Semi retirement possible?

Dazza1902

I would like to go to 2/3 days per week at 60 doing something different and not too bothered about what it pays.
Married both 56 early in the new year. Current joint take home £4400, mortgage free(450pm) in 6 months, one child though uni, second through uni in 2.5 yrs
, no debts. Saving about £1400 per month into a sipp. 
My wife a teacher says she loves her job and does not want to retire, while i think this is admirable i want to make plans in case this changes.
Our Pension provision is poor, im trying to play catch up. 
Me, db 5k pa payable at 60, sipp 90k.
My wife db in the pension protection fund of 1.1k pa  payable at 60 no indexing, lgps 1.3 k pa at 62 (1.7 at 67),average salary teachers pension scheme 6k pa at 62 (15k at 67) . Plus 42k in a sipp. No major savings 10k in an isa, 15k for emergencies. 
I have checked our state pension, we both have full state pension 18k.
I think we could live on 3k take home per month very comfortably.
Any tips or thoughts? 

Dazed_and_C0nfused

Have you checked past the headline £175.20 on both State Pension forecasts?

With plenty of DB pensions you (both) may need additional years (although may gain them naturally over the next few years).

Do either of you pay 21/40/41% tax at the moment?

Dazza1902

Hi, im not too sure what you mean regarding sp, i went on the gov website, it said i needed one year. I have been self employed until recent, i do know that neither of us pay that rate of income tax. 

Albermarle

),average salary teachers pension scheme 6k pa at 62 (15k at 67)

Presumably due to the large difference this means she would have to actually work until 67 to get the £15Kpa , rather than just wait to take the pension until 67?

If so then I wouldn't argue with her when she says 'My wife says she loves her job and does not want to retire 

Our Pension provision is poor, im trying to play catch up

A £5K pa DB payable at 60 is not to be sniffed at . Probably worth about £200K .

Your financial/pension position could be better but is not that bad , better than average for sure, especially of you get to the £3K per month. 

Dazed_and_C0nfused

The State Pension forecast shows £175.20 for most people but as you are under transitional rules you need to read past the headline to see what you have actually accrued.

If you intend to continue working for several years you will probably get to £175.20 no problem but don't rely on the headline, read past that to understand your actual entitlement.

If you are both 20% taxpayers then there may be little difference in who contributes more to a pension so you might want to look at how best to utilise both your Personal Allowances in retirement. 

Two people with pensions of £12,500 each will pay no tax on them.

But if one has say £15,000 and the other £10,000 there will be tax to pay.

german_keeper

You have been quite casual in your first sentence but I would think this is the most important bit. It will define your starting point before working out any potential pension income and how to utilise it pre and post SPA. For example two 8 hour days per week at minimum wage would give you £604 towards your 3k target, three 8 hour days at a random figure of say £12 per hour pays £1248 towards your target. Those calcs probably need checking. 

Dazza1902

My wifes pension seems very inflexible, yes to collect 15k at 67, she has to work to sra. If she retired at 62 and deferred to 67 its still is poor 7.5k i think. I will weight pension savings to build her sipp, primarily to facilitate earlier retirement and potentially to ensure both tax allowances are used.
The Sipps can go into drawdown and be exhausted, we only plan to pass on our house to our children. 
I couldn't see any other info about our state pension forecast, i assume its on the gov sight? 

Dazza1902

German keeper you are quite right. I know it would be difficult in financial and marital terms to retire st 60. I work as a plumber/gas fitter which is hard on the body. I could bimble abou for two days and earn decent money plumbing, id rather do something different.
If wifey does not retire or divorce me, providing im earning something and keeping the house clean, money will be fine, msy not need to touch my sipp, could let it accrue. 
I think though it would be prudent to plan for her retirement which in my eyes cannot be before 62 otherwise her pension is hammered. 

Albermarle

Between you there is over £130K in SIPPs and you are still adding to them .
Have you given much thought to your investment strategy/portfolio, as this can also make a difference to potential income ?

Dazza1902

Albemarle, my sipp has mainly trusts with high dividends yields. I sort of plan to have small lump sums from the sipps for one off capital expenditure and hope we fo not need to cannibalise assets, thats not a given tho
 Im pretty financially naive. I am however trying to get my sipp up to 160 k at 60, and my wifes to 80k at 62. A lot of my plans are down to how the sipp performs. I seem to checking the stock markets a lot. Lol

Thrugelmir

Dazza1902 said:

A lot of my plans are down to how the sipp performs. I seem to checking the stock markets a lot. 

Set your expectations at realistic levels. Returns aren't linear. Markets will fall back at some point in time. What you eventuallly contribute will be the major factor.