Need perspective on money situation for a 54 year old

[Moneysitu]

Would love opinions please on where I’m at financially. I have friends who are far better off (and boast!) but I feel ok.

house worth about £330k, mortgage £28k
savings £21k
shares worth £9k
car worth £3k

I am a 54 year old female, no dependents as my kids have left home.

Honestly if so many think retiring at under 65 is their aim then there's going to be shitloads of bored, irritated, grumpy people not having enough to do.

There's only so many holidays/breaks you can take and measures to avert the inevitable age-related 'physical declines' to overcome and possibly a few GC to look after whilst their parents (your own dc) struggle to pay their rent.

But carry on regardless and think that over 55 is well past the post for retiring when so many can't even now consider retiring before 67 or later.

Well you can clean up your own shit because no one else will be available to do it for you once you become too decrepit to do it for yourselves. I'm 62ish.

I think you might benefit from an independent financial advisor. Someone who can steer you re risk at your time of life and make sure you’re making the most of tax allowances. They can also help you plan for your future. I use someone from sr james place so you could look there. Ensure they are independent and also fully registered and offer full protections etc.

She's definitely well above average for her age. Average pension is only about £50k at that age which gives a tiny income.

You're doing well but it will be very tight if you retire now.

Still some missing info e.g. salary.

I know you can take your pension at 55 is that full or actually reduced?

My view is to pay mortgage of asap, possibly by saving in high interest account and then overpaying 10% a year or what ever you can.

Save as much as you can, particularly once mortgage paid off.

Work out expenses including one off annual costs. This gives you an idea of the minimum
income you need.

Check state pension entitlement.

You have to work longer. 700 a month is very low even without a mortgage (which your 70,000 lump sum can settle) so you have to work till state pension age (67) to get a half decent retirement income.

Its not the worst position to be in. Once you've paid off your mortgage your pension should cover bills (council tax, gas, electricity, water, insurance, tv, phone/Internet, etc,). Say roughly £500 a month for all of that - obviously it depends on where you live, how you heat your home, etc.

Your pension would then leave you with just under £100 a week for food and fun. Which is doable, but totally depends on your lifestyle and spending habits.

Wow, who pissed in your cornflakes!? There's more to life than work!

Look at the terms of your mortgage. If you sold the shares and paid that of the mortgage you could possibly save loads on interest, more than the shares are likely to increase. You could then continue making your current payments which means you will reduce the length of the mortgage as well. BUT take professional advice, it definitely needs a degree of caution & checking out carefully.

Another option is to look at an Offset mortgage. Your savings plus shares are about equal to your outstanding mortgage. If you offset them, you would pay no interest (but would not get interest on your savings) but if you continue to pay what you are currently paying you will be able to pay it down much sooner. You would then be able to save your mortgage payments each month. Do speak to an Independent Financial Advisor.

Hahaha ha no. Retired 5 years ago. Happy as Larry, much fitter and healthier and never bored, because oddly enough there are plenty of worthwhile things to do (many of them costing no money) apart from go on holiday.

Oh, and we gave our adult children £££ towards their house deposits.

Well more fool them for revealing their finances. Obviously you have given explicit denial but it’s a forum. I’m a little older than you and have more overall but also have a partner. I am assuming you are reliant on yourself.

Work out your outgoings and then factor in your desired lifestyle and see if it matches.

OP is way above average for her age If she wanted she could take her pension and just work a couple of days amd she'd be fine.

A stealth boast that OP is probably below average for her age ?
She certainly couldn't afford to retire early but should be able to get by if she stays in work and keeps saving

😂😅

You need to have a look at what I'm living on then. It's a heck of a lot lower than that - and yet I have a comfortable home, and plenty of food etc. I think of my glass as very much half full. And yep - have much less overall than the OP.

Yes I know people manage with very little because they have too

If you look at what average means

If you look at what is recommended as a reasonable basic income in retirement ( three levels are usually provided basic moderate and well off)

If you look at what most people have you should be very angry at the inequality

Not engaging in a race to the bottom

I’m not taking my pension for another ten years probably! So it will be more if I leave it untouched.

monthly income about £5k
outgoings £2k

Children have left home! One is married. One is engaged. They are 26 and 27.

Hardly.

Crikey where is that extra £3k a month going?
I would make a concerted effort to pay off the rest of your mortgage and put at least £1k per month into your pension.
I am same age but don't earn as much, I want to retire age 60 so focus on saving as much as possible.

I was sending extra to mortgage, but have now diverted that to my ISA, because the mortgage is fixed at 1.54% and the ISA rate is 4.6%. The mortgage deal ends in November 2026, and I'm hoping to just pay it off then.

If I leave the pension till I'm 60, it will give me £1150pm and lump sum £95k, but to be honest I might wait till I'm 65. Depends how I feel, I guess.

I am married. DH is 3 years younger than me, but is definitely retiring at 55, because the job he is in, is VERY stressful, with a horrible shift pattern and a long commute. He is making life or death decisions every day, and has been for the last 20 years, he just can't take doing any more than the next 3 years in that role.

I was married previously, and took a huge financial hit in the divorce. None of my friends have been divorced, so are better off. Many of my female friends are already retired at 55 and are having a great time.

Re income/savings, we spend a lot on holidays. And I should have said that in the winter time, my income drops to about £3k, so my summer income has to support that drop, iyswim.

Both kids went to Uni, and I supported them through those years, so was hard to save much then.

Had many years after divorce where my income did not cover the bills, so I ended up with loads of credit card debt and a huge mortgage. Have spent lots of years paying all that off and getting the mortgage down, so there wasn't much, if anything going to savings for quite a while!

All private pensions can be taken at 55. It is the law

but the amount is less than taking at 60 or 67

it is only a state pension that is restricted to 66/67

many people can legally take their pension at 55 but can afford it

For those still intertwined with a partner, don't get to smugly as either things for they or the 'static' woman can and will, inevitably change, and then it might get a bit tougher on those comfortably-oiled old bones.

i have read this a couple of times and don’t really understand what you are saying. Could you explain?

You sound a bit angry in your posts anyway. Why?

I'd be putting the ISA money into a stocks and shares ISA rather than a cash ISA as the returns will almost certainly be better.

You presumably will get state pension on top of the £900/£1150 pm, and will be mortgage free with a partner to share costs with so you seem fine to me.

Deffo a stealth post lol

Quite the reverse! Retired at 55, loving and living a full life! Why on earth do think there would be lots of bored, irritated, grumpy people with not having enough to do? Couldn’t be further from the truth in our case!

I’m a similar age with less savings and a bigger mortgage so think you’re doing ok.