How much to live on

daz378

Yes I  am hoping to reduce my hours...when I hit 60 in 2026...as work is dificult at the moment...the pension board was very helpful  when I asked about r85  protections...when I checked my voluntary retirement at 55 was only showing 9k.a year...which I thought working full time to 63....when I checked on 2022 s statement for 60 had risen 10.6 k per year...now I'm waiting  for 23 statement  in July...I am council renting so reasonable monthly rent of 420.. if I can get to 12 k a year augmented by savings at 61...I am prepared to live very basically  just for peace of mind

[Deleted User]

Good afternoon to all of you. What wonderful weather!

Just beginning my final half-term break. When I return on June 5th I will only have 5 days of semi-retirement remaining before finishing all types of paid work on Friday 9th June. It has taken me a while (through choice) to get to the fully retired stage but I am now ready and willing!

My NI record has just been updated and I now have 46 years of full year NI payments up to April 2023 and one more year to contribute to April 2024. I will need to voluntarily top up the 2023/2024 year as I will only have paid NI through employment for April, May and June this year. I will arrange payment of the voluntary contribution after receiving my final salary payslip on June 30th. This will entitle me (at current values) to a state pension of £203.08 a week from July 2024. I am very happy about this considering how long I was opted out before 2016.

I will update you on how my finances look for the twelve months when I will only be receiving my teaching pension (Up until July 2024) in a few weeks. Hopefully it may help or encourage others in a similar position to myself.

Enjoy the Bank Holiday weekend.

jennystarpepper

@[Deleted User] Very pleased for you, hope your last few days go smoothly. 

Daffodil1234

What an exciting transition, @[Deleted User] .  Wishing you all the best and it will be interesting to hear your updates for when you are receiving your TPS pension.

[Deleted User]

Daffodil1234 said:

What an exciting transition, @[Deleted User] .  Wishing you all the best and it will be interesting to hear your updates for when you are receiving your TPS pension.

I received the first part of my TPS pension in 2013 and the second part in 2016 after a phased retirement. I then received some additional pension in 2021 after working after retirement. For the last two contracts I decided not to pay in as I was very part-time  and my pension was adequate enough.
I have mainly used my post retirement earnings to finance home improvements and saved some too.

Tastiger

Well, I've applied for my teachers pension from September. Taking a 1 day break then returning part time. Shortage of teachers meant I was able to negotiate a good part time package, and also the step down to full retirement rather than over the cliff seemed a good idea to me. It comes with an extra tax free cash lump sum so planning on setting up a 3 year cash bucket to run alongside my DB pension. I will then top this up from my SIPP/ISA  over the 9 years until state pension kicks in. Will get full state pension and got no mortgage.
Hopefully no flaws in this plan.
 My last remaining task is to sort out where to keep the cash bucket so that it is accessible but not too ravaged by inflation.

Organgrinder

Well done.

Sadly for me my request to take a phased retirement hasn't come to fruition so I'm looking at other schools. I might not get the 0.6 I was looking for but 0.8 is at least one day less a week.

But there is some good news in all this. When I factor in the fact I'll be mortgage free my effective take home pay actually increases. So it's not all bad news!

2Scratters

@Organgrinder bitter sweet but a great result 

Albermarle

Tastiger said:

Well, I've applied for my teachers pension from September. Taking a 1 day break then returning part time. Shortage of teachers meant I was able to negotiate a good part time package, and also the step down to full retirement rather than over the cliff seemed a good idea to me. It comes with an extra tax free cash lump sum so planning on setting up a 3 year cash bucket to run alongside my DB pension. I will then top this up from my SIPP/ISA  over the 9 years until state pension kicks in. Will get full state pension and got no mortgage.
Hopefully no flaws in this plan.
 My last remaining task is to sort out where to keep the cash bucket so that it is accessible but not too ravaged by inflation.

You probably do not have much choice apart from savings accounts. Just pick the ones with the better rates and hope that inflation dies down asap.
You could have some in easy access , some in a one year fix and some in a two year fix. Watch out for tax on the interest. Assuming you will be earning more than £17,750 ( including your DB pension) anything above £1000 interest in a year will be taxed, unless it is in a cash ISA, or Premium bonds.

Wednesday2000

I bought the 37th edition of The Good Retirement Guide 2023 to read. I will probably slowly read through it over the next week and see if there are things we haven't considered about early retirement.

I was reading the Lily Allen autobiography before that, but was not really interested!😂