Advice about retirement income

roaddrill

I'd be grateful to hear people's thoughts on retiring at 62 with £25,000 teachers pension and £13,000 annuity. (Net monthly of about £2,800). I know I might come across as spoilt as that is no doubt more than many people, and I know it all depends on outgoings. But I'd be grateful to hear from people who've actually retired. I think I may need to keep earning a bit doing some online tutoring.

Dazed_and_C0nfused

roaddrill said:

I'd be grateful to hear people's thoughts on retiring at 62 with £25,000 teachers pension and £13,000 annuity. (Net monthly of about £2,800). I know I might come across as spoilt as that is no doubt more than many people, and I know it all depends on outgoings. But I'd be grateful to hear from people who've actually retired. I think I may need to keep earning a bit doing some online tutoring.

Do you live on your own?

Plenty of people have to try and manage on less than half that.

FIREDreamer

roaddrill said:

I'd be grateful to hear people's thoughts on retiring at 62 with £25,000 teachers pension and £13,000 annuity. (Net monthly of about £2,800). I know I might come across as spoilt as that is no doubt more than many people, and I know it all depends on outgoings. But I'd be grateful to hear from people who've actually retired. I think I may need to keep earning a bit doing some online tutoring.

I retired at 60 with a little bit more than that (2 old private sector DB pensions with 5% capped RPI plus uncapped RPI annuity) and our assets are still going up.

Depends on expenditure of course, mortgage was paid off 20 years ago.

Daniel54

You also need to factor in the state pension when you reach 67.If you have not already done so then  please ensure you have a SP forecast- with your contracted out years do not assume 35 years is sufficient to reach the full new state pension.

It may be possible to enhance your state pension by purchasing additional years, which are  very good value ,unless subsequently changed

Although you will have a healthy fixed income, am I correct to assume you also have savings to cover out of the ordinairy expenses ?

SVaz

Homeowner with no mortgage or in rented and likely to remain that way?
That alone makes a HUGE difference to income needs as half of that £2800 could easily be swallowed up in rent.
Own home then it would be plenty,  £1200 bills and food gives £1600 disposable income.   Plus it’s only for 5 years and then another £10k net kicks in with State pension.
I would be overjoyed with that level,  we’ll have around £3k a month guaranteed income between us at State pension age,  more than we live very comfortably on now when you factor in our pension contributions. 

BikingBud

What other people get really is of little relevance.

What do you spend? Per day, month week or otherwise?

Will you get more than you spend?

SP is triple-locked and your teacher's pension will be indexed at CPI so if you can afford today you should be OK going forward.

Albermarle

This survey is widely discussed.
Home - Pensions UK - Retirement Living Standards
There is a Which one as well, although the figures are lower.

Qyburn

roaddrill said:

I'd be grateful to hear people's thoughts on retiring at 62 with £25,000 teachers pension and £13,000 annuity. (Net monthly of about £2,800). I know I might come across as spoilt as that is no doubt more than many people, and I know it all depends on outgoings. But I'd be grateful to hear from people who've actually retired. I think I may need to keep earning a bit doing some online tutoring.

Individual opinions aren't worth much, but since you ask I'd go on those figures. However ..
a. House owned outright 
b. Due to get full State Pension 
c. Have savings so could ride out a bit of over spend before SP kicks in

Yorkie1

If you haven't already done so, it would be a good idea to go back through your bank and credit card statements for the last year at least, and note down all your expenditure. Then identify which will continue after retirement, which will end, and which is likely to start / go up.

That will give you a better idea of what you need for a minimum or comfortable level of income in retirement.

Without that information, it's much harder to gauge whether your income will suffice.

As others have said, look at your state pension forecast too:
Check your State Pension forecast - GOV.UK

katejo

I am the same age as you and I am currently working just 3 days a week so I am on a reduced monthly income similar to what I will get when I take my DB pension. I am practising living on that amount (around £1650) for day to day expenses but also have accessible savings for bigger items such as home improvement projects. I have been using a budget' software for over 10 years so have a good idea of my monthly expenses. Once fully retired i will also have access to my lump sum. I paid off my mortgage about 4 years ago.