Having problems deciding whether to press that resignation button....

Albermarle

sheslookinhot said:

The disadvantage of OMY, or TMY’s, is that your vocational freedom, I.e. retirement is also reduced by 1 or 2 years. 

After you are financially comfortable, or even before, it’s all about what you value you most; Time or Money.

The problem is that what one person feels is enough to make them feel financially comfortable, would be inadequate for another.
Better for some people to do OMY or TMY , if it helps them relax during retirement and not be worrying about money all the time .

SouthCoastBoy

DT2001 said:

SouthCoastBoy said:

cfw1994 said:

SouthCoastBoy said:

I have slipped into n more years syndrome, as all my pension is based on savings and dc pension I am at the vagaries of the stock market, and being a fairly anxious person, I just dont have the confidence to go. If I had access to a db pension I think that would have given me more confidence, unfortunately I dont so think I will be going to at least 60

That old OMY Syndrome is a very real challenge/puzzle 👀
  
We are luck to have 3 *small* DB pensions that kick in over the next 1/3/8 years, but they are not the bulk of our income. 
We also have a 'likely' inheritance at some point (which we haven't included in our number/expectations) which could provide some buffer at some point in the next 1-10 years (or so...).  The main chunk of that will likely be passed on down, so no chickens counted here.

Everyone has their own circumstances to consider, and their own aspirations for the years ahead of them.
My only suggestion would be to try to live off YOUR 'Number' over the next 12 months.  Start today! 

If you find it a struggle, then maybe OMY or even TMYs are right for you 🤷🏼‍♂️

If, in 12 months, you found it 'easy', maybe you will be more confident about taking that step.   Maybe markets will have steadied (although I firmly believe we will never have that perfect crystal ball, only an approximation, subject to change).
It's one small step for man, one giant leap for SCB 🤣

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

What % is the £2.5k p.m. of your pot?
How long until SPA when presumably circa £750-800 p.m. will be from the Govt?

Just under 3%, currently 56, 57 first quarter next year and yes due a full state pension at 67

DT2001

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

cfw1994 said:

SouthCoastBoy said:

I have slipped into n more years syndrome, as all my pension is based on savings and dc pension I am at the vagaries of the stock market, and being a fairly anxious person, I just dont have the confidence to go. If I had access to a db pension I think that would have given me more confidence, unfortunately I dont so think I will be going to at least 60

That old OMY Syndrome is a very real challenge/puzzle 👀
  
We are luck to have 3 *small* DB pensions that kick in over the next 1/3/8 years, but they are not the bulk of our income. 
We also have a 'likely' inheritance at some point (which we haven't included in our number/expectations) which could provide some buffer at some point in the next 1-10 years (or so...).  The main chunk of that will likely be passed on down, so no chickens counted here.

Everyone has their own circumstances to consider, and their own aspirations for the years ahead of them.
My only suggestion would be to try to live off YOUR 'Number' over the next 12 months.  Start today! 

If you find it a struggle, then maybe OMY or even TMYs are right for you 🤷🏼‍♂️

If, in 12 months, you found it 'easy', maybe you will be more confident about taking that step.   Maybe markets will have steadied (although I firmly believe we will never have that perfect crystal ball, only an approximation, subject to change).
It's one small step for man, one giant leap for SCB 🤣

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

What % is the £2.5k p.m. of your pot?
How long until SPA when presumably circa £750-800 p.m. will be from the Govt?

Just under 3%, currently 56, 57 first quarter next year and yes due a full state pension at 67

I thought I saw on a previous post you had £1.4m? £30k is just over 2% and you wisely IMO had roughly 50% is ISAs so can avoid paying any tax. 10 years on SP.

I am sure some of the wise heads on here could suggest a plan or two to allow a minimally stressed retirement. I’d either look at using part of the pot to buy index linked gilts with maturity in 10/15 years (knowing I’d lose some quantifiable ‘real’ value of my money) and then an annuity ( It would give you certainty) or create a naturally income producing portfolio 

SouthCoastBoy

DT2001 said:

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

cfw1994 said:

SouthCoastBoy said:

I have slipped into n more years syndrome, as all my pension is based on savings and dc pension I am at the vagaries of the stock market, and being a fairly anxious person, I just dont have the confidence to go. If I had access to a db pension I think that would have given me more confidence, unfortunately I dont so think I will be going to at least 60

That old OMY Syndrome is a very real challenge/puzzle 👀
  
We are luck to have 3 *small* DB pensions that kick in over the next 1/3/8 years, but they are not the bulk of our income. 
We also have a 'likely' inheritance at some point (which we haven't included in our number/expectations) which could provide some buffer at some point in the next 1-10 years (or so...).  The main chunk of that will likely be passed on down, so no chickens counted here.

