Approaching the Finishing Line (or is it the Starting Line)

33scott

I spoke to my boss today and confirmed I would be leaving on 31st March, they have known it was my plan to retire sometime in 2025 but just not when, until now.

Financially I feel comfortable. I'm 55 in April, single and child free, house is valued at £750k with £72k left on the mortgage. I have £410k in the DC pot with another £12k going in before March, I have a DB which will pay out at 60 with a £120k TFLS and then £18k pa fully index linked, £50k in a S&S ISA and I have done enough for full SP at 67.

My plan is to use the DC TFLS to pay off the mortgage when my fixed rate ends in September and to pay myself a pension income of £32k pa.

I've been planning my retirement for the last 4 years and I know I need to stop focusing on 31st March, because as the title says that is not the finishing line, it is actually the start of the next 30 year phase of my life. 

Lots of travel plans for the next few years, including making full use of my new camper van. I got it last year and spent a total of 15 nights away in it, this year I'm planning at least 45 nights. I also have at least a 2 year backlog of house repairs, decoration and landscaping, with a plan to sell up and move to the country after 2030.

I have to admit I am feeling a mixture of excitement and nerves, as I really don't want to mess this oppurtunity up. 

Plus a big thank you to this forum, from which I have learnt a lot over the years.

Cobbler_tone

Good luck! Sounds as though you have things all worked out perfectly. 
Agree about this forum. I'm never ashamed to admit what I do/don't know and it is certainly educational and a great resource.

cfw1994

Congrats🎉

A nice young age to start The Next Stage 💪

It certainly is the starting line: most pals I know who joined the ranks of The Unemployables wonder how they had time to work🤪
Good luck👍

Alexland

Not much to comment on as it looks like you know what you are doing and have a plan.

Make sure the risk you are taking with the DC and S&S ISA asset allocation is appropriate for your withdrawal timescales so you don't get damaged by a stock market crash. Cash, money market and gilt rates are attractive at the moment so no need to take too much risk on money needed in the medium term.

You might feel differently about investment risk when you no longer have earned income to make contributions to help the accounts recover their valuations in adverse market conditions.

Hope all goes well for you.

Ibrahim5

it is actually the start of the next 30 year phase of my life. 

You are lucky knowing how long you are going to live for.

Kernowshep

I think it's worth considering leaving the mortgage, you could fix for 5 years before you leave, taking you to 60, when you have to take the TFLS from the DB.  That would mean you could keep the 25% tax free benefit for all future withdrawals from the DC. You "might" beat the returns as well over 5 years/could find something to match the mortgage rate.

leosayer

Nice work!

Why are you planning on taking tax free cash from your DB scheme? I assume this comes with a reduced annual pension.

Why wait until 60 to start start your DB pension?

Cobbler_tone

leosayer said:

Why wait until 60 to start start your DB pension?

I’m assuming if they take it at any age before 60 it will be reduced. It is the last thing I will access, although I could get it today at 55. The difference on mine is £5k a year, plus the loss of compounded growth and spousal protection.