Do these numbers stack up

Shiptoshaw

Hi all
Wife & I planning to retire in 2 year I’ll be 55 wife 57
Wife private pension 70k
Wife LGPS 5k income annual taken at 57 reduction applied
Me 110 private plus LGPS 1.5k from 67
41k cash
Thus my calculation is
70+110+41+(5*10)=271 /10= 27 k to live on till 67 & ignoring 2k contributions

Still contributing 2k a month jointly to pension schemes
We have no mortgage/debt/dependants
Plan is to retire in 2 years draw from savings, pensions,LGPS whilst each draws under threshold for tax purposes until state benefits

Will have full state pension if contribute another 3/4 respectively

kidmugsy

(i) Tax?

(ii) How much per annum have you been living on recently?

AlanP_2

Can't see where 5*10 comes from?

Looks tight to me but my target retirement income is a lot higher. Does it exceed what you need and does it still work when one of you passes away?

tacpot12

AlanP wrote: »

Can't see where 5*10 comes from?

...

Ten years of £5K per annum from Wife's LGPS.

Your calculation look ok. You should pay no tax until the state pension kicks in. Paying the additional NI contributions to get the full State Pension will be a good idea if you are in good health when it is time to make the payments.

£27k is not a lot of income though. My partner and I are living on about £34K pa (after tax), the mortgage is paid off, the kids have left home and yet there is only money for one holiday a year.

Inflation is the killer though. Leaving your private pensions invested offers some possibility of increasing your income to match inflation, but also the possibility they will crash in value. One thing I have noticed since retiring is that some things seem to go up in price much more than the rate of inflation. If your budget is tight at the point your retire, and you have made no provision for how to increase your income to match inflation then by the time you are in your mid sixties, you are not going to be able to cope.

Shiptoshaw

Only income thus each draw 11800 thus pay no tax
Can comfortably live on 18k

5*10 comes from take LGPS early with reduction applied ie 50k over 10 year received
Yeah can survive if each other passes away

Shiptoshaw

Yeah had planned to pay for missing nics
Tbh it’s more than enough 27k ,the youngest just graduated from uni he’s outa the pockets now concentrating on retirement now ,we live a good comfortable life rarely go out or waste money

Shiptoshaw

LGPS will increase with cpi
I’ve not included the next 2 years contributions in my calculations to compensate for inflation

Heatherweed

Live on 12000 morgage paid but run a motorhome loads if holidays also pay a loan. Don't feel deprived what do you want your retirement to be???

Mnd

I think your numbers are fine if you are happy with your planned income,

We are planning on 24k net a year, we could get by on a lot less if we had to
Our income will be about 27k, No mortgage or rent
Monthly bills. 400 Inc sky and BT sports (my major spend)
Groceries and petrol £500 a month easy

That's leaves plenty to cover annual costs ( car service house ins etc) and more than 1 holiday a year

We will have savings to cover unexpected costs and if necessary we will equity release later in life ( we don't have to worry 1 jot about inheritance )
I'm 65 in may, retired. My wife is 59 in march, needs to do another 2.5 years for full state pension entitlement