Should I retire - help me debate

lisyloo

Would appreciate some thoughts on my thinking.

I’m 57 in good health, married, no kids.
DH is financially independent.
my job is ok but there are things I’d rather be doing (and some like spending time with my 80 year old mum who won’t be around forever).
I’m disincentivised to pay 40% tax in retirement so feel I’m getting close to “too much” money. Some might say there is no much thing, but we’re not here for long.

I Don’t care about IHT which is only an issue on second death (and I think IHt changes may get repealed anyway).
I have more than I need in my SIPP (by about 26% compared to my “extravagant” budget) plus some other savings/investments.

We’ve had historical 7% returns after fees, so I plan 4% drawdown (no need for anything left).
A 5.1 annuity rate was suggested by my IFA in January (I’m checking what the current figure is).
I’m tempted to go 50% annuity as it seems very attractive especially when equities are “toppy” and annuity rates are high. That would still leave me with flexibility on the drawdown.

I’m expecting a bonus in December from my employer and we are currently using the company health insurance.

I pay basic rate tax as I salary sacrifice to my SIPP so I don’t think the tax year makes any difference.
winter may not be an ideal time to retire ???

Is there anything I’ve forgotten about?

kempiejon

Debts, wills, asset allocation, emergency fund, tax efficient savings?

If you have enough money and don't enjoy your current work arrangement why haven't you set a date to change work set up already?
Perhaps you're waiting for a bit more money or an incentive push to leave or pull to do something else.
You mention an aged P don't want to leave it too late.
I'm in favour of making absolutely sure it's all OK, if you don't hate your job piling the rest of what you earn into personal pensions and leveraging the tax I really like as a bonus for the end.
Is reduced hours and glide in available?

Baldytyke88

You haven't mentioned many things that you want to do, if your job is demanding, do you really just want less work. I do school work, so no weekends and term time only.

sgx2000

Very, Very few 80 year olds would say they wished they had worked longer.....

If you can do it comfortably....Just do it.

MeteredOut

sgx2000 said:

Very, Very few 80 year olds would say they wished they had worked longer.....

If you can do it comfortably....Just do it.

Good job the OP is 57 then

OP, if you're so inclined, I'd be tempted to throw your situation at ChatGPT (other chat AIs are available). Never trust a word it says, but it can and does give some answers that can make you think about what you're doing and why you're doing it. It can be pretty good at playing devils advocate, but it will tell you what you want to hear, so ensure you ask it open questions and even things like "is there anything else I've not considered".

mebu60

If you can afford it why would you not retire? After the December bonus obviously! 

If you want private medical insurance the insurers for the company scheme may transfer you to a personal policy as a start point then you will have time to shop around in subsequent years. 

Albermarle

We’ve had historical 7% returns after fees, so I plan 4% drawdown (no need for anything left).

This 4% drawdown figure is really a safety first figure, where your pension pot will last out until you are very old even in very extended  poor market conditions. There is a strong likelihood that the pot could be bigger when you are 90 than it is when you start, even when taking into account inflation.

Also some plan for a higher drawdown rate pre state pension, as opposed to post state pension.

If you bought an annuity, then you would have a nice mix of guaranteed income and flexibility with the drawdown pot. In fact you could probably be more aggressive with the drawdown % knowing you had a guaranteed income.

Brie

Other than your mom what else will you do with your time?  That was/is a big issue for me.  I was happily made redundant but didn't want to actually stop working so ended up with a very p/t job with a charity.  Nice people, brain stretching, good fun.  I've now chucked that to spend more time painting but am looking at going back to the charity as a volunteer maybe 1 day a week - just to have some more structure.

lisyloo

kempiejon said:

Debts, wills, asset allocation, emergency fund, tax efficient savings?

If you have enough money and don't enjoy your current work arrangement why haven't you set a date to change work set up already?
Perhaps you're waiting for a bit more money or an incentive push to leave or pull to do something else.
You mention an aged P don't want to leave it too late.
I'm in favour of making absolutely sure it's all OK, if you don't hate your job piling the rest of what you earn into personal pensions and leveraging the tax I really like as a bonus for the end.
Is reduced hours and glide in available?

No debts.
will is old but still quite valid (3 of the older beneficiaries have died but it takes care of that).
asset allocation is reviewed. Recently I de-risked a proportion to maintain capital through a downturn (DH retired around the start of the ukraine war and he worried daily).
have savings for an emergency
tax efficiency - all of my assets are in PPR, SIPP or ISA.

i do have a date set in my head but I’m thinking of bringing it forward.
i was waiting for a particular number but that’s psychological and I’m reviewing that.

reduced hours is probably an option - thanks, I had forgotten about that.
One downside feeling like the weakest link on the team.

lisyloo

Baldytyke88 said:

You haven't mentioned many things that you want to do, if your job is demanding, do you really just want less work. I do school work, so no weekends and term time only.

I work in IT and my job involves overtime on top of 40 hours,  working out of hours is unavoidable although we can flex.

There’s a long list of things I want to do. Family and friends, gym, volunteering, dancing etc. etc.

lisyloo

mebu60 said:

If you can afford it why would you not retire? After the December bonus obviously! 

If you want private medical insurance the insurers for the company scheme may transfer you to a personal policy as a start point then you will have time to shop around in subsequent years. 

When I did that in my last job it was £3k per month (that was no pre-existing conditions).
I’ve had really good experiences going private but I would self insure then you are the arbiter of your own claims.