Take or defer pension. Advice please.

ams25

Brynsam wrote: »

Get some proper advice - the sort you pay for, based on all your circumstances. Guesswork by people on this site, however well meaning, but based on inadequate information, isn't the answer. Financial advisers do things called 'fact finds' for a good reason, not just to up their own fees!

Whatever you decide, hope you and your husband have a. long and happy retirement.

you could do this....but if you put it all into a spreadsheet it should help answer the financial questions (is it enough etc). With 41k coming from db pensions straight away, another 16k or so from 2x SP in following 10 yrs or so (assuming full maybe a bit less if contracted out but could continue voluntary contributions if needed) I don't see big risk on the numbers.

Talking it through will always help but perhaps a first "free" intial meeting with an IFA where you go through your thought through plan will enable them to confirm its a robust plan or help you identify where they can add value, if you have missed something.

justme111

I would add to the previous post and forgive me sounding morbid but I feel it is important to remind it as people tend to forget it - we know what the future brings - death. We just dont know when. But for people who are 5O+ better keep it in mind when doung planning as we tend to avoid thinking about it and live as if were immortal.
We are going off topic though as original poster asked not when they can retire but whether she should draw the pension now or later.

ams25

Another point.to consider is your net income with the 2 pensions vs current net income from employment.
Without nat insurance, mortgage payments, pension contributions, savings? And no income tax for you (below PA) and assume less for OH, your net avaialble income may be very close (or even more) to current income.

Excel (other spreadsheets are available) is your friend.

bluenose1

ams25 wrote: »

Another point.to consider is your net income with the 2 pensions vs current net income from employment.
Without nat insurance, mortgage payments, pension contributions, savings? And no income tax for you (below PA) and assume less for OH, your net avaialble income may be very close (or even more) to current income.

Excel (other spreadsheets are available) is your friend.

We found this when my husband retired last year. Although his gross income was reduced by nearly 50% when he stopped paying as much tax, pension etc it was more like 25%. Plus when we added in work related expenses it was even more.

ams25

Net income position can very easily be overlooked. We are enjoying the same/better lifestyle/spending on about 50% of my former gross income.

teachergirl

Well I obviously need to go and do some thinking and spreadsheets.

I do feel quite excited at the prospect, it just all feels a little sudden (which in some senses it is).

I know that life can be short and so we do want to enjoy it while we are able....so is the general consensus that I should draw my pension and not wait?

Tealblue

The advantage of 'proper' advice is that it considers a lot of things, not just the 'can we afford to retire/should I take my pension now' issue.

Looking at the footer on OP's posts, there are children to consider (an expense which somehow never goes away...) and sensible tax planning now could ensure that they/any grandchildren benefit rather than handing over a load of inheritance tax at some point. Hopefully not for a very long time, but good planning well ahead of time can reap dividends.

ams25

Given your husband' s 93k lump sump and cash and houses and his db....there is a strong argument for you to stop work this year but defer the pension. Depends on what you need for annual expenses and so on but additional secure index linked db pension is valuable...and if you don't actually need it now then don't take it. 52k from the LS or cash resources will bridge the gap and then your pension will be c.3k pa higher. And as previous poster pointed out, the compounding on the indexing increases will make a bigger difference in 20 years than might seem apparent now. More spreadsheet work!

But you should stop work if you want to. It's pretty clear you can afford to. I did younger than you.....absolutely no regrets.

Alice_Holt

ams25 wrote: »

But you should stop work if you want to. It's pretty clear you can afford to. I did younger than you.....absolutely no regrets.

Same here.

My caveats wouldn't be financial - it seems you are in a very good position with over £40k of income plus SP to come.

If you enjoy your job - how would you cope without that structure / social connections / etc in your life. Is a sabbatical possible for the world trip?

kidmugsy

AnotherJoe wrote: »

OP pack it in now whilst you are in good health.

The central point, in my view: the couple have heaps of money, both income and capital. There is no sense in gambling on health: seize the day.

Start planning where to be, when. I recommend Queensland in the dry season, roughly April - October.