3,4 or 5 year journey to financial freedom
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I think, as the young people say, "JFDI"...
Good luck!"For every complicated problem, there is always a simple, wrong answer"0 -
I think, as the young people say, "JFDI"...
Good luck!
That's the route I went down end of March this year aged 56
Waiting for my second monthly pension paymemnt. Its important to look at net monthly income as much as pension annual salary. No pension or NI payments anymore. I took the hit on taking my DB pension early.
My current feeling is thank God I did not wait!
PS our figures are lower than yours. We are mortage/debt free with 60K of savings and a net income of 1500/month.
Jerry.0 -
quick update ... feeling good about things at the moment and the fact I now have choice
80k in cash bugs me when I know it could be generating 1Ok a year of income in say MoneyThing, again after allowing for bad debt. From the cash and IT pots combined I'd be looking to get £30k of income a year at the moment. I'd also look to take the as free lump sums from the SIPPs now to use for additional income generation, potentially another £3.5-4k a year.
Though given your future income from DB pensions quite rapid drawing to sustain your income at a high level from retiring to reaching normal pension age for those DB pensions looks like a good move.
From the look of it you'll have around £37k in DB plus a pair of state pensions at say 8k each for a total of £53k of guaranteed income.
P2P without capital drawing seems to have about £34k of potential a year with SIPP tax free lump sums included. That's an initial shortfall of about £19k a year but it looks as though the taxable 75% of the SIPPs can bridge that.
So retiring now - well, end of August 2017 - on £53k+ of income looks entirely reasonable to me if you want to do it.0 -
Hello
I have just posted for the first time in the mortgage thread because I have been advised by a family member to increase my pension contributions rather than pay down my mortgage due to my very low mortgage rate/higher tax relief. Myself (56) and my partner (55) hope to both pack up at lest full-time work in 5 years time and like Frugal90 we want to do more travelling - particularly around the UK.
The same family member has recommended that I sign up with Retireeasy to do some lifetime planning and it costs £3 per month which is pretty low. Has anyone on here used Retireeasy and it is any good, worth the money etc? Are there any similar tools out there - I can't find any on google.
I'd prefer to DIY rather than have the expense of an adviser if I could find a decent online tool.
Grateful for any help.
Lady T0 -
Hi Lady T,
Start your own thread for the most/best replies.0 -
The initial advice you received was good. At 55 you're both in a position where you can pay into pay into pensions, get the tax relief then soon after take out the 25% tax free lump sum, leaving the rest for later. Provided you can afford it ths gives you the potential to save the income tax on much of your pay.
It's particularly foolish for a 55 year old or older to directly pay off a mortgage without first putting the money in a pension.
If you can't afford to pay in your whole pay it's entirely possible that we will suggest withdrawing your past overpayments so you can undo the harm you've done to your finances by not using the pension pay in first.0 -
quick update again
definetely enjoying work more this year knowing that I could pack it in anytime- going to enjoy the run in to next summer.
My ISA £111K income generating ITs
Spouse ISA £128K income generating ITs
total £239K
My SIPP (Cash) £70.5 K to be draw over 3 years until age 60 - £23 500 small tax liability as no other income
My wife's SIPP(Cash) £84K to be drawn over 5 years
Cash holding - atom/NSI/bank 123 £86 500
Retirement date June 30th 2018 -
Teachers pension kicks in May 2022 - £20.5 k per year plus £61.5 K lump
Spouse Pension Kick in July 2028 - £16.3 K per year plus £45k lump- now going to take the career average bit at 60
Total ISAS/SIPP/Cash= £480K
State pensions both when we hit 67 at the moment
regards to all
frugalEarly retired in summer 2018 and loving it0 -
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Jan 2018 update, things definetely going well and summer 2018 is when we will JFDI, as a previous poster told me that young people say.
My ISA is now £122K income generating ITs
Spouse ISA £132K income generating ITs
total £254K
My SIPP (Cash) £70.5 K to be draw over 3 years until age 60 - £23 500 small tax liability as no other income
My wife's SIPP in IT's £89200K to be drawn over 5 years
Cash holding - atom/NSI/bank 123 £90500
Retirement date June 30th 2018 -
Teachers pension kicks in May 2022 - £20.5 k per year plus £61.5 K lump
Spouse Pension Kick in July 2028 - £16.3 K per year plus £45k lump- now going to take the career average bit at 60
Total ISAS/SIPP/Cash= £505464
State pensions both when we hit 67 at the moment
aware that stocks are high at the moment hence the high cash holding in case of a crash
anyone else stopping the rat race in summer 2018?
frugalEarly retired in summer 2018 and loving it0 -
my partner quits regular employment that summer ( I oosted on here asking for feedback on his position Hopefully would do self employed bits and bobs but if not he could live of his savings and investments or take the pension early.The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0
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