Ugh, my pension pot is so small compared to those numbers, I am really really playing catchup due to lack of focus. Depressing to contemplate!
All Argos shops in Ireland to close by the summer, that is not good at all, was one of the few B&M retail options where semi-decent prices could be had. Amazon will just profit more in my case.
How is your pension apportioned after you retire in the private world? Is it possible to run out of $ before you croak? If a PS hero like myself was to compare with those numbers, would it be just a case of multiplying the amount I get a year by the number of years from retirement to EV death?
How is your pension apportioned after you retire in the private world? Is it possible to run out of $ before you croak? If a PS hero like myself was to compare with those numbers, would it be just a case of multiplying the amount I get a year by the number of years from retirement to EV death?
It depends (paging V):
Do you have a Defined Benefit pension? (very few private sector workers do now, but that's basically what you PS lot get. It's like winning the lottery, then finding next week's numbers.)
Assuming the answer to (1) is no and you have a Defined Contribution pension like most of us (i.e. self-funded, with hopefully the employer contributing some), then are you planning to convert to an Annuity or an ARF when you retire? If ARF, then in theory you can run out of $$$ but the upside is you can pass on any balance to your heirs, and also avail of market upside after retirement.
I think the 4% rule is a decent rule of thumb. e.g. if you live off a 4% withdrawal rate p.a., then you will never run out. There will be even be some years where the increase in value of your pot is greater than what you withdraw so have 'made money'.
So, if you have a pot of 1.4m on retirement (say):
Take your 25% lump sum. In this case 350k - but you'll only get 320k into your pocket as you pay 20% tax on the amount >200k. Give to GAB to buy a horse.
Stick the rest in an ARF. 1.05m
Take 4% p.a. out of that so approximately 40k income p.a. (remembering you will also get the state pension after age 66). You can increase this withdrawal ratio over time.
Pay your taxes annually (should be smallish on an income of 40k)
Should be good...
imo, 40k goes a hell of a long way once your 'major life expenses' (house, kids education) have been pre ticked-off and paid
"We are not Europeans. Those people on the continent are freaks."
For now . Not many young uns around to pay . In my view there should be some menial 8 days a month work to be done that can be made available for retiring folk who might need/want to be kept busy. PS of course . Need some creative thinking . A kind of reverse internship . Voluntarily of course .
For now . Not many young uns around to pay . In my view there should be some menial 8 days a month work to be done that can be made available for retiring folk who might need/want to be kept busy. PS of course . Need some creative thinking . A kind of reverse internship . Voluntarily of course .
imo a (very brave, in the Irish context) future government would be more like to disapply universality to Child Benefit rather than the OAP.
Pensioners loooooooove voting.
"We are not Europeans. Those people on the continent are freaks."
Messing with the pension age seems to be sacrosanct at the moment, but there may (even probably) come a time when it can't be ignored any more with the increase in pensioners and reduction in tax payers. Probably won't be a massive issue for the next 10-15 years in Ireland but it'll definitely start to bite then.
I won't (barring favourable stocks winds over a long period) have anything like 1m in a pension pot, but would hope to be in the 6-800k range, with half of an apartment to sell too at that point for a nice bump, so should be OK hopefully. Have to worry about living that long first though, and along the way finding a way to keep working without wanting to kill others or myself. I certainly won't work (at my current thing anyway) longer than I have to, so if it was viable (spoiler: it won't be) to retire at 60 or earlier I certainly would.
Messing with the pension age seems to be sacrosanct at the moment, but there may (even probably) come a time when it can't be ignored any more with the increase in pensioners and reduction in tax payers. Probably won't be a massive issue for the next 10-15 years in Ireland but it'll definitely start to bite then.
But that's exactly why we should have auto-enrolment. Reduce the dependency on the OAP.
I won't (barring favourable stocks winds over a long period) have anything like 1m in a pension pot, but would hope to be in the 6-800k range, with half of an apartment to sell too at that point for a nice bump, so should be OK hopefully. Have to worry about living that long first though, and along the way finding a way to keep working without wanting to kill others or myself. I certainly won't work (at my current thing anyway) longer than I have to, so if it was viable (spoiler: it won't be) to retire at 60 or earlier I certainly would.
When you're in the daily grind, nothing sounds more enticing than early retirement. But you really have to have a retirement plan. Like 'how am I going to fill my days, what activities am I going to do and with whom?'
Lots of (mainly men sadly) come out of high-flying careers and retire early, thinking everything will be wonderful. And are then dead not long afterwards as they literally can't handle the lack of focus to their day. Hence why Solks is likely onto something with the volunteering idea.
