Really worried about inflation and my retirement plans

[Multiblue]

I've had 2 decent careers. The first one being the better paid, but also left me burnt out. I've reached a decent level in the 2nd one and have a good income, comfortable lifestyle.

I'm 53 and starting to think about retirement. I think for me, the best option would be to go PT for a while and a good opportunity to do that has come up.

Currently, the PT salary would still be plenty for me to live well on. I have modest fixed outgoings, but do enjoy a busy and not always cheap social life and holidays. PT hours would be nice, but I'm not ready to sacrifice too much for them and with inflation as it is, pay not keeping up, the reduced salary may not be enough indefinitely

I have some savings that could cover the gap at current figures for a good few years, but again inflation.

If I work until official retirement age, my pensions will be more than my current salary (because of job 1) so I can afford to spend some saving until then, but again it all depends on how everything keeps up with inflation.

I realise I'm in a fortunate position, I'm worrying unnecessarily....aren't I?

Similar situation here.

DH has recently started a new job which brings in less money but is less stressful with shorter hours (still full time). I already work part time.

I encouraged him to go for it. I think it can be really hard to know when you have enough. Should we have more savings, should we pay more into pensions first etc etc.

Inflation and the cost of living crisis have come at a bad time for us. If this doesn’t work out and we can’t manage on less money, I will work more or DH will look for something else.

I feel ready to simplify/downgrade our lifestyle. Happy to go without as many meals out, holidays, new things, if it means we can work less and enjoy life more before we are too old.

I think it's different for me because I'm widowed. So many laid back retirement plans involve a "we". If you dont have a partner pretty much all meaningful social contact involves going somewhere, usually with a cost, even if it's only coffee.

Also when you do go anywhere you're effectively paying for two. No bygof , no rail discount and don't get me started on single supplements.

Also it's all down to me. There's no one else to pick up extra hours or find a new job. Plus I'm finding that job hunting is much harder once you're in your 50s so going back to FT may not be as easy as it sounds.

You don't get a rail discount if you are a couple ? You wouldn't pay for 2 meals or 2 tickets when there is only one you ? Holidays are More but nothing else is

@notthisagainforest

There are indeed rail cards for couples TwoTogether - 30% of fares.
I have one with my son

Yes you do. Dh and I had a Two Together rail card, 30% off when you travel as a couple.

All the Tastecard offers are 241 meals

Days out vouchers are often 241

And paying almost double for a holiday is no small thing.

Sorry to hear about your husband.

My DH has health issues which is another reason why I want him to slow down. If anything happens I don’t want to have regrets about us not having time.

Can you access some of your pension at 55?

Yes, but that would reduce future pension income and I don't need it currently

If you want to be really ‘safe’ keep working full time but I’d rather live for now and work part time as you know you’ll have enough when your pension age.
You may have more opportunities to meet others and travel together if you do.

I work part time and it does give you more flexibility and you would be surprised as to how much you can cope on the reduced salary - earn less pay less tax! As far as your pension is concerned sounds like you will be fine. You can always increase your contributions to make up for the shortfall and make cuts elsewhere. L

53 is very, very early to be thinking about retiring.

Is it? All the people I know from my previous career are going as soon as they hit 55 and the only ones staying in this role are those who reduce their hours

I've been to three retirement dos for people I see as career peers in the last 12 months

I'm thinking I'll hang on longer if I go PT now.

53 is very young unless you're very wealthy!

53 is very, very early to be thinking about retiring.

It's certainly not too early to start thinking about retiring in the next few years and going part-time in preparation. I know lots of people who retired in their mid, or even early 50s - civil servants, teachers, police etc. Some of those took less demanding part-time jobs, some just enjoyed early retirement. I

If you go PT is there likely to be any scope to increase hours again if you need to? Would you be able to downsize your house at some point? I agree 53 is very young to be thinking about retirement, I'm 56 in a professional role and no one I know even mentions it let alone doing it.

Also DH died at 54 with plans for a lovely retirement...

No, the job opportunity I have is a new (and exciting) 3 day role, but it's three days and that won't change. The only way to go back to full time would be to move employer and that he's harder as you get older.

Downsizing my house won't help. I'd like to move somewhere smaller idc but, especially if it's a bungalow, it won't be cheaper.

Not really, I’m late 30s and already part time in preparation.
Everyone should retire as early as they can afford to, you don’t know how much time you have left - I worked all the hours God sent in my 20s and early 30s so I can pack in earlier.

You sound like you are actually in an ok position OP.

I am 50 and my pension position is rather dire. I did all the right things - studied hard, went to uni, got professional qualifications and have worked in a professional services job since I finished university. But a combination of factors - living in a couple of different countries and becoming a lone parent (not my choice) when dc was very little (and so not being able to make extra contributions) means my private pension is a joke - at the moment I am on track to have £500 per month.

Obviously it's not early to be thinking about pensions.

But many people will live to their 80s and 90s. Stopping working in your 50s could mean 30 or 40 years of retirement. It's not even an option for most people, but it also probably isn't the right choice for many of us. Finding work you can sustain, enjoy, and feel like you are making a difference in the world might be a better goal. From your 60s that might be part time, but really no-one in good health needs to retire in their 50s.