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Lump Sum - How long does it last? Bit of fun!

Discussion in 'Retirement' started by Prim, Oct 16, 2020.

  1. Prim

    Prim Occasional commenter

    As above, just wondering how people have spent managed this?

    Did you think s&d it and blow a large amount on a holiday or exotic car?

    Were you more conservative and banked it and used it sparingly?

    Did you give a large chunk to your children?

    Do you have any left after 1 year, 5 years or 10 years?

    Do you worry about finances if you have spent it all or was it just a bonus :)

    Just for fun but also interested in what you did.

    Best
    P
     
  2. the hippo

    the hippo Lead commenter Community helper

    My lump sum just covered the difference in price between the house we were selling and the one that we have just bought. How is this for a view? I think that my lump sum is going to give Mr. and Mrs. Hippo a lot of pleasure for many years to come.

    smallest.jpg
     
  3. Kateray1

    Kateray1 Occasional commenter

    I’m having the first of 3 pots this year and it is the smallest one so not much of a lump sum. I am hoping to pay off my car finance, put some into the garden , I need some plants and paint for the fencing, then keep the rest for monthly use.
     
  4. littlejackhorner

    littlejackhorner Senior commenter

    I got a new roof for our house. I did plan a luxury cruise but that got cancelled due to Covid and now I have no desire to go on one in the future.
    I'm very cautious with my money, so although I have spent money on the house, I've also saved so actually have more saved now than I had when I retired! We don't have children or a mortgage so that's probably got a lot to do with it.
     
  5. sueclarke65

    sueclarke65 New commenter

    Not taken mine yet, but when I do the first thing I’m having is a tummy tuck!!!!
     
  6. Newidentity

    Newidentity Occasional commenter

    Well, I was supposed to get mine a while ago, and use in to buy a new(er) car. However, things went pear-shaped, so I haven't got it yet but I had to replace the old car anyway, using savings plus finance. So now the question is: when I get it will I use it to pay off the finance, or do something else?
     
    Prim likes this.
  7. maggie m

    maggie m Lead commenter

    Just got mine. We have been mortgage free for a while so also have a decent amount of savings. Decided to have an extension to give us a larger kitchen / breakfast room. Builders start on Wednesday. Had planned to do some travelling but that is on hold. No plans for a new car, we don't do much mileage and current one may be 7 years old but is in good nick. Have put a chunk in premium bonds, will give it 12 months I might be lucky and interest rates are pathetic anyway
     
    c_denny and Prim like this.
  8. Treacle3

    Treacle3 New commenter

    Put mine away for now but intend to split it between my 3 children (22, 21 and 20) as they (hopefully) get onto the housing ladder. They need the money more than me tbh and I don't want to be like my Dad - who is wealthy but says we'll all get it when he dies...He's 85 and appears to be in almost perfect health so could last a long time yet:D
    On a serious note though, over the last 20 years there have been times we would have been very glad of a financial helping hand from him and I don't want to be the same towards my children. Hope I don't sound bitter. I'm not. I respect his right to keep all his money locked away - but I wish to do things differently:)
     
  9. Prim

    Prim Occasional commenter

    Completely agree with this. It is so much better to see your children enjoy your wealth and help (if possible), why keep it if you don't really need it.
     
  10. rooney1

    rooney1 Occasional commenter

    Some helped one child to buy his first house, similar amount put away for other child, some on new car (the only NEW car I have ever had - and I won' t have another one), some put aside for implant that needs to be done but I'm so scared of having the tooth out, some on replacing falling down out building and making patio area safe to walk on as we get older. The rest waiting for me to decide. We were going to Canada this year but haven't. Taking my pension coincided with my mother dying so there was a small inheritance from her too.
     
    sunshineneeded and brook123lyn like this.
  11. pauljoecoe

    pauljoecoe Occasional commenter

    Mine (and my wife's) has been added to our other savings/investments/AVC's to supplement our pensions over the next (hopefully) 20 years or so. The basic pension(s) are enough to pay general day to day living expenses but the rest of it is to pay for holidays/travelling and other expensive hobbies such as sports cars! (The kids will have to sort themselves out - we did!)
     
  12. heldon

    heldon Occasional commenter

    used to provide adventures over hopefully a 20 year period
     
  13. littlevanner

    littlevanner New commenter

    I paid off mortgage and gave 30 k to daughter as deposit on a house . I have 15 k left but no regrets
    ( however only been retired 2 months )
     
  14. Treacle3

    Treacle3 New commenter

    Crikey...a healthy lump sum. You must have been on a large salary for a long time. Fair enough - you earned it:)
     
    c_denny likes this.
  15. Prim

    Prim Occasional commenter

    Or it would depend on how much of your pesion you cashed in for your lump sum? You could easily hit 100k if you sacrificed some of your monthly.
     
  16. pauljoecoe

    pauljoecoe Occasional commenter

    30K + 15K = 45K Might have only been 5K or whatever left on the mortgage. Lump sum is 3X salary. On a salary of say 45K (middle management) you are talking up to 66K depending on how long you have been in teaching.

    Also you don't have to be on a large salary for a long time - 3 years would do it.
     
    Treacle3 likes this.
  17. 60sunnysmile

    60sunnysmile New commenter

    I haven’t got mine yet, hopefully after Xmas. I’m planning on taking the full 25% and splitting it between my two children for house deposits. I’ll then have a smaller pension which I will manage to live on as I don’t need much anymore. My children are most precious to me and helping them out when I’m alive to see it means everything to me. Far more than holidays and such.
     
  18. Baron_Hamstead

    Baron_Hamstead New commenter

    I took the maximum lump sum which still left me with a decent pension of £18000 plus. I also had a small AVC that only pays several hundred a year. I used about two thirds of my lump sum to pay off my mortgage, all outstanding debt, a newish car, several holidays and house maintenance. The rest I spread across several savings accounts, a Cash ISA and a S&S ISA plus some Premium Bonds.
    Earnings from fixed term contracts after retirement helped me to top the lump sum up again to about half its original total which is now my back up.
    Earnings from my part time pastoral support work are going towards a kitchen refurbishment next year.
    No dependents so feel I am in a decent position.
    Also due to receive an almost full new state pension from 2024 after paying another 4 years NI payments. At the moment the part time work is enablling pay to these from salary. I will have paid in 47 years by 2024 as a result of having been contracted out for so many years.
    So maximising lump sum was appropriate for my circumstances. It is a very individual choice.
     
    Prim likes this.

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