Would you do it with these figures?

Noodling

I'm thinking of retiring early at 56 in June 2018, my position is as follows and I'd be grateful for your comments.

Simplistically, in today's terms, (from age 56 to 80) I will have (all figures are net of tax)

• £150k - in cash, S&S ISAs and in a SIPP (amount to maximise personal tax allowance);
• will receive in pensions £317k (3 x DBs plus state pension);
• will require £460k to fund my life
• this gives a remaining cash figure of £7k

For info - at 80 my pension income will be £100 per month short of what I expect to spend if I am fit and healthy and I'm sure I can accommodate the difference.
1 x DB (the biggest one) is Civil Service, so totally inflation proof, one is capped at 5% inflation increase and the last at 2.5%.
I own my house ~£165k.
I have no kids and do not mind shuffling off with £0 in the bank.
OH will be fine if I go first and vice versa,

I don't really expect to live to a grand old age - I smoked quite heavily for over over 30 years and still now get nicotine from an ecig. Also, I drink more than the recommended 14 units per week.

What do you think?

jennyjj

Noodling wrote: »

I'm thinking of retiring early at 56

For info - at 80 my pension income will be £100 per month short ...
I don't really expect to live to a grand old age

What do you think?

JFDI. If you can afford it. And it sounds like you can.

Linton

Putting it as simple totals hides possible issues....

1) How does State Pension fit in? Are you saying that SP from SPA to 80 +£460K = 24 years X total spending/year?
2) Will the £150K be sufficient to provide that income from age 56 to when you can draw SP and your DB pensions?
3) Having everything add up pretty exactly would worry me - what about unplanned major expenditures or unjustified optimism on your plans? I would like to see rather more than £7K spare. A couple of years at 15% inflation as we had in the 1980s would mess up your plans.
4) You say your OHG will be fine if you were to go first. I dont see any account taken of their independent income in your plans. One person requires significantly more than half a couple.

Without more numbers(eg spend/year, DB pension and the age at which you get it) it isnt clear to me whether you are OK or not.

sandsy

Can't possibly tell form the way you've expressed the numbers. Spell out the DB incomes, from what age, the amount of actuarial reduction etc.

Assuming you'll pop off at 80 is rather optimistic, even given your lifestyle choices.

bostonerimus

Lifetime totals don't give you (or us) a good idea at all of your retirement readiness. You need to do a detailed budget and then see if your income streams can cover it. At 58 you should also be planning for at least 30 years in retirement, 40 would be better as there's about a 10% chance you'll make it to 100 according to the ONS.

kidmugsy

3 DBs: is any transferable? If so what is its CETV?

marlot

Noodling wrote: »

...
1 x DB (the biggest one) is Civil Service, so totally inflation proof, one is capped at 5% inflation increase and the last at 2.5%....

I have a similar mix of DB inflation proofing.

I believe the civil service schemes (certainly Alpha and Nuvos) rise in line with CPI. That may be different to your personal rate. My forecasting spreadsheet assumes that my DB pensions (in aggregate) will trail my personal inflation rate by 2% a year. I'm probably being pessimistic.

I'm in a similar position to you - no kids, house paid for. Similar age. I'm planning to go in 2018.

marlot

If you're still in the civil service, don't forget that there is a phased retirement option if you wanted a year or two of winding down.