4 Uncomfortable Retirement Truths You Need To Hear
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- เผยแพร่เมื่อ 27 เม.ย. 2024
- 4 Uncomfortable Truths About Retirement.
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I am a Chartered Wealth Manager and Partner in a financial planning practice based in the UK. If you would like to find out more about our services, please follow this link: go.novawm.com/getintouch
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00:00 Intro
00:33 Uncomfortable Truth #1
05:08 Uncomfortable Truth #2
07:45 Uncomfortable Truth #3
09:48 Uncomfortable Truth #4
Hey guys, I hope you found the video useful!
As a reminder, please be mindful of scammers in the comments posing as me. I will never ask you to contact me directly. The only way you can get in touch with me is through my website or the links in the description of the video.
I try to remove the comments whenever I see them, but they're endless!
With the advent of AI and Deep Fakes, it's only a matter of time before scammers start creating fake content posing as people like me. So again, this channel on TH-cam is the only place I post content. Not TikTok or Instagram.
Thanks, James, very useful, Greg's case rings the bell, I am in a situation where I have saved enough in my pension, but am nowhere near qualifying to withdraw it. I don't like my job, but it's a good job, children are still young ( school age which we cannot go away during school terms). Have enough cash flow to support life until I can withdraw my pension. The trouble is I will feel insecure if I don't keep my job, however, I don't see any point in putting any more money into my pension either, still doing it for tax saving purposes. I have no intention to build businesses or build wealth any further. I wonder if I should take a few years off to see how it feels, but my head is telling me to stay at work.
@@workertotraderjourney9007It may not feel this way to you right now but many people will envy your position. It sounds as though you need employment advice, rather than financial advice; to assess the aspects of your work that you enjoy most and identify your transferable skills. There are probably many roles that are quite different to your current employment that you would find more fulfilling and it seems that you have the financial resources to support yourself through a career change, even if that involves a drop in income. That said, I would advise against taking a role involving substantially less responsibility than your current role because that could lead to frustration if you feel that you have much more to offer than the position requires.
@@workertotraderjourney9007 The thing to be mindful of is if you retire early but all of your mates are working and you can't travel because your kids are at school... you may get bored.
The only way you can find out is if you try a sabbatical and see how you feel!
Superb financial and life advice. Every school leaver should see this. I am retired with a modest DB pension but feel better off than when I worked. Health comes first but feeling secure in your old age is a close second. I am not a spender and it becomes less important the older you get.
This has happened to a comment I left you. It was very obviously a scam.
I retired last year aged 63 (Far too late) It's amazing how little you can live on month to month. I keep healthy by gyming three times a week. If you lose your health you lose everything!
Spot on Phil ❤
Well said mate,I retire in 2 months time,2 months before I turn 55,been in the steelworks since 1985,I am gonna make sure I do cardio & get fresh air 4 times a week,agree a million per cent with your comment.
@@zolfodor4835 Brilliant! I'm about the same. 56 been working since 1985. Mental health issues made me take a break from work since last year but I'm now thinking that I won't go back.
So true
If you own a property!
I was born in 1956 and due to retire at 60, which would have worked out well, as I’d agreed with my husband to have his mother live with us, independent but under our watchful eye. Then 6 years before retirement was due my wait to retire doubled overnight to 12 years, thanks to the government; our plans flew out the window.
I finally retired at Christmas 2022 aged 66, exhausted and no longer feeling up to enjoying the lifestyle we’d both planned; the following Spring I was diagnosed with cancer. My husband had to find a care home for his mother, and is now looking after me.
If you get the chance of early retirement, and can afford to take it - do so; like James says, we don’t know when we’re going to die.
I pray for you, wish you all the best.
Prayers for you all 😢
I feel your pain.
I planned to take redundancy from my very well paid job and go into semi retirement with the occasional stint at an agency to boost the money . So at 53 I took redundancy, 3 weeks later I was diagnosed with Stage 4 cancer.
The company I had just left had an amazing health scheme. So I missed out on private health care and a bumper payout to boot .
So ended up with no job, too ill to hold a full time job down, no boosting my money agency jobs.
All our marvellous plans shattered. What was going to be a glorious semi retirement has turned into hard slog , with illness and stress .
But I'm determined to beat the cancer , water fasting and no sugar . So far so good . I'm now 56 and consultant is very impressed. 💪. Look into water fasting, it's hard to refute the evidence in its ability to help fight cancer.
So yes, I totally agree with you, if you can afford to retire, then do so, don't put it off, we don't know what's around the corner.
What happened in 2010 that pushed your 2016 retirement to 2022? Obamacare? The stimulus of 2009 running dry? The Great Recession? The housing collapse?
No, your state pension age was changed in 1995.
