Am I ok?

3 Posts

Just turned 60 and have been out of work for 6 months due to redundancy but have really enjoyed having time to do things.
Now I am 60 I have taken my final salary pension which could not be deferred past 60 which is £12560 a year indexed at 5% per annum fixed, took the lump sum as well which means with the redundancy payment and savings gives me £300k in cash savings.
This is in various online savings accounts some variable but half fixed at close to 5% for 5 years.
Own my own house, no mortgage, no debt, nearly new car paid for.
Here is the question, after six months out of work I don't really want to work again so do I have enough to retire on?
My outgoings are modest at around £950 a month including putting money aside for annual bills such as car/bike/house insurance, servicing etc.
Have a state pension forecast of £182 a week with a max of £185 if i work another year.
Do you think I have enough to be ok?
Now I am 60 I have taken my final salary pension which could not be deferred past 60 which is £12560 a year indexed at 5% per annum fixed, took the lump sum as well which means with the redundancy payment and savings gives me £300k in cash savings.
This is in various online savings accounts some variable but half fixed at close to 5% for 5 years.
Own my own house, no mortgage, no debt, nearly new car paid for.
Here is the question, after six months out of work I don't really want to work again so do I have enough to retire on?
My outgoings are modest at around £950 a month including putting money aside for annual bills such as car/bike/house insurance, servicing etc.
Have a state pension forecast of £182 a week with a max of £185 if i work another year.
Do you think I have enough to be ok?
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Replies
Why hold £300K in cash? Might be worth seeing if you can get some of it working a bit harder for you, while keeping enough in 'safe' investments to maintain what you are comfortable with as a cash cushion.
Two thoughts: the longer you don't work, the harder it is to get back into paid employment (which may not matter). You don't mention any family, so are you willing to accept that you may need to sell your property if you need to go into residential care in later life?
Question could be flipped into "I've covered my basic needs, how can I use my savings to increase my standard of living and how much more could I afford to pay myself?"
It's just going from that mind set of acquiring assets to the period of your life when you start spending it.
Always earned decent money and put money away and now my pension will only just cover my yearly outgoings.
I know I will be comfortable but it's just the change from saving to spending I guess.
Got my state pension to come in 7 years if the gov don't move it further away.
Vocational freedom has arrived
I would also be putting my salary income in tax year 22/23 in a SIPP as guaranteed at least 6.25%. We opened HL cash SIPPS and withdrew as soon as HMRC topped up. Just be careful if you think you may work again as affects future contributions.
Then I would be putting the maximum for non earners of £2880 each year into a SIPP.