Fed up with working

bostonerimus

Do a very detailed budget and make sure you account for large irregular expenses like a new car, boiler, roof etc. 

FYI I retired 3 years before my DB pension started. I put 3 years of spending in easy access savings and my current account. I live in Massachusetts and I found that my low level of income made me eligible for some benefits…despite my high level of savings…and so I ended the 3 years with quite a bit of money in the bank.

So make a plan around your budget and income sources and stay flexible. Part time work can provide money for luxuries and also some extra socializing which is important

p00hsticks

calcotti said:

Regardless of anything else it would seem sensible to at least work until next April to get the final year needed to qualify for full pension.

OP doesn't mention how much they earn or what pay cycle they are on but it's perfectly possible for them to have already accumulated sufficient NI contributions for 2022-23 to count as a full year for Pension purposes. 

Stargunner

Op says that their monthly outgoings are only £700 per month, so they have more than enough to retire now with plenty in savings to cover any unexpected expenses like a new roof, car, boiler etc.

Miiade

Op, with those sort of pensions / savings you are never going to run out of money spending £700 a month. 

If you are fed up with work I would quit work tomorrow. How you cut the numbers is a secondary issue as you have no financial worries.

Good luck with whatever you decide to do.

Alice_Holt

I think I'd be looking at:

i)  Confirming how longer you need to work to get to the maximum SP;
ii)  As Sarah said, look carefully at the defined pension commutation options, and putting together spreadsheets with the various options to check break even dates, etc 
iii)  Chucking more money (from savings) into a SIPP / personal pension whilst you are still earning- getting the tax uplift. Then seeing if you can draw down within your personal tax allowance (so tax free) for the year/s until the DB starts. Then possibly using it (if this should become necessary) to top up income until SP starts,
iv)  Checking the savings are held in the most tax efficient way (ISA's, etc),
v)  Modelling all various options (income & expense) on a spreadsheet out to, say, age 90 

Stargunner

Alice_Holt said:

I think I'd be looking at:

i)  Confirming how longer you need to work to get to the maximum SP;
ii)  As Sarah said, look carefully at the defined pension commutation options, and putting together spreadsheets with the various options to check break even dates, etc 
iii)  Chucking more money (from savings) into a SIPP / personal pension whilst you are still earning- getting the tax uplift. Then seeing if you can draw down within your personal tax allowance (so tax free) for the year/s until the DB starts. Then possibly using it (if this should become necessary) to top up income until SP starts,
iv)  Checking the savings are held in the most tax efficient way (ISA's, etc),
v)  Modelling all various options (income & expense) on a spreadsheet out to, say, age 90 

None of this is necessary with monthly outgoings of only £700

Secret2ndAccount

Krakkkers said:

So i want to retire. coming up to 58, single, own my own home outright (4 bed detached £320k ish), £195k in savings, no debts.
2 pensions, first is a pot with £138k in it, second is a DB which pays £12560 a year plus £83700 lump sum (at 60) and indexed each year at a fixed 5%. 
Or i could take the DB now at £11k a year and £73k lump sum, only 3% penalty per year for taking early, 60 is the scheme retirement age.
I have a state pension forecast of £182 per week, i am 1 year short of the max new pension of £185.
Outgoings are around £700 a month as everything i have is paid for and my hobbies are cheap, walking, cycling, etc.
What would you do and how would you best combine the above options?

I doubt your ability to live on 700/mth every month. That's 8400/yr. At that level I would expect you to be on the benefits board saying you can't afford your gas bill, and, when winter comes, you will need to skip two meals a day to keep the lights on. If you were a pensioner on 8400/yr you would likely be eligible for pension credit to boost your income. A couple on 8400 each, maybe, but an individual in a a large house, no. Sooner or later, your house is going to need windows or a boiler, and that's 6 mths salary at the level you state. So a re-evaluation of your long term budget is required.
What I don't doubt is that you are able to retire if you want to. Tomorrow. From age 67 you have (in today's money), over 20k/yr, which I would think you can live on. From 60-67, you have 12560, plus a lump sum that just about makes it up to 20k for the next 7 years. So you now have >300k to get you from here to 60. 
It seems to me, you can live on 20k/yr, increasing with inflation, and with a comfortable contingency, for the rest of your life. If you review your budget, and can live on 20k, you are good to retire.

Brie

Don't forget that your spend on hobbies is likely to go up as you have more time to indulge.  And it may mean that rather than driving an hour away from home each weekend to do a nice country walk you will have the time to do a major excursion in the alps or somewhere.  

I agree with the others about living off savings etc until you can get the full DB pension.  And would also wonder about downsizing - unless there's a great reason for staying by yourself in a 4 bedroom house.  Maybe lots of friends will be visiting.  Maybe it's got the perfect huge garden where you are growing all your own veg and keeping chickens.

JoeCrystal

Secret2ndAccount said:

Krakkkers said:

So i want to retire. coming up to 58, single, own my own home outright (4 bed detached £320k ish), £195k in savings, no debts.
2 pensions, first is a pot with £138k in it, second is a DB which pays £12560 a year plus £83700 lump sum (at 60) and indexed each year at a fixed 5%. 
Or i could take the DB now at £11k a year and £73k lump sum, only 3% penalty per year for taking early, 60 is the scheme retirement age.
I have a state pension forecast of £182 per week, i am 1 year short of the max new pension of £185.
Outgoings are around £700 a month as everything i have is paid for and my hobbies are cheap, walking, cycling, etc.
What would you do and how would you best combine the above options?

I doubt your ability to live on 700/mth every month. 

It is certainly possible. My prioirty bills plus shopping added up to about £500 per month (excluding my mortgages/loans payment) admittedly I am living in one bedroom flat, but there is no reason to doubt £700 per month. 

Secret2ndAccount

Okay JoeC, let me ask you this. It's the start of September, so 8 completed months in the year. In how many of those months was your total spend less than 700? Not what you might have/could have/should have/would have spent. What you actually spent. Total outgoings. Because we're talking about giving up work, and committing to a pension. If you plan for 8400/yr, you may find you have to live on 8400/yr. And you, in a 1 bedroom flat, can't do it.