Talk Morgan Forums Community The Malvern Arms Being paid to breathe

Wow Reg ! Just noticed 'Wherry Skipper' many years ago I chartered Norada & sailed her for a week, I think there are sadly only 4/5 left now

Jon,
I've worked on Norada, as well as a number of other Wherries. I was the Skipper on Albion for a number of years taking charter parties on trips around the rivers and Broads of Norfolk and Suffolk. It was good fun but age and an increasingly uncooperative back ( plus other factors which I won't go into here ) made me retire from it and concentrate on sailing my own Lug sailed boat.
As for the Wherries, there are actual 7 left, Ardea, Albion, Maud, Olive, Norada, White Moth, and Hathor.

I love your last statement, it is so clever and true.

I think I am the wrong person to ask, my take home pay after tax from my pension is basically the same as my salary was because I was sacrificing as much as allowed into super while working. But I found my expenses has not dropped, firstly buying an investment house for family reasons cost a lot and secondly my cat got cancer and I have spent $12,000 on vet bills in the last 3 months. However I do agree that for the average person retirement should be cheaper than working, going to the movies for no other reason but to avoid the crowds probably also means going when it is cheap during the day on Tuesday. Same with holidays avoiding school holidays etc. Plus not paying for that suit to be dry cleaned every week, parking in town etc.

It is probably different for different countries but in Australia when talking to younger people at work they would say "You are so lucky, I will never be able to retire, the government will keep putting the retirement age up". I would explain to them is that there are two retirement ages - the age 60 when you can access your own superannuation to be a self funded retiree and the age of 67 when you can get the government old age pension based on your assets. I don't care about the old age pension because I will never get it but you should be able to retire at 60 on the other assuming you put enough into super. They asked what is enough I say well the government has put a limit in place of $1.6M for account based pensions and that is what I think you should aim for. I do agree with them that the rules can change however I expect the age you can access your own super is much less likely to change than the age you qualify for the age pension. Although it was changed from 55 to 60 a while ago I doubt it is likely to change again.

Achieving $1.6M in super by 60 is reasonably achievable, I did a simple spreadsheet for two staff at a similar age and showed that with not much extra contributions the power of compound interest got them to $1.6M by 60 and that was with pretty conservative earnings.

I then explained with an account based pension you must withdraw a minimum amount each year and at age 60 is is 4%, so with $1.6M you take $64,000 a year or $5,333 each month as a tax free payment to live on. You and your partner can both do it and that is over $10,000 a month tax free for the household. That makes them happier to see that retirement under the current rules is quite possible without a lot of extra money being contributed to super now than they already are doing.

While I am showing them how to achieve $120,000 a couple tax free income super calculators generally show $62,000 as a comfortable retirement for a couple. So really they should be easily fine if both partners aim for the $1.6M super limit as they will have double the specified comfortable retirement income.

The following is the rules needed for a tax free account-based pension

How much do I have to withdraw from my account-based pension each year?
You will have to withdraw a minimum amount each year, depending on your age, see the table below for details. If you have met a condition of release the maximum you can withdraw is the account balance, however if you are still working and are using a transition to retirement pension you will be limited to withdrawing a maximum of 10% of the balance each year.

Age Annual payment as a % of account balance
55-64 4%
65-74 5%
75-79 6%
80-84 7%
85-89 9%
90-94 11%
95+ 14%

How often are income payments made?
Income payments can usually be made monthly, quarterly, half-yearly or yearly and continue until the account balance is exhausted.

Oz is great when it's time to retire and draw your pension...with it's 'tax free' superannuation position on your pension...

But in the UK, when you draw your pension, its regarded as income... so it's taxed again!

So, in effect, you are paying income tax twice! Unless you used 'SMART' (save more and reduce tax) to offset taxable income at source...

In the uk we are allowed to save 1million and 55 thousands which sounds a lot . On a final salary it’s £52.000 per year.

Sounds great but how many has this and having to pay ni for 35 years how many will have this

I set life time protection on my pension at £1.25m. I then worked a 3 day week to pay less tax as I couldn't pay into the fund.

The reality is HM Gov see final salary schemes as worth 20 x the annual pension. So a £20k pension is £400k of your pension allowance. But if you have £400k in a pension pot this is valued by the Gov as £400k. This size of pot won't get you an annuity anywhere near £20k.

My wife though has a terrible pension position as she was a stay at home Mum & a part time nurse. We add the max you can in to her Nest as a non working person but with the 6 years stolen by the Gov she has really lost out.

Pete, HM Gov gives you tax relief on any pension payment so you don't pay tax on the input but they tax the pension which seems fair to me.

John when I retired. I have found it great & I don’t consider myself a pensioner but a person of independent means.
Well makes me feel good for all those years of work. 48 years. (Very lucky only out of work for 8 months in that time)

John when I retired. I have found it great & I don’t consider myself a pensioner but a person of independent means.
Well makes me feel good for all those years of work. 48 years. (Very lucky only out of work for 8 months in that time)

Only pension I have is my 4/4 Sport

You and I can team up a do a Hatton Garden type job Craig.

I'm not going to retire I like living on the edge!