Planning for early retirment

Rustin

Hi

We are currently looking to retire somewhere tropical and warm in 10 years time; when we are 55. Jobs are quite stressful and intense. I have a LGPS pension which will have roughly 22 years in 2028 and my partner a teachers pension which will have roughly 28 years in 2028. We have brought the mortgage down to 10 years so should be clear in 10 years and should have debts clear for middle of this year with a 515 monthly debt on a personal loan cleared in 2021. We have no savings after buying a house and sorting it out.

We earn around 80k combined which will leave us anything up to £700 to £1000 a month to invest/save from mid-2018. We would like to have 100k savings by 2028 but more would be nice. The interest for savings is pretty miserable so what would the more financially savvy recommend as a the best way forward to reach our goal?

I am not averse to a bit of risk re: investments as we would have enough with downsizing the house to buy a small flat for renting and in case we have to return to the UK to still manage the early retirement but i'd rather no have to.

Thanks

kidmugsy

I'm not clear what you plan to live off in ten years time. What are the normal retirement ages for the two pensions?

atush

First you need to build up a cash reserve.

Even with secure jobs you need savings. Then look at a DC PP or sipp to run alongside your DB pensions. Es if you want to take them before they pay out in full.

atush

The whole tropical thing- is that going to be 365/yr? how will you deal with health cover?

Rustin

We can take the pensions early at 55 which will give us combined around 26k a year but 10 years is a long time, things may change. We are looking at retiring to Caribbean Costa Rica, buying a house from savings at the time,but again 10 years is a long time.