Retirement calculations - Can I ever retire ?

Page may contain affiliate links. Please see terms for details.
I know I should seek professional advice - but would like some general advice here from those who may have experience

I will be 60 in 4 years and would like to start thinking about retirement

My pension income at 60 - will be approximately 50% of what I earn now - plus a lump sum - close on 2 years salary

However my wife works part time and has next to nothing in a pension pot

Both get full state pension at 67

House is paid for - no mortgage - 2 live at home boys in early 20's - one at uni other in full time work

If retirement at 60 doesn't look feasible - I am wondering if to go part time now - any thoughts ?
 

derrick

The Glue that binds us together.
Depends on lifestyle. Retirement is great if you keep yourself occupied without spending to much money. Mortgage free makes a big difference. I still do a bit of odd jobbing helps pay for beers and holidays. I retired at about 63. Loving it. The wife has a few more years to go before we are together 24/7.😂
 
OP
OP
kingrollo

kingrollo

Guru
Depends on lifestyle. Retirement is great if you keep yourself occupied without spending to much money. Mortgage free makes a big difference. I still do a bit of odd jobbing helps pay for beers and holidays. I retired at about 63. Loving it. The wife has a few more years to go before we are together 24/7.😂
Although my wife works - she is disabled - I would feel bad about her still working while I don't. plus also I am the bigger earner.
 

Dave7

Legendary Member
Location
Cheshire
You can pay a lump sum to top up your wifes pension. We did it for Mrs D. Cant recall exact figures but for a small(ish) lump sum it bumped her pension up to 90%, a no brainer. We could have gone for 100% but the figures weren't attractive enough.
If you phone the pensions people they will quickly spell out the options.
 

oldwheels

Legendary Member
Location
Isle of Mull
You could find you spend less. Depends on circumstances but no travel costs to work ( unless you cycled of course) and no work related clothing as well as possibly canteen lunch. I was a bit concerned initially when I retired but found that in fact we managed very well. My wife did not have the full state pension and a couple of very small private pensions but we had enough for our needs without scrimping although not necessarily enough for our wants. Fortunately we did not fancy going off on world cruises although a bit more foreign travel would have been nice. We were fortunate to have family in Denmark and Germany so we housed them when they came to the UK in return for their hospitality.
 
OP
OP
kingrollo

kingrollo

Guru
You can pay a lump sum to top up your wifes pension. We did it for Mrs D. Cant recall exact figures but for a small(ish) lump sum it bumped her pension up to 90%, a no brainer. We could have gone for 100% but the figures weren't attractive enough.
If you phone the pensions people they will quickly spell out the options.

She is already on target for full state pension - is that what you meant - or pay more into her works pension ?
 

Cycleops

Legendary Member
Location
Accra, Ghana
You need to reduce your outgoings are far as possible when you do retire which means getting rid of the car and anything else unnecessary to reduce costs. I think you will be okay but don't book the luxury cruises yet. Your lump sum if invested won't provide much of an income. Anything you can save now and put into investment plan will help so look into that.

I'm lucky as I live here quite cheaply and have a house in UK which I rent out. I opted out of serps in my twenties so that is now quite a tidy investment plan. I don't get the full state pension because of that but it's not much anyway. My wife still works.
 

Dave7

Legendary Member
Location
Cheshire
She is already on target for full state pension - is that what you meant - or pay more into her works pension ?
Ahh....misunderstood sorry. I read it as state pension.
BUT.....state pension for a couple is not far off £300 per week. So.... £15K a year tax free. Plus your private pension. Not a bad sum really.
 
OP
OP
kingrollo

kingrollo

Guru
Ahh....misunderstood sorry. I read it as state pension.
BUT.....state pension for a couple is not far off £300 per week. So.... £15K a year tax free. Plus your private pension. Not a bad sum really.
Yeah - the onlt fly in ointment is that we don't get that until 67 years old......
 

Archie_tect

De Skieven Architek... aka Penfold + Horace
Location
Northumberland
You need to reduce your outgoings are far as possible when you do retire which means getting rid of the car and anything else unnecessary to reduce costs. I think you will be okay but don't book the luxury cruises yet. Your lump sum if invested won't provide much of an income. Anything you can save now and put into investment plan will help so look into that.

I'm lucky as I live here quite cheaply and have a house in UK which I rent out. I opted out of serps in my twenties so that is now quite a tidy investment plan. I don't get the full state pension because of that but it's not much anyway. My wife still works.
Good advice... Kingrollo, if you have to rely on investing your lump sum for retirement income then don't take the lump sum and leave it in the pension as you'll get a better return drawing your pension then you ever could investing the lump sum unless you take a greater risk investing in higher return stuff which could collapse.
 
Top Bottom