Hubby's retirement at 60 in March 2008

jeanssis

Too much private info, sorry.

EdInvestor

jeanssis wrote: »

He's got details of his company pension & says he'll take biggest lump sum plus small pension plus the supplementary one too & says if we invest lump sum we can take monthly payment from it.

Ask him to explain the figures to you.

Obviously his income will go down & bills will still need paying.

Bills normally go down when you retire: no transport costs (it's free bus pass time) , no more expensive business clothes, no national insurance.Presumably you have paid off your mortgage? Will his pension income cover the bills?

Banks will need to be told his wages aren't going in.

No, his pensions will go in instead.

whenever I try to speak with him about how things will be arranged he hasn't much idea & neither do I.

What's your own position?Are you due a pension? Do you have savings?Do your work?

jeanssis

.Too much private info, sorry.

Debt_Free_Chick

Has he done a "post retirement budget" showing all the bills and stuff that need to be paid out - and then showing the money (pensions) coming in?

I think you need to see that first so you can be sure that there will be enough coming in, to pay what needs to go out.

The fact that it's retirement is kind of irrelevant. It just means that your income is different - a different amount, from a different source. Your bills might be different too, but at the end of the day - your income needs to be at least the same as your outgoings. And preferably more!

HTH

seven-day-weekend

Your husband will be eligible for free prescriptions and the heating allowance (he will have to apply for the heating allowance as he is not in receipt of State Pension), and I think a free bus pass too.

Why do any of the 'nuts and bolts' have to change? YOu can still have your same bank accounts and investments; his pension will go into his bank account instead of his salary. Your direct debits can still go out from the same place.

Obviously you will have to budget to make absolutely sure you have enough money to live on, but assuming that is OK then I don't see as there will be much difference.

The following link may be of use.
http://www.laterlife.com/retirement-c5/special-offers-discounts-concessions-public.htm

seven-day-weekend

Oh yes, forgot to say, can you rent your house in Spain out sometimes so that it pays for itself?

We also have a home in the UK and one in Spain (we live in Spain at the moment). Our UK house pays for itself due to our son and two other young men living in it and paying rent.

When we come back to the UK in a few years' time, we will make our Spanish house avvailable for short-term rental and if we can rent it for six weeks a year, that will pay its bills.

Hope this helps.

tanith

jeansis I too found it difficult to get my head around it when I had to take Ill-health early retirement last year.. although my OH is not retired I was used to my salary being paid in monthly and managing this money myself... really as others have said the only difference is the amount of money going in (about a quarter of what I was used to) and where it came from...

I stopped DD going into my savings and carried on paying my bills as before... now a year down the line I am still managing to pay my bills but not actually saving but find that month by month I manage by using a credit card very sensibly (paying of every month) I juggle things so that I come out even most months and haven't had to delve into my savings so far...

sleepless_saver

You don't say why your OH has decided to go for the lump sum. Has he considered he may get a better return on the increased pension option especially if you already have significant savings and no mortgage. This lump sum vs more pension discussion comes up a lot on this board and you might want to have a look.

Hargreaves Lansdown has a good free guide to retirement finances which will answer a lot of your questions and which you can download here . You may need to register, but you won't get spammed.

jeanssis

Too much private info, sorry.

sleepless_saver

jeanssis wrote: »

. Could you post links to discussion please for lump sum vs more pension please.

Here's a link to discussion. A lot of factors to be taken into account. (hope the link works, I haven't done this before with a thread.:o.

jeanssis

It worked fine thanks. :T