Retire in 10 years -possible

Techno · 8 November 2018 at 10:59PM

Dandytf - please don't take offence at the suggestion to start a new thread. The early retirement thread started by Marine Life has been going for some time now and requests for advice tend to get lost in the general chat. It looks like you are getting some good advice on this new thread.

Dandytf · 9 November 2018 at 6:14PM

Techno wrote: »

Dandytf - please don't take offence at the suggestion to start a new thread. The early retirement thread started by Marine Life has been going for some time now and requests for advice tend to get lost in the general chat. It looks like you are getting some good advice on this new thread.

No offence taken, just my immediately home from office reply.
Thanks

crv1963 · 9 November 2018 at 7:47PM

Hi Dandytf,

Things I was advised to do from this site when I started out working my way through the maze of retirement planning- find out when and how much each of your current pension pots will pay; work out how much in todays figures you will need to live on. Then if pensions start before SP how much do you need to top them up.

Breaking everything down into phases makes managing the different sums easier my example is-

Retire 58- DB 16k + TFLS 48k
Full SP at 67 8.5k

Income needs 24k pa so if I was alone I'd need 9 x 8.5k = 76.5k

So 76.5- 48= 28.5k shortfall so between now (55) and retirement I'd need to save that 28.5k.

The above example is of course simplified as I am not on my own and Mrs CRV and her needs have to be taken into account, I just wanted to show you one way you can work things out.

Breaking it all down into manageable chunks simplifies thinking then run the numbers maybe on here (I did) and people can comment, suggest and help your planning.

I'd also advise look at possible benefits you may be entitled to, if you want to make an appointment with CAB for a Benefits Check-if you have had to reduce your hours due to your MS then maybe a PIP application would work- a word of advice these forms are horrendous and seek help maybe through the MS Society to complete them. PIP is not means tested and its purpose is to help with illness related costs and help the person to not be disadvantaged by their illness/ disability.

The advice to start your own thread was wise you'll get specific advice here.

Dandytf · 9 November 2018 at 10:56PM

crv1963 wrote: »

Hi Dandytf,

Things I was advised to do from this site when I started out working my way through the maze of retirement planning- find out when and how much each of your current pension pots will pay; work out how much in todays figures you will need to live on. Then if pensions start before SP how much do you need to top them up.

Breaking everything down into phases makes managing the different sums easier my example is-

Retire 58- DB 16k + TFLS 48k
Full SP at 67 8.5k

Income needs 24k pa so if I was alone I'd need 9 x 8.5k = 76.5k

So 76.5- 48= 28.5k shortfall so between now (55) and retirement I'd need to save that 28.5k.

The above example is of course simplified as I am not on my own and Mrs CRV and her needs have to be taken into account, I just wanted to show you one way you can work things out.

Breaking it all down into manageable chunks simplifies thinking then run the numbers maybe on here (I did) and people can comment, suggest and help your planning.

I'd also advise look at possible benefits you may be entitled to, if you want to make an appointment with CAB for a Benefits Check-if you have had to reduce your hours due to your MS then maybe a PIP application would work- a word of advice these forms are horrendous and seek help maybe through the MS Society to complete them. PIP is not means tested and its purpose is to help with illness related costs and help the person to not be disadvantaged by their illness/ disability.

The advice to start your own thread was wise you'll get specific advice here.

What an amazing detailed example, thankf or taking your time to share online.
I haven't considered benefits post early retirement.
Currently I receive PIP-basic mobility+enhanced disability daily living.
+working tax credits -both soon to be combined with UC-universal credit anytime from 2019-2023 for UC switch.
I'm not currently thinking of benefits as there is such change in next few years, I'de wait until maybe until past 50 then contact local benefits team-they are excellent with these type of enquires their knowledge is beyond my expectations.

Correct I went from Full Time after almost 26 years to Part Time early 2017-it wasn't forced, more doctors recommendation as M.S makes work more difficult too often.
If for financial sake I were to return to full time and almost double salary-though it would be square one with working with M.S.

