How much to live on

louby40

Kim1965 said:

louby40 said:

GunJack very true.
If my pension is £11k if I retire at 55 I can't afford to do that. The  Weslyan can give me a better estimate than the TPS website can as their calculators don't take into account being in both schemes.

Are your health issues affecting your abilty to work? Can you apply for ill health retirement? Potentially you may be able to get the pension paid unreduced or even enhanced?
 

My health issue is severe asthma. I've had 3 periods of time off since September because I couldn't breathe. I was admitted to hospital on one occasion. Previously my asthma has been really well controlled. 

I'm currently under the respiratory team (who seem to move at a snails pace). If I'm taking steroids I'm fine, but I cannot take long term steroids so they are deciding whether to put me forward for specific medication that is quite expensive. 

If I'm not eligible for that I don't know what to do. They don't know if my asthma flare ups are caused by radiotherapy I had last year for breast cancer or covid. 

If I continue to have time off then retiring under ill health may be the only way forward but I don't know if I'm actually bad enough for that. 

Tastiger

I have just finished reading through this thread. It's very reassuring that it is not talking massive money needed in retirement that you sometimes read elsewhere. My situation as a teacher is I'm going to go part time at 57, take my teacher pension early, and then do part time (2 days a week). So as for numbers:
Teacher DB pension index linked - £20k pa
£60K cash (comes with pension)
SIPP - £60K
£6k S&S ISA
Mortgage free
Fully paid up NI state pension for me and OH
So the plan is:
1. DB pension and part time wages to 58
2. DB pension +cash+SIPP until 67
3. DB pension + state pension + remaining SIPP from 67 plus
Having tracked spending for the last year, and modelled retirement using Voyant Go and Excel, I think this will give us £30k pa rising 3% a year. That should be enough to live on plus have some foreign travel. Would be nice to see the markets pick up down the line.

Albermarle

Would be nice to see the markets pick up down the line.


The £20K pa teachers pension is worth around half a Million Pounds, and the state pension about half of that ( if you had to buy those guaranteed inflation linked pensions in the open market) 
So with  only £66K in investments ( assuming the SIPP is invested) , I am not sure that market performance is going to have much of a significant effect on your retirement.
Still handy to have though for the occasional top up/ one off expenditure.

Daffodil1234

@Tastiger that sounds like a good plan,

One thing occurred to me- thinking about TPS rules- depending on your precise situation, have you double checked with TPS if you can still receive your TPS pension when you have gone back to work part time after getting your pension ?

https://www.teacherspensions.co.uk/members/faqs/re-employment/returning-to-work.aspx

(Obviously this is irrelevant if you meant going back to work part time,  but not in a teaching role).

Tastiger

Thanks. It's OK as long as I take a one day break in service

[Deleted User]

Happy Easter to you all. I am back after my Lenten break from forum posting. I have just  been reading about the plans and finances of some new posters. Many thanks and welcome.

My finances have continued to tick along steadily and generally as planned.

I have changed and cancelled some planned travel as I am having a rethink about where I really want to visit.

My main news is that my last day of semi-retirement will be Friday 9th June! The new Head of Department takes over the following Monday. So nearly 7 years after supposedly retiring I am entering full retirement. I have worked a variety of part time contracts since ‘retiring’ at the same school. So in total 35 full time years and 7 part-time years working in Education. I think I have done my bit!

This time I am definitely ready and can’t wait! Have a meal planned for Friday 9th June to celebrate and the following Monday I am going on a nostalgic 4 day road trip with some relatives to visit several childhood holiday seaside towns and resorts!

So two more decent salary payments in April and May plus the final smaller one at the of June. My annual income from July 2023 to June 2024 will be at least £21699 before tax. Budget done. All perfectly doable and will still be saving a little.

From July 2024 my state pension is payable. I will have to make a final voluntary NI payment to cover July 2023 to April 2024. I will have made 47 years of contributions, but upside is almost a full pension bar a few pence. Very pleased about this considering I was opted out for many years. The extra years part-time work ensured my NI was paid up.

So on current figures from next July income will be just over £32000 before tax. Fine for a singleton like myself. I am mortgage and debt free. I have savings and investments of about £35000 to £40000.  I will  continue to save a sum each month too. 

However my emphasis will be on enjoying my retirement and not restricting myself. Not very MSE I know but I am 64 and time for relaxing and more fun! 

Best wishes to you all.

[Deleted User]

Tastiger said:

I have just finished reading through this thread. It's very reassuring that it is not talking massive money needed in retirement that you sometimes read elsewhere. My situation as a teacher is I'm going to go part time at 57, take my teacher pension early, and then do part time (2 days a week). So as for numbers:
Teacher DB pension index linked - £20k pa
£60K cash (comes with pension)
SIPP - £60K
£6k S&S ISA
Mortgage free
Fully paid up NI state pension for me and OH
So the plan is:
1. DB pension and part time wages to 58
2. DB pension +cash+SIPP until 67
3. DB pension + state pension + remaining SIPP from 67 plus
Having tracked spending for the last year, and modelled retirement using Voyant Go and Excel, I think this will give us £30k pa rising 3% a year. That should be enough to live on plus have some foreign travel. Would be nice to see the markets pick up down the line.

 Thanks for sharing Tastiger. Your finances look fine. Go ahead with your part-time plans. Best wishes.

[Deleted User]

Louby40. Investigating ill health retirement is an option to be considered. 

At the moment with a mortgage still to pay and a small contingency fund retiring at 55 without ill health retirement could be financially tight.

You need to find out what your pension would be at 55 and work out if you could live on it plus contributions from your partner. Your expenses do look quite low each month. Your contingency fund will be also be boosted by the lump sum from the TPS.

If you did retire from teaching is less demanding part-time work an option to top up finances?

Remember you also need to plan for fun activities and some new adventures. Retirement is for living not existing.

Personally I would be wary of downsizing for the reasons others have stated plus the fact you are still quite young 🙂.

Lots to consider and think about. However, try to see it a more of an adventure to plan for rather than something to overthink and worry about.

Best wishes.

Ali660

Tastiger said:

I have just finished reading through this thread. It's very reassuring that it is not talking massive money needed in retirement that you sometimes read elsewhere. My situation as a teacher is I'm going to go part time at 57, take my teacher pension early, and then do part time (2 days a week). So as for numbers:
Teacher DB pension index linked - £20k pa
£60K cash (comes with pension)
SIPP - £60K
£6k S&S ISA
Mortgage free
Fully paid up NI state pension for me and OH
So the plan is:
1. DB pension and part time wages to 58
2. DB pension +cash+SIPP until 67
3. DB pension + state pension + remaining SIPP from 67 plus
Having tracked spending for the last year, and modelled retirement using Voyant Go and Excel, I think this will give us £30k pa rising 3% a year. That should be enough to live on plus have some foreign travel. Would be nice to see the markets pick up down the line.

You mention a OH - May I ask about their provision? Just thinking whether no. 3 above should also include their state pension too?

Ali660

Congratulations @[Deleted User] - June sounds a nice month to finish 🙂