Bold leap into retirement

pterri

I’m glad hunt got rid of the LTA. I can understand why limits on what you contribute exist but penalising someone for making smart moves on investment and your ‘pot’ doing well always struck me as wrong. Will be interesting what happens in the future, I suspect they will just let inflation erode the tax free limit.  

Pat38493

MetaPhysical said:

I must admit, I was expecting pensions to be impacted more.  However, let's not forget she can revisit this at a future budget and so the continuous speculation will prevail in advance of every budget.  I do wish the government would set out a five year statement of intention to put to bed this madness and uncertainty.

Fortunately, I did not raid my TFC in advance of the budget and the speculation that the 268k limit would be lowered.  Because I am planning to use UFPLS that would have had a huge impact on my plans for when I do retire next year.  I held my nerve but acknowledge that I could have been wrong.

To be fair, taking the TFC in itself is not disastrous if you don't spend it.  If you take the TFC but then you invest it outside the pension (moving it into ISA as quickly as possible), in the exact same investments as it would have been invested inside the pension, the end result will be largely the same except for any additional fund charges or GIA taxes you would pay.

In fact this is partly what I am doing on purpose as it will be helpful to reduce my long term tax bill across different years with different spend requirements.

nicknameless

So my employer has just announced what is a very generous scheme for voluntary redundancy.  No idea if I would be accepted for it and don't have to apply until after xmas so have some time to contemplate whether to apply or not.

We would be in a financial position to retire anyhow from the middle of next year.  My missus is chomping at the bit and now that the end is finally on the horizon I am 100% uncertain as to what to do myself!

If I were to be accepted for this scheme, financially it is a no brainer.  The other option I was contemplating was going part-time from autumn next year with a large break beforehand, partly to gauge how the stepdown from work would affect me mentally.  If I still wanted to go I could always then give notice.

However, were I accepted for this redundancy I could work part-time for 18 months or more from late next summer, only to be in a similar financial position.

Help me decide lol ..................

Of course I know I'll apply and then not be accepted for redundancy !!!!!!!!!!!

cloud_dog

nicknameless said:

So my employer has just announced what is a very generous scheme for voluntary redundancy.  No idea if I would be accepted for it and don't have to apply until after xmas so have some time to contemplate whether to apply or not.

We would be in a financial position to retire anyhow from the middle of next year.  My missus is chomping at the bit and now that the end is finally on the horizon I am 100% uncertain as to what to do myself!

If I were to be accepted for this scheme, financially it is a no brainer.  The other option I was contemplating was going part-time from autumn next year with a large break beforehand, partly to gauge how the stepdown from work would affect me mentally.  If I still wanted to go I could always then give notice.

However, were I accepted for this redundancy I could work part-time for 18 months or more from late next summer, only to be in a similar financial position.

Help me decide lol ..................

Of course I know I'll apply and then not be accepted for redundancy !!!!!!!!!!!

...but what was your plan for when you would retire, e.g. in a similar timeframe or another 3 years?

MetaPhysical

Pat38493 said:

MetaPhysical said:

I must admit, I was expecting pensions to be impacted more.  However, let's not forget she can revisit this at a future budget and so the continuous speculation will prevail in advance of every budget.  I do wish the government would set out a five year statement of intention to put to bed this madness and uncertainty.

Fortunately, I did not raid my TFC in advance of the budget and the speculation that the 268k limit would be lowered.  Because I am planning to use UFPLS that would have had a huge impact on my plans for when I do retire next year.  I held my nerve but acknowledge that I could have been wrong.

To be fair, taking the TFC in itself is not disastrous if you don't spend it.  If you take the TFC but then you invest it outside the pension (moving it into ISA as quickly as possible), in the exact same investments as it would have been invested inside the pension, the end result will be largely the same except for any additional fund charges or GIA taxes you would pay.

In fact this is partly what I am doing on purpose as it will be helpful to reduce my long term tax bill across different years with different spend requirements.

