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    • Notfarfromtheborder
    • By Notfarfromtheborder 11th Jan 18, 12:17 PM
    • 120Posts
    • 163Thanks
    How many more years
    • #1
    • 11th Jan 18, 12:17 PM
    How many more years 11th Jan 18 at 12:17 PM
    Morning all

    Just wanted a sanity check, I think I'm looking at matters through rose tinted specs thinking I could 'retire' soon

    As an update,
    DC pension pot £255K, all in my name. Currently £40K per annum going in through SS
    ISA / Equities £206K, split between us. Currently generating income of circa £7200 per year
    Cash £30K
    Mortgage Free

    Me 48
    Better half 47

    OH is in NHS 1995 scheme and has been in it since 21 so she will get a decent £10k pa pension from 55 in 1995 scheme
    Also £2K per annum from 67 accrued in new 2015 care scheme

    Other pension is an old db pension that is forecast to pay circa £4K pa after 65.

    Both of us should get full state pensions, me at 67, better half 68.

    I think we need circa £30K net per annum, would also need to buy another car

    Better half brings in £1500 working part time in NHS and thinks she would like to continue in the future. This will increase 2015 scheme pension also

    Could I get out of the rat race soon?

    Maybe next 18 months and retire in my 40's... (a week before my 50th)?

    Is it too tight based on the numbers above??
Page 1
    • Linton
    • By Linton 11th Jan 18, 12:49 PM
    • 9,205 Posts
    • 9,303 Thanks
    • #2
    • 11th Jan 18, 12:49 PM
    • #2
    • 11th Jan 18, 12:49 PM
    In the long term you look OK with your OH's NHS pensions, your DB pension and both your SPs would just about meet your inccome requirements without your needing to access your DC pension. This is assuming the DB pensions are index linked. You may need to investigate how you would be placed if your OH died before you.

    However up to that time it looks too complicated to work out without a detailed plan showing how much extra income you need each year and where that income will come from. It's quite straightforward to put together a financial plan if you have some experience with spreadsheets.

    Essentially you need a row for each year and columns showing expenditure increasing with inflation matched by income from employment, early pensions and transfers from the various savings/investment pots. Each savings pot should be given a separate column as it will increase with investment return/interest but decrease if it is used for expenditure. If you parameterise the inflation rate and the investment return rate you can play with what-ifs.
    • Stubod
    • By Stubod 11th Jan 18, 1:45 PM
    • 462 Posts
    • 321 Thanks
    • #3
    • 11th Jan 18, 1:45 PM
    • #3
    • 11th Jan 18, 1:45 PM
    On the face of it, I would say you don't have enough to meet your requirements of £30k per year, (particularly considering you need to factor in inflation for the best part of 20 years).

    The only way to tell is as per the above which is to set up a spreadsheet with a year per row, starting with your current "savings", then adding in any planned "income", for each year and then your planned expenditure, (which should be increased each year by "x" amount to cover inflation).

    You can then at least play around with the numbers and see what works for you...
    • redux
    • By redux 11th Jan 18, 2:35 PM
    • 18,155 Posts
    • 23,394 Thanks
    • #4
    • 11th Jan 18, 2:35 PM
    • #4
    • 11th Jan 18, 2:35 PM
    If you retire this early, you might find ways to spend a bit more money, or to regret you can't.

    My father was made redundant/ retired early with compensation and augmented pension. He worked part-time after that, some of it with my mother helping. Sometimes it would seem to me my parents took on average one holiday a month, a couple of trips a year abroad for a couple of weeks, and some just a weekend 50 miles away at the seaside.

    So I think the considerations involve not only being out of the rat race as you call it, but what you are going to do instead. Pastimes to keep you busy, maybe part-time work connected with them or something else. Getting by on modest spending isn't necessarily going to be the same at 50 as it might be at 75 when you might feel slightly less active.

    In your situation I'd be tempted to stick with it a bit longer, possibly look at going to 3 or 4 days a week if the employer is flexible, develop something alongside that you've been considering for a while, those sort of things. Although the numbers look like they might add up now, a bit more margin before you leap wouldn't do any harm.
    • IanSt
    • By IanSt 12th Jan 18, 10:29 AM
    • 257 Posts
    • 189 Thanks
    • #5
    • 12th Jan 18, 10:29 AM
    • #5
    • 12th Jan 18, 10:29 AM
    Some good advice above, here are a few questions that you may also want to consider:

    Are you 100% sure that your OH is going to be happy to continue working once she sees you retired? She might well think that she'd like to continue at the moment, but might she change her mind when she sees you enjoying the retired life?

    Are you sure that you will get the full state pension? You look to be on the young side to be in that happy position.

    What performance are you thinking you'll get from your investments? I personally would base any plans on a possibly more pessimistic view of future performance especially with regard to what you may have experienced over the last few years.
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