Semi retire at 55

1_robbo

Hi all, just joined already feel a little out of my depth in regards to the knowledge displayed on some on the threads. 
It's only in last few months I've started taking an interest in my retirement finances. So my question will probably be very vague and open but I'll ask anyway as all opinions would be well received. 


I've just turned 52.
I have the following pension pots. 
Old company pension Royal London pot 276k no longer pay into but still invested. 
Old pension pot with aegon 53k again no longer paid into.
Current company pension pot 155k maxed on contributions. 
Also opted out of Derps aged about 18 and think has a 9 or 10k pot. 
So just shy of 500k total. 
By 55 my house will be almost paid for, I'll have little or no debts bar probable car loan.
My wife earns around 45k and happy to continue working for now. 
She has a ex nurse pension and now 20years as teacher pension (final salary) No other considerable saving, 10k in savings accouwe use for holidays through year
Basically at 55 I'd like to leave my current stressful job which I don't enjoy, maybe find something part time, would a pot of 500k sound decent, to draw 20k per year which would be enough for me, mabe work part time, and allow for more time for hobbies, travel (intend to by camper van).
Apologies for the very simplistic question 

Dazed_and_C0nfused

Doesn't seem unreasonable but you don't mention any DB pensions so presumably that £500k (+ 3' more years of £x in current scheme?) is to last forever and other than State Pension be your only pension income. 

Or is there a DB pension?

Have you checked your State Pension forecast to see what voluntary contributions (if any) you will need to pay to reach £175.20?

Linton

The first thing to do is to decide how much extra income you will need once you both are both retired and receiving State Pension and your wife is receiving her DB pension.  That will give you some idea of how much of the £500K you would need to keep for the long term.  Then you can work back to when your wife retires, with the missing SP coming from the £500K.

What is left of the £500K could be used to finance your early retirement.

Albermarle

£500K is a significant sum of money and how it is currently invested ( and in future ) could have a significant effect on the size of the pot, and the income that could be sustained from it .

Have you looked into the investments held within the pensions ? Or just left them alone ( like most people ) .

Also your cash savings seem a bit low ?

1_robbo

Albermarle said:

£500K is a significant sum of money and how it is currently invested ( and in future ) could have a significant effect on the size of the pot, and the income that could be sustained from it .

Have you looked into the investments held within the pensions ? Or just left them alone ( like most people ) .

Also your cash savings seem a bit low ?

Current pension is invested in aviva black rock 50:50 global equity index tracker.
You're correct I've just left them alone. 
Savings wise yes low, we've for the last good few years lived well with several nice holidays to far off destinations now kids are grown up, also spent a lot on house in things that won't need doing again for a while, roof, conservatory. Kitchen bathroom etc.
Never been one to build savings to be honest I'd rather enjoy it. 

Albermarle

Current pension is invested in aviva black rock 50:50 global equity index tracker.
You're correct I've just left them alone. 

You should have some kind of investment strategy that covers all the pensions . Maybe consider reducing the number down to one or two as it is easier to manage and keep track of what is happening .

It's only in last few months I've started taking an interest in my retirement finances

That is not unusual , many of us started to take more interest around your age . £500K is a big sum to manage and you will benefit from doing more research /learning. You could even look at taking some independent financial advice.

Brynsam

Have you factored in what would happen if your wife lost her job or was otherwise unable to continue to earn? Half a million pounds sounds (and is) a lot of money, but you could be talking about 30 to 40 years of retirement.

1_robbo

Albermarle said:

Current pension is invested in aviva black rock 50:50 global equity index tracker.
You're correct I've just left them alone. 

You should have some kind of investment strategy that covers all the pensions . Maybe consider reducing the number down to one or two as it is easier to manage and keep track of what is happening .

It's only in last few months I've started taking an interest in my retirement finances

That is not unusual , many of us started to take more interest around your age . £500K is a big sum to manage and you will benefit from doing more research /learning. You could even look at taking some independent financial advice.

Sounds like getting some financial advice is probably wise, I'm just a little wary due to my lack of understanding, don't want be be given dodgy advise, guess I've a lot of learning to do. 

1_robbo

Brynsam said:

Have you factored in what would happen if your wife lost her job or was otherwise unable to continue to earn? Half a million pounds sounds (and is) a lot of money, but you could be talking about 30 to 40 years of retirement.

Thanks for the reply, not really thought of her losing job, it's rare teachers do lose their job but I understand there's always a risk. I need to get to the bottom of her pension assets too as she's been worse than me at neglecting that side of things.
Maybe I'll change my mind when I'm older but right now I don't want to be old and past it with a big pension, I'd rather live well whilst still fairly young and be just about comfortable in older age, guess its getting that balancing act right.
Myself and wife also both only child so at some point will inherit parents houses, not really factoring that in right now though.
As far as investments and putting all pots into one, guess that's something to do at 55, plenty of ready ahead and food for thought. Thanks all. 

1_robbo

Dazed_and_C0nfused said:

Doesn't seem unreasonable but you don't mention any DB pensions so presumably that £500k (+ 3' more years of £x in current scheme?) is to last forever and other than State Pension be your only pension income. 

Or is there a DB pension?

Have you checked your State Pension forecast to see what voluntary contributions (if any) you will need to pay to reach £175.20?

No DB pension in my behalf I don't think, as far as state pension I've worked full time since aged 16 without a break so from what I gather should be entitled to full SP.
Also past 55 I'd probably try and do something part time anyway. I just want out of the  "Rat Race"

Albermarle

I need to get to the bottom of her pension assets too as she's been worse than me at neglecting that side of things.

With  Nurses and Teachers pension , there are no assets to manage as they are based on  a promise to pay an income . So totally different to your pensions .

Sounds like getting some financial advice is probably wise, I'm just a little wary due to my lack of understanding, don't want be be given dodgy advise, guess I've a lot of learning to do.  

Financial advice in the UK is tightly controlled so unlikely you will get 'dodgy' advice . However as in all walks of life some people will offer a better/better value for money service than others.

However if you go to a bank or building society , they can only offer their own products .

If you go to a large wealth management type company they will tend to be expensive.

The usual recommendation is to go to a local Independent Financial Advisor , dealing with pension investments is their bread and butter . However you are right the more you know yourself , the better, even if you have an IFA.

As you learn more still , you can think about DIY investing without an advisor.