Retire now, can I?

ali_bear

tony4147 said:

: 
Not sure which way to go, I was intending to work another couple of years which would have put me in a much better position, larger SIPP and mortgage much less but the way I feel I can’t see that happening.

That couple of years makes you 65, but if you're not sure, why not split the difference and set the date in spring 2027 and build your plans around that? 

PropertyGuru_Wannabe

As a couple of posters have already said, you can retire now.  You have more than enough to cover your spending costs and even if the worst case scenario happens which it won't, you can look to either spend less or downsize.  

Veloflyer

tony4147 said:

Veloflyer said:

I am in a similar frame of mind - 61 and still working, but no mortgage. Other folk have commented on the SIPP and I would concur. Some points perhaps.

If your SIPP is in equities I'd think about covering them in case of a market crash. The last thing you want to do is withdraw from an equity based SIPP in a crash. A cash buffer may be advisable - your ISA? else preserve some/most of it with index linked gilts perhaps.

Purchase of Annuity could be a way to go using some/all of the SIPP. Favourable rates at present. 

2.3K per month? Is that right? Inflation factored in? Check it, then check it again.

Money aside -  Do you have something to fill the time when you quit work? If not, then I'd continue working until you find something. Money coming in is still a great advantage.      



 

The £2.3k / month is correct, I’ve worked based on what I clear now per month whilst working excluding the mortgage, I will need to clear the mortgage probably with savings. 

I have wondered about using some of my SIPP for an annuity and £200k will get me just under £13.5k level, or just under £9k increasing by RPI.

Not sure which way to go, I was intending to work another couple of years which would have put me in a much better position, larger SIPP and mortgage much less but the way I feel I can’t see that happening.

Again, similar thoughts to myself as regards the last paragraph. I'm going to reserve judgement until Spring when the weather hopefully improves and I can utilize any free time better. I appreciate it is a very personal choice but I have slowly come to realize that as time is ebbing away, why spend the remaining time doing something deeply boring, stressful and unfulfilling if there is no monetary need to? 

As an aside, I think this is going to be a major problem for the UK economy. Increasing numbers are doing a similar thing. By so doing, all the skills, experience and knowledge disappears earlier than anticipated, leaving companies with a void that they cannot easily fill.         

DT2001

tony4147 said:

Veloflyer said:

I am in a similar frame of mind - 61 and still working, but no mortgage. Other folk have commented on the SIPP and I would concur. Some points perhaps.

If your SIPP is in equities I'd think about covering them in case of a market crash. The last thing you want to do is withdraw from an equity based SIPP in a crash. A cash buffer may be advisable - your ISA? else preserve some/most of it with index linked gilts perhaps.

Purchase of Annuity could be a way to go using some/all of the SIPP. Favourable rates at present. 

2.3K per month? Is that right? Inflation factored in? Check it, then check it again.

Money aside -  Do you have something to fill the time when you quit work? If not, then I'd continue working until you find something. Money coming in is still a great advantage.      



 

The £2.3k / month is correct, I’ve worked based on what I clear now per month whilst working excluding the mortgage, I will need to clear the mortgage probably with savings. 

I have wondered about using some of my SIPP for an annuity and £200k will get me just under £13.5k level, or just under £9k increasing by RPI.

Not sure which way to go, I was intending to work another couple of years which would have put me in a much better position, larger SIPP and mortgage much less but the way I feel I can’t see that happening.

Slightly confused by your last paragraph. If, as Old Scientist, you are good to go using half your SIPP for an annuity which will provide enough with your SP to meet your target why do you need to work longer ? From the other half of your SIPP you can pay off the mortgage immediately or over the remaining term, put aside a generous holiday fund and still have money left.

Veloflyer

DT2001 said:

tony4147 said:

Veloflyer said:

I am in a similar frame of mind - 61 and still working, but no mortgage. Other folk have commented on the SIPP and I would concur. Some points perhaps.

If your SIPP is in equities I'd think about covering them in case of a market crash. The last thing you want to do is withdraw from an equity based SIPP in a crash. A cash buffer may be advisable - your ISA? else preserve some/most of it with index linked gilts perhaps.

Purchase of Annuity could be a way to go using some/all of the SIPP. Favourable rates at present. 

2.3K per month? Is that right? Inflation factored in? Check it, then check it again.

Money aside -  Do you have something to fill the time when you quit work? If not, then I'd continue working until you find something. Money coming in is still a great advantage.      



 

The £2.3k / month is correct, I’ve worked based on what I clear now per month whilst working excluding the mortgage, I will need to clear the mortgage probably with savings. 

I have wondered about using some of my SIPP for an annuity and £200k will get me just under £13.5k level, or just under £9k increasing by RPI.

Not sure which way to go, I was intending to work another couple of years which would have put me in a much better position, larger SIPP and mortgage much less but the way I feel I can’t see that happening.

Slightly confused by your last paragraph. If, as Old Scientist, you are good to go using half your SIPP for an annuity which will provide enough with your SP to meet your target why do you need to work longer ? From the other half of your SIPP you can pay off the mortgage immediately or over the remaining term, put aside a generous holiday fund and still have money left.

