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.

Sounds pretty good to me!

I would say so. That's a couple of thousand more that DH and I have coming in between us until the state pension kicks in and we have a similar level of savings. We don't live lavishly, but we are comfortable and feel very lucky. No mortage.

DH is disabled, the reason we retired early was because of this as we wanted to be able to enjoy life before he gets worse.

GenderApostate19 could you explain more re: the SIPP - OP won't be a non taxpayer if on £25k?

I could quite happily live on that, but it is immaterial.
You need to decide what you want from you retirement years and how much that will cost.
Once you have figured that out, you will know how much you will need.

This might help....it says you need £33K to be comfortable if single:
www.unbiased.co.uk/life/pensions-retirement/what-is-the-average-uk-retirement-income

I am not an expert by any means but that does sound good to me and I def recommend retiring while you are still young enough to enjoy yourself.

It is a final salary scheme so no idea of the actual pension pot

DH and I are working towards that between the two of us. So I'd say yes, it would be fine, as long as you didn't want caviar and champagne every night!

Our financial bod explained it much as Pandora did!

There isn't a pension pot as such with final salary pension (just a guaranteed pension for the rest of life). The calculation I gave was the equivalence to those with a pot.

There are more detailed life expectancy calculators. That was the one from the ONS. Here is another on Confused.com. It gives my life expectancy at 91 (so I'll go with this one!) www.confused.com/life-insurance/life-expectancy-calculator

I think it makes more sense generally financially to be optimistic as the alternative could be to run out of money. There are also sites that project income forward for as many years as you want, taking into account savings, outgoings etc. I used the retirement planner on RetireEasy (which is very sophisticated and used to be free but is now paid for) just to check I wouldn't run out of money before age 95.

There is a useful more basic pension calculator on the Money Advice Centre website. www.moneyadviceservice.org.uk/en/tools/pension-calculator. Just a word of caution about some others which are on the sites of those marketing products (such as savings plans or annuities). They are not always neutral in the recommendations that they give.

You can see that in my latter years I became very interested in pensions, something that I'd always thought of as a dry subject.

I work in pensions and that’s one of the largest pensions I’ve seen. I want to retire at 55 with around £12k per annum, and eek out the time until I get state pension, or use it to supplement part time income. I would guess that 95% of the UK population won’t get anything like £25k a year.

I think that sounds excellent! 25k a year is decent in itself and adding no mortgage and 100k I savings I'd say gives you a lot of opportunities! You should definitely be able to travel a few times a year/join a gym/club.

Well done!

It is well doable. It is just daunting for you.

I retired on a good package at 54 with a bit more of a pension than you, but not as much savings, still a healthy amount just the same.

I cannot spend what I've got, honestly. What do I need? Food, a couple of bottles of gin (very important lol), utilities, car maintenance, petrol, the usuals.

Go for it, you will never regret it. The way I looked at it, I was paying for my freedom, but got paid back too! Some of us are very fortunate I know this, and you are too OP. Don't hesitate.

For those saying about what families live off, I get that. Been there and done that. But after being that struggling person my whole life I would like a retirement that is more than just getting by until the grave.

If you're getting £25,000 as a final salary, I'm curious as to why you were struggling your whole (working?) life.

@Schmoana

I work in pensions and that’s one of the largest pensions I’ve seen. I want to retire at 55 with around £12k per annum, and eek out the time until I get state pension, or use it to supplement part time income. I would guess that 95% of the UK population won’t get anything like £25k a year.

Surely you have seen much larger pensions. In the public sector alone there are hundred are people who retire each year on six figure pensions?

£25k gross might be slightly above average, but surely there are many people who have private or final salary pensions That pay out much much more than this?

I'm retired and only have basic state pension to live off - so less than a third of £25k! But I am mortgage free and have a lump sum in the bank.

But I don't holiday often as I'm a home bird and prefer days out or weekends away . I do run a car though with all that entails [although don't do thousands of miles, family all local], run a house and associated bills, have broadband and pay full council tax but I live simply through choice. I have a full life, active, always busy and out and about, many interests and 4 grandchildren.

I go without nothing, so you should be absolutely fine with your funds. It does depend on your lifestyle I suppose. I've always been able to make money go a long way...without depriving myself. And like me, you have savings to fall back on....which one day may earn interest again!

If you're getting £25,000 as a final salary, I'm curious as to why you were struggling your whole (working?) life.

Final salary scheme. I moved into a higher paid job only recently that no one else would touch as it's very very stressful and under resourced but it will up my pension so felt worth it. Hence why I'm counting down the years now.

I'm getting serious squeaky bum over here! 25k sounds great!

@Schmoana

I work in pensions and that’s one of the largest pensions I’ve seen. I want to retire at 55 with around £12k per annum, and eek out the time until I get state pension, or use it to supplement part time income. I would guess that 95% of the UK population won’t get anything like £25k a year.

Rubbish. I know people who work for our county local government and fire pensions. Most are going to get more than that full time.

Ok

Not to brag, but DH and I generally only ever serviced one pension (his) and when the main final salary closed, he has a DC he then had several small (head hunted pensions) (which we cashed in to hammer the tiny bit of mortgage left) in between he settled where he is now, he/we haven't taken a pay rise in twelfty million years, we always upped our input into the DC scheme where he has now been for twenty years.

So we have a final salary that far exceeds the topic under discussion and very decent savings pot.

So Schmoana with all due respect as the teens would say you are chattin................Sh*t.

I am not trying to knock anyone else, but Schmoana is not respecting the OP's apprehension.

I seriously doubt that it is one of the largest pensions you have seen.

I think it's ample, you could travel on that!. I'd be tempted to work 6 more years though!

@Mimilamore

Wow did it take 23 years to get that 4 grand a year!!

You will be taxed on the Pension and it is still 6 years away.
Difficult to gauge what £1700 a month now will be worth then.
Depends what you want to do in your retirement?
I would look at some forecasts further down the line. Hubby retired at 55 and then went back to work 2 days a week for two years. Same job but he felt great freedom to not be reliant on the job

We are retired. I appreciate it is slightly different if you have another person to split costs with, but I think you will find £25k plenty. We (usually) have several city breaks and one longer holiday a year, and it easily covers that. Unless you have really let it go, or your house is a huge old pile, house maintenance shouldn't be a major annual expense.
The biggest problem we find is what to do with savings (thinking of your £100k). It is difficult to find somewhere these days where it will earn you money (especially if you are uber cautious like us). Quite a lot of our savings went on making improvements to the house, so that when we get older (as long as we last that long) we don't have to worry too much about having something expensive going wrong (e.g. our boiler was replaced).
Enjoy your retirement.

I did, similar figures, no regrets - now selling family home and downsizing 5 yrs later to free up capital for a Campervan 😎

It's a new adventure - embrace it !

My dad's recently retired and my mum working just couple days a week , they have less than £25 k coming in but no mortgage
They are doing fine as also have a little money in the pot that they use to spend on holidays etc , my dads state pension , his tiny private pension and mums couple days week pay the bills
Like others have said you could always do a little part time job if you want to boost your income for extras like holidays etc
But realistically if your in a one bedroom flat your council tax ( do you apply for single person discount ) heating , gas must all be quite minimal it get you may want to move if not ground floor etc

You could give yourself 6 months of living on your ‘retirement income’ whilst saving the rest of your salary and decide after that if you think it’s enough.