The Retirement Newsletter: Another pension and retirement wobble
Issue Number: -24 — Yikes! That was a shock!
Welcome
Welcome to issue -24 — Another pension and retirement wobble.
When I was working on issue -26 — Six months to go — I made the simple statement:
“Well, six months is nothing. Six more pay cheques (paychecks). And then what? No more pay cheques. No more salary.”
And wow, did that create a big pension and retirement wobble.
Another day — another wobble
I have been planning for my retirement for years.
I have thought about my pension.
I have acted to boost my pension.
I have made extra payments and paid into additional schemes. I have kept an eye on my UK National Insurance contributions to get the full State Pension.
I have saved money. I have paid into Individual Savings Accounts (ISAs).
And yet, I still get wobbles about whether I will have enough money to retire.
As I have mentioned in other newsletters, there are three levels of retirement:
Essential — what is the least amount you need to survive? To live? To get by? Admittedly, not the most comfortable of retirements, but you are retired and have some freedom, albeit limited by money. Being retired at this level will be challenging, and I will have to top up my pension with a part-time job.
Moderate — a comfortable retirement. A retirement where I am not overly limited by money. A retirement where l can travel and do things I want to do.
Luxury — a retirement where money isn't a serious concern. I can't go mad, but I can afford some nice holidays and have a very comfortable lifestyle.
In Issue -119 — How much do you need to retire? — I looked at how much I would need to retire at these levels.
Essential — Gross, single: £13,800; Gross, married: £21,100
Moderate — Gross, single: £22,600; Gross, married: £32,900
Luxury — Gross, single: £40,200; Gross, married: £55,000
(Note: the Luxury £55,000 is a little tricky to work out as it involves another tax bracket.)
As I said in Issue-30 — Happy Birthday! The Retirement Newsletter is 2! — with the current inflation rates, the figures in the above table are probably out by about 15%.
When I look at the above figures and consider inflation, I should have enough to put me in the ‘moderate’ zone. And when my UK State Pension starts at 67, I will be in the ‘moderate zone’.
And yet, I still worry and wobble that I won’t have enough income until my State Pension starts. I will need a way to bring in some extra cash. That is, I need to keep working or get a side-hustle.
I have written about my ideas for potential side-hustles in numerous issues, and I summarised my thoughts in Issue -36 — Fourteen ways to make a little extra money in retirement — and I identified three possible side-hustles I may try when I retire:
Online Courses — Based on my professional experience as a scientist and lecturer, I have the knowledge to tackle this and the skills to produce the learning materials and videos. (If I don’t, I have been short-changing my students for 25 years.)
YouTube — I enjoy making videos. I could improve my current YouTube Channel to get it monetised (I only need another 262 subscribers and double the watch hours) and also use it to promote my Online Courses.
Travel — I already blog about my travels, and I would love to find a way to make some money from my travel experiences. This will be something I will explore as a side-hustle in my retirement.
And I am still thinking about producing a paid version of this newsletter.
So, if I combine my current projected pension income and factor in my State Pension starting when I reach 67 and use side-hustles between now and the State Pension starting, I should be OK. The only problem I see is the side-hustles not working.
And yet, I still get these nagging doubts and worries about money and retirement.
To help ease my doubts, I have finally booked my appointment with Pension Wise for the end of the month. I will let you know how it goes.
Finally, the above has made me think about budgeting, and that will be the subject of next week’s newsletter.
Travel — Nostalgia Corner
This week, I continue reminiscing about my travels from Mandalay to Yangon (Rangoon):
Myanmar (Burma) — Maha Lawkamarazein or Kuthodaw Inscription Shrines, Mandalay, Myanmar (Burma) — That is a big book! You will not believe how big it is.
Myanmar (Burma) — Electricity in Mandalay, Myanmar (Burma) — they experience a lot of ‘dirty electricity’ and power cuts in Mandalay. How did the locals and hotels cope?
Myanmar (Burma) — Flight from Mandalay, via Heho, to Yangon (Rangoon), Myanmar (Burma) — a fantastic flight with Air Bagan. But watch out for the baggage handlers in Yangon (Rangoon).
Myanmar (Burma) — the Park Royal Hotel, Yangon — a new hotel and a brief look around the local neighbourhood.
Next week, more on exploring Yangon (Rangoon), plus an extraordinary train ride and a visit to a War Cemetery.
Useful links
UK Government Website:
Reflections
What has happened to the summer in the UK?
As I finish writing this newsletter, I am looking at a view from my window that is more like autumn than summer.
Last weekend I was walking through some local woods, and it was amazingly wet underfoot. It was like mid-winter.
Mind you, I should be thankful that we are not experiencing the extreme heat of Southern Europe.
Next week
Next week, in issue -23, I think about budgeting.
I have never been good at budgeting. I have tried many Apps and approaches, but none worked for me. I guess that now I am about to retire and money has the potential to become tight again, it is time to revisit budgeting and devise a plan.
Thanks
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Until next time,
Nick
PS, If you want to contribute something to the newsletter — a story, advice, anything — please get in touch.