Do we have enough for Early Retirement

kangoora

May12 wrote: »

Hi all

I have been following this board for a while with great interest as my husband is approaching 55 and he would want to retire early.

Our financial situation is as following:

Husband
d/b pensions £30.000 per annual when take out at 65.
state pension
sipp and ave: £100,000

Myself
part time job earning £800 a month - will carry on working until 65.
state pension, no other pension

Between us:
savings and shares: £250.000
property worth £350.000

Our life style is moderate, we spend about £2000 a month at the moment.

We are thinking about if he retires we will try to live on AVC and savings, maybe downsize if needed, try not to take his pension if we don't have too.

Is this workable? Any advise.

Thanks for advise.

May

I'm planning on retiring at much the same age in a couple of years time, with very similar savings and forecast outgoings.

Looks OK to me on my spreadsheet, utilising (drawdown + savings + DW wage) to get to 60, then (lesser drawdown + DB pension + DW drawdown) to get to SP age.

4% withdrawal on £350k (minus £50k for camper van) gives £1k/month, with your £800 you'd be a little short of the £2k but you could easily drawdown extra and deplete savings a bit to get you to his DB pension age, at which point it will be plain sailing @ £2.5k income/month before tax just on the DB pension alone. Presumably he'll get his SP one (or maybe 2) years after his DB pension also and you'll also have what's left of your SIPP/savings.

I had assumed not touching the capital when I ran my numbers initially. On closer look, it meant I was delaying retiring unnecessarily and my income at 67+ would have been a lot higher than <67 due to SP, especially when DW qualified for hers. So, I redid figures based on drawing down capital and knocked 2 years off my forecast retirement date.

Only you can make the final decision (or him ) but looks to me like you'll be fine. You don't mention any potential for downsizing or possibly inheritances, if these are possible then you potentially have a good emergency fund.

mania112

happy days!
:j

atush

May12 wrote: »

That is good point. We were concentrating on saving for my husband, maybe it is better to start mine as well.


I have never considered the lifetime allowance because I thought he is far below it. I dont know how to get figure for DB scheme. Now I am worried about this because we still intend to top up his AVC before his retirement.

I never thought much point to contribute my private pension as I am self employed and don't earn that much. I am not sure if it is too late to do that?

if you put in your salary for 5 years, you would have a pot of (without investment returns) approaching 50K. Although 5 years is a little short for investing. It isn't too late really.

kidmugsy

May12 wrote: »

I have never considered the lifetime allowance because I thought he is far below it. I dont know how to get figure for DB scheme. Now I am worried about this

Don't worry, just google to see how DB pensions are handled. You can always stop them growing by putting them into payment; whether that will make sense will depend on such things as the inflation rate before he draws them (pretty unpredictable) and any change in the Lifetime Allowance before then (utterly unpredictable). Plus keep an eye on the method available from protecting oneself from trouble with the LTA.

In other words, all you have to do is monitor the position as time passes; there's no need to worry at all.

madeinireland_2

I'm in a similar position to the OP - maybe slightly better - and I think you will be fine.

I plan to retire in a couple of months - six months short of 55 but I will have a redundancy payment as well which helps.

I suggest putting all your info into https://www.retireeasy.com as I found that to be a really useful tool to help plan for retirement. Once you have all all your info in - which takes a while - you can play around with the numbers to help you plan.

Good luck !

bigfreddiel

May12 wrote: »

Hi all

I have been following this board for a while with great interest as my husband is approaching 55 and he would want to retire early.

Our financial situation is as following:

Husband
d/b pensions £30.000 per annual when take out at 65.
state pension
sipp and ave: £100,000

Myself
part time job earning £800 a month - will carry on working until 65.
state pension, no other pension

Between us:
savings and shares: £250.000
property worth £350.000

Our life style is moderate, we spend about £2000 a month at the moment.

We are thinking about if he retires we will try to live on AVC and savings, maybe downsize if needed, try not to take his pension if we don't have too.

Is this workable? Any advise.

Thanks for advise.

May

What is your husband going to do when he retires early?

fj

bigadaj

bigfreddiel wrote: »

What is your husband going to do when he retires early?

fj

What he's told.

atush

lol. Good luck with that.

I have problems when mine is home on a bank holiday. Victor Meldrew on steroids.

I can't bear to think what he will be like when no longer working.

When we are in the US in the winter, I am getting a job to get out of the house

SeniorSam

For he next 30 years+,I hope that you do have a modest lfestyle on that amount. The luxuries or 'special' holidays will all be in the motorhome. You need more to allow for the extras and the unexpected I feel.

Sam

missbiggles1

What will your financial situation be if your husband dies early?