Should I retire? How best to use my money?

sb53

Hi everyone, first post here, looking forward to some help with my issue.
64 year old female full time salary 38k, also receive 18k NHS pension, will receive full SP in 2028 at age 67. I have 40k in a Royal London stakeholder pension from bank work and 100k in Cash ISAs. Previous part time bank work as and when I wanted to, but for reasons I can no longer fathom I returned to full time permanent position in NHS, having now realised this was a mistake I am considering giving up work completely. 
I am not a big spender, but I am terrified of debt and have none.  Husband is retired 22k DB pension, will receive full SP in April this year, we own house without mortgage approx value 400k. 3 children 4 grandchildren, generally we pay for big holiday for whole family every year, amounting to about 20k. 
I think we are financially sound for our level of expenditure and lifestyle, won't be any IHT issues I don't think, but want some tips on planning for future, is it too late to invest at our ages, would we be better paying into children's/grandchildrens pensions?  I have been paying into junior isas for all grandchildren since birth.  Have gifted 3 children 70k each in the past for house deposits, but that is nearing its 7 year mark, I am fit and healthy so am fairly confident will get past that milestone anyway.
Is it even worth investing, if we are already comfortable? I am rather risk averse.
This turned out to be longer than anticipated, sorry.

SVaz

With £100k in cash ISAs you could probably afford to invest a third to a half of that.  It won’t keep up with inflation long term in cash isas.

£35-£50k in a Global tracker or equities heavy mixed asset fund but that’s for the long term - 10 years+ .  

If you don’t want that risk then Index linked Gilts will protect the value of your savings when kept until they mature,  you could have 5 x £10k IL Gilts  that mature at yearly intervals from say 2030-2035.  

Do each of you get half the other’s DB pension if one of you dies? 

SVaz

5 x £10000,  index linked Gilts would cost you £47000ish.
So in 2030-35,  in very rough figures - if inflation has been 3% per year  you would get £10k plus 15% in the 1st year then it would rise for the next 4 years,  ending with a 30% rise. 

LHW99

You imply you are already receiving an NHS pension, but also that you are still working in the NHS?

Do you have two sections of the NHS pension, ie another one to come when you retire fully?

If you have not contributed up to you gross salary, you could transfer some of the ISA cash to the personal pension, which should get you a top-up from tax-relief (not easy to calculate I know).

Do you know what income you need going forward, and how your pensions etc match that (ie what if any gap?). With two full SPs (sure of that??) plus ~£40k DB pensions, presumably both with some inflation / fixed % increases per year you will have an income close to £64k in 2028. That only leaves 2-3 years where you may need to supplement (unless you require a particularly large monthly income after retirement).

sb53

Hi SVaz: thank you for that information I will look into that.
To answer your question, yes we both will receive half of others pension on death of first.

Hi LHW99: yes I am receiving NHS pension 1995 section and have returned to work for the NHS and am paying into 2015 pension, so will only be small amount of pension to receive in 2028 if I stay, perhaps an additional 2k per year index linked.
Certain about full state pension, even though contracted out in both our jobs, I have paid further NI contributions for 9 years since initial retirement via bank role.  Husband has made up his SP with grandchild care NI credits and is now at full contribution rates.
Outgoings are modest relative to income at present, household annual approximately 15k, excess income goes to savings and one big family holiday per year.
If I give up work soon, we will have 52k income between us, not accounting for my savings and RL pension.  Husband has Isas also in the region of 45-50k I believe.
I think I have probably answered my own question about continuing to work.

Thanks for your suggestions.

Albermarle

With two full SPs (sure of that??) plus ~£40k DB pensions, presumably both with some inflation / fixed % increases per year you will have an income close to £64k in 2028.

To put this in some perspective, you will have £65K of guaranteed income, no mortgage, and about £200K in savings, stakeholder pension etc .
This puts you very much in the 'well heeled'  pensioners bracket. If you were to buy £65K in guaranteed income, inflation linked, in the open market, it would cost in excess of £1.5 Million Pounds. 
So although it is partly theoretical, your total household worth is in excess of £2 Million.
So unless you intend to start spending a lot more, it would seem sensible to stop work asap. 

sb53

Albermarle, thank you for explaining that, I never thought of it in those terms.

I only returned to work to keep my mind and body active, the regular salary has been a comfort blanket for my grandchildren future and to help out adult children if need be.