Hi Guys,
I think that there is another aspect of retirement that needs to be considered, people who are 'lucky' enough to live into their 80's, 90's and even 100's tend to become progressively less active and accordingly need less money.
Of course we all read about fantastic old men in their 90's who are still climbing mountains, riding motorbikes, living life to the full, however those news stories mask the truth, they wouldn't be newsworthy stories if it wasn't unusual for such old men to be so active. Most old men in their 90's struggle to mow their lawns, and tie their shoe laces, just getting up and watching a little daytime TV is an achievement for many.
I remember a spokesman from the Guinness book of records commenting on local TV about a man who had broken records living to 110, 112 or something like that, the Guinness guy said 'Of course he led a full life and got up every day, lots of those aged over 100 often stay in bed for days on end'.
I am 63 and have retired a little early because of various factors like my mum needed caring etc, I am effectively living on a diminishing balance, no point investing in an annuity with interest rates like they are.
This year I have had 2 weeks holiday in Canada, trips to the theatre, football etc, I am off to an overnight reunion in London tomorrow, I am driving 14,000 miles a year, taking the grandchildren on trips to the seaside and theme-parks, happy in the knowledge that I might as well spend it now, while I am fit enough to enjoy it.
I haven't got enough money to spend at this rate for many more years, but I am being realistic, quite apart from PCa, I have arthritic hips, my knees are dodgy, the doctors have me on statins, which is code I am at risk of a heart attack or stroke in the next 10 years. So if I am still here in ten years time, I probably won't be able to afford the health insurance for foreign holidays, my heart won't be able to cope with the excitement of a football match, and my grandchildren will be driving themselves to the seaside.
If I am still here in 20 years time, I will probably need carers to look after me, and if I have any money left Social Services and the Council will take it to pay for my care. So I need to ensure that I either spend it all, or give it to my children, before that happens.
So in planning for your retirement, remember you will have a few relatively expensive years, followed by relatively cheap years, and then while you still have your marbles, you need a cunning plan to ensure what you have left is passed on to your descendants and not snaffled by the government.
:)
Dave