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Nov 2020
2:15pm, 20 Nov 2020
200 posts
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Minimag
I suspect VC that they didnt take out pension provision soon enough.
There were a few people who worked with me who didn't take up pensions (DB!) when it was offered to us when I was in my 20's. They saw the contribution they would have to make (4%) as a pay cut. I wonder if they regret that decision now?
The DB pension was withdrawn some 15 years later, and I have paid into a DC pension ever since. It is the DC pension I will draw down against until I'm 65 (unfortunately penalties are to high to take the DB one earlier)
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Nov 2020
2:16pm, 20 Nov 2020
7,060 posts
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Northern Exile
People's personal finances are one of those things that you should never assume I think.
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Nov 2020
2:32pm, 20 Nov 2020
49,910 posts
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Velociraptor
It's very difficult not to be in the NHS pension scheme if you're eligible. I lost a chunk of my pension on divorce and had a few years out when I was locuming so mine's lower than that of most of my peers, but I could squeak by on that alone.
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Nov 2020
2:47pm, 20 Nov 2020
18,196 posts
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Bazoaxe
Minimag. My pension doesn’t allow me to separate the DB and DC and I need to do both together. The good news though is that the difference in DB from age 55-60 is not huge and is about £4K per year. Five years of a pension will offset that for a long time.
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Nov 2020
3:45pm, 20 Nov 2020
18,612 posts
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GimmeMedals
You are right there, NE.
Some people have expensive lifestyle habits, which gives them cause to question if they can afford to retire early. I know of a handful of acquaintances who kept re-mortgaging for extensions and luxuries, who have still got a mortgage to pay off now as a result. I wouldn't have considered retiring if we still had a mortgage, but we were able to pay it off a few years ago; it was worth not having a new car every 2-3 years, not going on luxury holidays and not having the house extension we'd considered but didn't need. When you are younger, and not really thinking about retirement, these things can seem so much more important.
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Nov 2020
4:03pm, 20 Nov 2020
35,198 posts
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Hills of Death (HOD)
I work with someone a bit younger and her husband earns same and we are on good money. They buy cars get rid buy another new. Done up her old house brought an even bigger one a year later spent money etc etc. They are claiming poverty 😂.
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Nov 2020
4:12pm, 20 Nov 2020
4,523 posts
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westmoors
I'm in a similar position to minimag. Plan to leave the DB pension until I'm 65 and drawdown on the DC pension as and when required. I have no debts and substantial savings too.
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Nov 2020
4:24pm, 20 Nov 2020
10,486 posts
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Mandymoo
My brother retired early as did his wife, both about 60 years. OH will be 62, I will be 55. My sister who is older than both my brother and I, won't retire until they have about £50k a year to live on! and from the sounds of it dont really have pensions that will sustain their lifestyle
As you say it is all down to lifestyle!!!
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Nov 2020
4:28pm, 20 Nov 2020
7,061 posts
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Northern Exile
£50k pa against a backdrop of no mortgage/dependent kids is actually a very decent income, particularly as for most of us our needs reduce as we get older. My combined pensions are nowhere near that much, yet I think I hope to be pretty comfy in retirement. Or did I get the numbers wrong?  ?? [scurries away with a calculator and worried expression]
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Nov 2020
4:29pm, 20 Nov 2020
10,487 posts
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Mandymoo
We will have no where near that much and won't need anywhere near that much and still expect to have a very good comfortable retirement.
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Jigs