Retiring in 2 weeks...scary times

Scallypud

Well i have gone and handed in my notice and will be retiring in 2 weeks. Hopefully i have worked out my sums correctly. I'm a single guy and can live off £15,500 quite comfortably. I have a pension pot of £310,000 which i plan to drawdown £15,500 a year then reduce it to £10,500 in 8 years time when my SP kicks in. I  have £85,000 in savings with no mortgage.
My mind is racing now thinking have i got enough money or what if this happens or that happens. I'm sure most folk that are about to retire have these thoughts.
Any comments or advice would be much appreciated.

Dazed_and_C0nfused

Why £10,500 in 8 years?

Have you checked your State Pension forecast (and read past the headline figure)?

Scallypud

My state pension forecast is £8,500.
£10,500 is to allow for inflation

barnstar2077

Your numbers look good to me.  Time to enjoy your new life!!

Dazed_and_C0nfused

State Pension will probably increase by another £260 due to working this far through the tax year.

Purchasing an additional year would likely be an excellent investment (another £260/year) but purchase of a second year may not be as worthwhile as you will be capped at £9,110.

What happened to your final salary pension?

I have a private flexi pension worth 158K at the moment. The plan is to live off 20K per year until i'm 65.

I have a final salary pension that will probably be worth 250K by the time am 65. 

Scallypud

I decided to transfer my final salary pension. I was offered £243,000 which i couldn't turn down. I also have a private pension of £170k, With the 25% tax free money i plan to pay off mortgage , buy new car and have a good holiday. That will leave me with £310,000

Scallypud

Dazed_and_C0nfused said:

State Pension will probably increase by another £260 due to working this far through the tax year.

Purchasing an additional year would likely be an excellent investment (another £260/year) but purchase of a second year may not be as worthwhile as you will be capped at £9,110.

How much does it cost to purchase an additional year?

Dazed_and_C0nfused

c£160 if you start a small business and make voluntary Class 2 National Insurance contributions for the 2021:22 tax year.  You must register for Self Assessment and actually file a Self Assessment return to be able to pay this rate.

c£800 for voluntary Class 3 National Insurance.

Tony4625

Scallypud said:

I decided to transfer my final salary pension. I was offered £243,000 which i couldn't turn down. I also have a private pension of £170k, With the 25% tax free money i plan to pay off mortgage , buy new car and have a good holiday. That will leave me with £310,000

Who did you transfer with and was it a smooth transaction , if you don’t mind telling me.

Amateurretiree

Your plan sounds ok to me. Is it a DB or DC pension(s)?

That’s the only thing that would worry me, if your money is all in DC pots you are at the mercy of the stock markets, though with 85000 in savings if the markets were to dip you could live off savings for a few years if you needed to while the market recovered

I retired 3 years ago with a DB, DH 2 years ago with a D.C. so the drop in March of the D.C. was a bit scary to us, but you listen to the experts, do nothing, and the fund has recovered thankfully.
It is scary taking the jump and not earning any more, but the freedom is exhilarating!

Especially since you will have no mortgage. Also, you can cut back on things if you need to when you are living ‘comfortably’ . It’s something we have discussed, not that we need to, it just gives you a bit of sense of control

[Deleted User]

Good luck! I retired on Monday this week. So this Monday is going to be my first lie in for years, well it would be if I haven’t got to go an have a flu jab
It is scary, and with the pubs closed in tier 3 I need a hobby