Everyone has their own circumstances to consider, and their own aspirations for the years ahead of them.
My only suggestion would be to try to live off YOUR 'Number' over the next 12 months.  Start today! 

If you find it a struggle, then maybe OMY or even TMYs are right for you 🤷🏼‍♂️

If, in 12 months, you found it 'easy', maybe you will be more confident about taking that step.   Maybe markets will have steadied (although I firmly believe we will never have that perfect crystal ball, only an approximation, subject to change).
It's one small step for man, one giant leap for SCB 🤣

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

What % is the £2.5k p.m. of your pot?
How long until SPA when presumably circa £750-800 p.m. will be from the Govt?

Just under 3%, currently 56, 57 first quarter next year and yes due a full state pension at 67

I thought I saw on a previous post you had £1.4m? £30k is just over 2% and you wisely IMO had roughly 50% is ISAs so can avoid paying any tax. 10 years on SP.

I am sure some of the wise heads on here could suggest a plan or two to allow a minimally stressed retirement. I’d either look at using part of the pot to buy index linked gilts with maturity in 10/15 years (knowing I’d lose some quantifiable ‘real’ value of my money) and then an annuity ( It would give you certainty) or create a naturally income producing portfolio 

Yes that's correct, I make the just under 3% statement as Iike to be pessimistic in my planning, hence allowing buffer.

ukdw

SouthCoastBoy said:

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

Unless your daughter isn't taking the full student loan available, £12k a year on university expenses sounds like quite a lot - when my kids went I actually found our monthly expenses reduced by a fair bit, which probably almost balanced out the parental contributions to accommodation etc.

I also base my projections on 2.5% inflation, but I project 4-5% growth on investments (real terms 1.5%-2.5%), with cash 1-1.5% (real terms -1.5% to -1%).

Re pulling the trigger I knew about 3 years ahead the exact day I would be in a position to have enough funds to leave (due to bonus cycles) and then planned to see how things went and to enjoy being in a position to leave whenever I liked.

As it worked out I happened to have a 1:1 meeting with my line manager the very day - and so my financial freedom before pulling the trigger only ended up lasting a few hours, rather than months or years.. 

ex-pat_scot

ukdw said:

SouthCoastBoy said:

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

Unless your daughter isn't taking the full student loan available, £12k a year on university expenses sounds like quite a lot - when my kids went I actually found our monthly expenses reduced by a fair bit, which probably almost balanced out the parental contributions to accommodation etc.



Re pulling the trigger I knew about 3 years ahead the exact day I would be in a position to have enough funds to leave (due to bonus cycles) and then planned to see how things went and to enjoy being in a position to leave whenever I liked.

We pay roughly £500 per month per child as uni contribution, or whatever the accommodation costs are.
That gives them approx £1000 per term as the base student loan, as "living expenses", plus whatever they manage to earn during holidays.

I'm sure we save some cost on food compared when they were at school.
The biggest cost saving is on activities / transport etc. (more than £500 per month!)

On pulling the trigger, I know the optimal time and aligned to bonus cycle.
Bonus will be March payroll, and I'm fairly sure I can't resign before 1 March else I'll be ineligible.
With a 3m notice period, that would take me to June 1.
That would get me 2 months into the next tax year, with sufficient NI paid to give me another year's NI credit.
Bonus is likely modest - 5 or 6% I expect, so not a huge reason to hang on - ie 3 ish weeks of salary.

t0rt0ise

Dazza1902 said:

She's looking hot and Marlot, have had a phased retirement. Anybody retired, then taken part time work and not with their former employer? Something completely different. A change is as good as a rest scenario, a clear distinction from their previous working life ?

I left a full time job in the NHS at 60 and took a weekend job as a Station Assistant at a tube station. Completely different and very well paid (and with seven weeks holiday a year). Love trains and station architecture and history. It was a great job which I have recently left after five years. Got a very small pension from it too.

DT2001

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

cfw1994 said:

SouthCoastBoy said:

I have slipped into n more years syndrome, as all my pension is based on savings and dc pension I am at the vagaries of the stock market, and being a fairly anxious person, I just dont have the confidence to go. If I had access to a db pension I think that would have given me more confidence, unfortunately I dont so think I will be going to at least 60

That old OMY Syndrome is a very real challenge/puzzle 👀
  
We are luck to have 3 *small* DB pensions that kick in over the next 1/3/8 years, but they are not the bulk of our income. 
We also have a 'likely' inheritance at some point (which we haven't included in our number/expectations) which could provide some buffer at some point in the next 1-10 years (or so...).  The main chunk of that will likely be passed on down, so no chickens counted here.

