Turning off the tap

kazt2006

I have a DB Pension (& can't see a career change!). My state retirement age is current 68 but will probably be nearer 70 by the time I get there! My mortgages (1 is a rental property that I used to live in), are timed for 58/59 on purpose.

I have a plan to go @ 60 with significant reductions in my pension, but where it will be approximately half my current salary. Could I live on it? I intend to have a damn good try!


If I still have the rental property this could be sold for a cash lump sum. If I don't have the rental property, I'll have far more in savings from not having to cover the mortgage when no rental income! I have my plan and I'm going to enjoy what I will have worked almost 40 years for!

NotSkint

haras_nosirrah wrote: »

I am 34 and hubby is 40 so years away from retirement and no db scheme coming our way. Just curious as to how those of you with no mortgages decided how much was enough to retire on.

We will hopefully be mortgage free in 10 years. I am in a high stress job with two young children and am planning to retire at 60. Hubby will probably retire the same year so in his case 66 (he is minimum wage lower stress job than me)

we will be using income draw down. I am just wondering how much you had in your pots to decide - that's enough. I don't want to be a poverty stricken pensioner but at the same time I don't want to work till I drop in a high pressure job.

Not sure how being a mortgage advisor is highly stressful. Try working in an environment where your decisions really mean life or death!

Back to your question, search for the number thread. You need to work out how much you need or want and work back from there.

westv

NotSkint wrote: »

Not sure how being a mortgage advisor is highly stressful. Try working in an environment where your decisions really mean life or death!

.

A bit like saying someone with one leg knows a lot less about disability than a person with no legs.

NotSkint

westv wrote: »

A bit like saying someone with one leg knows a lot less about disability than a person with no legs.

Last time I was legless I didn't know much about anything:beer:

haras_nosirrah

NotSkint wrote: »

Not sure how being a mortgage advisor is highly stressful. Try working in an environment where your decisions really mean life or death!

Back to your question, search for the number thread. You need to work out how much you need or want and work back from there.

It may not be life of death however it is high stress. I write a lot of business (usually between 15 and 20 mortgages a month) I work part time as I have a 1 year old and a 4 year old and as I do pretty much exclusively housing association they are mostly on 28 day exchange deadlines. It may not be life and death but it certainly isn't a low stress job.

Triumph13

Kazt2006 wrote: »

I have a DB Pension (& can't see a career change!). My state retirement age is current 68 but will probably be nearer 70 by the time I get there! My mortgages (1 is a rental property that I used to live in), are timed for 58/59 on purpose.

I have a plan to go @ 60 with significant reductions in my pension, but where it will be approximately half my current salary. Could I live on it? I intend to have a damn good try!


If I still have the rental property this could be sold for a cash lump sum. If I don't have the rental property, I'll have far more in savings from not having to cover the mortgage when no rental income! I have my plan and I'm going to enjoy what I will have worked almost 40 years for!

Have you looked into the possibility of selling the rental property at 60, living off the proceeds until they are exhausted and only then taking the DB pension with a much smaller reduction? That would seem a rather more 'bomb-proof' solution.

Triumph13

haras_nosirrah wrote: »

I am 34 and hubby is 40 so years away from retirement and no db scheme coming our way. Just curious as to how those of you with no mortgages decided how much was enough to retire on.

We will hopefully be mortgage free in 10 years. I am in a high stress job with two young children and am planning to retire at 60. Hubby will probably retire the same year so in his case 66 (he is minimum wage lower stress job than me)

we will be using income draw down. I am just wondering how much you had in your pots to decide - that's enough. I don't want to be a poverty stricken pensioner but at the same time I don't want to work till I drop in a high pressure job.

Definitely read 'The Number' thread - As Not Skint has suggested. You have to answer the question 'How much is enough to be comfortable?' before you can ask 'Is working longer for even more worth it to me?'

Northamptonblue

I think you need to find the "number" thread which I found very useful when planning my exit (5 weeks retired at 59). As a rule of thumb, most seem to be looking in the 25k to 30k range, assuming that you own your own home. Some of course way below and some way above.

Hope it helps.

username12345678

This question has been causing me a real headache for a while now and tbh it's not one I expected to be wrestling with.

I'm still 10 years from being able to draw on my SIPP but at 3% i'd be taking out more than my current spending at the moment.

This has lead me in to an avenue where i've become more loss averse than I probably should be given the timescales involved.

The picture is complicated by me using ISA's (x2) each year to either delay the point I need to start taking out of my SIPP OR bring forward my retirement a point from age 50.

Even if going at 50 is an option it is a question of whether it is too young. It's al very well saying i'd be doing this, that and the other with my time but i've worked since I was 15 and at the back of my mind i'm wondering if giving up too early can be as bad as giving up too late. Careful what you wish for and all that.

psouth

We always planned to retire at 55 so were frugal throughout our married life. At 50 the stress of work forced my husband to give up his job but he wasn't entitled to benefits so I took on more work. At 55 ill health forced me to give up work too. We lived on our savings until my husband's professional pension matured. Three years later, mine matured. We will also have a staggered state pension coming in. Since retiring we have made sure to spend our savings doing what we love while we both have the health to do it. When I am on a zimmer walking from the lounge to the loo at least I will have all the fabulous photos and memories! One thing we have found... we need far less money to live than we thought...