Have I got enough to retire at 60?

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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?

Im wondering if taking unpaid breaks for more holidays would be an idea or whether I’m just delaying this more

And our savings are mostly in ISAs and premium bonds, the latter wins used for treats

In your situation I would absolutely retire. You'll be very financially comfortable and you never get those years back.

I retired at 61 and my husband at 57 (he's younger than me) - no regrets at all. We had worked out our finances, and like you were mortgage free. We both have defined benefit pensions and also similar savings to yourself. It's enabled us to do things we couldn't do if we'd still been working - moved to a new area to be nearer to our daughter which has meant we've had the joy of spending two days a week looking after one of our grandchildren. My husband also volunteers.

We pride ourselves on keeping fit but I can say that now I'm nearly 73 I'm beginning to notice things creeping in - small things like having a cataract op - but still indicative of the passage of time. Also a slight slowing up and less overall strength. A cliche, but you absolutely don't get these years back - I'm so glad we retired when we did.

Financially you'll be more than fine - and if you don't like not working, you can get a part time job or volunteer.
But if you still love your job, you could tell them you don't want to take redundancy and maybe they'll keep you on.

I would take the redundancy and retire with a view to taking part time work somewhere if I felt I wanted to.

Your DH is a fair bit older than you and seeing so many men suddenly hit ill health in their 70s and reduce travelling and going out etc I'd want to maximise as many healthy years as I possibly could together. You can't get the time back and don't know what's around the corner.

I'm influenced by my own parents. My dad is 10 years older than my mum and I'm so glad she took early retirement to retire not long after he did as they had some great years together and holidays before he got ill.

That’s a really good pension, I would for it if I was you.

One way to budget with your savings is that you would take 4% a year from them, would that be enough and alongside your pension plus your husband’s pension? Is the 12 K he’s getting his Private pension that will be topped up with his state pension? That changes things a lot.

£35,000
£24,000
(235,000\100*4) £9,400

That’s an income £68,400
Will that help you have the lifestyle that you want?

edited to include the redundancy

Plus the OP’s state pension in 7 years.

@Christmaseree yes just realised I’d forgotten that

£35,000
£24,000
£12,000
(235,000\100*4) £9,400
That’s an income £80,400
You could take redundancy and then work part time somewhere.

I say go for it, and I’m someone who doesn’t know how not to work either

I think the OP is in a really good position.

You’re in a strong financial position, so retiring wouldn’t be failing — it’s more about lifestyle. Staying at work gives more money, but may cost health and energy. Retiring lets you enjoy life, family, and experiences you can’t “buy back.” Many would lean toward taking the pension and embracing retirement, maybe with some flexible work if you want to stay active.

Is it not 200,000 rather than 235,000? Still a lot though.

@SwedishEdith yes I corrected that later

I would take it and get a part time job if I felt I needed to. Life is short. Op, why do you still feel very responsible for your adult dd. Do you contribute to her income?

Sounds fab. And you could always retire and then actually work, I think?

Personally I’d go for it if they offered me that today in my 40s 😂 I enjoy working but I’d love the freedom to take future roles that were more risky, or less well paid, or take sabbaticals.

Are your husband and adult child expecting you to subsidise them?

Your income, combined with your husband’s, with no mortgage and large savings, is plenty to have a very nice life. Unless they are leeching off you.

Leap into retirement as soon as you can. Spring is on it’s way and it’s a wonderful time of the year for a fresh start.

200k in savings, what would your lump sum redundancy be?
Annual seems ok without a mortgage 47k between you. What do your essential bills and food cost?

Go for it OP! Launch yourself into hobbies, travel, volunteering etc. You can spend your time as you please. I early retired last year & absolutely love it. Make the most of the time you have left.

Yes you seem uncertain about retiring and it is different when you are only taking out of the pot as opposed to putting in . Why don't you take a year and see how you feel after that? Take a couple of holidays.

Go for it! I'm retiring very soon & can't wait. 😁

I think on your income from your 70s when generally people slow down (stop travelling as much) you will be able to save. I know someone who is in a less fortunate but struggles to spend what she receives in pensions (state & NHS).

Admittedly she hasn't had to pay for care but she goes to the theatre, has a car and takes UK breaks.

So is this right:

Husband - state pension of circa £12k per year?
Husband - private pension of £12k per year
You - private pension of £35k per year index linked
You in 7/8 years - state pension of £12k per year?

If so, surely that must be plenty to live on, given your house is paid off?

Plus £200k in savings.