Is this enough to retire on?

[zippitydooda]

Name changed.

Hating my job. Stressful but grateful I'm working. I can retire early age 60 in 2026 on an annual pension of 25k. I'm mortgage free and have 100k savings.

Doesn't feel like a lot for a lifetime working but I so need to stop as I'm just so worn out.

Do you think this is enough to retire on given that I may never earn again? Would it be enough for you?

No partner and my DD is grown up and working so ok.

Well, it's obviously going to depend on your outgoings but as that is close to most people's actual earnings, I'd say that sounds a very comfortable pension.

I think you would be fine, especially if you live modestly. Being mortgage free is a huge bonus. If you are careful with your money, I think you'll be able to live quite comfortably and even travel when you like. Are you comfortable with that?

Is that an occupational pension alone or will you also have your state pension on top in a few years? It’s almost an average wage so I’d say it was a very good pension for most people, but depending on what you’ve been earning, it may not feel like a lot to begin with!

Would you be able to save a lot more before retiring?

Depends on what your level of council tax is and what the annual maintenance on your home is. These will creep up over time.

I think that is plenty.

I am a similar age and had a cunning plan to retire early on an income of around £10k which is similar to my current salary. Happy to live a simple and frugal life but gutted to say it looks like my plan has gone to shit.

I suppose everything is relative. I live quite a basic lifestyle and so have managed to save and put DD through university etc. Just so scared to stop working knowing I'll probably never earn a good wage again but then the thought of no more work stress feels like a pot of gold at the end of the rainbow.

Does mean no big fancy round the world trips or any extravagant cars etc but does mean I can potter about everyday and eat out once a week and have a weekend away now and then and probably replace any appliance that breaks etc.

Is that an ok lifestyle? Is it what people expect?

Sounds enough to me. To feed clothes and heat a house for one person. No dependants and no mortgage. Its plenty. Is it not? How much does "the average" person have. 100k in the bank no mortgage. Retire at 60. 25k a year. That must be above the norm no? (Suddenly feel the need to check my pension pot)

I agree it’s enough to retire on, initially. Given today’s cost of living.

But is this annual pension amount fixed or does it increase each year (inflation protected)? It will be worth less every year and if you are retired for 30-40yrs, it may not be enough for when you are 80+.

@LizzieMacQueen

Depends on what your level of council tax is and what the annual maintenance on your home is. These will creep up over time.

Yes, the depreciation worries me but thinking when the state pension kicks in that will boost me again.

Think I'll have about £1800 max to live off. That should cover all outgoings and a bit put away as a fund for emergencies.

I suppose I'm a bit disappointed that my life has never had any real luxury but then who has?

How much is your home worth? Would you ever consider selling and then renting, so you wouldn't have to deal with upkeep? Or perhaps sell and then buy and downsize?

What's the £100k for? You can have some trips with that, surely?

I’d say that was quite doable, you’d be able to live comfortably though not extravagantly on that amount, and your state pension would be due about seven or eight years later, which would ease things further for you.

@Halo1234

Sounds enough to me. To feed clothes and heat a house for one person. No dependants and no mortgage. Its plenty. Is it not? How much does "the average" person have. 100k in the bank no mortgage. Retire at 60. 25k a year. That must be above the norm no? (Suddenly feel the need to check my pension pot)

I'm thinking it's above the norm to stop at 60. If I went to 66 it jumps to about 37k but I can't bear the thought of working that long if I can stop. People in my family tend to die mid 70s!

@SwedishEdith

What's the £100k for? You can have some trips with that, surely?

Just incase something major happened. Roof repair or medical needs or DD needs help.

Feel like it's my safety blanket.

Of course you can live comfortably on that. You have minimal outgoings and no rent/mortgage to pay.

Some people bring up whole families on less than what you have, including having to pay the mortgage with it.

You have loads, seriously. Your daughter "is grown and working so ok". Get the repairs done while you're earning.

@Kpo58

Of course you can live comfortably on that. You have minimal outgoings and no rent/mortgage to pay.

Some people bring up whole families on less than what you have, including having to pay the mortgage with it.

Yes, I've been that person. Single parent paying for everything myself. But it's quite sobering when that amount is your end amount. It is the total sum of your life's work.

You can definitely live comfortably off that and you deserve to enjoy your years, you’ve clearly worked enough.

Could you stretch it out to 62 ?

That way by the time you have a handle on it, you won't have long to wait for the SP.

My DH is retiring in August 2022, he is carrying over holidays and will probably forego our two week break until he actually leaves, but will use his annual leave to take multiple long weekends, so it won't feel like the final push, so to speak.

Without having nipped into your savings too much.

It makes sense to me.

But it's quite sobering when that amount is your end amount. It is the total sum of your life's work

Just be pleased that you can retire at 60 on such a good Pension. Most young people will probably be working til their 70s for a much smaller Pension than you have.

i'd hardly think 25k p.a. pension is "living modestly" but that's just me.
I'd think it's pretty luxurious if mortgage free
It's equivalent to a private pension pot of £650k pension at today's annuity rate.
With no partner and grown up DD you'd still have enough to save even after holidays and eating out etc
State pension kicks in at 66 so another 9k a year assuming you having the qualifying years
You could also take a lower stress job, go part-time etc

@FinallyFluid

Could you stretch it out to 62 ?

That way by the time you have a handle on it, you won't have long to wait for the SP.

My DH is retiring in August 2022, he is carrying over holidays and will probably forego our two week break until he actually leaves, but will use his annual leave to take multiple long weekends, so it won't feel like the final push, so to speak.

I fear if I keep stretching it out I'll keep doing it and knowing my luck will drop down dead at 67.

I've got arthritis and feel tired so I have 60 in mind so I'm still fit enough to do some volunteering etc and do things I like.

Sorry if I'm offending anyone with the amounts. I don't mean to sound like I'm on a cushy number and moaning. Doesn't feel cushy!