Also I imagine a lot of people get to that point and realise, now they are spending much more time with them, that they really dislike their spouse.
"We are not Europeans. Those people on the continent are freaks."
Thanks for taking the time to write that. Interesting to hear you talk about the 40k mark as I had kind of settled on similar. Probably would leave me in a spot where I can decide at 60 whether or not to keep going (to work, not living, thankfully!). As long as I don't do anything stupid like buying a plane...
When you're in the daily grind, nothing sounds more enticing than early retirement. But you really have to have a retirement plan. Like 'how am I going to fill my days, what activities am I going to do and with whom?'
Lots of (mainly men sadly) come out of high-flying careers and retire early, thinking everything will be wonderful. And are then dead not long afterwards as they literally can't handle the lack of focus to their day. Hence why Solks is likely onto something with the volunteering idea.
Also I imagine a lot of people get to that point and realise, now they are spending much more time with them, that they really dislike their spouse.
It's a problem I'd like to have. By any definition I wouldn't class myself as high flying for sure, and I wouldn't struggle to find something to do that I prefer to working.
Always love this story when talk of retirement comes up -
An American investment banker was taking a much-needed vacation in a small coastal Mexican village when a small boat with just one fisherman docked. The boat had several large, fresh fish in it.
The investment banker was impressed by the quality of the fish and asked the Mexican how long it took to catch them. The Mexican replied, “Only a little while.” The banker then asked why he didn’t stay out longer and catch more fish?
The Mexican fisherman replied he had enough to support his family’s immediate needs.
The American then asked, “But what do you do with the rest of your time?”
The Mexican fisherman replied, “I sleep late, fish a little, play with my children, take siesta with my wife, stroll into the village each evening where I sip wine and play guitar with my amigos: I have a full and busy life, señor.”
The investment banker scoffed, “I am an Ivy League MBA, and I could help you. You could spend more time fishing and with the proceeds buy a bigger boat, and with the proceeds from the bigger boat, you could buy several boats until eventually, you would have a whole fleet of fishing boats. Instead of selling your catch to the middleman you could sell directly to the processor, eventually opening your own cannery. You could control the product, processing, and distribution.”
Then he added, “Of course, you would need to leave this small coastal fishing village and move to Mexico City where you would run your growing enterprise.”
The Mexican fisherman asked, “But señor, how long will this all take?”
To which the American replied, “15–20 years.”
“But what then?” asked the Mexican.
The American laughed and said, “That’s the best part. When the time is right you would announce an IPO and sell your company stock to the public and become very rich. You could make millions.”
“Millions, señor? Then what?”
To which the investment banker replied, “Then you would retire. You could move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take a siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos.”
You can see why people take up (shudders) golf, all the same. Although that's pretty much the same as being dead, or maybe worse.
Hike, write , learn and play music , work out to replace aging muscle loss , poker there are many things to occupy . Golf is great due to the surrounds . A shite golfer like myself wouldnt ever play if it werent for the stunning courses we have . Love walking up a fairway - pity my ball is rarely there .
Getting into poetry lately , some stunning audio olde odes to lull me asleep .
I think most if not all of us should be working off the basis that there will be 0 state support by the time we reach an age where we could theoretically avail of it.
after that 4% or 3.5% for the cautious amongst us should see the vast vast bulk of people fine for the duration of however long their retirement is. A big piece to consider is how you (and your partner if applicable) feel about inheritance.
lots of people still at the grindstone because they want to leave a chunk of something behind, which is fine of course. The other way to look at it though could shave 10/15 years off your working life depending on your openness to potential destinations and your final cheque bouncing
I think the biggest stress is the lack of knowledge. Not knowing if you need to fund 10 years or 40 years means taking a more conservative approach than you might like.
I think most if not all of us should be working off the basis that there will be 0 state support by the time we reach an age where we could theoretically avail of it.
after that 4% or 3.5% for the cautious amongst us should see the vast vast bulk of people fine for the duration of however long their retirement is. A big piece to consider is how you (and your partner if applicable) feel about inheritance.
lots of people still at the grindstone because they want to leave a chunk of something behind, which is fine of course. The other way to look at it though could shave 10/15 years off your working life depending on your openness to potential destinations and your final cheque bouncing
I think the biggest stress is the lack of knowledge. Not knowing if you need to fund 10 years or 40 years means taking a more conservative approach than you might like.
But if you have the flexibility (which may increasingly become 'a thing') to say retirement isn't a terminal state but that you can choose to work a bit, then surely those perceived risks are mitigated?
"We are not Europeans. Those people on the continent are freaks."
