Should i go or stay . Retirement .

alfmurph

65 years old . Happy in my job .Wages £26k approx. plus £160 monthly overtime Manager asked me to give him plenty of notice before I retire as they need to train someone up .Told him today I planned to retire 15/01/2020 .
He came back with there is a package available for voluntary retirement . Probably 20 weeks wages .Maybe £14K. Tax free .
I have a council db pension of 39 years .
My take home wage is £1900 monthly plus £146 oap .Pension if I work to 15/01/2020 would be lump sum of £28k plus £15300 annually but if I go in june it will be the same lump sum but a pension of £14750 annually .Only £550 difference but if you multiply that by say 25 years it is £16000 .

missile

Only you can decide, do you WANT to retire?

Brynsam

Probably better to ask people who know you and what your aspirations are, rather than expecting strangers tp be able to comment usefully based on a couple of lines of info. Might just as well toss a coin!

Mistermeaner

On the numbers I’d retire now but as others said what do you want ?

k6chris

There are really two questions here - 'can I retire' and 'do I want to retire'? The numbers suggest 'yes' to the first question and the fact you have said you want to retire in less than a year, I would suggest the answer to the secind one is 'yes' too? If you have a full state pension already, then the offer would seem to make sense. However, there is no bad answer here and only you can decide what you want to do. Good luck which ever way you go.

AnotherJoe

Retire now. The money is a wash (the £550 needs tax taking off as well so it will take even longer to break even) , You won't ever get this coming summer back to enjoy, you won't get healthier as you age, so enjoy it now while you can.

Apodemus

If you managed an inflation-proofed 3% return on investing the £14k lump sum, you would get £520 a year and still have the £14k capital to leave in your will. So the comparison I would make is “retire now, or work for another 10 months to add £10 a year to my pension...”

AnotherJoe

Apodemus wrote: »

If you managed an inflation-proofed 3% return on investing the £14k lump sum, you would get £520 a year and still have the £14k capital to leave in your will. So the comparison I would make is “retire now, or work for another 10 months to add £10 a year to my pension...”

Better than that, the £550 will be £440 after tax so the scenario would be, work an extra ten months to be £80/year worse off

Anonymous101

AnotherJoe wrote: »

Better than that, the £550 will be £440 after tax so the scenario would be, work an extra ten months to be £80/year worse off

That's how I looked at it.

Financially the OP is better retiring now and "saves" himself another 6 months work. I'd have their hand off for that, most people don't get paid to retire.

crv1963

Your choices are really simple as others have said- 1) Get paid to retire and enjoy the lump sum, or 2) Soldier on and retire at a date of your choosing without the lump sum. Personally I'd take the earlier retirement.

If you don't feel ready to retire then take the money anyway and either look for another maybe part time job or volunteer work to ease into retirement.

Pollycat

But it's not just about the money.

Are you ready for retirement?
Do you have lots of hobbies that you're looking forward to expanding?
Or will you be sat in the house twiddling your thumbs?

If you think you'll maybe look for a part-time job, will the hours suit your lifestyle?
No point working as a shelf stacker for Tesco if you like to see your mates down t'pub or go to the match at the weekend if they're only offering you weekend hours.
My ex (global) employer ran retirement seminars to help people with financial and lifestyle changes that come with retirement.