Is my safety net big enough?

indiasign

Hi everyone, just want to run my figures past the experts here to see if I’m missing anything.

I (61M) and my wife (59F) are currently partially retired civil servants looking to pull the plug entirely either, at the latest, in 2 years time, or preferably next year, the determining factor being having enough savings to bridge the gap between CS pension and State.

We’ve already dropped some days at work (me 2, her 1) and have both taken an earlier NDGB pension, which is index linked with no cap. I’ve also taken the Premium element of my CSP, giving us a current pension income of just over £26K gross

According to the  MyCSP retirement modeller (not known for its accuracy lately, but the figures seem there or thereabouts) , we should get around another £11K between us if we retire next year (around £12.5k in 2 years)

Our current income vs outgoings leaves us with a yearly surplus of around £18K, while post retirement, based on projected outgoings, that will drop to around £6K, so we’d be looking at pulling around £12k a year from savings to put us back in our current position. 

Once my State pension kicks in (full £12K forecast) we’ll be fine

So if we go next year, that’s around £60K, or if we put it off another year, £48K

At the moment, we have around £110K in various ISAs, an NS&I bond and small amount (~£5K) in easy access savings.

In my head, I always wanted a buffer of at least double the amount we’d need, so I’m nearly there, but had been prepared to hang out for the next two years to be on the safe side, but over the last few months, work for both of us has become increasingly intolerable, and I’m desperate to go sooner rather than later! 🙁

We’d still have to give MyCSP six months notice, so would be able to add another 6 months worth of saving to the pot (around £6K), so do you think that would be enough?

Dazed_and_C0nfused

indiasign said:

Hi everyone, just want to run my figures past the experts here to see if I’m missing anything.

I (61M) and my wife (59F) are currently partially retired civil servants looking to pull the plug entirely either, at the latest, in 2 years time, or preferably next year, the determining factor being having enough savings to bridge the gap between CS pension and State.

We’ve already dropped some days at work (me 2, her 1) and have both taken an earlier NDGB pension, which is index linked with no cap. I’ve also taken the Premium element of my CSP, giving us a current pension income of just over £26K gross

According to the  MyCSP retirement modeller (not known for its accuracy lately, but the figures seem there or thereabouts) , we should get around another £11K between us if we retire next year (around £12.5k in 2 years)

Our current income vs outgoings leaves us with a yearly surplus of around £18K, while post retirement, based on projected outgoings, that will drop to around £6K, so we’d be looking at pulling around £12k a year from savings to put us back in our current position. 

Once my State pension kicks in (full £12K forecast) we’ll be fine

So if we go next year, that’s around £60K, or if we put it off another year, £48K

At the moment, we have around £110K in various ISAs, an NS&I bond and small amount (~£5K) in easy access savings.

In my head, I always wanted a buffer of at least double the amount we’d need, so I’m nearly there, but had been prepared to hang out for the next two years to be on the safe side, but over the last few months, work for both of us has become increasingly intolerable, and I’m desperate to go sooner rather than later! 🙁

We’d still have to give MyCSP six months notice, so would be able to add another 6 months worth of saving to the pot (around £6K), so do you think that would be enough?

Are you going to be receiving the extra £11k from when you stop work or the schemes NPA?

If you have an existing surplus of £18k and that drops to £6k are you essentially taking £12k from savings to put back into the same savings pot 🤔

BobR64

That's what I didn't understand. It seems like OP has already got  a 6k pa buffer plus whatever savings they have.

indiasign

Yes, the £11K would be in payment when we stop working, and I’d be taking the £12k from savings to basically put us back in the same position as it we hadn’t stopped - sort of maintain our current standard of living. - My outgoings calculation is just basic day to day stuff - heat, light food etc

Triumph13

So you currently have £18k pa for jam.  That drops to £6k until your state pensions kick in, and you're looking to get back to £18k from savings?  You're worried you only have £50k of 'spare' savings?

I suggest you work out the following sum:  In retirement you might find yourself £1k short for something you really want.  How many extra days of work would that take to save?  And how many post retirement 'cheap days' would you have to rack up to save it?  Days when you don't do any expensive jam things, you just go for walks, lie in a hammock with a book, or whatever floats your boat?  Which of those options would you rather do?  If it's the second one, then it's time to go.