pension at 55??

slade1961

55yo in 2016

my puzzle is should i retire , keep working, or part time work,

4 pensions to date total pot £122000.

no mortgage , no debts. i have an idea to use smallest pot £15000,to cover house bills, then use remaining pots for retirement.my oh has a small pension pot to date £20000

would this be sufficent untill 67yo when new state pension kicks in for both of us , serps deductions for state pension is 10 years from the new flat rate (£155)?, any conclusions for this would be welcome. thank you.

dunstonh

You are missing what other funds you have as clearly £122k isnt going to last your retirement. Especially if you blow it in the following 12 years (assuming you find some way to stretch it out that long).

So, what else do you have?

slade1961

thanks for your reply

£4000 isa
£2000 in shares
£18000 cash

my suspicion is that i will have to still work but at a lower wage rate than now if only to get a better lifestyle and less stress than at present with careful money management.

kidmugsy

slade1961 wrote: »

my suspicion is that i will have to still work but at a lower wage rate than now

That seems likely. Continuing to work has a second advantage; it would be much easier to change your mind and find a higher-paying job than if you had given up work entirely.

atush

you would get abt 4K frpm a pot hat size. If you want money left. 6K if not.

can you live on that?

If not, keep working but more important, keep paying into a pension until your pot is large enough to retire on?

torbrex

Take your pension pot, divide it by the number of years that you want it to last then by 12 and that will give you (roughly) what your monthly income will be for that number of years.

This method worked for me and my chosen number of years was 20, I handed the details to my IFA and he has made it work for me.

I did not need a lump sum and like you I have no mortgage, my pension pot was smaller than yours although my savings pot is larger.

TheTracker

torbrex wrote: »

Take your pension pot, divide it by the number of years that you want it to last then by 12 and that will give you (roughly) what your monthly income will be for that number of years.

This method worked for me and my chosen number of years was 20, I handed the details to my IFA and he has made it work for me.

Post of the year. Pot divided by years = pension per year. I must see an IFA soon as.

torbrex

TheTracker wrote: »

Post of the year. Pot divided by years = pension per year. I must see an IFA soon as.

Your point being?

bigfreddiel

torbrex wrote: »

Your point being?

Pointing out the bleedin' obvious, the point is it's simple to work out what pension you can achieve from a simple bit of arithmetic. So why pay an ifa thousands of pounds for the same information?

fj

bigfreddiel

slade1961 wrote: »

thanks for your reply

£4000 isa
£2000 in shares
£18000 cash

my suspicion is that i will have to still work but at a lower wage rate than now if only to get a better lifestyle and less stress than at present with careful money management.

I think you may get stressed by not having enough income! fj

michaels

dunstonh wrote: »

You are missing what other funds you have as clearly £122k isnt going to last your retirement. Especially if you blow it in the following 12 years (assuming you find some way to stretch it out that long).

So, what else do you have?

I thought OP was suggesting that he would live on 10k pa from 55 to 66/7 then having exhausted his pension pot live on state pension which for a couple would be a similar amount?