I'll take time to read through your kind example and attempt to break down my current part time earnings and consider using current pip income (though I believe Universal Credit could be a drop in benefits-I'll deal with that when the switch happens

I do run a spreadsheet home budget and can easily take my living costs from the Excel file -possibly taking away Car costs and remove mortgage costs and unsecured lending -as I'm almost certain these can be cleared pre -55yrs.
Quite possibly I'de need to consider dropping Digi t.v. Subs to keep monthly costs down.
Hopefully I get some sense of making early retirement possible rather than impossible.

crv1963 · 10 November 2018 at 11:16AM

Dandytf wrote: »

Hopefully I get some sense of making early retirement possible rather than impossible.

We looked at all of our outgoings and trimmed some of them, we changed energy suppliers, car insurances, use free view- there's enough tv available to keep us amused although I know some really have "must watch" channels through pay to view packages.

We don't skimp on hobbies, but neither are they extravagant in our view. Our biggest expense is our dogs, having a diabetic dog with no insurance is not cheap!

How old are you? What age would you like to retire? How much do you need to live on? What age is your spouse? What is their pension provision? What age do they want to retire? Have you any must do plans for the future? Don't write off having a car- they provide freedom of choice, and give independence. Can you create a second income stream/ sell your junk(treasured stuff in the loft)?

With some clear goals and a time frame you can then test some plans, everyone has their own "number" but a clear idea of your own number is best. Read "what's your number thread", you've already started the early retirement wannabe thread.

Time spent planning (and other things) led me to change job, look at life in general, bring forward some spending and push back other spending.

Good luck.

Dandytf · 11 November 2018 at 2:57PM

Happier_Me wrote: »

I think you need to double check the values of your DB's, when they become payable and the impact of any actuarial reduction if taken early.

The £9k DB scheme is presumably dependent on you continuing to contribute until you retire in 10 years? But if the £9k is the value of your pension at your pension schemes normal retirement age then the actuarial reductions could be significant. As an example I am a long standing member of a DB (21+years), with a pension 'in the bag' of £13,500 at my NPA (mix of 65 and 68)...if I were to take this at 55 I would receive less than £8k per annum.

I wouldn't rule out considering ill health retirement if it gets to the point where your MS symptoms mean working part time is not sustainable. In my scheme (LGPS) there are three tiers, tier 1 would enhance your pension to your NPA (and I have known MS to fall into a tier 1 category). Part time working as a direct result of your illness may also be disregarded. Ill health is also payable from the date its granted, so potentially earlier than 55.

The criteria for ill health is usually very strict and rightly so, but don't ignore this given your circumstances. Read up on your scheme rules so you're clear about all the options potentially available to you.

I'm going to try some essential outgoing this afternoon.
The mentioned 9k is current DB balance.
I can run calculator and advise expected value from 55 upto 65
Projected balances of course be it low medium or high returns on retirement.
I usually use medium to get an idea.

Then I'll take some info from current home budget for outgoings.

atush · 11 November 2018 at 3:26PM

I shall continue to pay mortgage and unsecured borrowing.

I didn't;t answer cash question at this time -until I complete dmp -2021/22

TBH, until these are paid and an emergency fund built to at least 3 months outgoings (pref more) then you really cannot contemplate early retirment on any other than ill health grounds.

But the planning you can do. But as said above, unless you have a cash fund it will be too tight.

Dandytf · 11 November 2018 at 5:17PM

atush wrote: »

TBH, until these are paid and an emergency fund built to at least 3 months outgoings (pref more) then you really cannot contemplate early retirment on any other than ill health grounds.

But the planning you can do. But as said above, unless you have a cash fund it will be too tight.

Thanks it is due to ill health with m.s.
The 10 years could be dependent on how fast m.s. progresses.
I want to get an idea if I can make retirement possible as I cannot work full time anymore.
Unsecured should be cleared 2022/23
Mortgage -depends on which rates are as my next fix expires mid 2019.
If I could make 10 year retirement possible then I,ll switch to 10 year fix mortgage and over pay in later years to ensure it's cleared before I retire@55

Retire in 10 years -possible

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