Is this good enough?

sgx2000

My basic Idea is...
While still working but hoping to retire shortly

Take the £5974 - non rpi - 10 year guaranty annuity

Giving me the income for this whole year (although we are only half way through this financial year)
£40k + £7.4K + £5.9 = £53.4K    (with obviously the 40% issue but only for a short while)

But £33.4K if I went now....  

Then next year..
£7.4K + £5.9K  =  £13.3K  so tiny amount of tax - would top this up with £4k (from premium bond money) 

Do this for 2 years
Then

£10.6K  (state pension) + £7.4k +£6k  + £24k gross  or  £20.3K net

sgx2000

Kim1965 said:

If you are a tradesman is itvpossible to work a couple if days a week to get you through to spa? Most sparks earn £200+ a day. 
 At spa your retirement would be so much better in financial terms. 

Agreed....
But,  
1. Will the annuity rates be anywhere near as good in 2.5 years
2. Every year I delay will always hopefully be better... But do you say this forever lol... You only get so many years

Simon11

sgx2000 said:

I am confident that my wife could live comfortably on either her pay or later on her pension.
At 46 she currently has about £85K in her pension
Also my £7400 pension would pay her £3200 a year RPI'ed
Also our home is currently worth £320K 

My Idea is that I will basically become a house husband....
Do everything that is needed to allow my wife a much easier life.
And potter...
I'm an electrician so pretty handy at all the DIY etc

I would love her to retire early, but this seems unlikely given the 17 year age difference.

Further looking at your wife's position as you appear to be fairly comfortable while she is still working.....

 I am not an expert, but in today's money assume you need £40k joint to live a comfortable live and £30k if single.

Assuming you pass away at 82 (average age for a man), your wife will only be 65. If she decides to retire at 65, the same age as you have, she will have 20 years to live (average age for woman is 85).

She will have state pension of £10k, your £3k and £4k from her pension (£85k/20 years). That only gives her an income of £17k, whereas she is likely to need maybe £30k. She will need to do some heavy lifting pension wise over the next 20 years of working to fill that gap (or find a new partner) before even considering retiring earlier.

Food for thought?


And as mentioned in the above post, if you did some simple occasional work for friends and family that would make a difference. Could consider it "holiday/ fun money" and complete the work in the winter time, giving you summer to enjoy!


Finally, must be some other posters here with a similar age gap who could share their strategy and thoughts for retirement?

sgx2000

Simon11 said:

Assuming you pass away at 82 (average age for a man), your wife will only be 65. If she decides to retire at 65, the same age as you have, she will have 20 years to live (average age for woman is 85).

She will have state pension of £10k, your £3k and £4k from her pension (£85k/20 years). That only gives her an income of £17k, whereas she is likely to need maybe £30k. She will need to do some heavy lifting pension wise over the next 20 years of working to fill that gap (or find a new partner) before even considering retiring earlier.

Many thanks for the reply.
But, she currently has £85k in her pension, so in 20 years hopefully an awful lot more than that...

And you are perfectly right 
I will undoubtedly fin other sources of income in retirement.

My  health has not been great over the last few years (dodgy knee replacement & dodgy chest), hence the looking at trying to find a way to retire while I am still relatively healthy

sgx2000

BTW...
I have no doubt that in retirement I will find a way to generate a little extra income...

Also If I take an annuity now I could ask whether my company would allow me to reduce my days  3 or 4 sounds great and would then mean not getting into the 40% tax bracket 

squirrelpie

Simon11 said:

>Assuming you pass away at 82 (average age for a man)

Life expectancies vary with age. For a 63 year old man it is 85.

https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/articles/lifeexpectancycalculator/2019-06-07

squirrelpie

As long as your wife is happy with the idea too, then I say retire. Optimise things the way people have suggested by all means. But retiring whilst you're healthy is a very powerful argument IMHO.

Qyburn

sgx2000 said:

Additional Pension - (I am seriously thinking of taking an annuity now (while they are so high)

Aviva Pot £78,200

H.L. recent quotes,  Either…

£5974  Single life, 10 year guarantee,              £4799 Net

Or

£3807  Single life 10 year guarantee, RPI linked         £3045 Net

How would it work out with 100% spouse, no guarantee?

Marcon

Simon11 said:

You also need to really consider your wife's finances too- your post above only really focuses on your position such as "I own my home" and halfing living costs. When you pass away, are you really sure your wife will be able to pay 100% of all the bills and everything? At the age of 46, there are still lots of unknowns.

Also, once you retire and enjoy life, you and her views may change on her retirement. What do you have planned for your free time?

You have an old DB pension. Have you checked what your wife would get if you predecease her? In particular, given the age gap, have you specifically checked if there is a reduction because you have a spouse who is so much younger than you are?

sgx2000

Marcon said:

Simon11 said:

You also need to really consider your wife's finances too- your post above only really focuses on your position such as "I own my home" and halfing living costs. When you pass away, are you really sure your wife will be able to pay 100% of all the bills and everything? At the age of 46, there are still lots of unknowns.

Also, once you retire and enjoy life, you and her views may change on her retirement. What do you have planned for your free time?

You have an old DB pension. Have you checked what your wife would get if you predecease her? In particular, given the age gap, have you specifically checked if there is a reduction because you have a spouse who is so much younger than you are?

Thanks for the rep,y.
As mentioned earlier she would get £3200 from my DB pension
So.. council tax, water rates, and internet covered.......
Only power, food, car, and gin to pay from her oncome.....lol

Her own pension and state pension will give her a good income....