Pension or holiday

Grumpy_chap

The holiday sounds lovely.
It may not be the sensible thing to do.

You have enough pension provision to provide a retirement income of £6k per year.
Plus state pension (£11k typically)
Total annual income £17k
How does that compare with your current annual income?

Is your mortgage on track to be cleared before you reach retirement age?

Having done all the "sensible" assessments of whether you have enough to fund your retirement lifestyle and the impact to that from taking and spending this money now, you need to weigh up the emotional benefit of the quality time with your family and what you will all gain from it.
Sometimes the "reckless" thing is the correct thing.

Hoenir

djr2031 said:

I'm 56 and at moment will only get about £6000 per year retirement which isn't a lot, hence reason my wife wants to use some of the money for a once in lifetime holiday while we can enjoy it, it just doesn't seem to make sense as I would much rather pay money towards reducing mortgage.  Just so confused which is why I posted originally 

You'll enjoy it momentarilly. Long way to go for an overpriced theme park. 

Phossy

Hoenir said:

djr2031 said:

I'm 56 and at moment will only get about £6000 per year retirement which isn't a lot, hence reason my wife wants to use some of the money for a once in lifetime holiday while we can enjoy it, it just doesn't seem to make sense as I would much rather pay money towards reducing mortgage.  Just so confused which is why I posted originally 

You'll enjoy it momentarilly. Long way to go for an overpriced theme park. 

Bah humbug! Fo rus and others families i know, it has been a fantastic family experience that lives long, i expect forever, in the memory

QrizB

djr2031 said:

I'm 56 and at moment will only get about £6000 per year retirement which isn't a lot, hence reason my wife wants to use some of the money for a once in lifetime holiday while we can enjoy it, it just doesn't seem to make sense as I would much rather pay money towards reducing mortgage.  Just so confused which is why I posted originally 

Are you currently overpaying your mortgage? If you want to take the holiday, it would make more sense to stop the overpayments and use that money to fund it.

(Depending on how flexible your mortgage is, you might even be able to get back some of your previous overpayments.)

But it does sound, at least to me, as though you don't really want to go on this holiday at all?

lika_86

djr2031 said:

Having discussion with wife and kids about claiming part of pension (tax free) to go on a once in a lifetime holiday to disneyland orlando (could never afford it otherwise. Kids are 9 and 13 and both have additional needs.  I think it is madness to use the money this way bur starting to wonder if i am just being boring and grumpy.  Has anyone else got any thoughts?  Many thanks 

I don't know why I get them recommended to me on my Facebook page but I seem to get posts from various Disney groups. Sounds like a nightmare tbh and nothing like the Disneyland/world/whichever we went to as kids over 20 years ago. Now there's so much additional cost in buying things that basically book you onto rides (fast pass type things), queues sound horrendous, lots of booking of restaurants, queuing to see characters. People have a whole military style plan for what should be a 'magical' holiday. AND it's the cost of a small car for a two week holiday. 

I'd definitely do some reading and consider whether it's the sort of thing you'd actually enjoy with two kids with additional needs, before taking money from your pension for it.

Emmia

Do you and your kids enjoy theme parks in the UK? Would you for example go on a short break to Legoland?

Could you go to Disneyland Paris - which has got to be cheaper than Orlando if only on the basis of travel costs. Or is it Orlando or nothing??

Personally I wouldn't sacrifice my long term security for an overpriced holiday. I actually think you could end up resenting your wife if you feel that your pension payment every month (potentially stopping you doing things then) has been reduced in retirement by this holiday.

jamesd

While Orlando has a reputation, that's being tarnished by long queues. I suspect that Paris will be a better experience.

While the regulars here tend to favour planning for a better future there are times when some earlier spending and the experiences it brings can be a better choice. It is credible that this is one of those times.

dunstonh

Phossy said:

Hoenir said:

djr2031 said:

I'm 56 and at moment will only get about £6000 per year retirement which isn't a lot, hence reason my wife wants to use some of the money for a once in lifetime holiday while we can enjoy it, it just doesn't seem to make sense as I would much rather pay money towards reducing mortgage.  Just so confused which is why I posted originally 

You'll enjoy it momentarilly. Long way to go for an overpriced theme park. 

Bah humbug! Fo rus and others families i know, it has been a fantastic family experience that lives long, i expect forever, in the memory

The fact is that we have extremely limited information other that the pension could be a DB pension but even that is tenuous (OP could be looking a the annuity line on a DC pension).    We don't know the savings, investments, pensions the partner has etc.    Or the target income need in retirement or what ratio it is to the income they have now.  That bit is important because if you have a lifestyle based on £40k a year with nothing left over or saved and your retirement income is going to be £17k a year then you are in for a serious drop in living standards at retirement.    Whereas someone earning £20k a year dropping to £17k wouldn't be.       Then you have to consider income on first death.  If all the provision is in the husbands name and its a DB pension and they die first, then the surviving spouse is going to be down 50% on the DB pension and would have lost one of the state pensions.   They will need money to see them through the remainder of their life.

As it stands there is not enough information to say whether this is a good or bad thing.   Those saying its good to go on holiday are potentially recommending 2 weeks of fun followed by 25-30 years of very low living standards.

lisyloo

djr2031 said:

I'm 56 and at moment will only get about £6000 per year retirement which isn't a lot, hence reason my wife wants to use some of the money for a once in lifetime holiday while we can enjoy it, it just doesn't seem to make sense as I would much rather pay money towards reducing mortgage.  Just so confused which is why I posted originally 

Thanks for coming back (many don’t).
what we need to know so what type of pension do you have, is it one that pays an income (defined benefit) or is it your own pot of money in a SIPP or employer pension whether you buy an annuity or drawdown.
if it’s the former we’d need to know whether you can even take it at 56 and there may be big consequences of starting it at a relatively young retirement age.

it’s important to know what you income goals are in retirement and whether you wife has her own arrangements or is your pension supposed to support 2 people?

im off to check my state pension as I thought it was nearer to £8k than £11k 
(£10636.60 at age 67).

I want £32k gross in retirement. Higher than many and it’s not about me, but just to reiterate that you need to know what level of income you are aiming for.

Freecall

dunstonh said:

As it stands there is not enough information to say whether this is a good or bad thing.  

I would go further.  I don't think that there will ever be enough information for strangers to make a binary contribution to the OP's decision, the issue is far too complex, involving matters far beyond the merely financial.

George Orwell's comments in Down and Out in Paris and London come to mind where he describes being broken, desperately hungry and having just enough money to buy two small loaves of bread.  He bought one loaf of bread and some flowers.