Early Retirement

Jack_Itin

O.k.....Here is another question, although I suspect that I already know the answer........my wife gets £300 a month old age pension.... I will be taking a lump sum, and getting £465 a month pension due to early retirement..... we will have £190 a week to live on....will she be able to claim pension credit ?.........Jack. :rotfl::rotfl:

mazzy

Good luck on your retirement Jack. I am retiring early at the same time as you and have a very similar FS pension 30,000 lump sum and 4, 600 a year. Fortunately my husband who retired in December gets £180 a week state pension so with mine as well its doable. I will use the lump sum as a top up as and when we need it. He also has a DC pension pot which we are waiting on until after April to see what drawdown offers there are. When SP for me kicks in it will be a nice bonus.


We have never earned much so it won't be too great a change for us. I am really looking forward to it now and my husband has been keeping himself busy doesn't miss work at all.

Jack_Itin

Thanks for the encouragement Mazzy, As I said earlier it really is a leap into the unknown.......I have always worked, 35 years in current job, but won't be sorry to leave, same as you I am really looking forward to it......everyone at work seems so stressed these days.....it never used to be like that......glad to be getting out......Regards Jack.

mazzy

Just remember and I think I read this on here, you can buy a lot of things but you can't buy time. I worried a bit about how it would be with a lower income then thought back to the times when we had very little and still enjoyed life, now retirement can't come soon enough.


Are all workplaces getting so much more stressful, there seems to be so much more pressure on people now. I run a works canteen and I am continually being pressurised to make more money. We sell good food at a reasonable price mainly to warehouse staff who don't have incomes exceeding £15.000 a year, if I keep putting up prices they will just bring their own lunches.


I know my own position is very lowly and there must be people on here under huge pressure at work for different reasons. I don't personally know anyone who enjoys their job at the moment whatever they are doing.

Jack_Itin

Four weeks to go now, it has come around very quickly.....I am going to go onto a zero hours contract .......on an as and when needed basis, which suits me fine, can someone please explain what will happen with my tax code ?.......I won't be earning enough, including pension, to put me over the personal allowance.......Jack.

jem16

Jack_Itin wrote: »

can someone please explain what will happen with my tax code ?

It's likely that your pension company will use the emergency tax code of 1060L on a non-cumulative basis until HMRC sort it out. However they may use the BR tax code.

Is your work going to issue you a P45 if you are going to still work with them now and again?

I would probably suggest that as soon as you get your first pension payment, phone HMRC and get them to assign your main tax code to the pension. BR would probably then be assigned to work.

I won't be earning enough, including pension, to put me over the personal allowance.......Jack.

That might cause a slight problem and may be better for you to have your tax code split. Once you know the actual amounts you can discuss a possible split tax code with HMRC.

Jack_Itin

Thanks Jem, I am not sure yet if I will actually leave my current employment, and then be re-hired on this zero hours contract, or if it just carries on ......my manager is going to sort it out next week.......one thing, what is a BR tax code ?........Jack.

mgdavid

Basic Rate, i.e. it assumes the PA (£10600) is used elsewhere and taxes all income from this source at 20%.

Jack_Itin

Of course, Basic rate, I should have known that.....so, just to clarify.....the monthly pension, and the zero hours earnings, are classed as SEPERATE income, but both go towards the total P.A.....is that correct ?.............Jack.

jem16

Jack_Itin wrote: »

Of course, Basic rate, I should have known that.....so, just to clarify.....the monthly pension, and the zero hours earnings, are classed as SEPERATE income, but both go towards the total P.A.....is that correct ?.............Jack.

It is correct.

How much will your pension be each month - the gross amount?