Bold leap into retirement

MayDogsandCoffee

@HUSKYPAL I am the same, hoping like heck the redundancy offers come through before I put my notice in, but I checked out a while ago and hate logging in.

kempiejon

I had a date in mind, chatted to my direct manager about the concept of gradually stepping away over a few years. When I took the plan to the Finance director who had asked for requests about reducing hours and would ultimately have to agree it they just ignored my request to talk about it for 6 months, after a protracted acrimonious debate, greivance and involvement of my union, ACCAS and the chief exec 3 months later I was offered settlement to go away. An upsetting end.

Smudgeismydog

https://forums.moneysavingexpert.com/discussion/comment/82044026#Comment_82044026

I’m so sorry to hear this, it must have been a horrible period for you

kempiejon

@Smudgeismydog thanks for your kind words, it's done now, a closed chapter. It forced my hand to walk away from the role I was planning to leave and with a financial incentive so a victory alongside that upset.

jackieblack

A shame though that it ended that way - and entirely avoidable if those managers had handled things in a professional manner

Cobbler_tone

https://forums.moneysavingexpert.com/discussion/comment/82044026#Comment_82044026

I handled mine a bit differently via a direct flexible working request. I got my 3 day week but it was like pulling teeth. I think some businesses either don't like 'giving up' flexibility or just like to think they are doing you a massive favour. I put no personal mitigation in it, no potential retirement plans/dates. It was all based around being able to do my role in 3 days, which I easily can….I could probably do it in 2 TBH. They could have ultimately come up with some BS excuse around the 8 legal reasons for refusal, which I would have accepted (not got the energy for grievances and I comprehensively covered all of them) and probably would have retired in 6 months or so. I will do it for anything from 1-3 years depending how I'm feeling.

Not the best to go 'under a cloud' with the added stress but pleased you got a settlement for your troubles.

Smudgeismydog

Tomorrow it’ll be 2 years since I took early retirement, and I thought it would be interesting to reflect back on my ‘bold leap’

Starting position;

Cash £42,128
SS ISA £146,380
SIPP £813,056
Total £1,001,564

Current position;

SIPP £1,054,932

Cash ISA £60,593

Total £1,115,525

My dependents pension is now just over £16,500 per annum

In the last 2 years I’ve spent around £100,000 on the house we moved into 2 months after retiring, I paid for my daughter’s University halls accommodation last year, and have just started paying the rent for her 2nd year house.

I am unable to access my SIPP until Sept 2030, which is why I moved my SS ISA to Cash as these are my top-up funds from now until then.

An unforeseen consequence of my bold leap has been my daughter’s Student grant. Our only household income is the dependent’s pension (she also receives one until age 23), and so we opted for a current year assessment last year, and she qualified for a £7k grant, (we live in Wales). I have paid her rent, and she covers her tuition fees and all her maintenance expenses from the grant, her pension and her 2 summer jobs. So she has, so far, completely avoided any loans.

Perhaps more importantly than the figures, is how the last 2 years have gone. I honestly have no regrets, I’ve lost 2 stone, my sleep is good, and I feel so much healthier. As noted above, we have worked on our new home, and have pretty much finished the projects now, the garden is my focus for the summer. We have joined a local volunteering group and usually have at least a day a month working outside with them.

We have made friends in our new area, and I have rekindled friendships as I have more time to spend with them. I also feel I have been very ‘present’ with the kids and other family members, I have time I can give them, without being preoccupied with work.

I have met up with ex work colleagues, and not only has nothing changed, but it sounds like it’s worse in terms of micromanaging, pressure of targets, office politics and Corporate BS. I would hate that.

Changes to the pension landscape have altered my thinking of how I will access my SIPP when I eventually get there, but then again, I’m also conscious the rules could easily change again, so I’ve decided to wait and see.

My partner turns 55 next year so can access his pension, but then will lose access to uncrystalised funds at age 56, before regaining access at 57. He is cautious and risk averse, so he’s planning on buying a 10 year annuity at 55, to ensure he uses his personal allowance up until 65 when his DB becomes payable. This new income stream shouldn’t affect my daughter’s student grant, as Student Loans work 2 tax years behind.

I am so, so glad I took my ‘bold leap’ and didn’t succumb to the One More Year syndrome!

michaels

Your daughter should also check whether her uni offers any bursaries. We are keeping taxable income down and using tfls precisely to get max student loan (England) and also bursary grants.

Smudgeismydog

https://forums.moneysavingexpert.com/discussion/comment/82051594#Comment_82051594

Thanks, yes, does also qualify for a bursary 👍🏻

Yorkie1

Congratulations @Smudgeismydog