Couple make the most of senior years.

Michael and Margaret Payne are enjoying a comfortable retirement.

The couple, while not fabulously wealthy, have enough money to make regular trips to see their son, Nigel, 40, and two grandsons Jacob, seven, and Aaron, four, in America, as well as their daughter Jacqueline, 36, in Hereford, and to indulge their hobbies. They also enjoy the occasional cruise.

Michael, 71, retired early from his job as a depot manager with Distillers CO2 in 1992, while Margaret, a nurse, gave up work four years ago. Both are reaping the benefits of having paid into occupational pension schemes.

The Paynes, who moved to Seaton Carew, Hartlepool, from Wiltshire, three years ago, to be nearer Margaret's family and friends, also made money on their old home. And they have over the years invested wisely.

"We are okay and optimistic about retirement," says Michael. "You can never have enough money, but we have enough to survive. We are paying pounds 25 a month into accounts for each of our grandchildren, and we have been able to give our two children some financial help."

The Paynes have invested in bonds, although they recently cashed one in to buy a new car.

Michael says: "I am making sure we only dip into our income from our investments as a last resort. We have our inheritance tax situation sorted out and our home is in joint names.

"Years ago we both put pounds 6,000 into a tax-free high interest Foreign and Colonial Pep (Personal Equity Plan). The value of mine is now down to about pounds 5,300, but I have had about pounds 6,000 income from it. It was paying pounds 60 a month in interest, which is now down to pounds 32.

"Margaret has put her Pep money ( about pounds 9,620 ( into an Investec fund. During stockmarket troubles it dropped down to about pounds 7,800, but we have ridden out the storm and it has now worked its way back up to pounds 13,500.

"We have also had a portfolio of other low risk investments since 2003 which have gone up 21% in value.

"I play golf about three times a week and have an old car I fiddle about with, and Margaret is in a swimming club and goes swimming every day. We can afford to do the things we want to."