Retiring at 55

MrDinosaur

I have been reading this forum now for some time and thought that you can either reassure me or tell me I am a fool.
I have a draw down pension pot of just over £840k and a works pension which will only have around £10k in. I will be 55 next year and my heart is set on leaving the busy manufacturing life and enjoying what retirement can bring. My wife will unfortunately have to keep going for the next 2 years but the plan is for her to retire as well. she has a NHS pension but as she only works part time this will bring in around £5k when we are both 60.
I have done spreadsheets to death I know my spends etc and it all fits to have around £28k from the drawdown per year - what would you do.

AnotherJoe

Put as much of my salary so far this year into my pension as I could, and then retire in time for Christmas.

zagfles

Have you accounted for the state pension, your wife's income and pension in the planning? I'd start by looking at state pensions, and DB pensions as the base, and look at what you can make that up to with the drawdown pension.

MrDinosaur

Spread sheet takes into consideration wife's pension at 60, this reduces my drawdown amount, the same applies for state pension. I have front end loaded so that we can enjoy retirement. I have also reduced the drawdown amount at 70 and again at 80 if we are lucky enough to get there. I have added 2% inflation and only 3% growth on pension.

cfw1994

AnotherJoe wrote: »

Put as much of my salary so far this year into my pension as I could, and then retire in time for Christmas.

I've always thought that around June-July sounds a decent time to retire......a hopefully nice summer ahead of you, summer months of sunshine avoiding SAD kicking in, a couple of months work under the belt, & if HRT payer, the chance therefore for some tax refund a bit later!

OP - what would I do?

I would also keep filling up the pension, and look to stepping down from the maelstrom of manufacturing: unless you really enjoy it, then I suspect you will get more out of having *time* - that is something none of us are getting any more of!

I'd also have a raft of spreadsheets preparing me....but then, I love a good spreadsheet!
(eta - sounds like you have the spreadsheet prepared!)

zagfles

MrDinosaur wrote: »

Spread sheet takes into consideration wife's pension at 60, this reduces my drawdown amount, the same applies for state pension. I have front end loaded so that we can enjoy retirement. I have also reduced the drawdown amount at 70 and again at 80 if we are lucky enough to get there. I have added 2% inflation and only 3% growth on pension.

Then the £28k figure seems very low! Assuming you both get a full state pension at 67 that's £17k, your wife's pension £5k, makes £22k, so then you'd only need £6k drawdown a year to make it up to £28k.

Albermarle

You do not mention any non pension savings/investments .
Having an emergency fund is always a good idea.
Plus if you can use cash reserves if your pension fund/markets take a dive in the early years, it can make a big difference to preserving the pot . Known as dealing with 'sequence of returns risk '

cfw1994

Albermarle wrote: »

You do not mention any non pension savings/investments .
Having an emergency fund is always a good idea.
Plus if you can use cash reserves if your pension fund/markets take a dive in the early years, it can make a big difference to preserving the pot . Known as dealing with 'sequence of returns risk '

With a 'draw down pension pot', I assume 25% can be taken as TFLS by the OP to provide for that.....& that can also be used to try to avoid the sequence of returns risk.

Indeed, that risk is perhaps the greatest for anyone planning to retire in the next couple of years, I suspect. & I include me in that list :eek:

Brilley

...with that sort of pot + some "guaranteed" index linked pensions to come it seems like a no brainer to go now? As per the above, I would think £28k seems pessimistic?

vulcanrtb

Retire immediately *

* Is what I'd do.

Albermarle

I've always thought that around June-July sounds a decent time to retire......a hopefully nice summer ahead of you, summer months of sunshine avoiding SAD kicking in, a couple of months work under the belt, & if HRT payer, the chance therefore for some tax refund a bit later!

I agree . Xmas would be the last time I would plan to retire as first month not working would be January . Bit depressing......