Early Retirement

bigadaj

It would be worth knowing what the lump sum would buy in increased pension, or what pension you are effectively giving up for this lump sum.

This commutation rate is often very poor and it's frequently better to take the higher pension offered, assuming you're in reasonable health.

Jack_Itin

Goldiegirl, Have just put your suggestion to my Mrs. she likes the idea, and is going to start straight away.....she is very ''frugal'' anyway, being a good old Scottish girl, I am not bothered about myself, as long as she is o.k then it should work.......thanks, Jack

Goldiegirl

Jack_Itin wrote: »

Goldiegirl, Have just put your suggestion to my Mrs. she likes the idea, and is going to start straight away.....she is very ''frugal'' anyway, being a good old Scottish girl, I am not bothered about myself, as long as she is o.k then it should work.......thanks, Jack

Excellent ,

I've found that having a goal in mind which will really improve my life has kept me focused - I'm enjoying the challenge

Jack_Itin

Another question for you experts out there, if I waited for say another year, and went at 63, or even stayed until 65, by how much would my pension rise ?......it is a final salary scheme.....but I don't see my wages rising by any great deal between now and then ......Jack.

[Deleted User]

Hi,

if you want to go now, just go and enjoy your free time, I sure you will survive on what's coming in, your wife'll make sure.

Enjoy.

Be happy. :j

[Deleted User]

Hi,

as a new joinee maybe you havn't seen this forum, click, but sure your wee frugal wummin will know a few money saving hints herself.

Jack_Itin

Frugal, Thanks for that, still finding my way around.....but I have to say what a great site this is.......only been here a couple of hours and lots of questions answered............Jack.

[Deleted User]

Hi,

you'll find it very friendly and helpful, have a look at the other forums, DIY, Techie, Gardening, good craic, you get the odd wee stramash, but, ach, unless you want to bash their heids the gither, just ignore them.

Welcome,

kidmugsy

If you are going to try the experiment of frugal living, consider the possibility of your wife suspending her State Pension for a year. (It's officially "Pension deferral".)
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/299286/dwp024-apr-14.pdf

The reward she'd get for a year's deferral is 10.4% extra on her pension - that's like buying an index-linked annuity that pays 10.4% p.a.; a remarkably good deal. (It's so good that the reward is going to be halved for the new-style State Pensions.)

Another thing you could consider once you have some spare cash, i.e. after April '15, is for your wife to make a pension contribution (up to £2880 per annum). The taxman makes the £2880 up to £3600 and then, shazzam, the intention is that she can draw it all out and, in her case, it'll be tax-free. (Strictly 25% will be tax-free, and the rest will be taxed but she can claim back that tax.) So if the new laws reflect the Chancellor of the Exchequer's intentions, this may be a very good stunt. It's worth keeping an eye on to see whether some regulations are introduced to obstruct it.

atush

Jack_Itin wrote: »

I could take less than the £32.500 and get a slightly larger monthly amount......but this option seems to be favourite,.....it's those damn monthly bills.........Jack

"those damn monthly bills"would be better served, in the long run, by the higher pension.

why is the 32K LS option preferred? Do you have outstanding debt? Do you have savings now?

I am not necessarily saying take no LS just not the maximum esp if it is not enough to cover your outgoings. As after all, they will only go up while the LS diminishes. You need a long not short term strategy here.