Have I got enough to retire at 60?

[timetogoandstop]

I’m 60 and in a well paid job. Husband is 67 and retired with small private pension of 12k. We own our own home outright and have 200k savings. It’s my salary that keeps everything funded. I feel very responsible for my DH and grown up DD.

Ive been offered redundancy and would get a retirement pension of 35k per annum. I’m wondering if taking it is the right decision. Is it better to get years to enjoy retirement on less funds or keep working for the bigger income but possibly lose out on quality health years to have fun? I feel like retiring is somehow me failing.

Anyone any advice? What would you do?

My mum died at 74 having worked until she was 70.
I personally think that is a lot for a pension. My pension at 60 is predicted to be 24 grand a year, which I thought was a lot. I spend the majority of my money now on the mortgage and my teenagers. If you are mortgage free with no dependant kids then I think that’s absolutely fine.

I guess so, we all have different expectations, but since she says her DH has a private pension of 12k I would assume state pension is on top of that.

I'm 52 and in your shoes I would retire like a SHOT. I've lost 4 friends in the last 3 years and am painfully aware of time passing. I'm also self employed and perpetually worried about money so I understand your concern but it sounds to me like you're in a really good position.

Would reducing your hours as a stepping stone be an option, in your current role or a different one? Just a thought but personally I'd be gone and writing bucket lists!

My mortgage runs till 74 so no

I would go back and ask for details and say you would like to consider it. A watch out we realised looking at our private pensions, they have included our state pensions within the figures. So say it’s 35k years before state pension it’s the full 35k but after state pension its topped upto 35k and the figure included the state pension.

I'm a handful of years older than you OP. A little early retired, we run two homes. and enjoy life. With your state pensions as well I think you will be very comfortable. At this stage if life it takes a shift to change from looking at gross income to nett income, because it is very different. Less tax if you are in a lower tax bands, no NI after state retirement age and hopefully massively less outgoings.

It's hard to get. your head to turn around from saving for the future, to accept that the future is now, and time to enjoy it. Believe me I know, but with your age profiles it's time. You could have decades, but you never know. x

To help you along this path, look up the Smile profile of spending in retirement. Three phases: Go Go, Go Slow and No Go, when you might need some help or care. If there is anything you would both like to do, the time to be doing it is now. Get some treasures stored in the memory bank.

If be biting their hands off for that deal

Oh that is good to hear about your mum enjoying it.

Thank you, I’ve had similar experiences and that influences me too

It does depend on your outgoings but you are also likely to earn circa 8k gross on your savings.

35k + 8k + 12k = 55k I believe it's £59k per couple for a comfortable retirement. £43k for moderate.

On this basis it says you could retire - however I'm a few years away from retirement and understand the reticence to stop earming.

Yes it is, so will keep increasing and I can live on that amount and even more so with state pension. It just goes against my ingrained need to always work

Thank you, that’s good to hear

"Is it better to get years to enjoy retirement on less funds"

I took this option ten years ago and every day I'm glad I did.
DH and I are in similar position to you (own home, mortgage paid) and live a happy and full life on less than half the sum you and your DH will have.

Retirement isn't failing, it's freedom to fill your days how you please. You can study, travel, volunteer or just turn your garden into paradise. It's an open door.

You can always earn more money (in fact you will get state pension in several years) but you can never get time back. Do it whilst you're healthy and can enjoy it to the full.

Thank you and I genuinely don’t mean to be insensitive and believe me I’ve struggled a lot to get to this point

You can never get time back

yes, that’s it in a nutshell

I get it OP, I really do.

But you will be fine, you will be great.

Find new passions, new reasons to get up in the morning.

Go on, I dare you. 😄💕

I get you OP. I started with next to nothing and had a strong work ethic.

We are in a situation now where we don't have to struggle. It would be mad to keep fighting a battle you have already won.

You can always channel your strong work ethic into volunteering and/or a hobby that sets your soul on fire. I do, it's great.

I think there's much more to retiring than simply having enough income to live on. Its a mindset shift and it doesn't sound like you are there yet. There's loss of status, structure etc. You'll know if and when you are ready.

I’m coming up to 70, and my husband is eight years older than me, so a similar age gap to you and your husband. In the past six months, I have come to realise that some of the saddest words are ‘I thought we’d have time to…’.

Retire if you can afford it (and it sounds like you can) and make the most of it. I am glad we did, so we had time and health to do many of the things we wanted.

Yes obviously a household income of £47,000 a year with no mortgage and a quarter of a million (almost) in savings is enough to live on.

It’s a hell of a lot more than the average British working household.

Ofccourse
It is plenty
And your 200k is there as back up

This. My pension will be about half of yours when I’m 60 but I’m still planning on retiring then, though DH will still be working and on a decent salary (younger than me but also plans to retire by 60). My Dad died at 62 and never got to see his pension, I’ve also seen several female acquaintances die in their 50s over that last few years, enjoy it while you’re still young enough

You didn't answer my point about the savings. They are important as to what you want to do as well. If well invested they will grow and you could even take additional from that on a monthly basis or as lump sums if you needed it while the fund continues to grow. Your first stage of retired life is when you may spend a lot depending on what you want to do eg I go on two long haul holidays a year. As you age you tend to be more conservative in your travel spending as you may not go as far. I would say it's a good time for you to enjoy the years you do have while still up for it.

We are both retired, no mortgage. We have around £3.5k net per month (without state pensions due in 2/3 years). Retire now and enjoy it is my recommend.

Part of it not the whole pension. Depends on the small print