Bold leap into retirement

Roger175

MetaPhysical said:

Some great reading here!  My story folks.

I've told my boss informally that I am going March '26 - so just over one year - although I could go at any time from today if the BS thresholds from work meant it all got too much.  As I said in another thread, the stress of it all, combined with cost cutting and lack of resources is causing me anxiety issues and I could snap at any point and resign. My current salary is about 80k per annum working 4 days per week.  Me and my fiancee are definitely life partners, we've been through so much together.  I have been at work for 41 years and been continuously employed as a Chartered Engineer - Civil Engineer - for all that time.

I'd originally planned for July this year (2025) when I turn 58.  However, we are doing up my fiancee's house before we get married in 2027 and I'd rather pay as many of the expenses of that out of salary/bonuses rather than savings/pension.

Current position: No mortgage on my 550k house and £60k in ISAs.  Selling my house will realise about £400k in cash after fiancee's mortgage (on her 600k house) cleared (I am aware of the sequencing of this wrt to marriage and CGT/SLDT).  We will need about 150k-200k of that for extensions and home improvement to leave a net of about £250k-ish
 
On top of that:
DB pension of £30k per year from March 26 index linked
DC pot of £700k invtesd 3/7 risk factor.  One of the reasons I want to work "another year" (yeah, I know 🙈) is to build this up a bit more and take anything made on top of 650k as TFC.  I should be able to take sustainably 25k per year from 650k at aged 58.5 with a buffer of the TFC in the event of a market downturn.
Fiancee - same age as me - has very minimal pension.
Two full state pensions due at 67 in ten year's time.

I think I could take a private pension of around £55k per year and it be sustainable until state pensions kick in with all that cash on top - that we hope to spend!

Thank you for reading my story.  Any thoughts most welcome.

Only to say that you could clearly go now if the BS threshold gets exceeded, so take it easy and don't allow yourself to be over-pressured. 

Being self employed, my retirement process took some time (ie to work through all the jobs on my books). I started this process aged 58 and am now nearly 61 and am all but retired (just a few minor things to sign off - can now measure in hours - probably less than 5!). Life has certainly been far less stressful as the work has tailed off.

MetaPhysical

My wife died of cancer aged 48, she was fit, slim, healthy and beautiful and it ravaged her inside one year.  I know only too well how precious life is - too precious to waste getting stressed out and upset about the latest dramas at work which are ever more frequent.

pterri

MetaPhysical said:

Some great reading here!  My story folks.

I've told my boss informally that I am going March '26 - so just over one year - although I could go at any time from today if the BS thresholds from work meant it all got too much.  As I said in another thread, the stress of it all, combined with cost cutting and lack of resources is causing me anxiety issues and I could snap at any point and resign. My current salary is about 80k per annum working 4 days per week.  Me and my fiancee are definitely life partners, we've been through so much together.  I have been at work for 41 years and been continuously employed as a Chartered Engineer - Civil Engineer - for all that time.

I'd originally planned for July this year (2025) when I turn 58.  However, we are doing up my fiancee's house before we get married in 2027 and I'd rather pay as many of the expenses of that out of salary/bonuses rather than savings/pension.

Current position: No mortgage on my 550k house and £60k in ISAs.  Selling my house will realise about £400k in cash after fiancee's mortgage (on her 600k house) cleared (I am aware of the sequencing of this wrt to marriage and CGT/SLDT).  We will need about 150k-200k of that for extensions and home improvement to leave a net of about £250k-ish
 
On top of that:
DB pension of £30k per year from March 26 index linked
DC pot of £700k invtesd 3/7 risk factor.  One of the reasons I want to work "another year" (yeah, I know 🙈) is to build this up a bit more and take anything made on top of 650k as TFC.  I should be able to take sustainably 25k per year from 650k at aged 58.5 with a buffer of the TFC in the event of a market downturn.
Fiancee - same age as me - has very minimal pension.
Two full state pensions due at 67 in ten year's time.

