For Tiger Mate....as I said, I am 110K words into the 'book' and just reached 42....13 years left to write about. As for my real age, I am as old as I feel but younger than my teeth!

I know several officers who needed to have wisdom teeth inserted. Seriously though, if you've got your finances sorted and you're not going to suddenly develop a jet-setting, playboy lifestyle, then as several eminent posters have already said, you don't need a lot of money to retire. But I wouldn't have swapped my time in the forces for anything.

And that underlined bit is the critical aspect. I am eternally grateful that I started saving early, investing wisely [most of the time] and generally planning ahead. Strangely, I was effectively forced into that as a Fg Off, paying the mortgage on my parents' retirement home whilst at the same time paying OMQ rent, supporting Wife #1 and bringing up 2 smalls. "Skint" was my middle name for years ;)

The "Earning Years" are often less than half of our time on the Planet ... make best use of them, and then the charmingly called "Later Years" can be pleasurable, instead of endless worry.

The world is your oyster
 

Anyone who retires from a long career where; structure, teamwork, leadership, technical savvi and discipline are prevalent - Military / First Responders / Law Enforcement etc. they are extremely desired and sort after by industry as a whole!
These skills and abilities are ones that you cannot teach except be being immersed in them for a long time.
Seriously, if anyone with this type of background was to approach a commercial organization for "looking for something to do" they will do everything in their power to cater to your needs and desires - short weeks / type of role / offer flexibility etc.

Best of Luck - Just remember you are wanted and needed for your second career, whatever that my be!

I only served a short time in the RAF and so never found time to dislike it, nor what my career might have looked like. Last week I reached my 25 yrs point in the police. I love the job, but there is so much more I want to do. I've some outside business interests - managing a hugely talented young singer, helping with my daughters fashion business, supercars, and hopefully an airshow in 2016 or 2017. But the big one is to build a distillery - a proper one. Its a massive one, but whether I choose to go at 50 in 3 yrs time, or stick out the remaining five until my full 30 years, at least I'm enjoying everything!

There are some days though, that I do wake up and wonder what it would be like to think "Hmmm, I've nothing to do today......."

If you flick through the posts above you'll find those who have "successfully" retired, never wake up thinking that.

But you sound like you have a ton to do yet...and that's just as cool. GL with it all.

As maxims go, "When you're about to breathe your last, will your final thought be 'Bugger, I wish I had worked harder for the boss and less time with (insert 'x' here)'" has to be up there. Financial security is vital, but try not to look at everything in terms of financial success or failure.

Retirement is like a Norway det. You leave the warmth and comfort of a sauna and throw yourself into a snowdrift - scary and invigorating (but you're only here once). I think back and never realised that my time 'in' was only a means to an end. I found it hard to see perspective, I found it hard to even find the time to consider life outside the goldfish bowl.

As you get older, you realise you make mistakes and that as the years pass, time cannot undo those. Don't make the mistake of wishing you had done something differently, something that you really wanted to and something that you could realistically have done.. but didn't have the courage to.

There are transition phases that we all experience in life, but hardly any of us recognise them until much later. We bought a sea facing bolt hole a few miles from the Gower very recently, it might not be the slowdown but it's certainly the start. Accumulating wealth is one thing, but realise that you save for a reason - know when to shift from accumulation to decumulation.

Plan!!!

When I'm 65....
 

Question for the Old Guard. Assuming you live in the UK, what happens to your monthly RAF pension when you reach 65 and are entitled to a State Pension, bus pass etc.? Does it reduce at all?

For example, if the RAF pension is 'X' and the State Pension is 'Y', does the RAF pension reduce to 'X-Y' or do you actually receive 'X+Y' from a grateful nation? Or, at a later date, 'X+nY' if you elect to delay your state pension a while in order to receive a better one?

Banquerre-free terminology in the answer, please!

The only thing I remember from my retirement resettlement briefing was how disappointed I was with Aldershot, where it was held. I'd expected the 'Home of the British Army' to be immaculate, with manicured grass lawns, white painted kerbstones and an overall air of spit and polish about the place. With ramrod-straight Sergeant Majors reminiscent of Richard Attenborough's RSM Lauderdale from Guns of Batasi keeping unfortunate squaddies on their toes..... But it wasn't - it was a shabby, uninspiring dump. Which sadly confirmed my rather jaundiced opinion concerning the way things were heading in the UK Armed Forces.

x+y

Assuming there's enough money being generated to pay it of course. The g'ment cut the rate for deferring the state pension from 10.4 to 5.8% pa. Hardly worth it.

Thanks, Al R!

