To give up working at 52?

[caniquitwork]

I am a teacher, but I've had enough.
I have a small teacher's pension- small because only paid in 15 years and even then mostly only part time. Have some other private pensions which will eventually pay out about £1000 a month, but not till I'm 60. Would not touch teacher's pension until then either.
So here's the aibu part - I have a house I own outright so no mortgage, but to live on until 60 I have about £250000 I inherited. Would obviously invest but don't think interest would be enough to live on, so would also just withdraw from the pot iyswim.
Would that work? Would it be selfish- should I keep this money safe for my children?
No dh in the picture. Keep
going round in circles. Wouldn't mind working in another job to supplement but worried if I could even find anything.

Feels risky to me. I’d leave your current job but do something easier/ less stressful to keep some money coming in. Also to keep your mind sharp

On the contrary, given the pension burden it’s highly likely that successive governments will raise the pension age to limit costs.

It’s highly unlikely not to rise to 68 and over the next decade we may well see it rising higher. I’m factoring in claiming around aged 70.

I did too. Never regretted it, in fact my husband had a stroke when I was 62 which meant if I hadn’t gone early we couldn’t have had that time to travel together. Go for it life’s too short to be miserable.

Nope, your opinion is wrong!

I'm glad you could. You will have lots of great memories.

I’m glad you were able to travel when you could with your husband.

I am about the same age as the OP and want to retire early. I currently pay about 48% of my salary into my pension as AVC’s. I arrived at that figure as it allows me an income of just under 2k to live on which is what seems like a reasonable sum (to me) for retirement. I am kind of rehearsing. I started doing this as soon as I had paid off my mortgage. Out of this, I pay half the household bills for my family of three, save around £400 split between my child and me, afford to replace my car for a new one every 3-4 years and tax/insure that car, go on one holiday abroad and one mini break in the Uk and pay for my child’s activities and childcare. I buy new clothes for me and my child and can replace broken items in the house. I feel ‘rich’, privileged and thankful. The standard life figure looks ok to me.

I never expected this thread to reach so many posts! Really appreciate all contributions.

Have you got a spare bedroom, could you get a lodger who would pay rent?

This is a brilliant approach and one I advocate very much - set your retirement budget and stuff the balance of your salary and bonuses into your pension. The more you save - the less salary, and hence pension, you will need to live on - and the earlier you can retire.

Asid from your personal finances, take a good look around at global turmoil. God knows what Russia and the US are going to stir up.

Financial markets, real estate markets, supplies of food and household goods, vehicles and transportation costs, etc could be heading into uncharted territory if WWIII looms.

This may not be the right time to give up a steady job or drain cash reserves.

This. It just all sounds a little precarious to me.

Switching to a part time job and supplementing the income with interest from the lump sum gives you a lot more flexibility.

Yes, I made AVCs and they obvously did make a difference. Though I eventually retired before the AVC finishing date I didn't claim the pension immediately so that I would get a bit more - though in reality I found that this made very little difference. I'd only been in the job for a relatively short time but adding the AVC's is the right thing to do if you can. My employment pension is small but rises annually with one of the cost of living indices.

Yes, we did this around the time I retired and we moved house. It was really worthwhile and we are still (20 years later) using his services. Getting advice isn't free, other than the first dicussion, but he's up to date on all financial matters including the rules around pensions. A good financial planner looks at everything: salary, potential pensions, realistic outgoings, tax efficient savings and investments. and the level of risk/volatility you are prepared to accept in your investments.
Ours now helps us with inheritance planning - which I appreciate may not seem relevant to those of you who are pre-retirement! We get a better return on our managed investments which includes ISAs and other tax efficient savings as well as stocks and shares.
It gives us peace of mind at a relatively low cost.

I'm on a rehearsal too and have been doing this for a few years now. I transfer 1600 a month into a separate account from my salary and live off that. That's a good test to see what you can genuinely live off @caniquitwork

I did this after a consultation with an IFA where I couldn't actually answer what I spent each month. When I did a spreadsheet of expenditure it gave an indication of what I could spend.

I have to say that it doesn't work every month, sometimes I do have to top up if I've been out a lot, on holiday etc. I also have to use savings for bigger spends like a boiler etc. The surplus I've been putting into AVCs.

I personally would go for it if I were you. Time for a change of direction/pause for thought. You are in a fortunate position. I've been to many funerals lately of 50, 52 and 64 year olds. All healthy people who got cancer. Also watched friends and colleagues work into their 60s and then get ill. So make the most of it while you are able! Life is too short.

It is always worth it. We have our wills/power of attorney, everything in order, and we get an annual meeting each year to see how everything is going. Same planner as my husband’s mother used!

I'm guessing that your planner must be quite elderly? Our FP is younger than we are and my great fear is that he will retire, but even if that happens our financial affairs are in such good order that it shouldn't be a problem if he hands us on to somebody else.

@angela1952 and others who have mentioned a financial advisor, the top tip is to only go with a personal recommendation which I agree with but the problem is I don’t have anyone who can give me a personal recommendation and it’s hard to find someone!

I'm 52. If I had that money in the bank and no mortgage I'd give up work in a heartbeat. I'm sick of it and really struggling with peri and my brain doesn't work the same anymore, I've been very stressed the last six months. I have dropped to four days and ideally I'll drop another day when I'm about 55. Plan to retire at 62 with savings. If you feel at a loose end you could always try a part time less stressful job? Would bring a small income in too. But don't keep working for the sake of your children! I'm assuming you will leave them your house as inheritance? My parents have done this, spent the lot apart from maybe £50k which they still need. I'm more than happy with the house inheritance. It's their money, they worked their arses off for it, not us! Go for it and enjoy! ❤️

Yep, he is getting ready to retire, and has his successor lined up whom we have met…same firm.

@125High we have had good luck with Origen. I am not affiliated with the firm. This blog gives you an idea of the different qualifications advisors hold. https://financialadvisers.co.uk/blog/a-more-detailed-look-at-financial-adviser-qualifications-in-the-uk/

I couldn't go on personal advice as nobody we know used an advisor. I went online to see how to find listings for independent advisors. The site I used provided information on their areas of expertise, whether or not they were regulated (now by FCA, but I can't remember whether it was the same) and where they were based.

In the end I had little choice in my area but really liked him and he answered my questions about his services satisfactorily. He was young, relatively recently established on his own, very well qualified and we have stayed with him for 20 years although we moved out of the area.

The site I used sounds very similar to the one suggested by @Patterncarmen but I can't remember now which one it was.

Thank you for the useful discussions on financial advisors & the links that have been shared.
We're in a similar position to many on this thread I imagine, as I'm in my early 50s & I'm now looking very closely at our finances & at what age we can realistically retire. My DH and I have a mix of government pensions (NHS, teachers & local council) and each one allows us to draw our pensions at a different age. I've also recently become interested in investing but I'm very aware that we have left it quite late & I don't know how to even start! I don't want an IFA who is pushy or who is sniffy about us starting small with the amount we invest, but i feel i need this guidance. We would benefit from a proper financial review but I'm conscious that I need to work with someone I like & trust. I shall start looking into this.
Can I ask, how do they work out their charges? Is it commission based or do they charge by the hour?
Thanks everyone - lots of food for thought.

And then again, it could be just the right time. The future is not guaranteed for any of us! If there is a ww111 there won’t be many of us left standing, so why work until you die?