bigger pot than not.. 

 

 

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