I took early retirement at 55 in November and #3 is very true for me. After working for 35 years with a regular income, it's been a struggle to switch from "earning" to "spending". I've not yet accessed my pension but I'll do so in the new tax year. It will feel strange dipping into the pot that I've worked so long / hard to build. Having said that, I'm loving retirement and being able to do what I want, when I want. No more hours spent in endless meetings...I don't miss work at all. I have plenty of hobbies and interests so no problem filling my time.
SCAM! Beware, just look at the replies leading you by the nose to contact a scammer.
Very similar journey although I retired 2yrs ago at age 55.
I have never looked back after 35yrs in the work "hamster wheel" and am enjoying retirement.
So true- Hubby and I retired early (57 and 59) but I spent the first year of retirement stressing about every expense - consequently ended up spending way less than I had budgeted. It is a difficult transition to know that we will never have more than we did when we retired 😮. And the future of the markets in the next (early) years of our retirement scares me....But on the flip side I know that we have set up a retirement that will keep us with a roof over our heads, well fed and happy with our day to day lives. My father always said that yachts and chandelliers dont help you sleep better at night!
I saved and built a good portfolio. I will not run out of money. My concern is my health which is not very good. You see you can have all the money but still run out of time. Better take that vacation while you can.
I retired at 57, 6 years ago. The key message I would communicate to others is don't delay retirement if you have the financial wherewithal to do so. Too often I have seen many people delay retirement and then experience health issues which constrain the very things they wanted to do post-retirement.
Moreover, the most significant benefit of retirement for me is that I no longer have to deal with people I do not want to. That has proved to be the ultimate blessing.
100 %. I was forced out early, but realized I had the means to retire, especially if I moved to a warm country sooner, rather than later. I enjoy life, weather, the Caribbean, and most of all, I'm not in daily, enforced contact with people I don't like, in a rigidly hierarchical system I also don't like.
@@saloninegi147 Glad to hear you are enjoying your time retired. Wishing you continued happiness
So true, gone from bottom 10% of earners to top 10%, worked hard, lived frugally, saved well, retired comfortably and now struggling with that 'tight' mindset and allowing myself to spend and enjoy.
Tight mindset ..lol.Thats me allover.
Tight mindset ..lol.Thats me allover.
Its frightening how accurate your critique is. Working so hard through life to accumlate wealth to just then never realise your dreams due to poor health brought on by poor or excessive work choices! Great video.
When my wife and I began to discuss retiring neither of us had any idea about our potential pensions. I remember her asking me during one such conversation, “do you want to be poor and retired or reasonably well off and working?” I immediately replied, poor and retired. Fortunately, after a conversation with her financial advisor we found out we would be reasonably well off and retired! I absolutely love being retired.
I think I embody this. I’m a chartered accountant and have worked in finance for pensions and investment companies all my life. I’m now aged 53 and have saved very well with a view to retiring at 55-57. I have no DB schemes but understand the tax rules, know all about investment funds and how to measure their risk and reward. I have my own cash flow model with all my expenses detailed and how I expect to tax efficiently withdraw my money. I know what I’m doing right? However, even I have sought the advice of a qualified financial planner to give me some additional comfort over my plans. I can’t help thinking that if I needed this, what on earth is it like for the average punter. Having said that a lot of our chat was about what I will do in retirement and when I will do it. It was a great exercise to force me think about the reality and not just a spreadsheet of numbers.
Thank you very much for sharing, David.
Often, just sitting down with someone and saying your thoughts and plans out loud brings a huge amount of value.
You probably already know deep down what you "should do" and what you want but when it's just you and your spreadsheets, stuck in the minutiae, it's easy to lose track of what you're trying to achieve.
That person does not have to be a financial planner, it could be a friend if you can find someone you're comfortable talking about this stuff with.
The other thing is that I always insist on partners, or other halves, being in the first few meetings.
People often think that their wife is not interested in "the numbers", but I can tell you they are very much interested the lifestyle you're planning to build together!
All good news then. And also, that’s the sort of job you can tip your toe back in to here and there if it all goes disastrously wrong (which it won’t) and you need to work for an income again.
Retired at 54 and now 1 year in. I have worked in Financial Advice my whole life and even I needed someone to review my plan for comfort. I have found it’s not just the pounds and pence side of retirement which is important, but the psychological side is equally so. I wish you the best with yours. You have worked hard for it and now is the time to enjoy the fruits of your labour. 👍🏻
" average punter " - that sums up the attitude of some in your profession. Seeing clients as punters.
@@johnristheanswer It's just a phrase...
