How much to live on

Organgrinder

I have done a little "what if" planning. Just in case. All seems ok.

It's really good to hear people's plans etc. Thankfully the majority of posters are not only willing to share their experiences, but are also open to advice or suggestions.

I must confess I do like people who aren't closed to new suggestions.

barnstar2077

Organgrinder said:

I have done a little "what if" planning. Just in case. All seems ok.

It's really good to hear people's plans etc. Thankfully the majority of posters are not only willing to share their experiences, but are also open to advice or suggestions.

I must confess I do like people who aren't closed to new suggestions.

I agree.  I find it very interesting to hear everyone's thoughts and experiences on life and their finances.  Conversations you could only have with close friends in reality.  Sometimes the anonymity of the internet can be a force for good!

Organgrinder

Well, I've accepted another exam marking contract to help swell the coffers a little. Sadly for me I'm looking at a tax bill from HMRC for about £1500 due to not paying 40% tax on some of my income.

By my calculations I can avoid this by upping my personal pension contributions.

By the time I work everything out (I overpay tax elsewhere), I need to put in approx £4500. Here's the interesting thing for me. 

Not only does this mean I avoid paying £1500 extra in tax, it also gets the standard tax top up to £5625 and even with no growth I get 25% tax free before it then gets taxed at 20%, meaning I get £4781 back plus of course an effective £1500 from not paying the tax otherwise owed.

So £4500 in for a return of £6281.

Our tax system really is bonkers!

Albermarle

Organgrinder said:

Well, I've accepted another exam marking contract to help swell the coffers a little. Sadly for me I'm looking at a tax bill from HMRC for about £1500 due to not paying 40% tax on some of my income.

By my calculations I can avoid this by upping my personal pension contributions.

By the time I work everything out (I overpay tax elsewhere), I need to put in approx £4500. Here's the interesting thing for me. 

Not only does this mean I avoid paying £1500 extra in tax, it also gets the standard tax top up to £5625 and even with no growth I get 25% tax free before it then gets taxed at 20%, meaning I get £4781 back plus of course an effective £1500 from not paying the tax otherwise owed.

So £4500 in for a return of £6281.

Our tax system really is bonkers!

It might not be so bonkers after October 30th.......

Organgrinder

Albermarle said:

It might not be so bonkers after October 30th.......

Very true. Hopefully this system will stay as is until the end of the tax year. If not i won't she'd any tears over it's demise. 

louby40

So a couple of weeks ago I finally decided after 29 years fulltime teaching that I'm going to hand my notice in and semi retire next July.

I will be 56 and can draw my teachers pension from September, but will probably need to get a part time job to bump up my pension a bit in order to travel - which is what I love doing. 

My monthly income will be about £1400 plus I'll get £550 a month rental income. I've got money in an ISA and will get a decent lump sum.

I'm excited (& a little bit nervous) about this new phase in my life.

looking for a job after such a long time will be very interesting. Not had an interview since 2001! 🥴

Organgrinder

Congratulations! I semi retired last year.... I say semi retired....I only dropped a day....but I did the phased retirement route. Have to say it's great.

Rather than a part time job why not do exam marking? You can probably make £5k after tax and there's no job tying you down when the cheap holiday offers are there in Sept/Oct etc.

louby40

Organgrinder said:

Congratulations! I semi retired last year.... I say semi retired....I only dropped a day....but I did the phased retirement route. Have to say it's great.

Rather than a part time job why not do exam marking? You can probably make £5k after tax and there's no job tying you down when the cheap holiday offers are there in Sept/Oct etc.

Im primary based and my career has mostly been with KS1 so I don't think I could mark exam papers.

I dropped a day 12 months ago and it's been a life saver for my mental health, my Fridays off are sacred! But I've totally had it with all things education, entitled children, unrealistic and demanding parents, not to mention endless tasks and paperwork that make no difference to the children's learning but look great when Ofsted come calling. 

Savvy_Sue

louby40 said:

Organgrinder said:

Congratulations! I semi retired last year.... I say semi retired....I only dropped a day....but I did the phased retirement route. Have to say it's great.

Rather than a part time job why not do exam marking? You can probably make £5k after tax and there's no job tying you down when the cheap holiday offers are there in Sept/Oct etc.

Im primary based and my career has mostly been with KS1 so I don't think I could mark exam papers.

I dropped a day 12 months ago and it's been a life saver for my mental health, my Fridays off are sacred! But I've totally had it with all things education, entitled children, unrealistic and demanding parents, not to mention endless tasks and paperwork that make no difference to the children's learning but look great when Ofsted come calling. 

Is there no external checking of SATS then, or have they abandoned them for KS1? I know there's been talk of it (and about time too). 

There is also invigilation, definitely in secondary schools and at colleges and universities, for which no qualifications are required.

But I can well understand your desire to walk away! 

Humboldt

louby40 said:

So a couple of weeks ago I finally decided after 29 years fulltime teaching that I'm going to hand my notice in and semi retire next July.

I will be 56 and can draw my teachers pension from September, but will probably need to get a part time job to bump up my pension a bit in order to travel - which is what I love doing. 

My monthly income will be about £1400 plus I'll get £550 a month rental income. I've got money in an ISA and will get a decent lump sum.

I'm excited (& a little bit nervous) about this new phase in my life.

looking for a job after such a long time will be very interesting. Not had an interview since 2001! 🥴

@louby40 congratulations on your impending semi-retirement. 

I am now semi-retired. Having worked full-time for many years in a highly pressured, stressful environment, I chose to work part-time in a different sector. Whilst I am still adjusting to this new found status, I have no regrets.  I have noticed an immense improvement in my health and wellbeing, finally accepted that my DH and I can continue to reach our goals despite our reduced finances, and have begun to embrace a simpler pace of life.  DH and I also love to travel, and with careful management and a few tweaks to our budget and lifestyle, we continue to do so. 

I wish you every happiness for this new chapter in your life.