But if you have the flexibility (which may increasingly become 'a thing') to say retirement isn't a terminal state but that you can choose to work a bit, then surely those perceived risks are mitigated?
exactly that. The terminology is all wrong. Instead of retirement we should be talking about changing to something you want to do and that you occasionally get paid for.
Finding what that something is and being able to monetise it while only committing a certain amount of hours to it is… complicated.
In practice i’ve found that you get very used to your time being your own but as I alluded to before, it’s very easy to become very lazy mentally.
Not many obese pensioners v obese middle aged folk. Something us aging fatties need to consider .
No baby pigeons either.
This may or may not be an original thought of my own.
All efforts were made to make this thought original but with the abundance of thoughts in the world the originality of this thought cannot be guaranteed.
The author is not liable for any issue arising from the platitudinous nature of this post.
exactly that. The terminology is all wrong. Instead of retirement we should be talking about changing to something you want to do and that you occasionally get paid for.
Finding what that something is and being able to monetise it while only committing a certain amount of hours to it is… complicated.
In practice i’ve found that you get very used to your time being your own but as I alluded to before, it’s very easy to become very lazy mentally.
This is how I look at it.
When I think of retirement I think of a house by the ocean, surf/swim in the morning, golf in the afternoon, potentially BJJ at night (picked this up recently and can feel myself getting utterly addicted). I think for cash I'd do the Club/Teaching Pro route and get my PGA card and teach golf to supplement income.
All a pipe dream at the moment. But ya need something to aim for, right?
This may or may not be an original thought of my own.
All efforts were made to make this thought original but with the abundance of thoughts in the world the originality of this thought cannot be guaranteed.
The author is not liable for any issue arising from the platitudinous nature of this post.
Whats the worst thing about your semi work/retirement situation? I suspect its that other Spanish retirees are better ballers than you. but seriously.
This may or may not be an original thought of my own.
All efforts were made to make this thought original but with the abundance of thoughts in the world the originality of this thought cannot be guaranteed.
The author is not liable for any issue arising from the platitudinous nature of this post.
I am a planner by nature but the true answer is 'I don't know but my goal is to be in a position to have a genuine choice in the matter'.
If I hit my mid-50s with:
house fully paid off mortgage-free and all major works complete
a pension pot that would afford me to have a decent lifestyle (for me, that would be somewhere in the range of €1-1.4m. People go nuts overestimating how much money they need in retirement - from the age of about 72 on, you'll be much less active. I also on principle don't want to go from being a high taxpayer in my working life to being one in my retirement!)
kids college years paid for (after that, they're on their own I would hope)
then that would be a great position to be in. I would be choosing to work, to retire, or even to do something in between
Obviously there's plenty more variables.
Mrs D3 probably wouldn't be in the same position, given she is a PS worker. Who knows what kids will be doing as adults. What will happen in the markets to influence the size of my pension. Do I still enjoy working. etc etc
The biggest variable of course is health.
Depending on your obligations to your children, you could get by with much less than that imo
Are you really gonna spend 40k with no housing costs? And you should be drawing the principal over time. Otherwise you've saved (worked) too much.
Also, for anyone who may have missed it. Irish Open satellites have launched across the iPoker network. Thankfully I can now stop wasting my time talking to PaddyPower robots.
exactly that. The terminology is all wrong. Instead of retirement we should be talking about changing to something you want to do and that you occasionally get paid for.
Finding what that something is and being able to monetise it while only committing a certain amount of hours to it is… complicated.
In practice i’ve found that you get very used to your time being your own but as I alluded to before, it’s very easy to become very lazy mentally.
Mate of mine is a guard. Early 50s like me and can retire with full pension in two years, unlike me . 30 years service required for full pension in AGS. 35 in army I think.
Last year he did a tour guide course. Spent his vacation last year as a tour guide driving rich yanks around in a blacked out mini bus. He likes it and would be great at the auld story telling bit. Nice money in it he says. I guess it helps that he is a guard from the security aspect. He is also planning to get HGV licence.
When he retires he wants to have option of working a bit when he feels like it as you say. Can beat the boredom if necessary and top up his income. Always was a smart lad. Wife a nurse of course although they didn't meet in Coppers.
Always concerned when people say "I'm going to take this and that up" after I retire. Rarely happens. If you are not doing it and liking it before you retire you probably won't after you retire. Having a full life outside of work is vital to a happy retirement IMHO.
Happiness is not a goal; it is a by-product. ~Eleanor Roosevelt
I know of one person (I believe), but free tickets are a little under their paygrade.
