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Full retirement at 58? Sensible?

Discussion in 'Retirement' started by paulstjohn2014, Mar 28, 2015.

  1. paulstjohn2014

    paulstjohn2014 Occasional commenter

    I am considering taking full retirement at the age of 58 in August 2016. I begun phased retirement in September 2013. However I am undecided about whether or not it makes financial sense. I suppose I am a little concerned about having enough in retirement. I do not mean having lots of money but enough to live reasonably comfortably, take some holidays and pursue some hobbies.

    I swing between saying 'its the quality of life that is important not money', to 'will I be ok?. Quite a lot of the time I still enjoy my job but the increasing workload is taking its toll. By August 2016 I will have been teaching 35 years. I estimate that my pension, taking into account ARB and the fact that I have been taking some as part of phased retirement, would be about £16500 gross. I would probably have total savings of about £60000 which would include the lump sum. I am debt free and will be mortgage free too. There is also the possibility of redundancy next year. I have no direct dependants but a close extended family. Fortunately as I was within 10 years of retirement in 2012 I am not affected by the April 2015 pension changes.

    I do not really want to do supply after retirement but would be happy to do things like exam marking, invigilation etc.. for the occasional top up. I think I will be ok, but by nature I am not a risk taker!! Of course I may decide to carry on or reduce my hours. I do have this, I suppose irrational thing, about not working until I am 60, even though of course financially it does make sense. Fortunately I am still in good health but one never knows. As I get older I realise time is really the important thing.

    I would appreciate any advice or comments from others in a similar position or those who have taken the plunge. Any information about how you are managing would also be interesting to hear. Thanks.


     
  2. kittylion

    kittylion Established commenter

    My pension is just over £12,000 and I work two half days a week which brings in roughly £400 per month. It would be hard to manage without this extra - unfortunately it is only temporary. I don't have holidays though.

    I went at 59 and took voluntary redundancy - you say that there may be the chance of redundancy for you too. If that is the case, it might be as well not to mention at school that you are thinking of going anyway.

    Of course I have no idea what your outgoings are, but it does sound as though you will have plenty.
     
    HelenREMfan likes this.
  3. paulstjohn2014

    paulstjohn2014 Occasional commenter

    Many thanks for your reply Kittylion. I have estimated that I can cover all my expenses plus manage to save a little during the year to pay for the annual one offs such as car tax, home insurance, car maintenance etc...

    Thanks again.
     
  4. Dunteachin

    Dunteachin Star commenter

    If you retire at 60 or over and do any type of teaching thereafter, it COULD affect your pension.

    You have to inform TPS.

    Retire before 60 and you could even get another full-time teaching job without your pension being affected.
     
  5. paulstjohn2014

    paulstjohn2014 Occasional commenter

    Thanks for your reply Dunteachin. I do not want to teach after retiring. Well certainly not full time! I just want to be sure I have enough to have some real choices after retiring.
     
  6. paulstjohn2014

    paulstjohn2014 Occasional commenter

    I also realise my state pension will become available from 2024 too. Even though that will not be the 'new' full amount' owing to being opted out for the whole of my career it should at today's values be worth about £5881 a year.
     
  7. lindenlea

    lindenlea Star commenter

    I wanted to go on as long as I could but only made it till 58. Every month you work will add to your pension and I wanted as big a pension as possible. Only you know how much you want to go but I really did dig in. It was right for me. Looking for something to top up your pension might be just the right thing for you.
     
  8. Morninglover

    Morninglover Lead commenter

    I retired early on ARB whilst still 56 after 32 years teaching. Took maximum lump sum, and so have a pretty small pension, but good savings. Have never felt so well off, and haven't needed to go for supply (and turned down a part-time post at a previous school with no regrets).

    IMHO, if you know it's time for you to go, it's time for you to go!
     
    plot71 likes this.
  9. old_dobbin

    old_dobbin Occasional commenter

    I think £16,500 is enough if you have no mortgage, no dependents and average bills/ outgoings. Are there any major house repairs needed? New roof? If not I think you'll be OK. Once you get the state pension you'll be quite comfortable and should be able to save a bit if you want to. I retired on a similar amount and have felt no worse off than when I was working full time. However, if you intend to take frequent , expensive holidays and like buying new cars every few years, think again.
     
  10. paulstjohn2014

    paulstjohn2014 Occasional commenter

    Many thanks for your on-going replies.

    The house has been well-maintained and shouldn't need a new roof for at least another 50 or so years. My holidays do not tend to be overly expensive. Of course being able to travel more in off peak times will also save money. As far as cars are concerned, I tend to buy good second hand ones as buying new is just like burning money!

    Thanks again.
     
  11. johnberyl

    johnberyl Occasional commenter

    Pension advice tends to suggest a working figure of two thirds of your earnings. However, these things will inevitably vary according to individual circumstances and requirements.
     
