Early Retirement?

I'm 24, without a lottery win I wont retire.
Thats just the reality of it, it sucks.

[Littlepeahead]

I'm in a hybrid pension scheme, up to 28k final salary and the rest on a money purchase, I save about 5% and the company puts in a further 14% so that's isn't too bad. Not sure about retiring early, I think I'd get bored.

But I am now an MCC associate member I only have another 12 years on the waiting list before full membership. That means I can sit in front of the Pavilion at Lord's with all the other old codgers watching the cricket in a horrid blazer before falling asleep with my mouth open and drooling. Lord's is often like a nursing home, but with better bars and entertainment. So that's my retirement sorted.

well i have 8 years of the only garenteed pension only way i dont get it is if the goverment falls but if i rejoin the raf this time and do 15 years which is there min service before instant pension, that means i have 23 years at there rate (which is higher than the armies lol) so i'll be retired at 45 with a 23 year set pension till 55 then index linked woohoooooo

[Dave20046]

I've just took out the company pension scheme, took it to an IFS guy and he basically said I'd been given lazy advice-so another thing to add to my to do list
Putting money into a pension so young still feels like a gamble...

Originally Posted by Dave20046

Putting money into a pension so young still feels like a gamble...

But not so big a gamble as doing nothing.

If your employer still offers a final salary pension scheme then go for it whilst you still can. Put in as much as you can in addition to normal contibutions to "buy extra years".

Money purchase schemes are still worth having as the govt give you your tax back on it. The lottery comes at the end when your pot (less a lump some of your choosing up to a limited amount) is used to buy you a pension on the open market. Retire young and you'll get less but for longer than you would if your retired later.

Don't listen to the folks of the .org (inc me) though.... speak to an independent financial advisor sooner rather than later

[Dave20046]

Originally Posted by Jabba

But not so big a gamble as doing nothing.

That's what I figured, so ended up getting one. Wasn't a final salary scheme though they match what I put in.

[Red Herring]

Originally Posted by Viney

When i retire i am going to kill someone. Therefore i spend the rest of my days in the dry and warm, 3 meals a day, a little exercise and free sex if you want it! Its a great idea prision

Could you make it my wife, then we'll both be happy.... (only joking dear, honest)

Well I save 3% and my employer adds another 17%. I have the option to increase it another 3% and the employer will match it. Problem is though that this scheme is basically playing your money in the stock market and other similar places

There must be other ways of doing it I don't have a problem getting bored as I have plenty of hobbies and hopefully some real estate inheritance to look after

But I need to make sure I'm self sufficient without the inheritance! What about these policies that you pay in some cash and after X years they give you back a lamp sum or maybe pay you in installments?

[Red Herring]

Originally Posted by 600+

I've read that you should be saving at least 10% of your gross income but that won't be enough!! What else do people suggest or even better are doing?

Everybody gives the old bill a hard time over their "generous" pension scheme but that is exactly the point they overlook. I currently contribute 11% of my salary towards my pension and yes I am looking forward to cashing it in.....
The only issue I have with some of the government pension schemes, (our included) is this habit of senior officers getting promoted two extra rungs up the ladder a year before they retire, thus bumping up their final salary...and pension. It would make much more sense to base the salary on career earnings rather than final salary.

Originally Posted by Red Herring

The only issue I have with some of the government pension schemes, (our included) is this habit of senior officers getting promoted two extra rungs up the ladder a year before they retire, thus bumping up their final salary...and pension. It would make much more sense to base the salary on career earnings rather than final salary.

Don't knock it - my old man left the army as a WO2 having spent the previous 16 years as a sergeant and never even trying for promotion. He was only a WO2 for something like 6 months and spent most of that time using up accumulated leaves. He's got a nice pension though.