Would it be foolish to stop work at 52?

dunstonh

ChocolateWombat said:

Thanks dunstonh.

Do you really think it’s totally inadequate?

We would be looking at managing until I am 60.  At that point I will probably have £15k from my DB and could release perhaps £10k per year from my lump sum and SIPPS to get us to 65.  From that point on, DH’s pension will yield £12k per year too.  All of the time, we would have perhaps £5-6k from the BTL too.  (The BTL figures have included funds for renovations, voids etc)   So from 65 we would have £33k.  From 67 we would have the extra £10k of DB oension and state pension.  At that point, we would have around £55k.

I guess that an option will be to take some of the DB early.  We really won’t need £55k per year from 67.  Perhaps bringing some earlier to 55 or 58 or even 60 would be a good idea?

I’m surprised though that given our DB provision and the fact husband will keep working, that you think the picture looks so bleak.

Once you get to that stage the DB pensions are payable, you are in a strong position.  Funding that gap is where I think you are running short.

That is the bit I think you are falling short.  

newatc

Have you thought of going for a simple stress free part time job for a few years as way of easing cash concerns and the transition to retirement.

I actually retired at 53 but I was able to take my DB pension with only a small reduction so I was lucky. My wife said she would work full time until she was 60 but she soon got attracted to my lifestyle and quit too  . 

Marcon

You seem to have asked similar questions several times in the last couple of years - a point made not as a criticism, but as a comment on the fact that you obviously have this idea constantly in mind!

Retiring at 52 because you don't like work isn't a bad reason to quit, but it would be a bit sad if you traded a working life you don't enjoy for one of constantly trying to balance the books.  As the post above suggests, could you possibly find something you prefer (and/or work part time) to add just a bit more to your family income for another year or two? Knowing that you are only doing something for a limited amount of time often makes it more bearable, especially when you know it's a route to a more lucrative freedom.

Having said all that...the world has never been more uncertain. If you and your husband are in agreement that you should stop work, then stop and enjoy life while you can.

Kim1965

Agree with the above posters, absolutely stop your current job asap. However at 50 you are very young to come out of the workforce and a long way off sp and db pension. Do something pt, use up your tax allowance, take the "heat" of of hubby and save the lot. That way your finances wont be treading water so to speak, they will improve. 

MattMattMattUK

I think you would be insane from a financial perspective to retire at 52 on that basis, so much so that I would not view it as retiring, so much as just giving up and sponging off your husband. That also becomes your second issue, you are the same age as your husband yet you pla to put your feet up and live off him for 15 years, with his extra work also contributing to a far more comfortable 67+ retirement. That is likely to build resentment for him no matter how much he says now it won't. 

in_my_wellies

I stopped work at 55 and have never regretted it for a moment. I intended to find a part time stress free job but have never found the need or the time. 
I saved money on commuting and live cheaper by cooking from scratch which I enjoy. Also DIY instead of paying someone else. 
There is no way my husband would have seen this as 'sponging' off him as it would have given us both a better quality of life, me less stressed, house more looked after and relaxed, etc. As it was my husband died three months before I retired but I did the maths and stuck to our plan. 
OP. remember if you are not working you can transfer some tax allowance to your husband so he pays less tax. 

Kim1965

Whats the saying " women have choices, men have responsibilities".
 In th op situation providing her partner is truly for this and is laid back, secure and happy in his work all is good. There would be a lot of partners silently unhappy about a unilateral decision to stop working. 

DT2001

MattMattMattUK said:

I think you would be insane from a financial perspective to retire at 52 on that basis, so much so that I would not view it as retiring, so much as just giving up and sponging off your husband. That also becomes your second issue, you are the same age as your husband yet you pla to put your feet up and live off him for 15 years, with his extra work also contributing to a far more comfortable 67+ retirement. That is likely to build resentment for him no matter how much he says now it won't. 

I think hugheskevi is correct that it is, from a financial perspective, achievable. If you (can) take your SIPP or DB earlier than 60 you will maximise the personal tax allowances. Sort a worksheet starting from age 67 and work back to 52 juggling various options for DB/SIPP etc. to confirm income available..

The OP’s husband is looking to work for 8 not 15 more years in a job he enjoys. Maybe work on an alternative plan so if OH stopped enjoying his work what would you both do - both take p/t jobs to bridge gap or sell BTL.

I do not ‘work’ as I’ve been the at home parent. My OH does not consider me to be putting my feet up and living off her. I look after the home and help her with admin (she is self employed). Her continuing to work will enable a larger retirement income but like the OP’s OH she enjoys her work and their is no resentment in the unequal contribution to retirement income.

ChocolateWombat

Thanks for all your thoughts.  Hughedski I think you make some very helpful suggestions.

This is something I’ve talked to my husband about.  He genuinely loves his work and wouldn’t resent supporting me.  There have been times where I have earned far more and essentially supported him.  Plus, there will be a phase from 60-65 when we basically live off my pension and lump sum, before his starts paying out.  We are a team and take the view that the money is all ‘ours’ and the key thing is we have enough, not that each makes an equal financial contribution.

I think the fact we have the BTL is a good thing.  I like the idea of seeing it as a contingency.  If we felt we were short, it could be sold to release a significant sum of money that we could live off for a number of years.  Beyond that, the pension provision is more than adequate.

The big question is about taking the DB pensions early.  On one hand we don’t want to cut things too fine and be hard up, but it would also be annoying to take them too early on a reduced basis and then to not be actually needing that money.

The thing that makes me rather wary is stopping is the final DC going to Uni at the point I’m 52.  We have money put aside for that, but it will feel odd to be facing that expense at the time that I’m also not earning anything.  The frugal me, who has been saving all this time will find it hard to be in a big spending phase right at the start of stopping work.

52 is very young.  It might be that I decide to do some work I suppose.  It could be low stress and low paid (I wonder if I’d feel aggrieved about earning little for my time) and very part-time.  Perhaps those who suggest I don’t give up on the idea of work altogether, but find something more tolerable even if less well remunerated have a good idea.  I guess too, that if you know you don’t need to be working, every but you do is an added bonus in the coffers, and that in itself is pressure free.

For now, I think I will take comfort from the fact many if you say it’s financially possible.  Knowing I can stop might be enough to make it feel more manageable, and then when I get closer to 52 I can decide if it’s a case if stop working altogether or perhaps move to something else (although quite what I have no idea) as something very particular time for a while.

Thanks  for your reassurances and ideas.  I appreciate them.

NannaH

God, just do it. Life’s too short,
I gave up work at 53, 2 years ago, to look after my Grandson ( I claim NI credits to make up my lost years).
You say you can live on £3k (a month?) but not save??
My husband earned exactly that (before he packed in his job to retrain)  our outgoings, including mortgage, are less than £1500,  so we had £1500 disposable income, plenty to save.  He’s been able to take 6-8 months off from paid employment to do an (expensive) Gas training course so he can go self employed.