Ah I just remember someone from here giving out tickets for GG before and cheekily asked on the off chance. Don't ask don't get etc. I'll still be playing the satts but everyone loves a freebie, no matter how.small
Depending on your obligations to your children, you could get by with much less than that imo
Are you really gonna spend 40k with no housing costs?
After cruising in The Haven suites on Norwegian Cruise this year, I'm budgeting for at least one of them a year in retirement...not cheap! Well it was cheap this year because of Covid...got me hooked good. Free pouring Macallan Enigma at the private bar for suite dwellers.
Always concerned when people say "I'm going to take this and that up" after I retire. Rarely happens. If you are not doing it and liking it before you retire you probably won't after you retire. Having a full life outside of work is vital to a happy retirement IMHO.
There is the dimension of available free time to consider.
Before retirement, you might have feck all (working long hours, commuting, kids). After, you might have nothing but.
"We are not Europeans. Those people on the continent are freaks."
When I think of retirement I think of a house by the ocean, surf/swim in the morning, golf in the afternoon, potentially BJJ at night (picked this up recently and can feel myself getting utterly addicted). I think for cash I'd do the Club/Teaching Pro route and get my PGA card and teach golf to supplement income.
All a pipe dream at the moment. But ya need something to aim for, right?
BJJ has a rather disappointing meaning. And i've now ruined my perfect search history of exclusively porn
There is the dimension of available free time to consider.
Before retirement, you might have feck all (working long hours, commuting, kids). After, you might have nothing but.
It's a good point though. Think a lot of companies now have a transition-to-retirement programme that kicks in a few years before scheduled retirement.
Top of any retirement wish list needs to be a place to go that won't be too horrible in the winter. Voluntarily staying in the Irish winter is madness.
I have practically been retired the last 2 years, havent a clue where that time has gone actually, jan 21 when the rona was rampant i was considered high enough risk to not be on site, process technician so couldent exactly wfh, they were happy to pay me full wages so why would i complain...ff to june 22, 18 months later and covid is over so come on back they say, I say no thanks...im happy out where i am
OK so, you will have to go on the sick scheme, got cardiologist involved and company were happy enough to pawn me off to insurance provider who they use for income continuance, including social welfare and what they will pay me, through the job, so i maintain health care and pension contributions, defined benefit by the way..., and xmas vouchers ill have you know, shortfall of about 200 a week and i dont have to work nights or weekends...or days technically...or ever again.
Had to go meet an independent medically assessor last month and he was giving nothing away, hard to tell a doctor why you cant work anymore when you look fit and well, on the way out he winked at me and said, you have only one life ! one can only hope his assessment tied in with cardiologists.
Was hoping for a definite answer start of this month but its still down for a decision from their CMO. Would have been a nice birthday present, 50 this sunday, but will hold back the celebrations a few weeks still.
Whats the worst thing about your semi work/retirement situation? I suspect its that other Spanish retirees are better ballers than you. but seriously.
I 100% don’t have it figured out i’ve found a path that has worked so far for my situation. It wouldn’t be for everybody and it may not last forever but it’s been good so far for me,
You pose an excellent question though, and certainly there are elements that are very different than I expected but that probably isn’t a huge surprise when I really think about it. On the whole I’m very happy with my decisions to date and I don’t have anything that keeps me awake at night.
that being said the worst thing in the actual present is having to choose between things as opposed to doing/buying/getting all of them…a common lament in houses up and down the land The worst thing overall is definitively the uncertainty and the balance between fomo and going broke. Much like gambling, the highs don’t boost you as much as the lows drag you down.
Even with all that though, I’m very happy and relaxed on a daily basis and i’d no nothing differently because I firmly believe that if push comes to shove, there’s always more money to be earned.
Originally posted by Hitchhiker's Guide To...View Post
Top of any retirement wish list needs to be a place to go that won't be too horrible in the winter. Voluntarily staying in the Irish winter is madness.
A fair point, but you need seasons. Yeah Iago is in a relatively seasonless place and might disagree. And I've talked about Phoenix before,which is utterly seasonless just degrees of hot.
But there is a lot to be said for warm summers, fresh autumns, mild winters and showery springs. Vancouver Island is the spot for me I think.
This may or may not be an original thought of my own.
All efforts were made to make this thought original but with the abundance of thoughts in the world the originality of this thought cannot be guaranteed.
The author is not liable for any issue arising from the platitudinous nature of this post.
Depending on your obligations to your children, you could get by with much less than that imo
Are you really gonna spend 40k with no housing costs? And you should be drawing the principal over time. Otherwise you've saved (worked) too much.
You are completely right..he could get by on much less than that.
the question will be ‘will he want to?’