....because presumably at the time he wasn't sure he was good to go? He may be more sure now - hence the original question. I am in a similar position and I am pretty sure I would be good to go. However, it is such a big decision that the simple arithmetic may be inadequate to overcome the fear factor, the loss of a steady income, the change in lifestyle etc. Not everything in life is down to numbers.    

tony4147

DT2001 said:

tony4147 said:

Veloflyer said:

I am in a similar frame of mind - 61 and still working, but no mortgage. Other folk have commented on the SIPP and I would concur. Some points perhaps.

If your SIPP is in equities I'd think about covering them in case of a market crash. The last thing you want to do is withdraw from an equity based SIPP in a crash. A cash buffer may be advisable - your ISA? else preserve some/most of it with index linked gilts perhaps.

Purchase of Annuity could be a way to go using some/all of the SIPP. Favourable rates at present. 

2.3K per month? Is that right? Inflation factored in? Check it, then check it again.

Money aside -  Do you have something to fill the time when you quit work? If not, then I'd continue working until you find something. Money coming in is still a great advantage.      



 

The £2.3k / month is correct, I’ve worked based on what I clear now per month whilst working excluding the mortgage, I will need to clear the mortgage probably with savings. 

I have wondered about using some of my SIPP for an annuity and £200k will get me just under £13.5k level, or just under £9k increasing by RPI.

Not sure which way to go, I was intending to work another couple of years which would have put me in a much better position, larger SIPP and mortgage much less but the way I feel I can’t see that happening.

Slightly confused by your last paragraph. If, as Old Scientist, you are good to go using half your SIPP for an annuity which will provide enough with your SP to meet your target why do you need to work longer ? From the other half of your SIPP you can pay off the mortgage immediately or over the remaining term, put aside a generous holiday fund and still have money left.

I wasn’t planning on retiring now,  I always thought I would continue to work another 2 yrs, so wanted to see IF I could retire now. 

That extra 2 yrs would make a big difference, mortgage would be half what it is now, I would be able to take more pension if needed, and the two years additional contributions would help to derisk if there were market drops etc

LHW99

tony4147 said:

DT2001 said:

tony4147 said:

Veloflyer said:

I am in a similar frame of mind - 61 and still working, but no mortgage. Other folk have commented on the SIPP and I would concur. Some points perhaps.

If your SIPP is in equities I'd think about covering them in case of a market crash. The last thing you want to do is withdraw from an equity based SIPP in a crash. A cash buffer may be advisable - your ISA? else preserve some/most of it with index linked gilts perhaps.

Purchase of Annuity could be a way to go using some/all of the SIPP. Favourable rates at present. 

2.3K per month? Is that right? Inflation factored in? Check it, then check it again.

Money aside -  Do you have something to fill the time when you quit work? If not, then I'd continue working until you find something. Money coming in is still a great advantage.      



 

The £2.3k / month is correct, I’ve worked based on what I clear now per month whilst working excluding the mortgage, I will need to clear the mortgage probably with savings. 

I have wondered about using some of my SIPP for an annuity and £200k will get me just under £13.5k level, or just under £9k increasing by RPI.

Not sure which way to go, I was intending to work another couple of years which would have put me in a much better position, larger SIPP and mortgage much less but the way I feel I can’t see that happening.

Slightly confused by your last paragraph. If, as Old Scientist, you are good to go using half your SIPP for an annuity which will provide enough with your SP to meet your target why do you need to work longer ? From the other half of your SIPP you can pay off the mortgage immediately or over the remaining term, put aside a generous holiday fund and still have money left.

I wasn’t planning on retiring now,  I always thought I would continue to work another 2 yrs, so wanted to see IF I could retire now. 

That extra 2 yrs would make a big difference, mortgage would be half what it is now, I would be able to take more pension if needed, and the two years additional contributions would help to derisk if there were market drops etc

If you could retire now, and the extra 2 years help you sleep at night, then carry on - what you already have can be regarded as the f****U money, so that you don't have to put up with any nonsense from your manager / bosses in the future.

ali_bear

With regard to the Fu money, I think once you decide on a date and start to plan around it you will start to feel a lot better about the jerks at work. You'll have an invisible layer of armour, a Ready Brek force-field of feeling good about yourself. But don't tell anyone at work, and keep it a secret until the time comes to hand in your notice. 

Veloflyer

ali_bear said:

With regard to the Fu money, I think once you decide on a date and start to plan around it you will start to feel a lot better about the jerks at work. You'll have an invisible layer of armour, a Ready Brek force-field of feeling good about yourself. But don't tell anyone at work, and keep it a secret until the time comes to hand in your notice. 

My view exactly. I haven't decided on a date, but having the knowledge that I can safely wave a tearful adieu does create a better mindset. Perversely, it may even ensure me working longer than necessary. 

Albermarle

Veloflyer said:

ali_bear said:

With regard to the Fu money, I think once you decide on a date and start to plan around it you will start to feel a lot better about the jerks at work. You'll have an invisible layer of armour, a Ready Brek force-field of feeling good about yourself. But don't tell anyone at work, and keep it a secret until the time comes to hand in your notice. 

My view exactly. I haven't decided on a date, but having the knowledge that I can safely wave a tearful adieu does create a better mindset. Perversely, it may even ensure me working longer than necessary. 

It is not very easy to carry on if you are always thinking 'I don't care about this or that, as I can leave when I want' Certainly other colleagues etc will not appreciate you becoming a loose cannon/bad team player. ( not saying you would do that of course) 
So you have to keep a positive attitude even if you have one eye on the exit.