Looking for help with life plan

[oopsboops]

Please give your honest opinion on my situation

I'm from a very poor background and always worry about income. I don't live an extravagant life but would like to be comfortable when I retire and enjoy some holidays.

So here is my dilemma.

I'm in a stressful but reasonably enjoyable job.

I'll be 60 in two years and can retire on 25k per annum final salary. Or I plough on and the pension jumps a lot and I can retire at say 65 on nearer 40k.

On my own with no debts and mortgage free, kids grown up and fine. Savings of nearly 100k. Our family genes aren't known to produce good health after 75 and no one has lived to 80.

So what would you advise? Exit at 60 with less money but more time? Or keep going for the higher pension so I can travel more?

I'm genuinely conflicted and am so scared of stopping as I've always worked.

I’d leave at 60, 100%. On £25K with just yourself to look after and no mortgage, you should be just fine.
Assuming you own your own home, you could use your savings and pension, rent your house and go travelling !

5 years of extra stress could cause you to be ill by the time you're 65. So you’d be much better off but unable to enjoy it.

Relax from 60 and you could live a lot longer.

People underestimate the effects of stress on our bodies.
It causes a wide range of afflictions, from heart attacks and strokes to cancer.

Agree with pp.

Leave at 60, or sooner if you can - absolutely.
Enjoy the time now while you have good health.
Don’t put off traveling - get it done.
The older you get, the more difficult the traveling becomes.
(In a cruel twist of fate, waiting the 6 extra years for our pension, my fitness and health is deteriorating just as I reached pension age) - Don’t wait.

Totally agree with pp. You never know what's round the corner. Live your life now. You will have a decent income plus savings. You are in a good position, enjoy it.

Thank you for advice so far. I just need the encouragement to go for it. I've never been abroad so it'll be a true adventure. Never thought of renting the house out, what a brilliant idea.

I can totally understand your fears - the thought of not working and not bringing in an income is scary.

But I agree with PPs. Go at 60. You are mortgage free with decent savings and kids that are grown.

Health is so unpredictable.

And even if your general health remains good we slow down as we age and things like travel become more difficult and tiring. You've worked hard, now enjoy the fruits of your labour.

With your savings, I'd go sooner rather than later. Be savvy though. Scammers are everywhere

I've never been abroad.

It might help firm up your decision if you took a holiday abroad. You might find it's not what it's cracked up to be - airports can be a nuisance, flights can be unreliable, hotels can be disappointing. Or, you might have a terrific time and feel more confident about leaving at 60.

Also, is there a middle ground? I'm wondering if could you go at, say, 61 and increase your pension a bit to feel more secure, but still have a lot of time to look forward to.

I would not hesitate. Get out now. I am 65 and definitely would rather have less money but more free time outside of being a wage slave. You do not know what your health and physical mobility will be like in five years time, that is why you must take the retirement now while you are still young enough and fit enough to enjoy it.

If you’re in good health, I would recommend carrying on working until you’re 65. With inflation and other expenses the 25k won’t go very far in 10 years time and even less in 20 time. Use your annual leave to enjoy some holidays abroad in the meantime

Meet in the middle and go part time at 60 and start with a holiday abroad.

Leave at 60.

25k pa is a good pension plus you have assets of a house and 100k.

Downsizing is also an option.

You are in a good financial position. Make the most of it.

Surely it also depends on your job? You say it's reasonably enjoyable- could you make it less stressful? Could you take more time off and travel a bit while working?

Could you take a sabbatical from your current role? Take a year out at 60 and see if it suits you.

My DH is now 66 and won't consider retiring. His thought is 'What would he do all day?'
Financially he could retire but just chooses not to do so.

He has always worked 5 1/2 days per week and took one day off in August last year and four days in July of the year before and five days in 2019.

I think it's quite common to feel slightly fearful of retirement.

£25k per year * 5 years = 125k

This is the extra pension you'll get while you're not working to 65.I

It's slightly less than the 10 years of 15k extra you should get while you're in good health if you retire at 65. But I haven't taken account of the effect of tax and I strongly suspect that would negate the difference?

Won't you also get your state pension at 66/67? In which case I would definitely spend 6 years making the absolute most of my pension and spending some of my savings as well. Topping you up to £33k or so at 66/7 should give you plenty of money to live on.

I would do it at 60, Op. It may be too late otherwise. It has risks, of course, but the biggest risk is that this great adventure passes you by. Presumably you'll get the state pension at 67, so add that to your private pension and it looks fine further down the line too.

Very good idea

I'd take it at 60 25k is a reasonable
Sum

Also at 68 your state pension will kick in so you can offset some spending with that.

You will need more for the active years 60-75 than 75 until you need care. But who wants to pay care.

Yoi can always freelance/ contract or casual work or do another job to top up your pension

Enjoy OP

HELLO PENSION GOODBYE TENSION

Gosh, go for it at 60, whether you actually retire, or explore the career break/sabbatical avenue -- there's a whole world out there! In the interim, start reading, planning and working on your languages, depending on where you want to go!