Bold leap into retirement

cloud_dog

https://forums.moneysavingexpert.com/discussion/comment/81934165#Comment_81934165

It is capped in payment.

katejo

https://forums.moneysavingexpert.com/discussion/comment/81933247#Comment_81933247

I have done this calculation again and it gives me 18. I ignored the figure for max income with no lump sum and just used the figures for basic lump sum and maximum lump sum. 18 sounds a bit high for public sector. The info on indexation is summarised here with different figures depending on how long ago the pension started. For me it goes back to 1990.

SAUL pensions are increasing in April | SAUL

WYSPECIAL

I had a good commutation rate so made sure that what I would get paid each month plus SP, when it kicks in, was enough to cover my desired income and then commuted the rest to minimise future tax and have the lump sum to invest. Not regretted it yet.

Secret2ndAccount

Commutation of 18 sits right in the middle, so you can safely do whatever works for you.

You seem to have some savings. Why not take just the lump sum you need, and leave yourself with a guaranteed pension for life, then not have to worry about it. (seems like this is what you are planning already)

Is your SAUL pension + State Pension enough?

katejo

https://forums.moneysavingexpert.com/discussion/comment/81934720#Comment_81934720

I think I have worked out the commutation figure correctly. 18 seems slightly high for public sector. I intend to use my lump sum for a few holiday treats while still reasonably young and healthy. I have requested a pension calculation based on 2 possible lower lump sums than the amount offered in my quote. I am pretty confident that the SAUL pension plus the later state pension will be fine. I am currently living mostly on a sum lower than I will get from SAUL due to dropping to a 3 day week last summer. I have other savings invested and I am still adding more to those.

michaels

one advantage of a lump sum if you don't need the alternative income, is that it can be passed on as inheritance, potentially iht free if gifted more than 7 years before death.

DadAlone

Joining this thread which I have been lurking on as I am pulling the trigger tomorrow due to the increasingly toxic work environment. Sadly I am on 6 months notice but hope they will let me go earlier!

I turn 55 next month. I am a single Dad with 2 teenage boys. The eldest is in his first year at Uni and I am covering tuition and accommodation, roughly £20K pa for his 3 year course. He is funding his day to day through the maintenance loan and the £15K in his junior / now adult cash ISA. I doubt my younger son will be heading to Uni but I will plan to fund him to the same level for whatever his needs may be in the future driving lessons, car, deposit etc. So, current defined spending needs for the boys is c £60K.

Financial position as follows:

House - owned outright value c£700K

Various workplace pensions / SIPPS - £1.55M

S & S ISA £123K

Cash ISA £127K

Inherited SIPP (tax free) £166K

Cash in bank c £35K

I am targeting an annual income of £60K pa after tax and look to achieve this through a combination of effective use of personal allowance, use of existing tax free cash and remaining within the basic rate tax band. £60K pa may well turn out to be more than I need but any excess will just go into that years ISA or I will start regularly gifting to my Sons for IHT mitigation!

I am so done with 40% and, this year, 45% tax! I do have an IFA so he will be putting a drawdown plan together to organise all of this into a sensible format / schedule.

I do have a health condition which carries a reduced life expectancy so time to pull the plug and start a new phase. I plan to live a healthier and less stressful life including more golf, gym and walking. I am joining a local walking group which will also help with meeting new people.

bjorn_toby_wilde

https://forums.moneysavingexpert.com/discussion/comment/81938422#Comment_81938422

Good for you!

Enjoy the hobbies. Work environments seem to be so unpleasant these days. You won’t miss that I’m sure. Keep us updated on how it’s going.

I don’t miss it one bit. Just back from a long walk and pub lunch 😁

HUSKYPAL

https://forums.moneysavingexpert.com/discussion/comment/81938422#Comment_81938422

All sounds good, one piece of advice, if your workplace is toxic, don't tell them why you are leaving or what you are planning to do, you don't have to. just tell them you have signed an NDA and can't say! Very likely they will put you on garden leave for 6mths. Just make sure you have anything you need from your company computer etc in case they walk you out the door. This happened to me when I left an old toxic job, had 3 months fully paid at home. Good luck.

DadAlone

Garden leave would be excellent but I can't see it happening sadly. I have however been pondering what they would / could actually do if I just decide to check out unilaterally 😄