Is it too soon to seek expert pension advice?

Happier_Me

I'm also planning on downsizing and you often see warnings on this forum about how realistic that is. Every situation is different and I take those warnings for exactly what they are... a word of caution to regularly sense check my plans to ensure they still stack up. I also live in the Midlands so I can say its absolutely feasible to downsize from a 4 bed to a terrace and release the sort of money your refer to...as long as you're prepared to have attached neighbours, a smaller property and probably a less desirable area in retirement. If you can adjust to these changes then downsizing makes sense for you. I can adjust to the last two only with amount I am planning to release based on the type of property and location I'm prepared to downsize to.

I really think it's important you work out any gap in the retirement income you want and the retirement income you will receive from your teachers pension. This will help inform you what you need to do with that £1k in addition to addressing your mortgage.

louby40

After 22 years of teaching I'm at the very top of the pay scale and earn £38k. That's outside London. Teachers who work in London get allowances and earn slightly more.

I can't ever earn anymore unless I became a deputy or took on more responsibility, which in the small rural primary school I work in is not likely. Plus I have no great desire to do that.

The government of course could give us a 3% payrise but pigs will fly before that happens.

louby40

The house I currently live in is a 4 bed townhouse and I have neighbours either side. I walk past lots of perfectly adequate terrace houses (& some bungalows) in my local area which is semi-rural, and a really lovely place to live. I could move literally 2 streets away and be perfectly happy.

I find it quite amusing on this board! Many of you could move to where I live and you would probably have hundreds of thousands of pounds in the bank after you sold your houses. There is a terrace near to me that needs a total refurb but is up for auction for £45k!!!

JoeCrystal

louby40 wrote: »

After 22 years of teaching I'm at the very top of the pay scale and earn £38k. That's outside London. Teachers who work in London get allowances and earn slightly more.

I can't ever earn anymore unless I became a deputy or took on more responsibility, which in the small rural primary school I work in is not likely. Plus I have no great desire to do that.

The government of course could give us a 3% payrise but pigs will fly before that happens.

38k is pretty good especially with the pension you will build up based on that salary. Have you thought about Additional Pension to build up even more pension? It is pretty good deal.

AnotherJoe

louby40 wrote: »

The house I currently live in is a 4 bed townhouse and I have neighbours either side. I walk past lots of perfectly adequate terrace houses (& some bungalows) in my local area which is semi-rural, and a really lovely place to live. I could move literally 2 streets away and be perfectly happy.

I find it quite amusing on this board! Many of you could move to where I live and you would probably have hundreds of thousands of pounds in the bank after you sold your houses. There is a terrace near to me that needs a total refurb but is up for auction for £45k!!!

LOL. I can imagine a garage going for that much round here !

Happier_Me

louby40 wrote: »

The house I currently live in is a 4 bed townhouse and I have neighbours either side. I walk past lots of perfectly adequate terrace houses (& some bungalows) in my local area which is semi-rural, and a really lovely place to live. I could move literally 2 streets away and be perfectly happy.

I find it quite amusing on this board! Many of you could move to where I live and you would probably have hundreds of thousands of pounds in the bank after you sold your houses. There is a terrace near to me that needs a total refurb but is up for auction for £45k!!!

So in terms of downsizing you are absolutely sorted. People are just pointing out on here that some plan to downsize but haven't really thought through what that actually.means to them. Once they do it doesn't always stack up but you obviously don't fall into that category.

Happier_Me

Looking at your mortgage and, admittedly, using one of the first mortgage calculators I googled, the monthly repayments on an £80k mortgage over a 9 year period at a fixed rate of just over 3% will be in the region of £800 (worked out on the basis that in two years when you remortgage and have spare cash available, you will be 51 giving you 9 years to pay off the £80k balance). Let's round this up to £850 a monthto give a little leeway...how does this compare to your mortgage payments now? What's left of your £1k to potentially throw at the gap between the age of 60 and your state pension age?

You may be in a position to make additional pension savings from that £1k if you want to, meaning all or part of any downsize lump sum could be used to fund other things in your retirement...a replacement car, new boiler, a big holiday etc etc.