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  • FIRST POST
    • ChrisJBSC
    • By ChrisJBSC 13th Oct 16, 10:42 PM
    • 6Posts
    • 1Thanks
    ChrisJBSC
    Retirement stages
    • #1
    • 13th Oct 16, 10:42 PM
    Retirement stages 13th Oct 16 at 10:42 PM
    I am 60, and trying to decide when to retire...
    Most pension calculators seem to say: Decide what you need, tell us what you have available, and then they calculate the same thing year in, year out for 30+ years (AND tell me I cant afford it!)
    BUT that feels wrong to me.
    I feel as though I need lots of money now (fun, enjoyment, long holidays) for around 10 years. Then a period of calm, serene settled life with little needs for 10 years. Then a period of rising costs again, as I need carers or support or care home costs for the last 10 years.

    Are there any calculators that will show me these differing early / mid / late periods? Are there any products that will help me?!
Page 2
    • Sleazy
    • By Sleazy 14th Oct 16, 8:50 PM
    • 2,689 Posts
    • 2,493 Thanks
    Sleazy
    Another way of doing it is paying 2880 into a SIPP - even if you're not paying tax you should get it grossed up to 3600. You can then take 25% Tax Free (25% of 3600 = 900). So you have effectively got your NIC's paid for you .....

    Seems daft not to, unless you don't have the money to put into a SIPP or I'm missing something (hopefully not a screw) ....
    *** IF IN DOUBT, BLAME BREXIT ***
    • jerrysimon
    • By jerrysimon 14th Oct 16, 9:34 PM
    • 116 Posts
    • 52 Thanks
    jerrysimon
    I have already been bunging in money in a SIPP for my wife at the rate of her earnings of 6K/year these last two year should have over 12K having only paid in about 8-9K by April next year when she gives up work completly with me.

    As my wife will only have a 3K work pension we could draw most of that out the SIPP in the first the year with no tax payable and as you say use it to top up both our SPs.

    PS reading your post again if my wife is not paying tax then we cant make voluntary payements for her, but as I will on my work pension I can ?

    Just chatted with my wife and she said it would be better to keep it in a SIPP (paying it just before SP age) as then at least we would have access to it if either of us died before SP kicked in. Though again like you said they may have stopped it by then. Man this is complicated!

    Jerry
    Last edited by jerrysimon; 14-10-2016 at 9:53 PM.
    • AnotherJoe
    • By AnotherJoe 17th Oct 16, 6:20 PM
    • 4,195 Posts
    • 4,214 Thanks
    AnotherJoe
    I have already been bunging in money in a SIPP for my wife at the rate of her earnings of 6K/year these last two year should have over 12K having only paid in about 8-9K by April next year when she gives up work completly with me.

    As my wife will only have a 3K work pension we could draw most of that out the SIPP in the first the year with no tax payable and as you say use it to top up both our SPs.

    PS reading your post again if my wife is not paying tax then we cant make voluntary payements for her
    Originally posted by jerrysimon
    You can, you can pay in £2880 and get it topped up to £3600
    • Jonzo
    • By Jonzo 19th Oct 16, 4:47 PM
    • 3 Posts
    • 4 Thanks
    Jonzo
    Time v money when to retire
    You provide little information but if you think you can draw around £16,000 pa from your pension pots then I would say "go for it". Life is short and time cannot be bought once its gone. If money gets tight then maybe do a bit of part time work. The freedom of retirement is wonderful and it sounds like you owe to yourself to get off the treadmill. I read a scary statistic that 22% of men die before they reach 65. Does that help?
    • jerrysimon
    • By jerrysimon 28th Oct 16, 9:47 AM
    • 116 Posts
    • 52 Thanks
    jerrysimon
    That's precisely what I'm saying. Voluntary NICs are insanely good value. If you had £120 pw at April 2016 you'd need 8 more years to get to the full new SP level. You'll get one for this year so that leaves 7 to go. At current prices that would be a little over £5k of capital expenditure to get £1,300 a year post-tax income from 66.5. You could theoretically wait a few years to avoid tying up the money for so long, but I personally plan to pay each year as it comes in case HMRC put the prices up as it just seems too good to last.
    Originally posted by Triumph13
    I have been checking this, can you only do this if you have less than 35 years of contributions that were contracted out i.e. I already have over 35 years contributions albeit contracted out ?

    I know at the moment as I am still working, and paying NI, I will be earning extra SP over and above the amount I qualify for being contracted out, but when I stop working in March 2017 and no longer pay NI, then I am told I will not be able to top up these NI payments ?

    I will of course be paying tax on my pension so not sure if that entitles me o carrying one paying addition NI contributions to increase my final stat pension from £120/w to £155/w ?

    Just to clarify I will be 56 and 1/2 when I start drawing my DB pension next March so 10 years before SP age.

    Jerry
    Last edited by jerrysimon; 28-10-2016 at 11:06 AM.
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