Hoping to retire early- My plan

Holls_dad

Been putting around £50k a year in contributions, my equities is around 65% in the various funds I have

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81875921#Comment_81875921

Do you mean the plan you posted earlier this afternoon isn't your actual plan?

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

Notfarfromtheborder

You are doing well with £1.15M in spendable assets and a decent db scheme, congratulations, you are winning the game

53 is young to retire, any options on going Part time?

Who's is DB scheme, what is dependents pension?

Might want to look at first death, how do your numbers look then for either party with only one state pension?

Notfarfromtheborder

One further thought, who's is DC pension?

If its all yours then you are also wasting your wifes tax free allowances post 60.

Could she pay £7K per year into a pension meaning she is paying no tax now, and will be able to withdraw tax free post 60?

Yorkie1

You might also want to look at the maths if your wife decides not to carry on with her job until she is 60; how you would fill the £19K income gap if she decided that she wanted to follow you into full flexibility rather than work.

Holls_dad

https://forums.moneysavingexpert.com/discussion/comment/81875997#Comment_81875997

My DC is 810k and my other half is 90k

Holls_dad

https://forums.moneysavingexpert.com/discussion/comment/81875958#Comment_81875958

No plan for part time but may change my mind

Both DBs have 50% for dependents

Yes numbers would be an issue at first death however still have 155k savings and 260k DC pot at 67

Holls_dad

Hi
Just posting update of numbers as of today as nearing my 54 birthday wife is 54 in April looking at income of £55000 net 54-70 and £45000 after that

My DC pot is £895k invested in 62% equities

Wife’s DC pot is £97k invested in 75% equities

Cash/ ISAs etc £230k ( bought cars for wife and daughter that why figure is reduced )

My DB pension is £7k per year payable at 65

Wife’s DB pension is £14k per year payable at 65 with a small lump sum of £7500

Full state pension for both of us as of 67 - £12500 each per year

Still the plan is for wife to work till 60 in part time job which pays £19500 net per year

What the thoughts on amount of income I need in retirement and whether the above numbers would comfortably give me these ?

daveyjp

The amount you need in retirement is the figure you calculate. Review your spending for the last 12 months so you know all the unavoidable and fixed costs. Once those are covered it is down to how much money you need to have the lifestyle you expect.

Triumph13

Will you please just retire already!

Quick calc:

£600k of your DC at a very conservative 3% withdrawal rate throws of £18k a year. That, plus your DBs and SPs gives you £56k pa from 67. Bridging the gap with £56k pa spending costs you £430k for 11 years at £39k shortfall, then £42k for two years at £21k shortfall. Total bridging funds needed £472k. That is more than covered by your ISAs plus TFLS plus the rest of your DC.

Wife's DC and any continued earnings from her are extra jam.

Unless you enjoy your job more than you expect to enjoy retired life, just hand in your notice and start having fun.