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    • tezza11
    • By tezza11 16th Mar 17, 11:43 AM
    • 5Posts
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    tezza11
    Retirement Planning advice
    • #1
    • 16th Mar 17, 11:43 AM
    Retirement Planning advice 16th Mar 17 at 11:43 AM
    Hi
    I am looking for some help and advice on retirement planning and was wondering if any of you can help.

    I am 60 years old and employed as a heating engineer, however the days of repairing and lifting boilers off and back on walls for 10-12 hours a day (including travel to/from customers) is taking it's toll and I am thinking about retirement and whether I can afford to or not.

    The last pension statement I received says my pension is worth approx £12k per year. So if I were to retire today, after paying bills, I'll end up with approx £500 per month which is obviously a massive drop from my current earnings (which I expected) and after living expenses wouldn't leave me much to do other things I enjoy. I obviously know there is no magic bullet and this is how it is.

    I am just wondering if anyone out there has any advice or if there is anyone out there who was in a similar position and what did you do or could recommend.

    I've read that I could take a lump some but not sure if it's worth it. I also own my house which is valued at £120k and was wondering if I could use this as a way to bump my pension either selling and renting somewhere or any other way.

    Any advice is greatly appreciated.

    Thanks in advance
Page 1
    • molerat
    • By molerat 16th Mar 17, 12:11 PM
    • 17,109 Posts
    • 11,261 Thanks
    molerat
    • #2
    • 16th Mar 17, 12:11 PM
    • #2
    • 16th Mar 17, 12:11 PM
    Renting will likely cost you a minimum of £600 per month depending on location with no long term security so selling might not be that attractive. Sell up and live on a Thai beach ? Take in a lodger ? £12K is a just doable amount to live on. Can you go part time and use some of your other skills, I assume you are / were a plumber originally.
    www.helpforheroes.org.uk/donations.html
    • kidmugsy
    • By kidmugsy 16th Mar 17, 1:06 PM
    • 9,679 Posts
    • 6,437 Thanks
    kidmugsy
    • #3
    • 16th Mar 17, 1:06 PM
    • #3
    • 16th Mar 17, 1:06 PM
    Take in a lodger ?
    Originally posted by molerat
    People seem to object to this suggestion but a friend of ours who did it for more than twenty years thoroughly enjoyed having a cheerful younger person around the house. And, of course, Rent a Room means that the income can be tax-free.
    • xylophone
    • By xylophone 16th Mar 17, 1:13 PM
    • 23,146 Posts
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    xylophone
    • #4
    • 16th Mar 17, 1:13 PM
    • #4
    • 16th Mar 17, 1:13 PM
    Have you obtained a new state pension statement to help with planning?

    https://www.gov.uk/yourstatepension?utm_source=Mail-Online&utm_medium=Partnership&utm_campaign=GTKY

    Your pension is Defined Benefit and you can draw it at 60 without actuarial reduction?

    If DC, you could book an appointment with Pension Wise to discuss your options.

    https://www.pensionwise.gov.uk/?gclid=CIKG-YmN29ICFVAQ0wodDn0EHA
    • tezza11
    • By tezza11 16th Mar 17, 2:17 PM
    • 5 Posts
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    tezza11
    • #5
    • 16th Mar 17, 2:17 PM
    • #5
    • 16th Mar 17, 2:17 PM
    Renting will likely cost you a minimum of £600 per month depending on location with no long term security so selling might not be that attractive. Sell up and live on a Thai beach ? Take in a lodger ? £12K is a just doable amount to live on. Can you go part time and use some of your other skills, I assume you are / were a plumber originally.
    Originally posted by molerat
    Thanks for the reply.

    Going part time with my current employer isn't an option, I could try and find some part time work or work for myself for a few hours a day or days a week but I'm thinking it might be a nightmare completing any tax forms etc as I've never done it before.

    Thanks
    • tezza11
    • By tezza11 16th Mar 17, 2:30 PM
    • 5 Posts
    • 0 Thanks
    tezza11
    • #6
    • 16th Mar 17, 2:30 PM
    • #6
    • 16th Mar 17, 2:30 PM
    [QUOTE=xylophone;72260681]Have you obtained a new state pension statement to help with planning?

    Your pension is Defined Benefit and you can draw it at 60 without actuarial reduction?

    If DC, you could book an appointment with Pension Wise to discuss your options.

    Thanks for the reply

    I'm not sure if it's Defined Benefit, i'll have to look at the paperwork again and maybe get in touch with Pension Wise.

    I was just wondering as I've got a decent amount of equity in the house if I could use it in anyway to supplement the pension when I take it.

    Thanks again
    • kidmugsy
    • By kidmugsy 16th Mar 17, 2:57 PM
    • 9,679 Posts
    • 6,437 Thanks
    kidmugsy
    • #7
    • 16th Mar 17, 2:57 PM
    • #7
    • 16th Mar 17, 2:57 PM
    I was just wondering as I've got a decent amount of equity in the house if I could use it in anyway to supplement the pension when I take it.
    Originally posted by tezza11
    Yes, you could consider equity release. You might be a bit young for it.

    You're not allowed to do it without professional advice, which is perhaps just as well.


    As the population ages there is probably a growing demand for the services of a handyman. Could you try to earn a little doing that i.e. sticking to local customers, doing only short hours, and avoiding anything hard on the back?

    I can imagine an ageing couple perhaps wanting your services as a trusted local tradesman to keep an eye on their interests as a contractor replaces bits of their plumbing or heating, or even wanting your help in assessing quotations. In other words, could you exploit your wealth of knowledge and experience without too many physical demands being made on you?
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