I’m not sure people (myself included) consider how their costs will change over time enough. Sure, you might be happy going out less but at the same time your private healthcare premium will be jumping by at least hundreds of € a year and that will eat into a lot of those savings (I’m seeing that already at my tender age and with…touch wood..very few real problems so far)
and he should 100% be drawing back principal over time but that’s back to the question about inheritance and what you want to leave behind.
we could also all drop dead tomorrow so there’s also an element of do all the things you want now and let future you enjoy beans on toast if that’s what it comes to!
A big consideration for me, far moreso than finance is health. My youngest will only be 21 years old when I'm 65. The joys of having kids late in life.
There's a whole lot of life experience to be had beyond that that I want to be a part of.
Voluntary contributions to your health ftw.
I hold silver in tit for tat, and I love you for that
You are completely right..he could get by on much less than that.
the question will be ‘will he want to?’
Well I'm not going to be like some of the FIRE lunatics who wank themselves off on their ability to feed themselves for a tenner a week (I know you're not one).
I'd say get the big things sorted and then the small things are irrelevant really.
"We are not Europeans. Those people on the continent are freaks."
That is one of the best conversations I have ever listened to on health/fitness.
I like many came out of the lockdowns in fairly bad shape and at the start of last January decided to try and put things back on a better path. I mainly focused on strength training and used calisthenic choices where possible. I use weighted dips as the main compound movements for the chest and pulls ups as the main back movement, for example, supplementing with dumbbells/bars. Odd choice I am told but I just much prefer doing body weight stuff where possible and enjoy it far more. I had to have a couple of minor operations throughout the year which put me out of action after each for about 6 weeks. It is a little frustrating seeing the progress be set back but you ramp up much quicker than when starting out.
I have mainly focused on recomping while getting stronger which has worked really well and pleased with the outcome but I have completely ignored any kind of conditioning/cardio. I'd actually had an aversion towards it as in the past whenever I had got out of shape it would have been the first port of call and over the years if you keep going down that well as you get older your body composition ends up really bad.
This pod helped me clear up many things in my own head around what I am lacking and really looking forward to the next few episodes with his advice on how to move towards a more general level of fitness that encompasses a more holistic approach.
That is one of the best conversations I have ever listened to on health/fitness.
I like many came out of the lockdowns in fairly bad shape and at the start of last January decided to try and put things back on a better path. I mainly focused on strength training and used calisthenic choices where possible. I use weighted dips as the main compound movements for the chest and pulls ups as the main back movement, for example, supplementing with dumbbells/bars. Odd choice I am told but I just much prefer doing body weight stuff where possible and enjoy it far more. I had to have a couple of minor operations throughout the year which put me out of action after each for about 6 weeks. It is a little frustrating seeing the progress be set back but you ramp up much quicker than when starting out.
I have mainly focused on recomping while getting stronger which has worked really well and pleased with the outcome but I have completely ignored any kind of conditioning/cardio. I'd actually had an aversion towards it as in the past whenever I had got out of shape it would have been the first port of call and over the years if you keep going down that well as you get older your body composition ends up really bad.
This pod helped me clear up many things in my own head around what I am lacking and really looking forward to the next few episodes with his advice on how to move towards a more general level of fitness that encompasses a more holistic approach.
Yeah its excellent. I'm not sure how I feel about Huberman in general, still trying to see if he is Malcolm Gladwell for the gym bros, but he does get some great guests. This one is especially awesome.
I'd be fairly cardio allergic too, no time for it. Find it incredibly boring but it's a necessary evil, just in the scheme of things 1. be not fat. 2. be strong. 3. be cardio fit,I never get passed the be strong part.
I've found the single biggest difference to my sleep, mood and overall fitness has been eating well and not overeating.I know that sounds simple but overeating for me ends up feeling gross, then eating cos I feel gross, then falling off the wagon and its 3 weeks before I get back on and then DOMS again and fuck me its pathetic. So being disciplined in diet is my way to keep everything else in check.
This episode of the pod though is enlightening on lots of levels for me too.
This may or may not be an original thought of my own.
All efforts were made to make this thought original but with the abundance of thoughts in the world the originality of this thought cannot be guaranteed.
The author is not liable for any issue arising from the platitudinous nature of this post.
Going to vegas in September if u want to roll the Dice one last time before u sell ur bathroom empire to Chadwicks
It must be a huge thing over the next few years of sole traders retiring, and nobody to take over. Gonna be a huge loss of skills and expertise. The economy can't run on influencers.
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i’ve found a path that has worked so far for my situation. It wouldn’t be for everybody and it may not last forever but it’s been good so far for me,
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