DB 15k at 60 or 20k 65?

DRS1

A question or two.

How much time do you spend working (including jetting around the world)?

In 2 years time how are you going to spend that time?

If you have no idea then think about why you want to retire in 2 years time.  Do you really need a different job?  Or do you want to taper off the job you are doing so that you have a gentle glide into retirement instead of a sudden stop.  That might also help cover those periods (59 to 60/65/67) when your income would otherwise go from £125k to zero (or whatever you draw from the DC pot).

PootleF

In answer to your question, I feel like I am on track for the sort of retirement I want….but as others have said someone else might find my income too meagre and others more than enough. 

You say things like ‘we prefer cheaper hotels’ - but cheaper than what? And how much time do you expect to spend in hotels? 

I know it is tricky when you expect your lifestyle to change, but I’d spend a rainy Sunday with your bank and credit card statements and a spreadsheet classifying a year’s worth of expenses by what you actually did spend. 

Then think about which amounts will go up/down/stay around the same in your retirement, as well as allowing for things like new kitchen or new car which won’t be as often but will come around during your retirement. 

michaels

PootleF said:

I’m a bit younger than you but expect to be in a similar position in both DB and DC terms by around your age. 

My thinking at the moment is that I will take the higher DB amount later. My DB increases with CPI whereas my investment returns on DC are unknown, so the higher DB is my ‘insurance’ for living much longer than average life expectancy, meaning I can spend a higher proportion of my DC pot doing fun stuff earlier 

That was my plan but then into the mix is the fact that DC can (after a whack of tax) be inherited by the kids whereas DB dies with the second death of self or spouse.  So better to take the DB earlier and spend less of the DC?

Cobbler_tone

Absolutely impossible to know with your complex financial situation. The advice would be to build a very simple spreadsheet of desired/needed outgoings. Even easier with no kids to consider. Look at when to sell your flat if you don’t want to leave that money behind.
Gut feel is that you could comfortably retire tomorrow. From my personal life experience I would personally retire as soon as practicality possible.

BENNZ787

Cobbler_tone said:

Gut feel is that you could comfortably retire tomorrow. From my personal life experience I would personally retire as soon as practicality possible.

Thanks everyone.
I find the above the most compelling thought. After all we have no kids so we’re not really planning to leave much.
Does that mean the 3-3.5% SWR can be increased? 

I consider whether the guaranteed bits will cover us in old age, which I think they should. 

My mums 86 and in good health, but she spends next to nothing these days, and that probably slowly started from age late 70s. I think that pattern is fairly common. 

SarahB16

BENNZ787 said:

Cobbler_tone said:

Gut feel is that you could comfortably retire tomorrow. From my personal life experience I would personally retire as soon as practicality possible.

Thanks everyone.
I find the above the most compelling thought. After all we have no kids so we’re not really planning to leave much.
Does that mean the 3-3.5% SWR can be increased? 

I consider whether the guaranteed bits will cover us in old age, which I think they should. 

My mums 86 and in good health, but she spends next to nothing these days, and that probably slowly started from age late 70s. I think that pattern is fairly common. 

I think it is generally recognised that in retirement expenditure follows a U / V shape, i.e. spending more just after retiring and for a good few years and then gradually spending less but then there is an increase in expenditure when you are no longer able to do what you used to be able to do, e.g. you have a cleaner, gardener and perhaps some sort of home help a couple of times a week too.