Although according to the latest edition of Which?, 'Anyone who is eligible for the state pension before April 2016 can benefit from an attractive annual rise of 10.4% for each year they defer it'.

Whereas if you qualify after April 2016, the annual increase will fall to a less attractive 5.8%.

Hence those currently aged 64 could still benefit from the better rate if they defer before reaching 65?

You're absolutely right, I forgot that lead in - I thought it had already started. I think that deferring the pension at aged 65+ is probably a risk too far. The increase is minuscule whereas you can do something worthwhile with the cash for that extra year or so in the meantime. What would I consider doing?

If I didn't need it, and I'm assuming that if I'm considering deferring it, I don't, I'd consider taking it. I'd then consider chucking it into a cheap as chips personal pension (if I had relevant UK earnings to justify it), getting a minimum of 20% tax relief (up to £3600 gross for even a non UK tax payer) and (hopefully) getting some investment growth on top of that.

Then, as someone with a defined benefit pension of the size that most of us have, I'd consider the pros and cons of taking it with practically no controls (tax free cash and the balance drawn at marginal rate or kept and bequeathed if it isn't needed).

You could (conceivably - nothing guaranteed) invest in cash funds and still beat the 5.8%. If I died before aged 75 (from April 6 onwards), it would be left to my partner or the local dog's home free of tax and not lost to George Osborne. If I died after aged 75 it gets taxed. Best I spend it then!

Beags,
Got there last November . They add your State Pension on to your Service Pension, then tax the combined income together, deducting the tax total in one lump each month off of your RAF Pension.

Service pension and state pension are both taxable income. Combined, with no other income, I live comfortably and don't pay higher rate tax. Bus pass is useful. Free TV licence will be nice. Unfortunately daughter is about to get married so that will make a sizeable dent in the Genstabler finances next year!

Genstabler,

Check your PMs.

Biggus,
Ditto!

Al R

Taking the OAP at 65 would have led me to pay 40% tax on it, as I was still working as an RAF (CC) Reservist and also getting a full Service Pension.

I now get 131.2% OAP at 20% tax.

I can live on that, as BBQ wine can be had for £1 a bottle down here, and also the sights on the beach can be quite attractive in the summer.

It's an old truth that very few people say on their deathbed, "I wish that I had worked for longer". Every day is a weekend for retirees.

There's a world of difference in waking up and thinking, 'what have I got to do today' and 'what do I want to do today'. In my opinion, that is the very essence of retirement.

So true, Surplus. I've always been an early riser, but it's so much easier when you don't have to.

Likewise with work. Now that I work full time at what used to be my hobby, I try to make sure that I can always say 'Don't want to, today', but rarely do I say it unless there's something else that I want to do.

Tengah,

Good on you, I hope you enjoy the wine and the sights in absolutely any order you want. There are lots of options (we forget inverse commutation too, of 05 - which can be useful if you don't need the money too much, are in poor health and have a much younger partner who would benefit from an extended income stream).

Me though, if I was a 40% payer at 65, I'd opt for "a bird in the hand is worth two in the bush", take the state money as soon as possible and go for 40% tax relief. I suppose a lot would rest on my health, my view of investment growth, inflation, regulation and legislative change, my personal and financial circumstances and those of my partner. I'm glad it's worked out for you.

Not to be overlooked either, an AFPS scheme member can allocate part (max 37%?) of their pension to a dependant. In return for an immediately lower pension, a nominated dependant (younger partner etc) can receive a higher pension when they die. Nothing in life is free, the actuaries sharpen their quills and many factors determine the amount of your dependent's pension in return for that which you have given up. But it might be estate planning-wise and tax advantageous for some.

In keeping with new civvy legislation, I wonder if '15 allows you to pass that to any beneficiary though, I wonder of voxpop could help. A useful estate planning tool, especially if benefit crystalisation event guidance can work in your favour. AFPS 15 offers the chance of commuting income at state retirement age for yet another lump sum if that's preferable too.

Enough with pensions already.. it's bank holiday! Enjoy the beach Tengah, Happy Easter and Happy Pension 'Freedom' Day everyone.. ;)

Edit: The reason for announcing cutting the state pension age from next year is all too clear. Many basic rate tax payers will become higher rate tax payers when they plunder their personal pensions this year and next. Many would have liked to defer their state pension for a higher later income - and the net result would be to minimise the tax to be paid in the year when they liquidate their pension savings. But cutting the state pension deferral rate, effectively, neuters the benefit of doing so. Fiendishly clever, despicably efficient - and it highlights what pension 'freedom' really is all about. Raising money.