To dread retirement

[citygirl1961]

I know a lot of people are looking forward to retirement but I dread it.

After thirty five years of working in the Civil Service I am due to retire in three years time which I know will pass quickly.

I work full time, always have done. I am divorced and live on my own, bills and rent to pay, don't own my own home.

I know I will get a good pension but I still worry about finances as I know I won't get housing benefit with getting a good work pension.

Not only do I worry about finances and not being able to afford to do things, I worry about being bored. I suffer from depression and anxiety and being at work keeps me busy and helps to take my mind off things.

People I know you've retired say they don't know how they found time to go to work and say they have more money than they had before, but then you've got more time on your hands to spend it. I have plenty of friends and like meeting up for lunch and coffees. I'd go mad if I couldn't do that.

Does anyone else feel this way? I just can't embrace the thought of it at all.

I would keep working. I am also civil service. I intend to keep going until I’m at least 70 (full time) and older if I can. I’m in the 40% tax band so it may more economic to defer my state pension. I will work it out at the time. I’m 62 now.

It sounds like work is your whole world and I don't think that is a healthy place to be in. It is time to broaden your horizons. Use these next three years to develop new interests, or join some clubs so you will look forward to spending more time on these. There is also a huge volunteering sector crying out for fit and able people to help out - reading with children in primary schools, charity shops, prison service and school community governors, roles helping refugees learn English etc... If you are civil service, you will have a good pension and should be able to manage on it unless you have some expensive hobbies you've not mentioned! You will be fine.

But you don't have to take your state pension just because you reach state pension age. You can defer it and have a larger pension when you do retire. I would also recommend going part time if you can and ease yourself out gradually!

I don’t know much about this but various financial things will change if you go on working, such as not needing to pay NI, freedom pass, possibly not needing to pay in to a pension. You can defer your state pension and get more state pension later.

Go and see someone who can outline the options for you.

Can you develop your cross stitch hobby with the aim of making marketable products and sell online, it will keep you busy snd hopefully bring in a little bit of money.

What if you gave up your rented house / flat (or sublet it ) and rented abroad somewhere that you liked for a year or two, it might be cheaper and you would be somewhere different / sunnier

Develop a little baking ( or other) business and sell at a local weekly market, you could also possibly sell the cross stitch at the market

Provide a dog walking service

That’s a silly attitude. Of course you’ll be taxed but good grief!! You won’t pay NI anymore, so you’ll be earning full time money plus your pension! I can’t wait myself!

Sorry OP, but surely you can think of something you'd rather do with your remaining years, than work an office job? Like, anything else. Volunteering, gardening, pets, travel, new friends, religion, fitness, study, video games, art, swingers club....? There are a million things in this world to do. Try looking at it in a more positive light, and something will come to you.

I also work for the CS and though I have 15yrs to full retirement age, my situation likely may be same as yours. I don’t even have any friends/family now. However, my ideal to stay active and engaged is to either find a PT job post 67 or just volunteer in the community. Is that not an option OP. Also remember that after retirement age, though you have to pay tax you’ll not be paying NI on your combined CS and state pension. Also, I’d urge you to use the next few years to start thinking of a timetable and possible activities now as you don’t want to get trapped in a routine of boredom and uncertainty and feeling overwhelmed when retirement actually hits - you want to be ready to properly embrace it in 3 years!

How do you mean? I will have to retire one day anyway.

And saving enough to buy is completely out of the question? Even if you choose to release cash from your SIPP?

Its not silly, its what I've been told.

By whom?

I'm retiring very soon, and I'm really looking forward to the freedom. My diary is incredibly full for the rest of the year.
Start planning now, OP - I really recommend volunteering, or maybe some studying (art, music, a foreign language, whatever).
The world us your oyster - make the most of it while you're young(ish) and still able.

So what do I do when I have to fully retire? I can't afford to buy so I have to pay rent.

Work colleagues and the Union.

Think it would be very long days. Maybe if you keep busy thats different. We have a small dog so could bring him off. Winter be interesting! But I know people that love the freedom.

You haven’t mentioned your State pension.
One thing you can do now is to budget as if you are just living on your pensions. I did that a couple of years before I semi retired, and soon realised just how much money I as wasting!
Also, you really don’t have to stop working just because you claim your pension . Yes, if your pension + state pension + salary is greater than £50k, you’ll pay 40% tax on the amount above that, but you’d be on bcc a pretty good income! Plus you won’t be paying NI or pension contributions.

got made redundant and ill admit i miss the role, i keep tabs on the office and keep upto date on whats what, and yes its nice having the time available but that said i do miss the role

If you gave few friends and no hobbies or ties to your area why not move somewhere cheaper. Use your lump sum to buy a flat or house. I'm Also CS. You can take a higher lump sum in lieu of reduced monthly income.

You must have known you would have ended up in this position though. If you've been In Cs for 35 years not buying a property wasn't the wisest move. I would either carry on Working or completely move somewhere much cheaper.

Put your projected income into a take home pay calculator to find out how much tax you'll pay rather than listening to hearsay from people who are not you.

Retirement is a massive change and it’s great that you recognise that and are thinking about it in advance. I think a lot of people get a shock when they stop working.

Any big change can feel incredibly unsettling and if you have been used to the anchor and security of work, it might be daunting to imagine life without it. The uncertainty of it all. The idea of getting older can also be hard to get used to all by itself.

You have time now to dream and reflect and then to plan. Could you write down all the advantages you have and all your worries. Sometimes that can help you pin down what the concerns really are - when they are spinning round your head, they can spiral.

Then think about what you want the next phase of life to look like. Brainstorm - no idea is a bad one. Then, once you have that picture of your future, you can look at practical steps to achieve it. Starting with the practical steps as others have said is no good if you don’t have clarity and direction.

It’s hard to do that by yourself so you could get a few sessions of counselling or even a book that has exercises to help you think about what you want out of life and retirement. It IS a big change and it’s so natural to feel apprehensive. Best of luck and I hope it’s a beautiful time in your life.

Your union explicitly told you that

If I take partial retirement I will still earn the same money now but when I retire fully I will end up with less after taking part of my pension.
If I stay on in the same job after retirement age (which is 67, I will be 64 in November) I will be taxed heavily on my pension which is already happening to someone at my work who is working beyond her retirement age,.?

surely you can defer your pension?

there are retirement seminars op
dont dread it
look at it as a new chapter
opportunities

Don’t retire then, every year you work on your pension gets better