Retirement age - Plan B

[mr-dead]

Just spotted this story online :

Russia Raises Retirement Age Above Life Expectancy For 40% Of Men

https://www.zerohedge.com/news/2018-06-19/russia-raises-retirement-age-above-life-expectancy-40-men

 

I have no doubt this is coming our way sooner or later and as a 42 yr old I expect the pension/retirement landscape to look significantly different by the time I come to retirement.

Just goes to show you need to take responsibility for your own finances and to not rely on the state to look after you in old age.

 

Gold/Silver = A secure nest neg and peace of mind.

 

[Martlet]

The story is more a reflection on the poor life expectancy in Russia than rising retirement age, which is already planned to rise in UK and most the West. 

iirc (probably inaccurately) when the state pension was introduced only 1/3rd of population lived until 70, now its 2/3rds live past 70. Life expectancy has risen from 66 to 77 for men and add 5 for women.  The state, or rather us tax payers, simply cant afford the old system, so dont expect anything other than the very basic state provision in future decades.

[MickB]

Russia are raising it from 60 to 65 for men but ours is expected to be 67 in a few years time. Russians have it easy compared to us in the UK

[vand]

Retirement is a double edged sword; there are studies that show that continuing in work in late life is generally good for your wellbeing. 

The confusion comes because in our minds we associate "retirement" with having finally reached a state of "financially independence" and as we all know that is usually far from the case. One of the smartest guys I know was a dentist; made enough from his work to "retire" in his early 50s. Now he spends his "retirement" travelling around the Australian outback and giving treatment to those for whom do not have easy access to good dentists. Good bloke.

[Roy]

28 minutes ago, MrGeorge said:

I reckon the earlier you retire the longer and better quality life you will have.

Yes and no

Not having to work is the answer.

*crossed with Vand. Same thoughts

[BackyardBullion]

I view retirement as being able to do exactly what you want, enjoying it and being able to continue doing it.

To that end I am essentially retired right now - I am self employed as well as running BYB and I love it. Neither aspects are work to me and I can easily see myself continuing with both until I am in a wooden box. 

If you work does not feel like work are you technically working? 

[SilverTanner]

Similar thoughts to others - retirement in my field is just being able to pick and choose which bits you are going to do, no rubbish/unnessary admin etc Usually people I work with only actually retire through ill heath or carried out in a box - I have many colleagues in their 70's and 80's. I think it is going to come as a shock as most people my age or a bit older are now planning on leaving as soon as they can!

Over the years I have come to agree that 'retiring' earlier is much better whilst you are able to still do things.

My current Plan A is:-

67/68 - state pension (if still there) and work pension

65 - work pension (although it is supposed to be state pension age and not before but the paperwork was written when the state pension age was 65 and it still is at the moment)

62 - SIPP to cover 62 until 65/67.

Plan B:

60 - depending on returns in the SIPP and other investments and how cheaply we can live!! (and work pension from 65)

Plan C:

TODAY - big lottery win

 

[Thelonerangershorse]

My mother retired 2 weeks ago aged 77, she's already bored and wants to go back.

[MickD]

Looking at AVCs to cover 60 to 67, even if I only get the tax back and no growth, I'll be happy but no guarantees.

[Xander]

We should plan our own retirement.  Too many people in the UK treat the Government as some kind of big breast they all have to feed on.

[Xander]

10 hours ago, mr-dead said:

Just spotted this story online :

That woman with the apples is only 40.?

[Goldhooked]

I don’t think I’ll ever fully retire.  I’ve built up my current business over the last 10 years and although I’m quite bored of it I expect to keep it running for a while, perhaps get one of the kids involved if they’re interested in a few years.  If this one is sold on or ever failed I’d just start something else.

On the rare occasion I get any time off I get bored easily and sit around doing nothing feeling like I’m wasting time.

Ive got a decent enough pension I can access at 55 (although goalposts will probably move to 57 by the time I get there) but I’ll doubt I’ll need to so early unless anything unexpected happens.

[vand]

I wanna be like Warren Buffett or Bernie Ecclestone.. those guys don't know the meaning of the word retirement and their minds are still razor sharp for it.

[Silvergun]

Well i reach retiring age In November and have no intentions of retiring and have worked since i was fifteen years old , thirty two of  those years was as a self employed electrician at the moment i enjoy my work am fit and healthy , still go to the gym three times a week and work has never stopped me doing what i wanted when i wanted.?

 

[daz]

Retirement age should be based on the work you actually do , someone who who has had a hard physical job for 40 odd years is obviously not going to be able to do that til you are banging 70 , whereas if you are sat at a desk all day then of course you are going to be able to work to a older age..

I'm 47 and I know for a fact I'll be lucky if I'm healthy enough to do it for another 10 years as it's very physical . My current state pension age is 67 there is not a chance in hell I'll be able to do it at that age.

 

[KDave]

I'm not confident about the state pension being available when the time comes, even work pension is a risk, it's decades away. When I look at personal retirement savings based on financial assets, stocks and bonds, and who owns the majority of those today, it just looks like a huge risk due to the demographic picture. It's sometimes tempting to plan retirement around going full prepper in all honesty. Get a load of real stuff I'll need in retirement, own some land, put the rest in metals. 

[vand]

20 hours ago, KDave said:

I'm not confident about the state pension being available when the time comes, even work pension is a risk, it's decades away. When I look at personal retirement savings based on financial assets, stocks and bonds, and who owns the majority of those today, it just looks like a huge risk due to the demographic picture. It's sometimes tempting to plan retirement around going full prepper in all honesty. Get a load of real stuff I'll need in retirement, own some land, put the rest in metals. 

Don't neglect pensions, but don't wholly rely on them either.

My plan is to have amassed at least 5 times my salary into a pension, paid off 2 homes (one can be an ongoing income stream, or passed down to children), and amassed a lot of value stocks & precious metals by the time I'm 65.. and then to keep working for a good few years beyond that. I look after myself and take health and fitness pretty seriously and honestly think that I have many many years of good physical and mental health still ahead of me.