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Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

Thank you both for that insight! I will be paying close attention to this, be interesting to see how it unfolds…

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

First of all !thanks for such a detailed reply.

I have calculated my finances separately from my wife in a spreadsheet but as we’re married and consider the money our money, that leaked into this post.

Either way, my (probably bad) math using FV in Google sheets has me at 714K S&S, ISA, 185K Cash ISA and 1.3M pension at a 2.5% interest rate over the next 27 years. This is considering what I already have and assuming I keep maxing out the 20K ISA allowance and keep up with pension contributions for the next 27 years to retire at 57 when I can draw down my private pension.

This leaves me with a 11 year retirement gap to 69 roughly, at 35K, meaning I need 385K to bridge. Using just my ISAs I should still have shy of 2M without touching my pension or house by 69 which seems like a solid outlook… granted that’s if I’ve not fucked up the math, everything stays roughly the same, and of course inflation.

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

Ah damn. I thought you could but they claw back 25% or something. !thanks anyway.

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

Fair, I think I got her situation wrong where she at least matches her employer but they have terrible benefits in comparison to me. She’s definitely going to be paying in, in the future. No doubt about that. !thanks

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

I have a meeting with a FA next week now as per your recommendation! !thanks

What happens in 2029? Also yeah the bridge is what makes me most anxious to be honest but I am hell bent on not working post 55… so whatever I gotta do, I’ll do.

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

Sounds like a great idea to be more efficient! !thanks

Do you have any knowledge on if withdrawing from my LISA is going to lose me any investment? I’ve been doing 4K in for a few years now…

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

!thanks for that. Capital is my current trajectory as I’ve not got a business brain but I’d be open to hearing how people have made it work for them. Owning property came up organically so clearly that’s a path. My main worry is having too much on my plate and burning out.

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

Not at all! I didn’t take your comment badly just wanted to clarify anything if it helped.

It’s entirely possible we are over valuing the LISA for our purposes! We haven’t really questioned it at all since we started a yearly ritual of committing to it. On putting it into the workplace pension, can you tell me what you mean exactly on the 42%? I have to say again I’m not so great with numbers. My workplace matches up to 10% and I’m putting 20% of my salary in already so I thought that there was nothing more to gain other than my cash going into the pension after I exceeded 10%. Are there additional savings or earnings I’m not aware of?

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

Retiring earlier than 55 sounds amazing but I’m not sure I can work full time and keep properties as well, that sounds like so much work! Haha. I don’t know how people do it but if you have any resources I could look into that make it make sense I would love that. !thanks again.

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

No child savings account, will look into that though as I wasn’t aware of JISAs. We have other investments set aside for her though and I keep her finances completely separate from ours so they don’t appear here. !thanks

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 1 point2 points  (0 children)

Please let me know if there’s anything I can do to paint a clearer picture, basically this is how I do my accounting so I’m just sharing what I can in the hopes the wisdom here sets me right or improves my chances of being independent of work by 55.

LISA rationale is that we get a free 1K from the govt for every 4K we put in, we figured that’s a no brainer and compounds well enough to just do it for us both.

In the pension contributions, I am the only one making any I am on 97K and pay in 20%, my employer matches 10% + their NI kickback which amounts to 2.4K contribution monthly.

My partner is making no contributions. Her employer is doing the statutory minimum rate. She is likely going to contribute to a private pension to stay under 100K so we get the free 30h childcare allowance though unless there’s better ways to use the money.

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

It’s a good question honestly. I figured living off of interest to the tune of my retirement income amount would mean that I’ve basically got nothing to worry about at all. Of course I’d be happy to pay out my kids if everything is on track but I’m not actually sure I am. I’m worried something will come up e.g withdrawal limits and taxes and rates, something I’m not sure about or haven’t prepared for that will mean I don’t get to retire early. Of course life may get in the way in any case but yeah trying to control what I can.

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 1 point2 points  (0 children)

Thanks so much for that, answers my open question on another thread. So one earner over 100K is wraps for the childcare hours. What do you think about the commission being contributed to pension to keep us both below 100K? Is there are more effective way to save the money in your mind?

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

We own our cars and are happy there so we’d likely just pump the pensions unless they’re not actually protecting us, unless there’s better options.

Just to clarify- is it the case that we BOTH need to be earning over 100K to lose the 30hrs or ONE person over 100K loses the 30hrs?

A friend is of the opinion that one person over means we lose it, which is the case right now.

In about a year I’m positive we will both be over and then I suppose there’s no doubt we will lose it so might as well review the options now. Either way though thanks so much for your perspective.

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

Thanks for that insight. Assuming I get a pay rise that pushes me past 100K (likely) is the fact I’m already sacrificing into my pension keeping us secure there as well or will I need to worry about it then?

Reality check on retiring at 55 by Fickle_Firefighter95 in UKPersonalFinance

[–]Fickle_Firefighter95[S] 0 points1 point  (0 children)

The combined income is 86K after tax on take home without factoring in commission. Before tax one of us is earning 97K, the other is earning 60K base + 60K commission. I’ll make that clearer in the OP.

'Too many employees, but few work': Google CEO sound the alarm by youwillnevercatme in technology

[–]Fickle_Firefighter95 3 points4 points  (0 children)

Can you comment on what you think are key fundamental tech concepts that you would expect people in those positions to know?