I worked in financial services for nearly 40 so I have some experience of understanding & meeting clients needs. I’m very selective about what I spend my time listening to on You Tube, but I always watch James’s content and love his clear, informative, pragmatic and undramatic messages. In my opinion a good Financial Adviser is priceless as they can help you avoid making the kind of poor judgements we’re instinctively inclined to make. My father planned incredibly well for his retirement but died 6 months before he could start to enjoy it! I was determined not to repeat this so have been semi retired for the past 2 years, from age 55. I can’t describe how liberating not working 50-60 hrs per week is. I think one of the big issues is that the word retirement is still very emotive for many people. Perhaps we need a better way to describe this period in people’s lives?
FREE!!
In French it is called “retreat” which I’ve always preferred for the spiritual connotations rather than the English “retirement” with the negative connotations of being unable to work/in the waiting room for the next world!
Over saver and under spender here. In fact, just chatted with my therapist about my issue with excessively delayed gratification. I referenced the experiment in which children were presented with a marshmallow and told that if they could wait five minutes, they would have two marshmallows instead. Expectedly, most children ate their marshmallow almost immediately. I told my therapist that I would be the child who saved all the marshmallow but never got to have it. As soon as I said that out loud, I had a moment of profound realization. P.S.: someone I admire tells me that she saves 1/3 of her marshmallows and eats 2/3 of them.
I’m leaving work, not my choice,but I’m told financially I’m good, but like the video example I’m another saver having a hard time believing it.
Maybe if I had decided to retire I would feel better. Still working it out.
I am 60 and have just retired. It did take a while to get into the mindset of being a spender rather than i saver. I finally persuaded myself by accepting this argument, that being you need to balance health, time and money. If you get any of the 3 out of balance, it will have a large impact. I am healthy at the minute but, of course that can change in a heartbeat ( literally ). I have 20 years or so left, after this time my spending will slow either because of my health or my partner may not be well or still here. I dont have a massive pension but the state will help at 67, therefore I am enjoying time and the odd extra holiday. Being an unemployed pensioner is not too bad!
Regards,
Bill
Well said. I wish you well.
This is absolutely on point for me. Coming up for my 60th, with a very good sized DC fund I'm very scared of the future and the reality of walking away from a well paid technical job that I enjoy. I also know there won't be any going back to such a position.
It is very hard to look away from the scarcity mindset especially if like me, you've endured a relatively poor and uncertain childhood. It is so hard to stop working when the employer pays very well and even with that nice fund, I'll be looking at 1/3 or 1/4 of my previous salary pre tax. However taxes, and the fact I put every spare £ into my pension probably mean the disparity won't be anything like so great and an IFA has validated that I have enough. Nevertheless that doesn't make it much easier.
Another aspect is the loss of status and fear of loneliness, and frankly the realisation I'm 60 and not 30... All scary stuff. Far easier to stay at work and pretend it isnt happening. Except it is.
I agree with you 💯 I have the same thoughts. With a technical background maybe there could be a teaching role. Good luck wat ever you do. 🤓
I recently got a recruitment bounty for bringing back a 63 year old they got rid of six years earlier ! There seems to be a big shortage of engineers.
On a similar subject someone I know kept working past 65 because he knew that if he retired the equipment he fixes (professional AV gear) would just get thrown in the WEEE when it breaks.
Go for it, Robert. I was a techie in IT for almost 40 years quit last summer at 62. you understand risk you understand numbers you have done your homework. Yes, anything can happen, but now is a time to live the rest of your life.
Well described Robert. I am also in IT, great saver, terrible investor, was due to retire at 60 and travel, but COVID and inflation happened. Now 63 and about to retire from the well paid comfy job. You won’t feel any different if you stay on, just equally uncertain with three years less good health. Go for it.
Wow, my thoughts and fears exactly. We will never be alone.
Peace out ✌️
Excellent as usual James. Thank you. That was nailed on. I’m 57 in June and retired at 54 1/2. Been through and still going through these mixed emotions. But extremely happy overall.
Superlative advice! #3 illustration fit me to a tee. Even though I've consulted two separate FAs who both painted a positive worst-case projection, I continued to hang on to a job that I loved but had become administratively stultifying , until I finally left at 73 (in U.S. obviously!). My health and vitality suffered greatly due to my delay. As one ages, it becomes a full time job just to keep active and healthy - so if you are havering about retirement, embrace uncertainty and take the plunge! A year into retirement, I'm only now affording myself time to reflect on the psychological underpinnings of my prolonged hesitancy - all dating from early childhood.
DB v's DC Pension arrangements & transitioning from a saver to a spender. You can't buy time back so understand the go-go years by NOT retiring too late. Your health is your wealth.
All very relevant to me!