  12. jacob

    jacob Lead commenter

    Can I just say that you may have given out a bit too much information. Making the assumption (possibly wrongly) that your name is Paul, you have given out a fair degree of personal information may not be a good thing, as it may be enough to identify you. Nobody knows my real name on here, except a few absolute friends, and nobody knows any monetary information.

    However, I am seriously contemplating the same; complete retirement later this year. I would like an accurate estimate of what I will get as pension (which probably is unavailable until my employer does the annual return to TPS), but I have separate pots that I can cash in under these annuity changes, having had a life before teaching. (Despite headlines in newspapers "everyone over 55" is NOT able to cash in their pension.) I have looked at phased retirement (though my employers are stupid about it and think it costs them money) and decided I would like to be free rather than tied to an reduced version of the week in, week out daily grind. If I don't want to get up in the morning, it will be up to me, if I want to read an entire book in one day, my choice, if I want to take the grandson on a few days away, me, do John O'Groats to Lands End on my motorbike, me, me, me. While having the health, and mobility, I want to get away from this daily grind where nothing is good enough for the "suits" that have taken over everything. I want to tell them to foxtrot oscar and reclaim my life for me (and maybe family). I have always had to watch my money, so it would be no different in retirement. Cautious is my middle name.

    The amount you (Paul) quote will be more than I will get, but it depends on your circumstances, and probably where you live. And at 66 there is the state pension, even if it is more like an "unstated" pension because nobody seems to have a clue how it will work.
     
  13. wanet

    wanet Star commenter

    When I made the decision I put all te knowns into a spreadsheet to see how the finances looked. There are variables that are unknown, like your longevity and health prospects. In the end you just have to made a decision using the best information that you have.

    I still do the odd bit, but its not of great monetary value.
     
  14. paulstjohn2014

    paulstjohn2014 Occasional commenter

    I do tend to be quite an open person. I haven't said anything that is wrong or suspicious? Well I hope not. As far as I see it unless I gave out accurate information I cannot expect advice that is really helpful. As for my name, well it may well be false!!

    Anyway many thanks for your response.

    Wanet I have also been working on the spreadsheets. They can be very helpful.

    Thank you.
     
  15. jacob

    jacob Lead commenter

    Just worried about you protecting your identity. I have already had mail about retirement from a company I have never heard of, addressed to me at my address. I have no idea where they got information on me from as I am very cautious. Perhaps they get it off the electoral roll, although I tick the appropriate minimal information box, or perhaps insurance companies sell their information like they do after car accidents. I just think it better to be completely anonymous and unidentifiable. Though I still get other targeted junk mail with the Dominos leaflets and other ****.
     
  16. paulstjohn2014

    paulstjohn2014 Occasional commenter

    Jacob. To be honest most of your junk mail is probably the result of information from the electoral roll. It is easy to check ages and then send out specific product information. I wouldn't worry too much about it.

    Many thanks to those you have responded so far. All food for thought. Always interesting to read how others are managing as well as ideas for topping up income if necessary.

    Thanks again.
     
  17. chelsea2

    chelsea2 Star commenter

    Go for it. I retired last summer at 56 - just knew it was time to go, I'd had enough after well over 30 years. My pension is a bit less than yours (mainly because I took more as a lump sum), savings much the same. I am temporarily working (interventions) two afternoons a week. I also have income from property of around £5k a year (minus tax). I have spent a lot this year, mainly on house repairs, in the hope that there'll be nothing major needed for the next few years.

    But I've also done stuff that I just never had time for when working, things I've wanted to do, but couldn't because work took over my life. That's included lots of weekends away, following my interests. And I've bought a campervan. Once the house is sorted, I shall be taking lots of holidays. That's what retirement is for - enjoying myself, pursuing my hobbies, trying new things.

    Oddly enough, when earning, I was cautious over spending money, although I always earned more than I spent. Now, having retired and having attended the funerals of two friends of my age this year, I've decided the time for being cautious is over. My one thought is - what took me so long?
     
    Alice K and plot71 like this.
  18. gymjack

    gymjack New commenter

    Go for it. I was cautious like you but 7 months in I'm doing better than I expected. Whenever I go back into school I think, 'Thank God I'm not still teaching.'
     
    plot71 likes this.
  19. lindenlea

    lindenlea Star commenter

    Speaking to my d-i-l about my gdaughter's school report I realised I had forgotten most of the jargon and even had forgotten Y1 was KS1 not EY. Yay! Taken nearly 6years.
     
  20. paulstjohn2014

    paulstjohn2014 Occasional commenter

    Many thanks for all your comments and advice. Still not completely decided. I will probably defer final decision until Easter 2016. I have been asked to continue as an Interim joint Head of Department for another year until a replacement is found. To be honest although at first my colleague and I didn't really want to do that role at all, even for a short time, we find ourselves quite enjoying it at the moment!!

    Please feel free to post about your own experiences and plans. Always a fascinating read.

    Thanks again.
     

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