I would guess less than a tenth of that…
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Ah, you prove that I’m no risk taker!
Having worked in pensions, the only DB schemes open to new entrants are local and national government .
DC schemes are usually massively underfunded , without wishing to get political we are heading for a major pensions headache
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This is from an IFS report, showing the proportion working between 50 and 70. Of course, not everyone working is retired, with many on state benefits including disability.
We also got volunteer jobs with the RSPB working in a visitor centre, only once a fortnight but love it , interacting with the visitors. ( Or we will when we get back after a year out)
But otherwise it’s great being able to go birdwatching,walking cycling etc.
I
Plus the old saying if you don’t feel like doing a job today, sod it there’s another day!!!
Unlike at work😀
I think that is the difference between part time working and full retirement. Not being responsible for being somewhere at a given time, or the feeling of owning your own time is a great release.
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I’m sure you’re right. Although the police service still offers final salary pensions, they cost more and deliver less than the one which I’m fortunate enough to be in receipt of. When I joined, 40 years ago, the pension was, without doubt, a considerable incentive, compensating for a fairly hefty salary cut (I was on the lower rungs of Ford management at the time). After factoring in job variety, satisfaction and security, it was a no-brainer for me. Fortunately my timing proved to be spot on! We can plan all we like, but we still need a considerable slice of luck, planets aligning etc. for all to work out.
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Clearly those apply to you, but they are far from being universal so not indicating less ‘need’ for money in retirement: The less need to buy stuff because you have it all is unrelated to retirement, just passage of time plus resources along the way. Work clothes - I guess variable but fir me Fir half my career I wore nothing different to work, and the other half wearing suit shirt & tie clothing lasted several years so the cost trivial. Commuting cost significant only for people who live a long distance from work. Holidays out of peak times not a problem if you don’t have kids at school or work in a school or factory with set closure. And some people always try to get the best deals on things like insurance, utilities etc.
I will retire with a net income about half my present (quite a bit under half gross). My wife will be stopping work at the same time as me but as she is younger she is not yet eligible for her pension - and when she gets it in a few years it will be less than half (net). I’ve calculated we will have enough to be able to continue to do what we would like to do in retirement - but it is not because we will have less ‘need’ to spend money, simply that we have had more money than we’ve needed in recent years, and so been able to do certain other things (including save a pot of money so we have a ‘cushion’ that’ll last some years).
Thanks for all the advice, and sorry I’ve not responded to each comment, but there are just too many. So, here’s my summing up!
If you love your work and can do it without too much stress whilst still finding time to do the things you enjoy, then ignore this thread.
On finances, you probably need less than you think, and by taking advantage of off-peak and other offers you can make your money go a lot further. Stating the obvious in your working life you are saving increasing amounts for retirement so you can discount that. And with careful tax planning you can get access to much of your savings tax free giving extra spending power.
Have some plans and hobbies lined up, and make sure you try them first.
Don’t feel obliged to fill what was the working day with other “work”.
Second careers, voluntary work are still options.
Pick a time of year where you can start your retirement and be able to get out and do the things you planned.
Marry your best friend.
I’m sure I’ve missed some.
I think Covid will change a lot of people’s views on what is important too, with lots of people wanting to do the things they haven’t been able to do for the last 12 months.
I am fortunate in that I can probably finish my present assignment and take a long time off, and probably get back into it should I wish. That’s looking like the ideal option for me.
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The chart of people working of course does not mean the rest are all retired (20-odd% at 55) - that proportion will include many other people who exist without paid employment, including those with alternative sources of income, housewives and househusbands, those unwillingly out of work only temporarily of hoping it is only temporarily, and those in the unfortunate permanent life of unemployment for variety of reasons. I would be very surprised if at 55 as many as 2% (1/10th of the chart not employed) have been fortunate enough to have willingly made the decision to take early retirement
Re. decent final salary schemes, my dad took early retirement at 56 on a pretty comfortable index-linked pension from his employer’s scheme.
That was in 1983. He’s now 94 and has been drawing the pension for 8 years longer than he actually worked for that company.
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Well done for him! The police service has long celebrated members of the 30/30 club (30 yrs service to qualify for max 2/3 pension, then surviving for 30 years collection of same).
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That’s great if you’re on the receiving end, but I feel deeply uneasy about the plight of the people who are paying for that.
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You’re absolutely right. I’ve been trying to find a chart of how many people are actually retired on a pension from age 50 but without success. It was prompted by Timmo’s 20%, which I’m sure is a gross overestimate. At least now I’m 60 people are less surprised that I’m retired and there are far fewer occasions on which I need to explain why.
Well I paid a lot of tax, and made a lot of additional pension arrangements as well as my NHS scheme. My pension pot is my earned money put aside. That is how I view it anyway. I have not stopped contributing to society, and will continue to pay tax too.
Bruce
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For many people on generous pensions the point is that they have not paid in anything like as much as they will draw out. Somebody else is paying for that.
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I’d suggest you are conflating two different issues here. Public sector pension costs, funded through taxation, are far less of an issue to me than payments to Academy bosses raking in £450,000 a year or millions wasted on contracts awarded to mates. People who have not worked in the public sector are often green eyed over the pensions, yet they choose to ignore the incredible pressures that the employees face - police discovering mutilated bodies and all sorts of appalling cases, social workers dealing with nine month old babies being raped - and the fact that pay is often lower when actually employed.
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Yes, but there are many who will get out far less than they paid in. That’s the point of a pension scheme - economy of scale - otherwise everyone may as well save money under the mattress.
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Well it is a gamble. Many die before they reach that situation surely.
HH just said that above, simultaneous post.
Bruce
Well in his case it’s a major international bank, so we shouldn’t feel too concerned. But, yes, it does show why these schemes now seem completely unsustainable.
I’m now the age he was when he first retired and let’s just say I’ll be working a while longer yet. Mind you I had a couple of kids in my early forties so I’m the author of my own misfortune to some extent!
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