Having been in Corporate life for 48 years working - originally in a DB pension scheme and now my own DC scheme I recognise everything James is saying here - there's a whole education that needs to happen in the working world that is not happening and that is around all aspects of pensions and retirement. In the last 2 years I have learnt extensively on these aspects in this video - learnt a very great deal from James's TH-cam videos and some other TH-camrs as well on all aspects of retiring. Do not underestimate the mindset shift required to retire - one has to get educated - I did. Thank you James.
Thank you for such a nice comment. Great points! And you're welcome!
Being in a similar position your comment resonated with me. My DB pensions are a god send and cover all my essentials, my investments in ISAs and DC pensions provide for all discretionary spending, holidays, meals out etc. I do find it hard though to reduce my investment pots it is part of my upbringing in relative poverty I guess, I worked a paper round in the mornings and delivered medicines for the local chemist after school just to buy the occasional treat. Then left school at 16 to earn a living, I was sick of being poor. Now I know health and time are the most important things, but I do console myself that I’ve done everything I could in the circumstances I was faced with to live a good life, not harm anybody and hopefully encouraged others. It’s enough for me.
Was this video based on my Dad? We’ve given up trying to convince him to retire and instead, look to learn from the way he’s approaching things to make sure we don’t fall into the same pitfalls. “What would I do with my time if I didn’t work”, financial insecurity in childhood, concentrating on saving and tax efficiency while spending no time on his own self care. All absolutely spot on.
If you have any success helping to change the mindsets of your clients with overcoming these barriers it would be great to hear them.
James you really need to do a NHS pension video - my mum is 63 and no one wants to help her and explain the correct path to take, it's incredibly complicated
It’s really not. I live with a 68 year old nurse who’s going through it all now and she’s been fine. Also, world’s smallest violin playing because there are plenty of people who survive just off state pension, be thankful for such easy issues in life.
Really interesting and I agree with everything you say. Health and a purpose are vital in life. My wife has recently retired after many years working in palliative care in a hospice and the number one thing that people said to her on their death bed was that they wished they hadn’t worked so hard and so long and had spent more time with their family.
Just subscribed James, the reason: you don’t just give views on pensions etc, you also have a human element to your posts and that means a lot to me. Thank you
Feeling emotional. Want to live my best life. Thank you James. A fantastic presentation
Hi James. I discovered your videos about half a year ago and found them really informative and insightful. Your work is a level above the average financial guru videos on TH-cam. I love that you incorporate psychology to demonstrate the rationale or ‘irrational’ behind people’s financial decisions. Keep up the good work and look forward to what is more to come!
Thanks, I will do!
Incredible video, first every financial video I have watched that puts an emphasis on health. So true and something I need to focus on more.
I definitely agree that a scarcity mindset can be difficult to overcome James, it can be hardwired in some people I think, and part of their nature. I'm probably one, but as I'm also a natural minimalist, have never craved many material possessions or travel, have always enjoyed simple living and am basically quite content, it's probably not a great problem in my case.
Thank you for sharing your perspective. The two often come hand in hand.
This Rational Reminder episode has some fascinating insights about the psychology of spending behaviour. th-cam.com/video/PotBhUGm0MA/w-d-xo.htmlsi=UuJxE8o8E0NYg_t0
They make an interesting differentiation between: people who are frugal and who get satisfaction from living a minimalist lifestyle and saving money. And "Tightwads", people who would benefit from spending more money, but struggle to do it.
Health is wealth. Just subbed! Experiences are also important now!
What a thoughtful perspective. Really appreciate the psychological aspect and concentrating on what is within our sphere of influence. Thank you!
Wise words - thank you!
outstanding. thank you!
Perfect overview James. So very good to have that so clearly described.
Hi James, always very helpful. Thank you.
Hi James, I can relate whole heartedly to your comment about saving culture in retirement. My father died when he was 98 shortly after my mother who was 95. Even at this age he was still managing to save some money most months. As you say because of needing to be very careful in his early years, they had a saving culture all the time, even though their children had said they did not need any inheritance from them.
Same with my dad. We told him to spend what he had so he made life easy and he could be as comfortable as possible. He still saved his money.
Thanks for an another excellent video, James.
I especially like truth #4- it cannot be emphasised enough. Makes the point that we need to plan for retirement not just financially but also psychologically and intellectually.
You are on a real roll @James. Another _very good_ session … to the point I wrote down your 4 points. And yes I recognise much of what you say; been there, done that, sorted the parents. It would be a long conversation about my experiences, but I can _absolutely_ see point 3 (saver to spender) in my aunt and uncle. Always had little. Lived on a budget. Then a stroke meant me having to become attorney and deputy … to find they are well funded … yet the house is in such poor state, ‘renovation’ is going to be extensive and expensive. Sad, but it _absolutely_makes your point. So much more I could say…
Agreed. Endless worrying only invents problems. Better to have confidence in your resilience and problem solving abilities, as problems arise.
