How much to live on

Organgrinder

https://forums.moneysavingexpert.com/discussion/comment/81910820#Comment_81910820

It's a game changer paying off the mortgage.

Though according to the credit score apps my "rating" has plummeted, yet the offers for new cards and loans have come flooding in.

Just goes to show how meaningless these scores are!

helensbiggestfan

Good Morning Everyone.

Long time no "see". Just dropping by to congratulate those who are "almost retired". Well done. You'll love it. 😁. I was astonished to realise that I will have been retired 20 years this year (finished at 55). I retired to become my husbands care giver. Then, after he died, I renovated a couple of properties and dabbled in antiques, both had been previously been hobbies. It's been great - apart from the widowhood bit obviously.

I've moved house last year - not a fixer upper. It's only 7 years old so doesn't need much doing, just putting my own personal stamp. I am aiming to rejig the garden this year. Bought some trees and shrubs this week but it's too wet for planting.

Other than that, no earth shattering news. Living quietly and simply, gentle decluttering. Will be going away for Easter with the fam. Our usual Easter break in the Peak District.

Lots of things to celebrate this year……. Some big birthdays, anniversaries, family visits. I shall be 75 this year. 🤞. Not exactly Miss Fitness, but working on it. Lol

🥂 here's to the next 25 years.

Organgrinder

Well it's been a strange few weeks. Negotiating next year's teaching contract, sorting out my private pension and today reporting the contributions to HMRC.

Tax codes and tax calculation all over the place. Hopefully will get sorted soon.

Had a school inspection too. Thankfully I can say never again!

Exam marking contracts sorted for the summer and holidays booked too. Only Xmas snowboarding to do.

Next I'm considering emptying my private pension and putting into ISAs. Or buying a fixed term equity. Much depends on how liquid I want my assets I suppose. Or I could set a target and cream off any excess. Decisions decisions.

Albermarle

Next I'm considering emptying my private pension and putting into ISAs. Or buying a fixed term equity

Presume you mean annuity ? If so lots of discussion on the Pensions board from people planning something similar

Organgrinder

https://forums.moneysavingexpert.com/discussion/comment/81927029#Comment_81927029

Yes I meant annuity. Brain fog today!

Nebulous2

https://forums.moneysavingexpert.com/discussion/comment/81927073#Comment_81927073

The war in Iran has seen a rise in Gilt interest rates. I don't know how much of that has translated into annuity rates though.

I've made a final payment to my SIPP from income, and asked them to reduce the payment to £240 a month for the next financial year - the most I can pay without any earned income.

I've had just under 5 years of part-time work and I have accrued £40k in a SIPP. Roughly £25k contributions, £6k tax relief and £9k of gains.

I've also acquired another £1500 a year in DB pension.

So I should be good to go to fully retire. I've almost 4 years to state pension age, so the SIPP may be utilised to fund that.

Organgrinder

https://forums.moneysavingexpert.com/discussion/comment/81928688#Comment_81928688

This sounds very familiar!

Since going part time I've also added to my private pension - I'm just unsure now what to do with it. I intend carrying on working on a very reduced timeable equating to roughly 3 days a fortnight - I was going to do another year on 4 days a week but I feel the time is right.

This still gives me a monthly income on top of my pensions which after tax ismore than enough and I intend topping my private pension up further.

I estimate that it will be worh approx £90k when I stop the part time work.- the question then will be what to do with it.

Fixed term annuity to 67. Drawdown. Leave it there. Much will depend on how much I want access to funds immediately I guess. Thankfully I won't need to make a decision for another couple of years!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81929352#Comment_81929352

I estimate that it will be worh approx £90k when I stop the part time work.- the question then will be what to do with it.

Fixed term annuity to 67. Drawdown. Leave it there. Much will depend on how much I want access to funds immediately I guess. Thankfully I won't need to make a decision for another couple of years!

Ideally you should decide sooner rather than later. If you are going for an annuity, the usual advice is to derisk the investments in the pension. So reduce equity/shares % in favour of cash and gilts. This is to avoid the potential issue of the value of the fund crashing just before you buy the annuity.

On the other hand if you intend to drawdown for a number of years, it would best left invested in a more balanced portfolio. In fact for a potential 30 year drawdown it is usually best not to derisk at all.

Organgrinder

Thanks - anyway this morning I resigned and set the wheels in motion for my pension to be paid in September.

OMG - it's happening.

helensbiggestfan

Wahoo. 💃🥂. Good luck.