Retirment plan

Ktm987

Hubbie and me plan to retire soon, at 59, and enjoy life now while my health allows.
I have received medical retirement from local authority but only have very small pension (paid up to retirement age). I only worked there for 3 years.
I cashed in a private pension and paid off mortgage with my 25% (rules in force then prevented me drawing down remainder so enhanced annuity taken out. Very small!

We have been living off £15,000 which includes taking 2 holidays in the year. I calculate savings ( as long as we do not get massive inflation) will cover 7 years to retirement and state pension will see a rise in our income! We can downsize if needed.
What have i missed? Who do we inform that we are no longer earning?

Linton

You dont need to inform anyone that you arent earning.

System

Hi

With not working your NI contributions may be affected, and hence a lower state pension.

I suggest you check your current entitlements and adjust accordingly.

Ktm987

Thanks
Ni contrib dictates retirement date. Hubby 1 year to go. I am 4yrs short but disputing 3 of those as was at uni. No proof as it was over 30 years ago but during grant era so must be record somewhere. Only makes £12 difference so will not be paying ni for 'mised' years.

p00hsticks

KTM987 wrote: »

Thanks
Ni contrib dictates retirement date. Hubby 1 year to go. I am 4yrs short but disputing 3 of those as was at uni. No proof as it was over 30 years ago but during grant era so must be record somewhere. Only makes £12 difference so will not be paying ni for 'mised' years.

You don't get NI creditted for years at university. However, you will have got three years automatically creditted for the ages you turned 16,17 and 18.

Also you talk about being 'four years short'. You can't bank on a specific number of years giving you the maximum pension at present, due to the transitional rules. If you haven't already, get a State Pension statement to confirm what your expected pension is likely to be and if there is any opportunity to increase this by buying additonal years going forwards.

PensionTech

Only makes £12 difference

£12pw = £624pa = 4.16% of your combined income. Not insignificant...

kidmugsy

You should consider each contributing £2880 to a pension each tax year, which the generous taxpayer will make up to £3600. Then when you draw that out, £900 is automatically tax-free, and the other £2700 is tax-free if you happen to have that much unused Personal Allowance. If you are quick you get each get your £2880 in for this tax year i.e. before 6/4/17.