Just retired

ferox666

atush wrote: »

Glad it worked out for him, but he had other options like saving outside the TPS in a DC pension or S&S isas to fund early retirement so he could take his pension later like you wisely did? also he could have worked part time as a supply teacher (many find it less stressful) or in other lower paid but less stressful work. I say this for others considering the same.

As for the jealous fellow employees, they are being very stupid indeed not learning about their pensions as they should know anyone retiring that early does so at a reduction.

Your first post, atush, came across as abrupt and attempting to be smart/smug. Just like another recent post where you used the same tone with someone who remarked they'd paid off their mortgage early ("classic mistake"). I'm sure 7D and her husband carefully considered all factors before making their decision. The best "financial" option isn't always the most appropriate unfortunately. It would perhaps be a good thing if you didn't make such rude remarks without knowing people's full circumstances - you clearly didn't in this case and with the one in the other thread...I appreciate you post a lot of good and helpful advice which is appreciated...but the tone/attitude displayed here is disappointing.

atush

they may have they may not-we cant' say.

No smugness or rudeness was intended, and I feel you have made this decision on your own.

People make dubious financial decisions for emotional reasons. As long as they understand and are happy to pay the cost of them, then fine. But to encourage others to do so because you have is not a friendly thing to do. there are other options that could improve pension prospects and it is right to point out the other side.

As for paying off a low interest rate mtg when investment growth tends to be larger, esp when delaying pension contributions and forgoing employers contributions until after you do so is a classic mistake and on that post and others many agreed with me. I'll stand by my opinion on this point as well.

Now perhaps if like you I had too much free time on my hands I could trawl back thru your posting history and pick it apart? In my case I have far better things to do with my time.

seven-day-weekend

I appreciate that atush was giving advice for the benefit of others, however his/her post did come across as a bit rude. However, I have not complained and s/he generally gives excellent advice so I will forgive him/her for this one slip in politeness

Happier_Me

No, it's not very nice that your company didn't recognise your efforts over the last 20 years but that isn't uncommon nowadays I don't think. I certainly wouldn't be losing any sleep over it. Focus on your future and congratulations on retirement.

I am a regular lurker on the retirement and pensions board and have always found your posts very informative and useful Atush. It's information from you and other regulars that is helping to shape my own retirement plans (I am 39 so have some way to go) so thank you. Many of the posters on this forum base their advice on what is financially the best decision which is fine for me because that is the main reason for my 'lurking'. I 'flex' this advice to suit my own circumstances.

For me the other side of the decision making equation is psychological. Life can get in the way of what is financially the optimum choice. If we have had the forsight and the means to plan for such a possibility then great, if not then we make the best decision available at the time. I would sacrifice a third of my pension without a second thought to prevent significant health issues. I am fortunate enough to have the time and the means to minimise the financial impact if I were to retire earlier than planned though.

Happy retirement OP

jem16

atush wrote: »

People make dubious financial decisions for emotional reasons. As long as they understand and are happy to pay the cost of them, then fine. But to encourage others to do so because you have is not a friendly thing to do.

At no time did 7DW encourage anyone to take early retirement with an actuarial reduction atush.

there are other options that could improve pension prospects and it is right to point out the other side.

Yes it is right to point out the options but there is a right way and a wrong way to do this and on this occasion your way of doing so did come across as rather harsh and abrupt.

There are so many things that have to be taken into consideration when considering an actuarial reduction and it's not simply a total never do it decision financially. Most actuarial reductions are worked out so that it's cost neutral. You are getting less each year but you are getting the pension for more years. Taking an income from S&S ISAs and DC pensions can be an option but you also have to factor in the lost growth on those investments and also the fact that they may have better death benefits than the DB pension.

Of course in many instances the "best" financial decision is simply not something that can be considered, especially if it either worsens your health or it takes until your are 90 plus before you see the benefits.

seven-day-weekend

As jem16 says, my husband lost 1/3 of his pension but will draw it for five years longer.

And, tbh, one reason I didn't take mine was that I couldn't take it until 60 (not 55 as in the TPS). If I had taken it when I was 60, I too would have lost 1/3. When I was 60, I got my State Pension (one of the last to get it at that age) and left my LGP where it was until I reached the Rule of 85, which was six months before my 65th birthday in January 2015. I could then take it without actuarial reduction.

However, I then made what I'm sure atush will consider another bad decision and took the maximum lump sum. This was done in full knowledge of what I was giving up. It makes a difference of about £6 a week to my Pension.

Horses for courses and if decisions are made with full knowledge and after careful consideration, then I don't see how they can be 'wrong'. Wrong for one person yes, but suitable for another with different circumstances.

Hope this clarifies.

jem16

seven-day-weekend wrote: »

As jem16 says, my husband lost 1/3 of his pension but will draw it for five years longer.

Perhaps even longer as retiring early from teaching has probably improved his health greatly.

Horses for courses and if decisions are made with full knowledge and after careful consideration, then I don't see how they can be 'wrong'. Wrong for one person yes, but suitable for another with different circumstances.

It could even be right for someone with exactly the same set of circumstances. Taking the higher lump sum could be seen as a "bad" financial decision but if it means that person can worry less as they have some cash to fall back on then that makes that decision "good".

seven-day-weekend

jem16 wrote: »

Perhaps even longer as retiring early from teaching has probably improved his health greatly.



It could even be right for someone with exactly the same set of circumstances. Taking the higher lump sum could be seen as a "bad" financial decision but if it means that person can worry less as they have some cash to fall back on then that makes that decision "good".

TBH, we got used to living on very little money when we only had my husband's Teachers' Pension for five years .It was difficult, but we managed. We then lived comfortably on his TP and my State Pension for another 4.5 years.

This year, when he got his State Pension (January) and I got my Local Government Pension (August), we found that we can live OK without this income and apart from buying a private medical plan and a couple of other small things out of it, are able to save most of it. That's mainly why I took the lump sum, we don't need the income and the lump sum can be put towards our retirement bungalow , supplementing our savings. (That's after I have used some of it to have the kitchen roof repaired next year).

We only have one car and no rent or mortgage to pay. We also earn a little money through house/petsitting.

I appreciate we are very, very lucky and I know that all Pensioners are not in this position.

Mr_Prudent

I have noticed that some posters whilst giving good and relevant advice can come across as a little insensitive on occasion. This is probably because they are just giving hard advice without understanding that peoples circumstances differ greatly. Indeed the attitude that you must be “bonkers” to take a pension early seems to be a common conception amongst many. Whilst a pension in most cases will incur a reduction for early uptake, one also has to consider the benefit that those extra early years payments can bring to many individuals (or couples)
As I have said in the past, there is no definitive right or wrong decision that can be attributed to a person’s individual circumstance.

Goldiegirl

I find that the Pensions planning board is all about the facts and figures - people's emotions tend to be dismissed.

I spend more time on areas of the board where it's not all about hard cash, and it's ok to have feelings.

For what it's worth, I took my pension at the age of 50, as part of a redundancy settlement. The actuarial reduction was a lot less than it would normally have been for a person of my age, due to it being part of a redundancy package.

At the time I did a lot of number crunching and thinking. The numbers added up ok, but the most important thing was to do what felt right.

My gut feeling was that it was right for me to take the pension, so I did.

For the last nearly 5 years I have had a part time job, and have salted more money away.

I'm stopping work completely on 18th December, 3 months short of my 55th birthday.

Again, the numbers add up for me, but it feels right, and that's key for me

Feelings shouldn't be dismissed - it's also part of retirement planning