The Retirement Thread
176 watchers
Nov 2020
7:03pm, 20 Nov 2020
7,286 posts
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Fragile Do Not Bend
Minimag - it’s ok, hubby has gone through our expenses in forensic detail  he’s getting a bit OTT with it.
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Nov 2020
7:03pm, 20 Nov 2020
18,608 posts
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Rosehip
I'm taking what was my COMPS pension fund until I get to 60 and can take my full DB pension from 27 yrs of corporate life. The few yrs of school staff pension might just buy the odd takeaway when I'm 67! My calculation was - take 25% of the COMPS tax-free and invest half of it and enjoy half of it and then divide the rest as draw-down until I'm 60 just kept me a few £ under the tax threshold and no NI to pay. If I kept working to 60, the COMPS fund when paid would be added to my DB payment and would be taxed. Overall I end up with +/- 20% more cash from it. Seeing as my role at school was made redundant and any hours I did want to get a new job would be paid peanuts, it was a no-brainer to quit. |
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Nov 2020
7:06pm, 20 Nov 2020
18,609 posts
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Rosehip
( disclaimer, corporate redundancy paid off our mortgage and a small inheritance from my grandma funded a couple of years of share ISAs which are yielding good dividends and husband enjoys working, though we could be comfortable on much less tan we bring home)
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Nov 2020
7:20pm, 20 Nov 2020
18,199 posts
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Bazoaxe
My only issue is that someone at work will soon be recruiting and he has made it clear for a few months that he wants me to apply and the job is more or less mine if I want it. It wouldnt be any more money and would be similar to what I do but a little bit of a change. I find myself in a position that I will find it hard not to apply. However as I am 53 I do have at least 2 years to go so might be no bad thing. |
Nov 2020
9:27pm, 20 Nov 2020
527 posts
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Looby Loo
I’m on my way in for a night shift 7 in a row. 25 years today. Shift work is slowly killing me and I’m retiring in April. I truly can’t wait. I’m under the impression I won’t pay NI on my pension. |
Nov 2020
9:34pm, 20 Nov 2020
7,069 posts
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Northern Exile
No need to be under the impression LL - it's a dead cert: pensionsadvisoryservice.org.uk |
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Nov 2020
9:39pm, 20 Nov 2020
7,070 posts
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Northern Exile
For those who can't be arsed to read it, basically it says what TMW summarised earlier: You don't pay NI no matter what if you continue working past state retirement age, however if you are working AND drawing a pension prior to that age you will pay NI on the salary element only. I was doing that from 2005 onwards when I became eligible for an AFPS75 MOD pension. It was taxed to flipping death and frozen until I was 55, when suddenly I got 12-years worth of index linking
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Nov 2020
10:43pm, 20 Nov 2020
7,287 posts
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Fragile Do Not Bend
[Hubby can’t find where he supposedly saw that NI is paid on pension, so ignore my last post. 🙄]
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Nov 2020
8:45am, 21 Nov 2020
194 posts
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SteveCRunner
On the narrow question of how quickly you can draw down savings, I found this online spreadsheet useful. It is denominated in dollars, but just ignore that and put in pounds. https://www.vertex42.com/Calculators/retirement-withdrawal-calculator.html Where I live (Norway) there is a cost of living calculator online that the government provides that shows you how much you need to live per month, eg, a couple with house and car for basic bills. I would have thought the UK government has something similar somewhere. When taking the decision a little over a year ago, the question that helped me was not: how much am I foregoing in income by retiring - it would always be a big number that is hard to give up. Rather, think of how amply you could cover reasonable expenditure. That is much easier to satisfy. |
Nov 2020
9:03am, 21 Nov 2020
1,863 posts
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Winniefree
Exactly that. I’m living very happily on a third of my previous income.
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Jigs Useful Links
FE accepts no responsibility for external links. Or anything, really.- Money Helper
- How Much is Enough to Retire On?
- Retirement Living Standards
- How much will you need to retire?
- Free Govt website for pension advice
- SIPP pensions
- ISAs
- Check your National Insurance contributions
- Check your state pension account
- Martin Lewis on pensions
- Support and advice for those widowed under the age of 50
- Power of Attorney information
- Making the most of your retirement
- 20 tips for a happy retirement
- Married Couple's Allowance
- Aviva guide to retirement planning
- U3A
- U3A Local Sites - map
- Make a Power of Attorney
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