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Full retirement at 58? Sensible?

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

  1. lizziescat

    lizziescat Star commenter

    You've worked out what your pension will be so (taking into account the tax you will pay) live on that amount to see how you get on.

    I did this. (I didn't assume I would spend less when I retired - eg money saved on the daily commute is offset by having the heating on longer in the winter etc. Fewer work clothes needed but more subscriptions to organisations and more coffee and lunch with friends etc. )

    The 'surplus' was saved, giving me an extra 'emergency fund'

    Think about calculating your expenditure not only on 58, 60 or 65 years of age but also on when you are 80 or 85, when you might need help in the house/garden or extra heating and you're less likely to be able to get or do part time work.

    10 months on and it's working out OK for me so far.

    Good luck.
    MAGAorMIGA and plot71 like this.
  2. Guest

    Guest Guest

    Dear all
    Thought I would update you as we are now a few weeks into the new academic year.
    Been busy with the figures over the holidays and have made a decision I think I can stick too!! If redundancy is offered I will consider August 31st 2016, otherwise the date will be August 31st 2017. Feel better now decision is made. Already planning and sorting things for the target date. This summer new gas boiler put in, ensuite to be upgraded in next few weeks as well as decorators in November. Car upgraded and serviced so good for a few more years too!! Other bits of general maintenance and furniture upgrades in hand too. School seems easier now it's not forever, probably because I now feel I have the choice. Thanks again for all your replies. More comments and experiences always welcome.
  3. Guest

    Guest Guest

    Forget to say that by August 2017 will be 59 so below the 60 which was something I wanted to do. However close enough to NRA for the AAB rate to be quite small.
    Thanks again.
  4. lizziescat

    lizziescat Star commenter

    Think of it this way.
    This really means you have just 1 year to go (to 2016)

    2016 /17 you will of course still be planning/ teaching/ marking (which is probably what you came into teaching for!). But now you will have the glorious luxury of knowing that lot of the 'new plans for assessment ', 'the proposed curriculum change', the new policies to be introduced for x y z can be ignored -apart form an big inner smile.:D
    plot71 and marlin like this.
  5. Guest

    Guest Guest

    Must admit as we near half-term another 22 months seems a long time! Have to keep telling myself every extra month is 0.4% more on the pension!
  6. rooney1

    rooney1 Occasional commenter

  7. rooney1

    rooney1 Occasional commenter

    Is it better to retire at 59 years 11 months rather than at 60 - if I want to carry on working part time?
  8. lizziescat

    lizziescat Star commenter

    Work out:
    1. How much P/T work do you intend doing?
    2. What will you be earning by working part time?
    3. Your salary of reference (the limit of potential income post retirement) = pension +earnings?.
    4. % of pension and lump sum deducted by retiring one month early (a very small amount but only you can decide if this is going to be significant for you in the long term)
    You can check 3 and 4 by phoning TPS
  9. old_dobbin

    old_dobbin Occasional commenter

    The amount of annual pension you lose by retiring one month early isn't significant. If you were earning £50,000 a year you'd lose about £40 a year after tax by retiring one month early. If you wanted to work part time there would be no upper limit to your part time earnings and your pension would not be affected.
  10. Dunteachin

    Dunteachin Star commenter

    But never just rely on our advice!
    Check all this with TPS.
    lizziescat likes this.
  11. tim2101taichi

    tim2101taichi New commenter

    I retired at 58. Remember you don't pay NI when calculating your net income. Also you can benefit from cheaper hols during term time, less stress, plus you will have time to pursue new challenges and maintain your health better rather than squishing everything into the evenings and weekends. The actuarial adjustment and difference of reduced lump sum are not significant - for me anyway and would be same for you.Your life will be gentler and all the better for that. Too many teachers stick it out and die young in retirement. NB -keeping healthy is the key - body and mind.
    catmother, lindenlea and kent1 like this.
  12. jacob

    jacob Lead commenter

    By my calculation it is only a bit less than 0.21%.
  13. Guest

    Guest Guest

    Hi Jacob
    If you look at table below closer to 0.4%.(most months) Especially from 57 to almost 60.

    55 0 .794 0 .797 0 .800 0 .803 0 .806 0 .809 0 .812 0 .815 0 .818 0 .821 0 .824 0 .827

    56 0 .830 0 .834 0 .837 0 .840 0 .843 0 .847 0 .850 0 .853 0 .856 0 .860 0 .863 0 .866

    57 0 .869 0 .873 0 .876 0 .880 0 .883 0 .887 0 .890 0 .894 0 .897 0 .900 0 .904 0 .907

    58 0 .911 0 .915 0 .918 0 .922 0 .926 0 .929 0 .933 0 .937 0 .940 0 .944 0 .948 0 .951

    59 0 .955 0 .959 0 .963 0 .967 0 .971 0 .975 0 .979 0 .982 0 .986 0 .990 0 .994 0 .998

    Not that it is a point of too great a concern!!
  14. Guest

    Guest Guest

    At the moment investigating August 2016 again. Although also considering part time from September 2016.
    Thanks to all those who have contributed their own ideas and stories. Always interesting to read how different people manage on different amounts.
    I believe my dithering is also due partly to job having been such a large part of my life for nearly 35 years.
  15. Morninglover

    Morninglover Star commenter

    Believe me, that feeling disappears pretty quickly!
    plot71 likes this.
  16. Yoda-

    Yoda- Lead commenter

    You never know how many good and healthy years you will get.
    If you think you can, do...
    plot71 and frangipani123 like this.
  17. Twinklefoottoe

    Twinklefoottoe Senior commenter

    A bloke I sat next to at work for ten years had a lovely wife and family and was a really nice guy. He retired early as he said he wanted to do all those things he didn't have the time to do, like spend time with the grandkids, visit America, develop his passion for photography etc. He dropped down dead of a heart attack two months later. He was 57.

    Teaching is not for anyone once you get into your 50s. It's a toxic environment, that stresses your body and mind to a point where you are damaging yourself by doing it, just one more year, just one more year, just one more year, always convincing yourself you'll miss the job, you need the extra pension, you'll be bored etc. You forget you are a human when you teach because you are so busy doing endless ridiculous jobs, few if any having to do with children. You forget how to laugh, have fun, enjoy life.

    I would suggest you go asap and live before your body and mind go into decline as old age bites. You can always do a bit of supply if you feel the need, or volunteer and go listen to kids read, help with DofE, become a Governor etc. Part-time will still be a drag that you can't get away from.
    wayside34, plot71, eljefeb90 and 6 others like this.
  18. lizziescat

    lizziescat Star commenter

    What twinkle foot said
    frangipani123 likes this.
  19. jacob

    jacob Lead commenter

    I think that is an actuarial reduction table showing you what fraction you will get of your whole pension if you retire at those points. It is not related to how much the pension accrues every month.
    plot71 likes this.
  20. Twinklefoottoe

    Twinklefoottoe Senior commenter

    No, but it gives you all the info you need to do a quick calculation:

    Pension at 60 =

    (Average salary of the best three working years in the last 10, or the last year, whichever is highest) x (number of years worked) divided by 80.

    E.g. Average salary = £37K
    worked for 35 years.
    Pension = 37 * 35 / 80 = £16200 approx if you take it at 60.

    If you take it at 58 and 2 months, using the above table, you'll likely get:

    16200 * 0.915 = £14,800 approx

    And don't forget the lump sum, which is three times your annual pension.

    You should, of course, ask the pension company for an estimate, and log in and use their estimation tool.
    plot71 likes this.

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