Income (gross) in 2007 (pre credit crunch) before having any social security type pension.
DB (COLA protected) pension - 65%
Income from investments - 35%
Income (gross) in 2010, with all social security type pensions activated.
1) DB pensions - 66%
2) Social Security type pensions - 20%
3) Income from investments - 14%
All investments are in fixed rate bonds. There are no stocks, funds, etc., (and were rare in the past). That's just how I approach it. The loss in investment income has been offset by the newly aquired social security type pensions, for now. A quirk of timing.
2007 total spending (including tax) equaled the 65% figure of the DB pensions, therefore, no additional funds to increase savings (but all investment profits were re-invested).
2010 total spending (including tax) is 68% of total income. The majority of the 20% of income from 2) is now invested into the capital of 3). Of course, all profits from investments are still re-invested.
Whilst I understand the basics of this poll, I agree with some other posts. This poll is a good snapshot in time, but the situations are constantly changing and only reflect the current circumstances, not a life long stance.
We live a true 'replacement' lifestyle in retirement (perhaps, even 'replacement plus'). If current expenditures remained the same (no inflation), and the pensions in both 1) and 2) were to vanish completely tomorrow, the capital in 3) would only last us for 9 years. A 50% downsizing of our home (no mortgage) would release enough profits to last an additional 11 years. Therefore the DB pensions are (and will continue to be) my largest and most important source of income. I may not be totally dependent upon them now, but they allow investment for future years when the DB COLA factor will not have kept pace with the real increase in costs.
I barely qualified as having retired early, so very few posts on this site. But the perspective from life beyond the termination point (w*rk termination, that is) for someone not investing in the markets might be of interest to some. For those retiring today, it can be done. I believe those retiring in 20 years time face a far more difficult challange.
DB (COLA protected) pension - 65%
Income from investments - 35%
Income (gross) in 2010, with all social security type pensions activated.
1) DB pensions - 66%
2) Social Security type pensions - 20%
3) Income from investments - 14%
All investments are in fixed rate bonds. There are no stocks, funds, etc., (and were rare in the past). That's just how I approach it. The loss in investment income has been offset by the newly aquired social security type pensions, for now. A quirk of timing.
2007 total spending (including tax) equaled the 65% figure of the DB pensions, therefore, no additional funds to increase savings (but all investment profits were re-invested).
2010 total spending (including tax) is 68% of total income. The majority of the 20% of income from 2) is now invested into the capital of 3). Of course, all profits from investments are still re-invested.
Whilst I understand the basics of this poll, I agree with some other posts. This poll is a good snapshot in time, but the situations are constantly changing and only reflect the current circumstances, not a life long stance.
We live a true 'replacement' lifestyle in retirement (perhaps, even 'replacement plus'). If current expenditures remained the same (no inflation), and the pensions in both 1) and 2) were to vanish completely tomorrow, the capital in 3) would only last us for 9 years. A 50% downsizing of our home (no mortgage) would release enough profits to last an additional 11 years. Therefore the DB pensions are (and will continue to be) my largest and most important source of income. I may not be totally dependent upon them now, but they allow investment for future years when the DB COLA factor will not have kept pace with the real increase in costs.
I barely qualified as having retired early, so very few posts on this site. But the perspective from life beyond the termination point (w*rk termination, that is) for someone not investing in the markets might be of interest to some. For those retiring today, it can be done. I believe those retiring in 20 years time face a far more difficult challange.