Retirement planning post mortgage free

carboot_karaoke

Congratulations 🎉🎉

V3cash

thanks, it’s a strange feeling, hasn’t sunk in just yet.

V3cash

well good news and bad this week, getting paid but they taxed me £1000 because when I gave them my p45 they put last years pays as total from April so it looks like I’ve earned over 25k in 1 mth, I WISH 😀

Anyway I’ve sent a email to payroll advising them of their mistake so that should be sorted, at least i get something this month but nice to know next mth will have a little bonus 😊

So i think i might need a new diary now, might need to look see what other people do once mortgage free.???

V3cash

just changed title of my post as i didn’t really want to start a new one, this is just a continuation really of mortgage free journey.

So my new job is going well but the commute is a b…ch! of a journey so I’ve dropped my hrs to 3 x 10hrs and that’s plenty for now.

Liking not taking home my work and i think the 3 day week will work well.

I have not been paid properly yet but hopefully this month will see it sorted.

So financially things feel better due to being mortgage free but have not been able to save much as got taxed £1000 last mth, obviously I’ll get it back at some point but not this mth as no reply from payroll, think i might need to call HMRC at some point.

So looking at financial aspects

We have cash ISA’s and I’ve just started a H&L shares ac and have set up D/D of £500/mth, will transfer to isa in April as both my hubby and I have maxed out ISA this yr.

We also have £28k in savings accounts shared between us.

I should get a modest nhs pension at 60 then a small pension at 67 and hubby has a private pension. He has 9 yrs until retirement and I have 11 but we would like to retire together.

so we are just trying to save a couple years £ so i can retire with my hubby and not go into ISA savings.

In 4 years i will take my 1995 nhs pension which is not enough to retire on but I’ll get a cash lump sum and enough to supplement wages so I could potentially drop to 22.5 hrs at that point. I aim to save that lump sum to offset part of the gap in between 65-67.

So the plan is to keep cash ISA’s and then build s&s ISA’s up now.

We are still working on making our house really sellable and aim to downsize in 6-7 years before retiring, I’m not expecting it to free up to much cash as moving is expensive and we would need to move closer to transportation links. However the move will ultimately be cheaper as we will be able to get rid of a car and have cheaper council tax.

I have also set up a dedicated holiday fund fun so we get to enjoy being mortgage free as I think it’s really important to also live in the now.

So that’s our plan

Have used chat gpt and it says we should be ok in retirement but i don’t really think it takes inflation into account, my nhs pension does to a certain level but husbands pension doesn’t really

so hopefully we avoid too many curb balls along the way😬

carboot_karaoke

Glad work is going well (apart from commute)

Post mortgage, sounds like a good plan.

Love that you have a "Holiday Fund" so you can enjoy some of that hard earned money😊 .

edinburgher

AI is only as good as the prompts we feed it - you can ask it to consider inflation in its calculations (although you will have to tell it what percentage to assume). It can be a sobering exercise, I very much agree that it's so much easier with public sector pensions as they are inflation adjusted each year and you can effectively ignore it 😊