Everyone has their own circumstances to consider, and their own aspirations for the years ahead of them.
My only suggestion would be to try to live off YOUR 'Number' over the next 12 months.  Start today! 

If you find it a struggle, then maybe OMY or even TMYs are right for you 🤷🏼‍♂️

If, in 12 months, you found it 'easy', maybe you will be more confident about taking that step.   Maybe markets will have steadied (although I firmly believe we will never have that perfect crystal ball, only an approximation, subject to change).
It's one small step for man, one giant leap for SCB 🤣

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

What % is the £2.5k p.m. of your pot?
How long until SPA when presumably circa £750-800 p.m. will be from the Govt?

Just under 3%, currently 56, 57 first quarter next year and yes due a full state pension at 67

I thought I saw on a previous post you had £1.4m? £30k is just over 2% and you wisely IMO had roughly 50% is ISAs so can avoid paying any tax. 10 years on SP.

I am sure some of the wise heads on here could suggest a plan or two to allow a minimally stressed retirement. I’d either look at using part of the pot to buy index linked gilts with maturity in 10/15 years (knowing I’d lose some quantifiable ‘real’ value of my money) and then an annuity ( It would give you certainty) or create a naturally income producing portfolio 

Yes that's correct, I make the just under 3% statement as Iike to be pessimistic in my planning, hence allowing buffer.

Oh!

£30k p.a. is 2.14% of £1.4m
£30k p.a. is 2.22% of £1.34m (taking £60k out for Uni costs)
Oh!, again, as you only need this rate for 10 years before SPA when with one SP the rate is below 1.5%.

SWR (as a guide), admittedly based on the past, would suggest you have a 50% margin on the worst case scenario. If the worst happens, I’ll paraphrase a comment I’ve seen on other threads, we’ll all be in the ****!

What does OMY achieve?

I do not know how you change your mindset. A few years ago my OH talked about possibly retiring so I crunched the figures and came up with a pessimistic monthly figure which inc ‘discretionary’ spending. I also included within that plan options if the worst case scenarios started to occur - with  SWR it assumes you take no action, not IMO, a reality - which inc. reducing discretionary expenditure, p/t work, down sizing etc. Maybe having been self employed for many years adjusting to fluctuating circumstances is easier? By the by OH is still working as she enjoys it!

Good luck, you are in a fantastic place.

MallyGirl

ex-pat_scot said:

ukdw said:

Unless your daughter isn't taking the full student loan available, £12k a year on university expenses sounds like quite a lot - when my kids went I actually found our monthly expenses reduced by a fair bit, which probably almost balanced out the parental contributions to accommodation etc.

We pay roughly £500 per month per child as uni contribution, or whatever the accommodation costs are.
That gives them approx £1000 per term as the base student loan, as "living expenses", plus whatever they manage to earn during holidays.

I'm sure we save some cost on food compared when they were at school.
The biggest cost saving is on activities / transport etc. (more than £500 per month!)

We pay for the accommodation as that is almost exactly the difference between the min loan that she gets and the max that she could get if we were low earners. £1,650 a term. We are no longer paying for multiple music lessons and ensembles, Stagecoach, providing pocket money/clothes allowance, feeding a third adult

Albermarle

MallyGirl said:

ex-pat_scot said:

ukdw said:

Unless your daughter isn't taking the full student loan available, £12k a year on university expenses sounds like quite a lot - when my kids went I actually found our monthly expenses reduced by a fair bit, which probably almost balanced out the parental contributions to accommodation etc.

We pay roughly £500 per month per child as uni contribution, or whatever the accommodation costs are.
That gives them approx £1000 per term as the base student loan, as "living expenses", plus whatever they manage to earn during holidays.

I'm sure we save some cost on food compared when they were at school.
The biggest cost saving is on activities / transport etc. (more than £500 per month!)

We pay for the accommodation as that is almost exactly the difference between the min loan that she gets and the max that she could get if we were low earners. £1,650 a term. We are no longer paying for multiple music lessons and ensembles, Stagecoach, providing pocket money/clothes allowance, feeding a third adult

I think that sort of cost is pretty standard for most families where the student only gets the minimum grant .
We paid £6K in the first year for halls , then £3.5K in a shared house ( cheaper Midlands city ) , then about £5K for nicer shared city centre flat for final year. Pus a few free shopping trips! 
Would be more for SE /London .