Retiring early: Persuading the Spouse

zagfles

saver861 wrote: »

If you are in a position to retire and can generate a good pension, it may not pay to continue working. That's simply my point.

Or you may be better off by even more than you earn. As in the example I gave. It depends on lots of variables.

saver861

zagfles wrote: »

Or you may be better off by even more than you earn. As in the example I gave. It depends on lots of variables.

Well if someone carries on working and claims their pension then the pension is additional, thus increasing their income. However, if that pension takes them over the HRT then they lose nearly half in tax.

The main variables are the amount of pension accrued and being able to take it without any or much reduction. If so, there is a greater possibility they can at least achieve the same income for working less hours or achieve a significant portion of their current income for working zero hours.

It is a point often overlooked.

People have a mental picture of work being £x's and pension being £y's and never really look into the detail of what their net gain is by continuing to work.

zagfles

saver861 wrote: »

Well if someone carries on working and claims their pension then the pension is additional, thus increasing their income. However, if that pension takes them over the HRT then they lose nearly half in tax.

Yup. But just delay it if it increases, or shove the extra in a SIPP to get HRT relief. Watching out for recycling rules or the MPAA. Lots of variables. No one answer.

saver861

zagfles wrote: »

Yup. But just delay it if it increases, or shove the extra in a SIPP to get HRT relief. Watching out for recycling rules or the MPAA. Lots of variables. No one answer.

As I said earlier, it all comes down to the amount of income you can generate by continuing to work versus the amount of income you can generate by retiring.

The difference between the two is your hourly pay rate!!

maximumgardener

OP
why don't you seek some advice and sit down in front of an IFA that you can identify with.?
your questions and considerations are unique to you and your OH and you apparently need to get your partner on same page as yourself. work on that with 3rd party help. one he/she likes as well!!!!!!
check your numbers
are you sure that £24k nett pa is sufficient ongoing to meet all your needs?
the part time transition makes sense
retirement options are many and consider taking your pension and continuing to work if your scheme rules allow that. alternatively take your pension and get another P\T role, one you enjoy!
good luck

zagfles

saver861 wrote: »

As I said earlier, it all comes down to the amount of income you can generate by continuing to work versus the amount of income you can generate by retiring.

The difference between the two is your hourly pay rate!!

As long as you work it out over your estimated lifetime, not just the the one year as your original calculation did!

chucknorris

zagfles wrote: »

As long as you work it out over your estimated lifetime, not just the the one year as your original calculation did!

I think the numbers are just the start of the decision, if you don't have enough then you can't retire, end of story? Not quite because of course you may have part time options. I think the hardest decision is what do you actually want to do, I really like my job, but not as much as running, cycling and hiking with my dog (there's other past times too obviously). The thing I struggle to get my head around is that I do get to be out with my dog a lot already, so is it worth retiring for the marginal difference? I have decided that it isn't (sorry Ozzie), so I withdrew my (unofficial) notice of early retirement a couple of weeks ago.

Of course I do also look at the additional earnings/pension, but in reality I know that there is a significant possibility that I will not live long enough to spend it. So even though I'm not retiring early next year, it might not be that long afterwards.

TheTracker

Thrugelmir wrote: »

How many people are in this fortunate position these days?

I have no idea. It was an illustrative example to show the logic of calculating the worth of final year salary if deferring pension. No one in my immediate family has FS or even DB arrangements so I had little to go on. I have watched a number of acquaintances who worked senior roles in the public sector with salaries like the one I quoted retire with the pension I quoted. I gather from the daily mail these were outrageous redundancy bribes, but it's all I had to go on. The numbers weren't really important.

I'm glad my situation is simple. Straight DC SIPP.

jungle_jane

I first thought the OP was female due to the name however they signed the post as JJ so now assume that they are a couple called Jenny and JJ and it was the JJ half that was writing.

I would be looking at why my partner didn't want me retiring or at least working the same amount of hours. It sounds like spouse works 'to get out of the house' and therefore has decided that the same must apply to their partner. Just because he/she has a need to get out the house doesn't mean the other partner will too so it sounds a little controlling to be insisting that your partner does the same.

atush

I didnt read it that way.

I read it one wants the partner working full time while they kick back at home?