I think I could take a private pension of around £55k per year and it be sustainable until state pensions kick in with all that cash on top - that we hope to spend!

Thank you for reading my story.  Any thoughts most welcome.

Chartered Mechanical Engineer here *waves*. 57 this year and calling it a day. £40k(ish) DB at 60 and some AVCs on top as well as a decent SIPP and ISA to bridge the gap to 60. I don’t hate my job by any means but yep, if I don’t need to do it then it’s difficult to stay motivated. Handed my notice in for April but may stick around on a non perm basis for a few days a week for little
while if can work something out. I complain endlessly by I’ve got a good flexible
employer. 

Smudgeismydog

MetaPhysical said:

My wife died of cancer aged 48, she was fit, slim, healthy and beautiful and it ravaged her inside one year.  I know only too well how precious life is - too precious to waste getting stressed out and upset about the latest dramas at work which are ever more frequent.

I’m so sorry @MetaPhysical, my husband died of cancer aged 37, it was less than 3 months from diagnosis. This is why I feel so strongly about living the life you want, you just don’t know what’s round the corner. 

You sound so happy when you talk about your plans with your fiancé, don’t delay this next phase of your life
x

pterri

Turns out I can claim my full year of annual leave if I retire (whether or not I  start my DB pension). That’s a billy bonus, 29days of pay after my last day in the office. 

HedgehogRulez

pterri said:

Turns out I can claim my full year of annual leave if I retire (whether or not I  start my DB pension). That’s a billy bonus, 29days of pay after my last day in the office. 

How are such policies actually policed? Couldn’t anyone leaving the business claim they were retiring and get the same benefit?

pterri

HedgehogRulez said:

pterri said:

Turns out I can claim my full year of annual leave if I retire (whether or not I  start my DB pension). That’s a billy bonus, 29days of pay after my last day in the office. 

How are such policies actually policed? Couldn’t anyone leaving the business claim they were retiring and get the same benefit?

I don’t understand it but it’s perfectly legitimate apparently. Just because I ‘retire’ it doesn’t stop me working elsewhere and I don’t have to start my DB. I asked the specific question and they said it was fine. You have to be over 55 is the only thing that stops younger people doing it 

michaels

pterri said:

Turns out I can claim my full year of annual leave if I retire (whether or not I  start my DB pension). That’s a billy bonus, 29days of pay after my last day in the office. 

I wonder if I get that - any one know what the civil service policy is?

Of course, google suggests that you pay back any leave taken but not accrued

Yorkie1

michaels said:

pterri said:

Turns out I can claim my full year of annual leave if I retire (whether or not I  start my DB pension). That’s a billy bonus, 29days of pay after my last day in the office. 

I wonder if I get that - any one know what the civil service policy is?

Of course, google suggests that you pay back any leave taken but not accrued

I'm pretty sure it's pro-rata, not in full.

pterri

Yorkie1 said:

michaels said:

pterri said:

Turns out I can claim my full year of annual leave if I retire (whether or not I  start my DB pension). That’s a billy bonus, 29days of pay after my last day in the office. 

I wonder if I get that - any one know what the civil service policy is?

Of course, google suggests that you pay back any leave taken but not accrued

I'm pretty sure it's pro-rata, not in full.

Yorkie1 said:

michaels said:

pterri said:

Turns out I can claim my full year of annual leave if I retire (whether or not I  start my DB pension). That’s a billy bonus, 29days of pay after my last day in the office. 

I wonder if I get that - any one know what the civil service policy is?

Of course, google suggests that you pay back any leave taken but not accrued

I'm pretty sure it's pro-rata, not in full.

Yeah, it’s odd where I am. Under 55 or ‘resigned’ then it’s pro rata. I think it’s a legacy of an old pay deal that they can’t face having to renegotiate. I’ll let you know if I misunderstood when I retire or ‘retire’