year before retirement - how did you get your ducks in a row?

daveyjp

For anyone with a DB pension, especially public sector where pay rise negotiations can take months, if not years.

If you retire before a pay rise is agreed and awarded, remember to request back pay and the uplift to the pension.

NormalNorman

900 odd days to go…

Thought I had a plan in place, now not so sure.

Some things won't change like three DB schemes (two me/one wife) coming into play at 60. Wife will also draw on her DC at 60.

I was planning on drawing from the DC at 60 and keeping on my second PT job as a topup till 67 but now thinking that idea will get sacked off and instead keeping on the main WFH job for a couple of years as it's just so easy and well paid to fund treats. Such as holidays and may get another small EV for myself, just not a hopeless one like the last four.

Implications, When the DBs start whilst coasting working I'm basically then delaying taking the DC lump sum and will have to make even more significant DC pension contributions to stay out of HRT. Surviving is not really an issue with main job and DB pension earnings with hugely reduced bills then as no second house costs for uni etc.

If the main job asks for too much or just cheeses me off than I can just quit, invoke DC and get the PT job back pretty much guaranteed should I wish.

From 65/67 decisions are easier as more DB schemes come online and SP so no real thought really required. IHT could well be an issue so the DC needs to be spent as tax efficiently as possible. There is only one person our estate will go to but been sending money to their pension and savings since birth.

So after experimenting with some safer RL STMMF, CSH2 funds etc in DC fun token pot I've just timed it back into VWRL with a little VHYL test as the lack of growth grated. I guess until I figure out life plan the strategy will have to wait and continue to just accumulate.

Cheers!

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82092843#Comment_82092843

and instead keeping on the main WFH job for a couple of years as it's just so easy and well paid to fund treats.

This was me to a similar extent, although I also travelled 40% of the time, but mostly that was not too bad either and made a change from WFH.

So I could have gone at 60 without too much worry, but did 'Two more Years' with the thinking that effectively that was two years earning/adding to pension, savings etc. and two years not funding myself. For sure it did improve my finances significantly ( with a bit of help from the markets), to a point where I suddenly realised that I had actually more than enough. One knock on effect of this is that I worry about money a lot less than I used to. Although obviously as a regular forum contributor, I still take an interest in personal finance, but I do not stress about it anymore, and ( apologies in advance to this heresy on MSE) I do not worry about chasing the last 0.25% of savings interest, or every cashback, or worrying that an investment fund I picked has not performed very well etc. as all of these things have almost zero effect on my overall finances or my life. In a similar vein, I do not bother with spreadsheets or anything like that, as one reason to retire was to get away from all that, and as money isn't tight there is no real need for a lot of detail ( that is just my personal preference, I know a lot of forum contributors like details, spreadsheets etc ) . On the other hand I still know all the prices in the local supermarkets, so some habits die hard !

Ibrahim5

I was having a pub lunch with a load of pensioners when my Nationwide fairer share payment arrived. £200 for a couple. I was saying that's 10 free pub lunches. No-one was interested. I can't imagine not trying to maximise my income although you could argue that I have no need.

bjorn_toby_wilde

https://forums.moneysavingexpert.com/discussion/comment/82091341#Comment_82091341

Another thing for company car drivers to consider is proof of no claims. I got written proof from my company’s insurers before I retired.

Without that you’re potentially starting from scratch and overpaying for insurance.

LHW99

https://forums.moneysavingexpert.com/discussion/comment/82093553#Comment_82093553

Does confirm that those of us on MSE are something of a breed apart!

mrklaw

https://forums.moneysavingexpert.com/discussion/comment/82093807#Comment_82093807

Oh I don’t think thats in doubt - the only question is what breed are we ;)

german_keeper

https://forums.moneysavingexpert.com/discussion/comment/82093553#Comment_82093553

Maybe they are all retired IFAs. What interest would they possibly have in a mere £200?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82093564#Comment_82093564

Another thing for company car drivers to consider is proof of no claims. I got written proof from my company’s insurers before I retired.

Yes I also got written proof. IIRC some insurers will still not accept this, and will start you off with zero NCB.

I went with LV as they were happy to accept - I do not think they even asked to see the proof.

daveyjp

Whilst sorting cash is key there are also other practical matters.

One job I have done over the last few months, which ended up taking longer than I expected, was going though my wardrobe as my clothing needs will change once retired. More going out during the day, more eating out, more holidays etc.

So the wardrobe has been overhauled (I won't need business shirts, suits, ties) but I have followed my golden rule. Never pay full price for clothes. Everything was bought in the sales either online or at discount outlets.