State Pension + Change of FIRE Meet Up Venue

A lot of people aiming for FIRE, in particular the younger folk, don’t include the State Pension in the plans

I understand why that is – they won’t be able to touch their pension when they FIRE by 40, the pension-age goal posts keep getting moved by various governments, it might be means tested, there might well be nothing left in the government pot, etc. So quite a few unknowns there.

However, for me, the State Pension has always been part of my plans right from the start. Perhaps I’m just being over-optmistic that the government ‘will come good’ for me, but it’s probably because I’ve gotten into FIRE later in life so I can consider pensions as part of my plan.

What State Pension Might I Get?

When I first started thinking about FIRE, doing my ‘back of the fag packet’ calculations, I used a nominal £5k as my state pension number – I reckoned that I was going to get at least this amount from the age of 67.

Recently however, I’ve been able to obtain a more accurate estimate (can an estimate be ‘accurate’?) via HMRC’s website:

At the last count, I had paid 30 years of full National Insurance. The requirement to receive full state pension pay out is 35 years.

The five years remaining ties in nicely with my stretch target of becoming FIRE by the end of year 2024…

However, as my work pension was contracted out for most of my career (meaning that I paid less NI during that period), it looks like I have to pay an extra two years to receive the max, so 7 more years in total of NI to pay, with my current forecast based on NI paid to date being £139.18 per week:

How Does It All Fit In?

So how does the state pension feature in my FIRE plans when I won’t be able to get my mitts on it until I’m 67?

Well, it’s income which I do not have to accumulate as part of my Future Fund (my FIRE pot).

If (and I actually hope not) I live to 100, that’s 33 x £8,797 = £290,301 (based on current forecast) which I don’t have to save up for (or generate) as part of my Future Fund.

I think this was one of the reasons I never really got into the whole 25 x expenses calculation for FIRE – I couldn’t see where the state pension fit into the calculation. Nor in my case, my DB pension. My DB pension and state pension combined will should provide me with a guaranteed minimum income floor, enough to cover all my basics expenses. It’s down to me to make up the extra for a more comfortable retirement.

As I’ve mentioned on previous occasions, my Future Fund is just a bridge from when I FIRE until when I am able to draw on my DB pension (at 65) and then the state pension.

Sometimes my plan seems too simplistic and I get the odd panicky feeling that I’m making a big mistake with my calculations.

Most other times however, it makes complete sense to me.

I’m sure there won’t be many (if any) but anyone else include the state pension in their plans?

Change of Manchester FIRE Meet Up Venue

I’ve been advised that the Manchester FIRE meet up on Friday 29th November will now be at The Salutation Pub, 12 Higher Chatham St, Manchester M15 6ED (just off Oxford Road), not at The Bank.

It’s looking unlikely that I will be able to make it but if there’s a chance I can show my face there (even briefly), I will try!

 

October 2019 Savings, plus other updates

Hope you all had a happy Brexit Day Halloween!

My ‘confused’ effort on the right!

October felt like a month where I had a lot going on but hardly anything was achieved.

I’m behind on loads of things – my reading, my paperwork, my tax return (meant to submit this month), my TV watching, my blog reading/commenting, my blogging.

That said, I bought a new mobile phone as my old one has been freezing and rebooting for months (used matched betting profits again for the purchase) and I’ve been out on a few social outings, completed a 13-mile walk in the rain (again!) for charity with work and been to the cinema a couple of times (to see Ad Astra and Terminator: Dark Fate).

My social calendar is pretty much filled up for November already so I hope I don’t continue to fall behind on stuff.

Am I also behind on my numbers? Let’s see how I did….

I saved 51.3% of my net salary! With my sis contributing towards household bills, I’m able to put away more of my money but as mentioned before, at some point, all my utilities direct debits will go up so my savings rate will revert closer to the norm.

The above savings includes top ups of £40 matched betting profit (from last month), £67.74 affiliate income from OddsMonkey (thank you to all who signed up via my links!), £30 from Siteground* affiliate income (thanks Tom!) and £57.01 from TopCashback*.

Shares and Investment Trusts

No new investments – I just topped up existing ones.

Current share/IT portfolio can be found here.

(Entire portfolio here)

Future Fund 

The markets were all over the place this month and despite adding new capital, my portfolio value went backwards down to £178,832.19. As usual, I’m keeping calm and carrying on investing!

Dividends and Other Income

A slightly disappointing month for dividends: Continue reading

September 2019 Savings, plus other updates

Update is later than usual but this might become the norm, not sure. Still no real blogging routine yet and I wasn’t about during the weekend to get this out.

Anyway, for those concerned, my nephew survived the few days with me, wasn’t late for school once and didn’t miss his bedtime (by much… 🙂 )

So how did I get on in September with my savings?

I saved 52.9% of my net salary! This was the first month that my sis contributed to household bills since she moved in and I invested the cash straight away.

Of course, at some point, all my utilities direct debits will go up, with me no longer being in the house on my own, but I’ll save as much as I can while I can!

The above savings includes top ups of £120 matched betting profit (from last month) and £126.22 affiliate income from OddsMonkey (thank you to all who signed up via my links!).

Shares and Investment Trusts

Thinking about greener investments, I started investing in Greencoat Wind UK plc.

Current share/IT portfolio can be found here.

(Entire portfolio here)

Future Fund 

With the pound taking a pounding and markets generally on the up, at the end of the month, my portfolio stood at £179,130.49. This puts me in really good stead in my race to £200k, although with Brexit (or not) looming, who knows how things will look by the end of October.

Dividends and Other Income

Another fairly average month for dividends: Continue reading

My Random Share Portfolio, plus Meet Up Reminder

Long term readers may recall my fascination with randomness and investing.

One of the first ‘investing’ books I read was Burton G Makiel’s ‘A Random Walk Down Wall Street’.

You know, the one where he mentions that a bunch of blind-folded monkeys could do better than expert stockpickers. This fascination and curiosity led me to running my own Monkey Stocks League, where I had my own randomly picked portfolio.

Time has meant that I no longer run the league but I now find myself in another position to have a part of my portfolio which is made up of random stocks.

Enter Freetrade

For those interested, here’s my review of Freetrade.

As a result of Freetrade’s referral scheme and thanks to interested souls clicking on my links, I now have a tidy little portfolio of random shares.

Basically, every time someone I refer signs up, we both get a free share. Here’s a screenshot of some of the freebies I’ve received:

I’ve yet to be awarded a high value share – some people have received Tesla shares, worth around £190!!

Here’s my entire portfolio so far:

I’m not sure what I’m going to do with these – maybe hang on to some of them, maybe sell some of them.

If I sell some, perhaps I’ll use the funds to buy more of the ones I’m keeping…

Anyone interested in a great investing app plus a free share, whilst helping me grow my random portfolio, please drop me a DM via twitter or contact me via the Contact me form for a one-use only link.

I currently have a ‘mystery’ share queueing, courtesy of Tony from One Million Journey – thanks for using the link, Tony and fingers crossed we get good shares! 🙂

FIRE Meet Up Reminder

Just a reminder of the Manchester FIRE meet up next Friday, 27th Sept.

It’s taking place in the ‘Well Area’ of the Rain Bar, 80 Great Bridgewater Street, Manchester, M1 5JG.

6pm – late

Hopefully see a few of you there for a few beers and some pub grub (you don’t want to see me drinking on an emtpy stomach!).