Such a spot on message regarding health James it's really great to hear you say that.
I'm a middle aged PT and I'm now specifically adapting my offering for people who have just this sort of realisation. Longevity of course, health span more so.
That's a great idea!
It's true what James said "a good saver will find it hard to spend" I've just retired at the age of 60 & think I've got enough to last.
At the moment I'm being very careful with my money but have to keep reminding myself to just enjoy life. If i had kept working till 67 I would have been really comfortable but as I work in a physical job & look at the other men at 67 who have a job to walk I'm thinking sod it I'm going to retire early while my health is ok. So I've just bought myself a Kawasaki Z900 😁
Nice! Living the dream - enjoy!
I’m thinking of getting a Z900 as well, Z1 was my favourite bike back in the 70’s, I’ll add it to my CBR600RR in the garage. Never get old!
A motorbike is an often an underrated positive boost to your mental health.
It's totally absorbing and therefore a very relaxing activity.
Hi James another very good video, I retired end of November following redundancy but I was planning on retiring at the end of March anyway so it was just a few months early.
It is a strange thing that the savings and funds that you’ve been always addding to are now being accessed all the time.
I for one don’t miss work at all and I never think about it, I was only with the firm for 3 years and had been working from home all the time so only had remote communications with other employees.
I had my retirement plans checked and double checked, my son is a FA, and I also had free reviews of another company plus spoke with pension wise. I have yet to start regular drawing from my main DC fund which I will utilise my tax allowance on, this I aim to start in April. I have then 10 months this until a works pension kicks in at 65 with full state pension at 66.
Live is stress free and fun, if only the golf course would dry out a bit!
Thank you for the comment - I'm glad to hear it's going well.
Burning the boats is often the best way! Good luck with the weather!
For a young man you have a very good grasp of "reality'. These really are pearls of wisdom.
James, l have watched a fair bit of your stuff and you're good. But this latest one is so spot on it's like you wrote it for me. I will retire. I will learn to spend rather than save. Thanks for permission.
Great video as usual James. I think the Australian Superannuation system is a great model. Employers have to (by law) contribute a percentage of your salary to your Superannuation. This is increasing over time, and is currently around 11% of your gross salary. Any contributions made (including additional eg salary sacrifice to a certain limit) is taxed at 15% instead of your marginal rate. Earnings are also taxed at 15%. On meeting a condition of release (eg turning 60 and ceasing work) you can convert it to a drawdown pension...and this and all future earnings are tax free. It may not be perfect...but its a great system I believe.
Love this video James, speaks so much truth and loved the way you finished it. As a personal trainer and business owner I know all to well how important it is to invest in your health. Keep up the hard work and thanks for helpful info.
This resonated quite a lot for me. I have just retired, have hobbies that apply with both exercise and mental work. Parents died many years ago so will not have that issue. Agree with you about health including health screenings that seem to start when one reaches 60, for a man, but even after a short time, I realise the extent work had been affecting my health, is basically improving, even though I did know that it was affecting me generally previously.
Same here. Since I retired last year I've gone from sitting on a laptop all day to being very active, walking, running and cycling. I feel so much better now, both physically and mentally.
@@stevegeek work is killing us! Manual workers fair better
Brilliant advice, thanks James.
Great video - thank you!
Another great video James. I was really pleased to hear point number four. Your credibility as a financial expert soared in my opinion when you pointed out that no amount of money on retirement would compensate for not investing in your health and wellbeing.
Great video James! 👍🏽
What a great video. I am one year retired and everything you say, is so true. Glad I clicked on your video. I have subscribed.
This is really good. I’ve recently had the issue of feeling bad as I took some time out of work after surgery to recover properly without stress of working. It felt wrong to be living off some of my savings, even though I know I’m very lucky and can comfortably do this. Regarding finding a purpose I read a really good book called “The Happiness Trap” which is based on ACT therapy. One of the key principles is finding out what your life values are and as much as possible make sure what you do in life moves towards these values rather than away from them.
Best advice I've heard in a long time - excellent channel.
Great stuff thanks
Really enjoy your posts. All very logical but sometime it’s hard to see the wood for the trees. 👍😊
Thanks for the comment and I'm glad you're enjoying the content!
Thanks - some great points - I am planning to retire in 2-3 years and can appreciate many of the points you've made. So far I've thought mainly about the finances, but you're right that it's so much more than that.
@JamesShack this is the best pension / retirement video i have seen. I left full time salaried work in October at the same time as getting a difficult knee injury and another health issue. The depression of spending not saving, loss of identity, health issues and winter made it really hard for me to transition to retirement. Now spring is coming, health is almost back to normal, investments seem to be recovering, im not spending as much as i thought and i have a part time job working with the handicapped (earning a tenth of what i did) where the kids and carers are so appreciative of what i do i can safely say i am getting there. The transition has been really tough. You hit the nail on the head, health is in my mind the top priority and realise you dont actually need a huge pay check to be happy. I am still approached for full time corporate job positions, but i cant face the thought of going back to that now. So i guess my mind is learning to retire!