I suppose it depends on the size of your TFC amount.  If it's substantial then it'd take years to get the money into a tax efficient ISA - even if you fill you own and your wife/husband's ISA (if you have one).

nicknameless

cloud_dog said:

nicknameless said:

So my employer has just announced what is a very generous scheme for voluntary redundancy.  No idea if I would be accepted for it and don't have to apply until after xmas so have some time to contemplate whether to apply or not.

We would be in a financial position to retire anyhow from the middle of next year.  My missus is chomping at the bit and now that the end is finally on the horizon I am 100% uncertain as to what to do myself!

If I were to be accepted for this scheme, financially it is a no brainer.  The other option I was contemplating was going part-time from autumn next year with a large break beforehand, partly to gauge how the stepdown from work would affect me mentally.  If I still wanted to go I could always then give notice.

However, were I accepted for this redundancy I could work part-time for 18 months or more from late next summer, only to be in a similar financial position.

Help me decide lol ..................

Of course I know I'll apply and then not be accepted for redundancy !!!!!!!!!!!

...but what was your plan for when you would retire, e.g. in a similar timeframe or another 3 years?

No this is the timeframe we had planned.  It's just that as it gets closer I am getting cold feet!

LHW99

nicknameless said:

cloud_dog said:

nicknameless said:

So my employer has just announced what is a very generous scheme for voluntary redundancy.  No idea if I would be accepted for it and don't have to apply until after xmas so have some time to contemplate whether to apply or not.

We would be in a financial position to retire anyhow from the middle of next year.  My missus is chomping at the bit and now that the end is finally on the horizon I am 100% uncertain as to what to do myself!

If I were to be accepted for this scheme, financially it is a no brainer.  The other option I was contemplating was going part-time from autumn next year with a large break beforehand, partly to gauge how the stepdown from work would affect me mentally.  If I still wanted to go I could always then give notice.

However, were I accepted for this redundancy I could work part-time for 18 months or more from late next summer, only to be in a similar financial position.

Help me decide lol ..................

Of course I know I'll apply and then not be accepted for redundancy !!!!!!!!!!!

...but what was your plan for when you would retire, e.g. in a similar timeframe or another 3 years?

No this is the timeframe we had planned.  It's just that as it gets closer I am getting cold feet!

Put some socks on and go for it

cloud_dog

nicknameless said:

cloud_dog said:

nicknameless said:

So my employer has just announced what is a very generous scheme for voluntary redundancy.  No idea if I would be accepted for it and don't have to apply until after xmas so have some time to contemplate whether to apply or not.

We would be in a financial position to retire anyhow from the middle of next year.  My missus is chomping at the bit and now that the end is finally on the horizon I am 100% uncertain as to what to do myself!

If I were to be accepted for this scheme, financially it is a no brainer.  The other option I was contemplating was going part-time from autumn next year with a large break beforehand, partly to gauge how the stepdown from work would affect me mentally.  If I still wanted to go I could always then give notice.

However, were I accepted for this redundancy I could work part-time for 18 months or more from late next summer, only to be in a similar financial position.

Help me decide lol ..................

Of course I know I'll apply and then not be accepted for redundancy !!!!!!!!!!!

...but what was your plan for when you would retire, e.g. in a similar timeframe or another 3 years?

No this is the timeframe we had planned.  It's just that as it gets closer I am getting cold feet!

Assuming the redundancy payment covers the additional months costs (not employed) then I would be biting their hands off.

Having just said that, I understand where you are coming from, as I had resigned with an agreed end date just before Christmas, but recently my employer asked if I would extend my finish date to March 2025.  I think part of me saw an extra bit of comfort blanket in doing so, and the fact that I didn't just say no at the time was telling I suppose, although there were some other factors involved.

cloud_dog

And so it begins.... The OH has submitted their resignation notice today.  Likely end date for them 27 November.

Smudgeismydog

Congrats to your other half Cloud-dog 🍾