Time of year to retire

atush

What is your actuarial reduction for going 18 months early, and can your retirement afford that?

Goldiegirl

atush wrote: »

What is your actuarial reduction for going 18 months early, and can your retirement afford that?

For me, I'd actually be going 11 years early - I'll only be 55 in Spring next year.


I'm already in receipt of a final salary pension, which I took as part of a redundancy package when I was 50 - the figure was enhanced as part of the redundancy package. I have no other occupational pension, as I started a small part time job, which I knew I was only going to be in for a few years


My husband already has pension income from what was his main pension. It was a guaranteed annuity pension that matured when he was 60, so the annuity rate was good.


When he's 65 he'll have his state pension, plus second state pension, plus funds from the period when he was contracted out of SERPS.


The only other variable is a pension that he took out 10 years ago when he joined his current employer. He will stop paying into this pension when he stops work, but wont draw the pension until he's 65, so there won't be an actuarial reduction. Obviouslythe pension would be slightly less as he won't be paying into it for 18 months.


So essentially, there wouldn't be much additional pension for continuing to work for more 18 months. Just less money going into the saving pot.


As an exercise, we are currently living comfortably on the monies received each month from our current pensions, so we believe the our retirement can afford an early start.


We have savings, and a property to downsize if needed.


We can't see into the future, but we believe we can have a reasonably comfortable life

mazzy

atush wrote: »

What is your actuarial reduction for going 18 months early, and can your retirement afford that?

That I don't know, I have avoided making enquiries as I thought I was going to be made redundant and that decision would then be made for me. It seems now that redundancy may be some time in the future so I don't want to be hanging around waiting for it. My workplace was great up to a few years ago but has changed so much I no longer want to be there.


As to affording the early retirement I think that has to be weighed against time with my husband to relax and enjoy while health still allows it. We will have his State pension of around £160 per week also a small private pension about £20 per week and my FS pension I think will be around £100 per week, four years later another £100 per week from my SP.


Compared to a lot of people on here that is quite a small income but we have only earned a maximum of £28,000 a year between us so it is all relative. We own our bungalow, have no debt and will have around £90,000 in savings by December. We have always managed to run two cars and go abroad a couple of times a year, saved some and helped our kids out as much as possible. We have a large garden and grow a lot of veg so that helps out too.


Our downfall is that we both smoke so that is likely to shorten our lives somewhat but will go in our favour when my husbands annuity comes up. I only found that out from reading this board so now I read all the threads in here. We go to Belgium for our tobacco so doesn't cost us much to smoke, only about a fiver a week each and we have a day out each time we go.


The winter months of retirement do concern me a bit, spring, summer and autumn will be taken up in the garden. If I get bored I will look for a little job for a couple of days a week.

kidmugsy

mazzy wrote: »

The winter months of retirement do concern me a bit, spring, summer and autumn will be taken up in the garden.

Try taking your holiday abroad somewhere sunny in January, after the schools have re-opened. It does wonders for morale.

atush

That I don't know, I have avoided making enquiries as I thought I was going to be made redundant and that decision would then be made for me. It seems now that redundancy may be some time in the future so I don't want to be hanging around waiting for it. My workplace was great up to a few years ago but has changed so much I no longer want to be there.

Make the inquiries. You should be making your choice with your eyes wide open and not tightly shut.

As for retiring early, you could then vary it depending on what yo find to 6-12 months for instance. AS long as you know what you will be losing.

For me, I'd actually be going 11 years early - I'll only be 55 in Spring next year.

Thanks, but was asking mazzy.