Your 3 scenario's apply to me ,especially the last one as I am still working and will be 68 in a few months time.I keep telling my wife and children I am retiring at several different times through the last few years,the latest being easter and now I am going to work on till summer and see how it goes.
I think apart from missing the regular income, and wanting to earn a bit more before retirement, it's hard to come to terms with retiring as I have been working for almost 50 years.
One major advantage of DC type pensions taken as drawdown is for couples where there might be a big difference in the size of pension each partner has. With DB schemes or annuities bought with DC funds assuming cover 2 lives, when one partner dies they are usually left with 50% of the partners pension. A DC pot in drawdown on the other hand continues to provide the same pension it could support before the partner dies - only the state pension ceases. That can make the difference between the surviving partner continuing to have a comfortable life style or having to start to scrimp on everything.
Brilliant thank you very much that was most helpful.
Great content as usual James. My wife and I both worked for the NHS. We both have pretty good DB pensions and also I started my own DC pension when I was 18. Didn't pay much into it but it compounded over the years. Our patients kept saying to us that their regrets in life was not retiring early enough as it affected their health. So my wife retired at 55 and I retired at 57. We're still in saving mode and find it difficult to start spending but that will change in due course.Keep up the good work James
One of your best presentations James. Well done! As a retired Chartered Accountant I realise how difficult it is for most people to cope with the challenges of planning for and living in retirement and the stress this causes.
Thank you Steven, glad you enjoyed it.
I keep working…. But I love my work … so true about health
Thanks James..
Currently transitioning from saver to spender..
Doing some part-time work along with volunteering and the hobbies.. but still struggling with the switch to spender 😂
Health is wealth. Spot on
so true about saver vs spender. It will be a hard transition and may take a fair bit of time to achieve when the button is pushed.
Oh dear… I’ve been teaching for 48 years and keep being called back to help out ( not a full timetable) 😊…I very much enjoy it, but I do worry that I’ll suddenly not know what to do with myself , when I “really” do retire… 70 soon… My friends are all at different retirement stages, so they can’t easily drop things and come on a trip with me ( never mind the cost!) - but I must say am hugely enjoying breakfast at 9 or 10 and Aqua fitness with coffee afterwards, then off to school, so far, so good. Enjoyed this broadcast very much.
Thanks James, great content.
I'm glad you liked it!
Oooohhh
Number 4.
It is true, in my 36, i don't have much chance to stop and think what I live for...
Another great video James, thank you.
Some fabulous advice here - not just for financial planning but how to live life 😊
Thanks James, I agree that your health should be the number one priority in life, both young and old. Everything else becomes a bit meaningless if you're unhealthy.
Exactly 👍
This is just excellent. You have talent for communicating the important elements including the psychology round retirement.
We are in the first stages of retiring so all makes sense.
Thanks for this James!
You're welcome, I'm glad you found it useful.
Another great video James! Always so informative. Hopefully I can get in touch with you when I'm close to retirement
You're welcome and I look forward to it!
How true that is. I am that one that saves and the more I save, the less I want to spend!
I think your videos are great James, and i can definitely relate to the 'save a little more' mentality. I'm 37 and currently pay 15% into my pension with the company putting an additional 10% in. My 'plan' is to keep at this level (I'm always tempted to bank a % of any payrise) and retire sometime around 56/57. The mortgage is paid at 50 so the intent is to repurpose this outgoing into investments to bridge any gap between retirement and whatever the pension minimum age is by that point.
I do wonder whether an advisor is worth speaking to as my partner has a 'enjoy today don't worry about tomorrow' attitude. She has a teachers pension and rolls her eyes at my increased contributions! 😂
I was lucky, i’m 58 now. When i was 20 i worked for a TV company that ran a DB pension scheme, in the 14 years i worked there i contributed around £7000
Fast forward to 2021 and when i turned 55, the company offered me nearly half a million to give up that pension, it was either that deal or an inflation linked 18,000 a year guaranteed for life, my FA strongly advised me to take it, on the premise that i’d have to live well over the age of 95 (highly unlikely) to get the same amount that drawing on my DB would give me, it was a risk, but one i was more than happy to take, money’s now invested in stocks and shares and is doing well, i don’t plan on using it for another 4 years ! There’s always risk whichever choice we decide to make.
HMRCs multiplier is 20, but, as in your case, some companies offer much higher. Possibly because of the inflation linked part. I have heard of pensioners being offered a large chunk of cash simply to forgo any future inflation linked rises.
Before CETV values plummeted I was also around 500k or 17k pension. Now two years later I am on 320k or £18k pension. I hope as interest rates fall I will be at 500k again and take it. Models indicate I am better off taking cash. And together with other pensions I will easily hit the £1m+
Very large cash transfer values for DB pensions were the case recently when gilt yields were extremely low due to very low interest rates, since gilt yields are used to calculate a DB pension cash transfer value.
Given high inflation, higher interest rates and corresponding effect on gilt yields it is now the case that DB pension cash transfer multiples are decreasing.
It sounds as if your timing to cash in your DB pension in CY2021 was just about right.
@@johncarter6040
It was, i was quite fortunate with the timing, 3 years later and today the offer probably would have been in the region of 300k !
@@johncarter6040 I hope we see them again in the next 4 years as I want to cash out as well
Awesome advice James it's not until I got to this stage I understand the mindset changes that have to occur:) , thankyou,
I'm glad you liked it!
Interesting point of view. All the best from Barcelona 😊
Thanks!
Thank you so much Tim!
@James you nailed my situation. Grew up poor as a council kid. Then in a council flat getting evicted because I lost my job in the 80's recession. Then found a job worked hard at it and saved for over 30 years. Retired last year at 52 but mentally can not spend money easily because of fears that I don't have enough and want to protect what I have.
It's a challenge but something you need to work on and will get there eventually! It can take a while especially if you retire early.
Excellent video, a must-watch for everyone.
Thank you for this! I'm a Medicare counselor and I can't stress enough how much health and mental well-being plays into happy retirement years, as free as possible from the chronic illnesses that plague our Senior citizens - ALL are primarily due to a lifetime of poor diet and exercise habits. Eat as well as you can afford to do, get the best night's sleep as possible, be active (you don't have to run marathons, just go for walks and work on strength and resistance exercise, even from a chair), and stay active in the community. sadly, we all lose friends and family as we age and it's hard to make new friends when we're older, but go to community centers or volunteer to make new ones. Those 4 cornerstones help to prevent the 4 most common chronic illnesses of the aged: Dementia, diabetes, heart disease, and COPD.
But if your problems are hip and knee pain, then you're in trouble. You can have a great brain, clean arteries, and low blood pressure, but bad joints will do a number on you.
@@vinyl1EarthlinkThey certainly will. Doctors do recommend that you stay as active as your body will allow, and a good diet can reduce inflammation that increases the pain. I'm no stranger to that myself. Start with the diet, working towards or maintaining a healthy weight is critical if you have joint pain. Move as much as is feasible for strength and balance, and to remain mobile. Everyone is different with different medical issues, just do the right things to be the best you, for your individual best interests.
Thanks for a great video yet again. I am sure that you are helping many people. Its to be applauded. One issue I have with the narrative, in which you are not alone, is that for me and many of my friends there is no date, no actual retirement. We are in our mid fifties to mid seventies. The switch is from being some form of wage slave to active managers of our assets and investments and that can be a transition as opposed to an event. Diversification for us is a mix of property, some earnings, stock market investments and state pension. Of course your focus is on financial markets and products but it would maybe be best to approach this as a transition and hybrid as opposed to fixed date and event. Not only that, but what I witness amongst friends is that continuing to have some active work, be it cleaning, house maintenance, property development or active portfolio management is what binds us together and provides part of that purpose.
Thanks James. Another solid video that hits the mark.
Glad you enjoyed it
Who else can balance money management and life management than this guy? This is a deeply thought through explanation of planning for retirement and doing it at the right time that encompasses life questions such as purpose and relationships and much more. I just retired happily a few days ago. Hopefully all will be well. KeepSmiling ☺️🌺
Good video James ,well put.👌
Glad you enjoyed it
i retired at 58 ( midwife/nurse) and then went back to work in my 60s . I have young grandchildren to visit at weekends so the world travel I anticipated in retirement lost its appeal. I work as an interim so i can work 6 months then take 3 months off. My husband who is 70 still works 3 days per week. we both enjoy our work and the company of colleagues.
I retired at 56yrs (2009) and had a wonderful 5 years doing essentially nothing out in SE Asia. But (having met a very wonderful woman) we ended up back in the UK. I could have stayed retired but decided to find a job - now 3 days a week. Surprisingly, even though I am now well beyond retirement age, my employer is more than happy for me to continue working for them as long as I can. They are very accommodating when it comes to time off / holidays. I find the 'exercise' and camaraderie that working gives improves one outlook on health. 😄And health to me is far more important than money. I can still do 10,000 steps easily, others I've known over the years, sadly not.
