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sunrise27_2

He has a company car which pushes him into the higher tax bracket . He is downsizing the car this year.
In 2020 we will be left with a £10000 mortgage.
he will then carry on working 4 days a week until retirement age.
We are not extravagant people and budget well.
We have no other debt and i work as well.

sunrise27_2

His benefit in mind for the company car is in the region of £10000 which hits us hard .
We both plan on working a couple of days a week once we got retirement age as much to keep out brains working as to help money wise .

sunrise27_2

Kind not mind lol

sunrise27_2

Been thinking a lot about budgets and figures etc, I think at official pension age we would be looking at an income of around £1900 a month
State pension and small pension would equate to £18000 a year
Working part time would bring in £6000 ish a year
Then we have hubbys small nest pension
My small pension and we aim to put £80 per month into a pension which should be in there for about 12 years which would give us some sort of pension ?
I think for us the main thing is that at the moment we both work so hard we're just tired constantly and we need to slow down , you hear so many stories of people dropping down dead just as they retire so why wait , why not cut down a bit with hours at work and enjoy more quality time together if we can afford to do it, I should also get inheritance of around £100,000 ish which I haven't even allowed for.
We don't want lavish holidays and expensive meals out we just want time together to enjoy life X

sunrise27_2

Ok so I've spent the night ( literally ) playing with finances
If I can fund us cutting down hours in a few years without touching hubbys pension that has got to be a better idea hasn't it , ideally and I don't know if this can be done I would like to
1. Take the lump sum the year after next year when he's 56 to pay off most of the mortgage but leave the rest of the pension pot untouched
2. Keep adding money to it monthly until retirement age

Does this all sound better and do able ?

dunstonh

Working part time would bring in £6000 ish a year

How long do you intend to keep that up for?

That is broadly speaking the equivalent of the pension being taken early. So, you could say that the by taking that pension early, having to work part time is the cost of doing that. If you didnt take that pension early, you would not need to work part time into your 70s.

I actually have someone I am advising at the moment who is early 70s and is having to give up that part time work and they have been draining their savings and its come home to roost that the money is going to run out whilst they are still active enough and their lifestyle is going to have to change for the worse.

So, like I said earlier, it may be possible now but you taking money now from the backend of your retirement.

sunrise27_2

We actually want to keep on working for as long as we can a couple of days a week just maybe 4 hours a day to keep some sort of routine , our brains active etc . If we then have to stop doing that we will cut our cloth accordingly and think about equity release. Taking the lump sum early allows us to pay a lot of the mortgage off and cut down hours at work. I'm all for saving for the future but i do feel like you have to live for now as well and enjoy doing things while you're young enough to enjoy them. Also by not taking the rest of the pension that gives us £66000 ish that will carry on growing for another 12 years plus we can add to it . at the end of the day we could drop down dead at 70 and wasted previous time we could have had together . No one knows what's round the corner .

sunrise27_2

* precious time