3,4 or 5 year journey to financial freedom

justme111

so should we say £35 000 then?

frugal90

Yes plus capital to call on when needed

justme111

So you want BOTH 35 grand a year and still having capital while collecting your teachers pensions and having state pension a few years later ?

frugal90

between us

spakkaman

When we talk about The Number - in this case £35k - is that net of tax?? I always find the income numbers bandied about on this forum section a bit confusing as it's often not clear if its net and if its for two people or one. I'm guessing its net as we often don't know the marginal rate that would be applied.
Interesting thread.

This forum/thread tells me I really should crunch some numbers - better still try working with the net income I enjoy already from a DB pension plus a bit more on top to replicate what I can sensibly expect from SIPP drawdown and ISAs after I stop work. I do know we will have £9000 net at today's money from both state pensions (ten years away) so I should be able draw more over the years in advance of this. I think I could retire now but I have a fear that I might not find it that easy - I think its an unfounded fear as my DB pension takes me into 40% tax but then my wife has very little pension provision.

Need to get a grip as I am finding work a pain and sticking it for another 2.5 years (when I have promised myself I will jack in work for sure) - seems a heavy prospect
.
I bet there are quite a few out there like me who probably could hang up the work boots but find it hard to confront the decision.

Must try harder.

May12

Hiya,

Hubby is 53 and I am 51, we are in the similar situation. Hubby wants to retire when he is 55. We love travel in our camper van, visit places, gardening etc. When he retire, we intend to get a bigger motor home, spend months in Europe and Scotland.

Here is our finance

Hubby
db pension £30000 per annual (base on 2014 forecast), pension age 65
avc and sipps £106000
state pension

Me

No pension,
Part time designer work from home £800/month, intend to keep it going until state pension age.
Just start a sipp £3600
State Pension

Saving and asset between us

£277000 in ISAs, saving account and investment
House worth £350000

We will try to top up hubby's AVC to maximum in the next one and half year. Once he is retired, we will try to live on our savings until he is 60, as there is penalty if he takes out pension early. we will downsize and free capital if we need to.

June 2017 is our target!

May

frugal90

Good luck with June 2017 think our earliest target realistically is summer 2018 and like you will need savings to cover the gap. Our figure of £35k is gross figure we could prob manage on less and if work really starts to become intolerable the we will just stop and do that.

atush

Our problem (apart from Grad school fees and our 2 cars are 11 and 15) is that we aren't exactly sure of our 'number' as our current house is expensive to run and when we downsize it should be lower.

and we will spend a large part of our current cash fund on 2 cars, and uni fees. So a significant downturn would mean further delay so as to not sell investments during said DT.

Having said all that, after another 2 years working we should have enough even if we retain our current level of non mtg/pension expenditure. Or so says that retirement website that there has been links to as I tried it out.

Retire easy maybe? Cant remember the name

OldBeanz

May12 wrote: »

Hiya,

Hubby is 53 and I am 51, we are in the similar situation. Hubby wants to retire when he is 55. We love travel in our camper van, visit places, gardening etc. When he retire, we intend to get a bigger motor home, spend months in Europe and Scotland.

Here is our finance

Hubby
db pension £30000 per annual (base on 2014 forecast), pension age 65
avc and sipps £106000
state pension

Me

No pension,
Part time designer work from home £800/month, intend to keep it going until state pension age.
Just start a sipp £3600
State Pension

Saving and asset between us

£277000 in ISAs, saving account and investment
House worth £350000

We will try to top up hubby's AVC to maximum in the next one and half year. Once he is retired, we will try to live on our savings until he is 60, as there is penalty if he takes out pension early. we will downsize and free capital if we need to.

June 2017 is our target!

May

Have you started your own thread about how you can improve this? You appear to be paying money into your husband's pension which will be taxed on the way out when you are not going to be paying tax when you retire and could be gaining tax relief on the way in and paying no tax on the way out. You should be maxing out your pension contributions.

May12

OldBeanz wrote: »

Have you started your own thread about how you can improve this? You appear to be paying money into your husband's pension which will be taxed on the way out when you are not going to be paying tax when you retire and could be gaining tax relief on the way in and paying no tax on the way out. You should be maxing out your pension contributions.

Yes, I did. Thanks for the advise. My husband pays 40% tax so it is still good to pay in his AVC. I will be putting more money into my private pension by the beginning of the next year. Is that correct that I can put 80% of my earning into pension?