Dad wants to retire, bit sudden what do we need to know?

improviseadaptovercome

Hello all.

I normally lurk on the MFW site, My father isnt an MSEr but Im a little perplexed as he announced recently hes looking to retire, he turns 60 in the next tax year, by 15 days or so!


Now I have a local government scheme so Im sorted (fingers and toes crossed)and the MFW board will help sort me out with other options.

My father has an army pension, did his 22, and a smaller one from a local employer,

He hasnt ran me through the figures yet, and I doubt he has considered whether to retire before the april or after,

So what basic questions should be answering now, His considerable mortgage will be scythed down to a relatively piffling amount.

He has no great ambitions just wants to be shot of work as every day is a chore and its getting him down.

Im going to sit down with him soon, ( he will explain to me what he sees and I just want to make sure its, the right choice and he does it smartly, even it turns out not to be right.)

yelf

????

Oldernotwiser

improviseadaptovercome wrote: »

His considerable mortgage will be scythed down to a relatively piffling amount.

How will this be achieved?

ClareEmily

OMG my dad would be horrified if I asked about his finances, he wants to retire, what's the big deal? He is an adult can't he sort out himself?

Is he still supporting you then, sorry dont understand?

improviseadaptovercome

Oldernotwiser wrote: »

How will this be achieved?

His lump sum from his pension and some savings. as far as I understand it, which will leave his income roughly the same as his current pay so bills etc would be still manageable with no mortgage to cover

Im basically loking for a checklist of factors. questions to ask. things to consider,


I will be looking to professional help at some point but hes just announced this.... hence a bewildering lack of knowledge on my part

improviseadaptovercome

ClareEmily wrote: »

OMG my dad would be horrified if I asked about his finances, he wants to retire, what's the big deal? He is an adult can't he sort out himself?

Is he still supporting you then, sorry dont understand?

Im just his sounding board, of course hes big and brave enough to do it himself, but dont you like to have an informed and valued opinion?, from someone who will love and care for you even you decide to burn all paper money as a sacrifice to a little known god somewhere off a random junction of the m25?

Im a while away from retirement, worst luck ( poor planning) but Hoping is not a financial plan I believe in, so a few questions wouldnt go amiss.!!

dunstonh

Im basically loking for a checklist of factors. questions to ask. things to consider,

There is only one really. Can he afford it?

molerat

His army pension will not increase and there will be no lump sum from it as it will have been at the full rate since age 55 so unless he has been stashing this away he will have difficulty receiving the same income. If he has been saving it all (like me) he hopefully will be ok and will just wait for his £100+ per week pay rise in 5 years time. Good luck to him.

EdInvestor

He should get a state pension forecast so he knows how much extra he's due in 5 years' time and whether his record is complete.He may be due extra from the 2nd state pension.

http://www.direct.gov.uk/en/Pensionsandretirementplanning/TaxandNationalInsuranceinretirement/GettingyourtaxandNationalInsuranceright/DG_10021384

McKneff

Make two lists.

a. Outgoings

b. incomings

if a is bigger than b then keep working

if b is bigger than a, retire

simple as that.




i

bendix

EdInvestor wrote: »

He should get a state pension forecast so he knows how much extra he's due in 5 years' time and whether his record is complete.He may be due extra from the 2nd state pension.

http://www.direct.gov.uk/en/Pensionsandretirementplanning/TaxandNationalInsuranceinretirement/GettingyourtaxandNationalInsuranceright/DG_10021384

Bloody hell Ed. Just once it would be nice to see a post from you without this email link. Just once . . is it really asking too much?

We get the message already :rotfl: