Bold leap into retirement

MayDogsandCoffee

I have just had what might be a lightbulb moment regarding savings and want to figure it out with help.

I have been planning my leaving work at 60 for a long while, and know that I can manage on the pension allocation I receive until it all kicks in at 67 due to savings (although not needed more a buffer). I can supplement pension income with savings - now here is the lightbulb: Am I better keeping savings in ISAs and savings pots and just organise a direct debit from them or withdraw when required - or am I better putting that cash somewhere else that would provide a monthly income? I am risk adverse but do want that hard earned cash to work for me. I am home owner, no dependents and hope to go with zero in the bank.

katejo

https://forums.moneysavingexpert.com/discussion/comment/81966812#Comment_81966812

Interested to know what responses you get to this. I have just claimed my pension with lump sum and heard just yesterday when it would reach my bank account! I am thinking about where to put money which I don't immediately need. I already have an ISA and can't add any more at the moment so I am looking at savings accounts/bonds.

NoMore

https://forums.moneysavingexpert.com/discussion/comment/81966812#Comment_81966812

I think you would be much better posting your own thread to get response.

cloud_dog

I found my last 6 months (once I had confirmed my leaving) to be thoroughly, really really, rewarding. I have always loved the business area I worked in, and mostly found my customers to be positive and a rewarding relationship.

It was the business environment which changed, the constant pointing out to less experienced business managers the flaws or risks with their ideas of undertaking the work, but in those last 6 months it was really enjoyable; so much so, that when we were about to win a new national contract it crossed my mind to stay on. Crossed it but it didn't stick 😎

Smudgeismydog

https://forums.moneysavingexpert.com/discussion/comment/81966812#Comment_81966812

Personally, I know I’d find it harder to ‘withdraw as required’, as after a lifetime of asset building, my tendency is still to preserve my capital, so a monthly income works better for me. Give yourself permission to spend, as you will get that another amount next month.
I would withdraw from the least tax efficient pot first, then move onto ISAs.

Smudgeismydog

https://forums.moneysavingexpert.com/discussion/comment/81967085#Comment_81967085

Do you think those last 6 months were so enjoyable as your mindset had changed? By that I mean you could just consider the parts you’ve loved, without all the Corporate B (baggage) that goes with it?

Moonwolf

https://forums.moneysavingexpert.com/discussion/comment/81966812#Comment_81966812

My thinking has been that because my budget includes deferred spending, e.g. £50 a month towards a new computer every five years, then it is an “as and when” and if necessary withdrawal. The basics are covered by my main income and the bridged income is more this sort of extra, also these are fluid and discretionary spends, I might not a new computer for seven years. Certainly I don’t need £50 a month now (see also new car, new phone and so on).

cloud_dog

https://forums.moneysavingexpert.com/discussion/comment/81967509#Comment_81967509

Very much so, it was liberating.

plumb1_2

https://forums.moneysavingexpert.com/discussion/comment/81967975#Comment_81967975

maybe because you weren’t bothered about the outcome ?

cloud_dog

https://forums.moneysavingexpert.com/discussion/comment/81968404#Comment_81968404

I know what you mean, but for me I cared about the outcome (part of the reason I extended my notice period), I was just less (non existent) interested in any internal ramifications; I could be honest with the business without having to worry about tomorrow 😁

A great example is with one of the major projects which the business had decided we needed to implement, and to which I raised concerns about how they were proposing doing it and the timescales they had arbitrarily applied to it. I gave them a phased proposal with how they should approach everything and migrate over, together with indicative timelines, but no it was head in the sand and move forward. Recently spoke with a colleague and asked how the project was progressing, and he informed me that after 18 months the business had canned the project, realising the undertaking was very involved and they would be no where near to completing it on time. Made me smile, but still feel for my old customers.