The only downside, and it is one reason I came down to 3 days working was to try and get out of the 40% tax bracket. Giving the Government 40% of my earnings isn't something I embrace.😒
I made a point of doing regular exercise after giving up work as I lost my cycle commute. At bare minimum daily 30-45min walk or ride ideally mixed in with some gym sessions to work on strength and flexibility. Budget on 1-2 hours a day and you should have fitness to make most of your extra free time.
Brilliant
I can really relate to one of your truths James.
I find it easy, if not pleasing, to put say another £100 in my sipp or isa. But get me to buy a new fishing rod for myself or a new golf club or even a nice new pair of walking boots and I really struggle to pull the trigger. Its crazy,
I know, and with only a couple of years until I do retire, I really do need to change my mindset. 😊
Agree 💯 🤨
It's something that requires work.
I find the best solution is to set yourself a spending budget.
A top-down budget that you know is sustainable and fits with your long term goals.
If think you can draw £30,000 per year from you portfolio and £15,000 of that goes to fixed costs, divide up your discretionary spend into deliberate allocation. £5,000 on golf and fishing, £5,000 on holidays, and then put that money into different bank accounts and make sure you spend it on those things by the end of the year.
I have a holiday / eating out fund that i contribute £300 a month to. It means I never feel guilty about spending money thats in the account because it's part of the plan. It zeros out whenever I go on holiday bit builds back up slowly.
A spending budget sounds an excellent idea to actually try to 'make' yourself spend. It's incredibly hard to kick the 'save and be economical' mindset, if that's the way you've lived for 30 or 40+ years ! Good advice as ever James. 👍
@JamesShack You're not kidding that it needs work, hard work! I understand the approach of having a "committed spending" fund but I would still be looking at how much I can save each year, rather than how I can spend it! My wife helps out a lot with this but old habits die hard. At least the kids will hopefully end up better off.
I totally understand the problem. I struggle like hell to spend on me even setting budget to spend is difficult always thinking what return I would if I invested it.
Great video mate. You're the first financial youtuber I've come across that has mentioned Health 👍
Health is the greatest wealth.
I spend most of my free time researching health, second comes wealth, I love learning about financial planning, investing, pensions, tax etc.
But you have to be alive to enjoy your wealth and retirement 🤣
I meet lots of people far wealthier than me, but I always think "I wouldn't swap their wealth for my knowledge of health" ❤ 👍
Complete agree, Carl. There's really no point gathering all this wealth if you don't have the health to enjoy it! I need to start investing in my health more.
Outstanding video. I've never seen a money video like it. I am 50 and always wanted to know what it's like when you retire, managing your money, etc. Thank you James. Another advantage of a DC pension is that when you die the money is there for your family. With a DB, when you stop so does the money.
I'm glad you like it. That can certainly be a big pro.
Yet to find a single other financial planning channel that even comes close to this one.
That means a lot! Thanks for the comment.
Always think your content is good but great work on this one Mr Shack. 👍
Wow! Great video. I think I'm Greg's twin. I retired for a year and then when back to work full time. My plan is to work 18 months more and then cut back to 16 hours a week as a Consultant. I think I would get bored if I didn't have some work to do but I won't be stressed or over-scheduled. I will be in control of how my time is spent. I just follow a simple strategy. My monthly expenses are VERY low, I have a liquid cash savings and the rest invested in a 55/45 portfolio which will become 50/50 when I stop working again. My earnings as a Consultant for 16 hours a week would be enough to sustain me without touching my investments for bills or medical so I'll use those funds for travel.
I retire in four years and am looking forward to retirement I think the main worry is after having a wage packet every week for 51 years the thought of not having one is a big hurdle
Really good video, thanks.
Do you have a video on how to go about applying to access your pension fund early due to non-terminal ill-health?
Great video.
With an annuity, you have to get in there very young I think. I'm an irish civil servant who'll have a contributory state pension and also an additional modest civil service pension, and I'm also saving about 75 euro a week. By the time I retire, I'll have been doing that for about 30 years. I might live another 30 years. So ......75 pw. I looked into an annuity and nothing affordable was offering me anything like 75 pw.
I'm investing in to my health though. I do pilates twice a week, walk everywhere, do yoga once a week, avoid processed foods as much as possible, hardly drink......... I hope all this pays off.
Excellent video, James. Resonates strongly with this late 50s professional (progressed from the very insecure financial start you allude to) contemplating the scary life changes retirement brings.
Let me ask you this question. What net worth would you judge to be - beyond question - to be enough for a very comfortable retirement in your late 50s and then in good health?
Expressed either as a capital sum or, if easier, as a multiple of current annual expenditure?
Thank you
James you are true guru.
An excellent video
illness has brought on retirement at 55 now 56 and still feel I should be working but unable to sometimes its taken out of your hands