Busy Mee's Last Leg

South_coast

Ooh, that's interesting about the £5 on top. I did all the switching bits a few years ago and it was great for a time (think I got about £550 in total), but SO MUCH POST! 

Looking forward to the new targets (no pressure 🤣!)

Busy_Mee

I thought I had done with switching too SC but It seems you can  have another from the H@lifax if you haven't had one after April 2018. I get double because I masquerade as Mr Mee. I also click paperless so we don't get loads of post.

Busy_Mee

Good Morning. I am here again, I have definitely got my MSE mojo back again. 

I am off work this week which helps, it means I have some headspace to think stuff through. I also realise I love being at home and not working. My current plan is that I will significantly change the pace of my life in May 2021, either by retiring completely or taking partial retirement and working 3 days a week. This means that my last full salary will be April 2021, although if I go with the partial retirement option I will practically earn the same (pension + part time salary). Working on the worse ( or best  ) case scenario I have eight months  of full salary from September to April. so my goals are as follows:

1. August 2020 - chip another £500 off the IO mortgage to take it to £160, 000
2. August 2020- round up interest from Virgin ISA to £500. Interest has arrived and is £379.22. This will take ring fenced savings to £213,000 ( an increase of £3000 so far this year)
3. Increase ring fenced savings to £215,000 by December 2020. This means finding an additional £2000, but £1500 of this will come from Principality regular saver in November.
4. Reduce IO mortgage to £150,000 by April 2021. This is a reduction of £10k in 8 months, so therefore £1250 a month or £1000 per month, with an addition £500 chipped off every other month.

I spent an hour yesterday afternoon revamping my spreadsheet and if I achieve all of the above goals our mortgage and ring fenced savings will be as follows in April 2021:

Repayment Mortgage          £35,418.95

IO Mortgage.                      £150,000.00
Total Mortgage                   £185,418.95
Ring Fenced Savings         £215,000.00

Offset                                + £29,581.05 (Forever fund)....pah this will obviously need to be rounded 
                                           up to £30 k 

There will be more interest that will be paid on the ring fenced savings in March/April/May but I need to work out how much and when.

In May when I retire I will also received a tax free lump sum which will also boost our forever fund. This will fund holidays and other major purchases in retirement, particularly in the period until our SRPs kick in (2025 for Mr Mee, 2031 for me)

Hope that makes sense. As ever it really helps to set all of this down in my diary 

Suffolk_lass

That makes perfect sense. Don't forget to allow a bit for NI Voluntary contributions (currently £780 per year per person) for the years between stopping work and SRP. Both having been public servants you were almost certainly opted out of SERPS and so for that time you were earning towards the basic state pension, not the New Full one. SERPS opt out all changed in April 2015 so since then your NI Conts are buying you full years but the gov.uk state pension checker assumes full contribution years until the April before you reach SPA. It will depend on what you did before becoming a public service employee. Each year you buy is about £4.35 a week extra so it only takes between 4 and 5 years to pay for itself. In your case, be aware that you can defer the decision a bit but can only go back up to 6 years (so Mr Mee1 can make a decision just before he applies for his SRP, but you will have to decide twice).

beanielou

How exciting 😊

themadvix

It all sounds fab Busy Mee and you sound so positive! Hope you've enjoyed your week off!

SL, you never cease to amaze me with your understanding of complicated government pension stuff. I haven't got a clue (but I suspect because I'm younger it's a lot simpler than for you/Busy Mee (as in, 'State pension? What state pension?' by the time I get there.

South_coast

Don't say that Vix - receiving a state pension is essential to my retirement plans 😮!!!

Suffolk_lass

themadvix said:

It all sounds fab Busy Mee and you sound so positive! Hope you've enjoyed your week off!

SL, you never cease to amaze me with your understanding of complicated government pension stuff. I haven't got a clue (but I suspect because I'm younger it's a lot simpler than for you/Busy Mee (as in, 'State pension? What state pension?' by the time I get there.

Sorry, Mrs Saddo Lady (SL) used to work for a different Government Department and you get used to trying to understand it and any little nuance. In my case, my NI went up in 2015 and my pension entitlement went down (by staying the same while everyone else's went up). I needed to understand what I could do to mitigate, having already had my pension date go back by 6 years (instead of the anticipated two) with 8 to go. This meant (not being a millionaire) I had little time to change my plans. That is why there is a judicial review in progress against the short notice increase. I knew it would increase, it was the notice period that changed my life. It is far worse for some women.

themadvix

Yes, I figured you are a WASPI (Mum is too, although not as badly affected as some). Let's hope the review gets a good outcome.

SC - I wouldn't bet on a state pension! Self-reliance is everything!

savingholmes

Plans sound good.