Hoping to retire early- My plan

blisteringblue

cfw1994 said:

I follow @cfiresim on Twitter......she pointed out a @MichaelKitces piece that postulates that for any given moment, a 50% success rate is all you need, so long as you re-evaluate every year and adjust.

Your numbers sound feasible (not run them through my magic spreadsheet to confirm - several here you can try)....40k, for most people in most of the UK would give a luxury retirement, according to Which? magazine.

I’d say go for it......but monitor, evaluate & adjust!

That's the spreadsheet I was talking about    Thanks CFW

Holls_dad

Update after few years longer and looking for comments on if you think I enough to retire this Xmas at 52 

Figures as below now for both 

£250k in saving/isas etc
£685k in DC pension pot
At 65 defined benefit of £20k per year along with full State Pension for both at 67 £23k

No mortgage 

Plan is OH would like to work another 8 years in small part time job £14k year till 60

Think we can easily live on £42k so would only need £28k from the above figures for next 8 years with OH pay

michaels

You can use index linked govt bond ladder to cover the period until DBs become available, cost is basically the index linked amount you want to withdraw each year, this removes any inflation/market volatility risk at the cost of accepting zero real growth in the period.

Is the DC definitely accessible at age 55 given your age? (assuming no govt curve balls in the budget)

anonanon321

I think you have enough. My figures are very similar to yours and I have recently taken voluntary redundancy. Husband will do one more year.

Holls_dad

michaels said:

You can use index linked govt bond ladder to cover the period until DBs become available, cost is basically the index linked amount you want to withdraw each year, this removes any inflation/market volatility risk at the cost of accepting zero real growth in the period.

Is the DC definitely accessible at age 55 given your age? (assuming no govt curve balls in the budget)

Yes all accessible unless curve ball in the budget

Holls_dad

Thanks for the comments and assistance on the forum, we are both 53 now and still working at the moment

Our numbers now are below, looking to see if any issues with below and what numbers people believe they need a year in retirement ?

£255k in Savings/ISA/Shares,£900k in DC pension pot, at 65 we will have DB of £21k per year with full state pension of £24k also as of 67

No Mortgage

Wife enjoys her part time job and plans to work until 60 earning now £19k a year

If I do decide to go plan would be below

53-55 Use 100k from savings and wife’s 19k a year

55-60 Use tax free lump sum £225k from DC pot and wife’s 19k a year

60-65 Use DC pot of 65k a year still leaving £155k savings etc and £350k DC pot

65-67 Use DB of £21k a year and DC pot of £45k still leaving £155k savings and £260k DC pot

67 onwards DB and State Pension of £45k with the option of £155k savings and £260k DC pot

All of the above is today’s figures

michaels

https://forums.moneysavingexpert.com/discussion/comment/81875652#Comment_81875652

You do not want to waste your personal allowance between 55 and 67 so this should be your minimum taxed income floor. If you think higher rate tax might come into play post state pension age (frozen thresholds plus inflation make this increasingly likely) then might also be worth drawing at basic rate now and moving funds to ISA.

Dazed_and_C0nfused

55-60 seems a bit of a waste of the majority of your Personal Allowance (assuming you have effectively used a bit from applying for Marriage Allowance).

Any reason you haven't opted for UFPLS in that period?

Notfarfromtheborder

if your dc pot has increased £215K in under 18 months that would suggest a high equities allocation, appreciate you will have had more contributions going in.

Might want to derisk a bit to cover medium term spend needs, don't want a market correction derailing plans?

55-60, depending when you can access pension but I would be thinking about getting £16760 out per year, tax free as a minimum, as Michaels says, dont waste this allowance

Holls_dad

Yes will take my personal allowance out of my DC between 55-60