Potential Retirement at 51 Unplanned

michaels

If you have anyhting else to liv eon till 55 (even a loan/mortage extension?) it would be very tax efficient to pay your redundancy and as much as you can into your DC pension pot this year as you will get back a lot more due to the tax relief. So if you can bridge for 3 years you should get about 25@ more, drawn down as tfls and then your basic rate allowance each year till you have the whole pot.

crv1963

mbee123 wrote: »

Haha, she's all for it at the moment with the promise of meals cooked for her but time will tell!

I have a friend who retired at 50, his wife who I worked with loved it. He does lots more around the house and cooks for her coming in from work. Suits them fine, not for me but that's the good thing, we're all different with varying things that float our boats!

mbee123

If you have anyhting else to liv eon till 55 (even a loan/mortage extension?) it would be very tax efficient to pay your redundancy and as much as you can into your DC pension pot this year as you will get back a lot more due to the tax relief. So if you can bridge for 3 years you should get about 25@ more, drawn down as tfls and then your basic rate allowance each year till you have the whole pot.

I've already asked this with the HR department and have been told it's not possible for the redundancy payments to be paid into my pension. I have upped my monthly contributions for the remaining 3 or 4 months though.

kidmugsy

mbee123 wrote: »

I've already asked this with the HR department and have been told it's not possible for the redundancy payments to be paid into my pension. I have upped my monthly contributions for the remaining 3 or 4 months though.

How very odd. Still, who expects any sense from an HR department?

With a personal pension of some sort you could presumably use that in the first few days of April?

Have you considered extending the mortgage to the age when you will have plenty of income i.e. when your DB and State Pensions are in payment?

kidmugsy

mbee123 wrote: »

CETV for the little one is £70k (21.4 times annual pension)

Well yes; each £1k p.a. of the age 65 pension is worth less to you than the age 60 one by virtue of being paid later and for five years less. So shouldn't you expect a lower multiple?

Wouldn't £70k at age 55 solve much of your problem?

mbee123

Have you considered extending the mortgage to the age when you will have plenty of income i.e. when your DB and State Pensions are in payment?

Worth considering if things are tight

I would prefer to not cash in the smaller pension as there are a few perks with it (20% off JLR) I am tempted to cash in the larger one but will decide when I'm nearer 55.

kidmugsy

mbee123 wrote: »

there are a few perks with it (20% off jlr)

jlr? ??????

tigerspill

mbee123 wrote: »

I've already asked this with the HR department and have been told it's not possible for the redundancy payments to be paid into my pension. I have upped my monthly contributions for the remaining 3 or 4 months though.

When I applied for the leavers scheme, one of the things you could do was put some of the payment into the pension.
I would ask again as sometimes the guidance given can be a bit iffy. This seems very strange and is nit what they have done previously. Are you in the union - if so they are often a good help with this type of stuff.

mgdavid

kidmugsy wrote: »

jlr? ??????

Jaguar Land Rover I guess....

kidmugsy

mgdavid wrote: »

Jaguar Land Rover I guess....

Thanks. I wonder how long such perks will survive if the company is in the mire?