Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Retirement

Planning your retirement? Join our Retirement forum for advice and help from other Mumsnetters.

Original poster

Advice on when to retire

41 replies

Wallingtonhall · 01/04/2023 07:05

I am 60. I have a public sector pension which is currently frozen as I moved to a new sector a few years ago. I can draw that now if I want. Decent lump sum and about £12 thousand a year. Good but nowhere near my current salary. However the lump sum would get rid of debts and pay off a lot of the outstanding mortgage and reduce monthly outgoings.

My current job has a smaller pension which kicks in when I am 65.

I am thinking about going part time and drawing the first pension. What I lose in salary will be made up by my pension. The lump sum is just sitting there and I feel I might as well use it now. It’s index linked but I’m not paying into it so won’t increase much. Reducing my mortgage seems to make sense as it’s our biggest outgoing.

ideally I would retire now but I don’t think I can afford it. Part time for a couple of years until second pension kicks in. Or even voluntary severance which happens occasionally in my profession.

Does this sound like a good idea? I realise you don’t know my full circumstances but seems daft to sit on that pension when I could be putting it to better use now. Plus I hate my current job and going part time would significantly help my stress levels!

OP posts:
Sweetmelodee · 12/04/2023 22:15

The Money Purchase Annual Allowance is the maximum you can contribute into a pension and benefit from tax relief after you have accessed a defined contribution pension pot. It doesn’t apply to defined benefit/final salary pensions so @Wallingtonhall thw restriction wouldn’t apply to you and you could continue to make contributions after you accessed your main pension

Original poster
Wallingtonhall · 12/04/2023 23:23

Thankyou!

OP posts:
Soontobe60 · 12/04/2023 23:40

I am a teacher. I took my pension at 59, paid off my mortgage, spent a bit of money on my house and continued to work part time. My pension was similar to what you say yours is worth. Although it was a drop of around 30K a year, my quality of life has improved so much that I know it was the best decision I made.
I hope to continue working 2 days a week until I receive my State pension when I'm 66. But if for any reason I cant, then I know I can manage on just my pension, as I save most of my salary. I still pay into my teacher’s pension as a returner because it includes death in service benefits.

Mossstitch · 12/04/2023 23:42

I did something similar a few years back, took my NHS pension which was enough to pay all my bills except food and spends.Then went on the bank so I can do as many or as few shifts as I want. Much less stress and because you aren't paying the pension that in itself saves the equivalent of a couple of days work a month. I do have plenty of years national insurance though ànd a full state pension will be mine when I finally get it (WASPI woman😡)

Original poster
Wallingtonhall · 13/04/2023 00:25

Thanks. Good to hear others have done what I plan to already.

OP posts:
Move22 · 15/04/2023 09:14

isthewashingdryyet · 01/04/2023 10:22

It is definitely worth planning to earn at least the approx £13k a year to get your NI contributions.
£7 a week is £364 a year, which is a decent weekend away or several trips to the theatre.
I need a few more years to get max state pension, but can afford to drop my hours right down to just earn enough to meet the threshold.
Its great to be at this point in life, I can’t wait

Hi this is interesting, we are planning to retire and had thought our pension was paid in full ( both working now, always have and now late fifties).
we are debating working PT (more to keep a routine/ not get bored) … but is this another angle we should consider - or if you’ve worked all your life is there a max limit we would have reached by now? Thanks for your advice here!

backinthestoneage · 15/04/2023 20:33

It depends.

Check your NI contributions and see how fair off 35 years you are in order to get a full state pension. How important is it to you to have a full state pension? For some people, their private pension may mean that having a full state pension is not that important.

In my main 'gang' ranging from the mid-50s to mid-60s there are a number of approaches. Some friends stopped as soon as they could afford it. Others have continued working part-time in their old careers. Some work part-time doing something totally different

pompomdaisy · 15/04/2023 20:42

I've started claiming my nhs pension at 56 as I'm in a different job now and it's enabled husband to take a less stressful role and give us more quality time. You pay tax on the monthly pension though don't forget.

chimichangaz · 16/04/2023 13:58

Here's another website with some good resources- restless.co.uk/pensions-retirement-planning/

Sweetmelodee · 17/04/2023 06:51

It is very easy to check what your entitlement is on the HMRC website. I’m 51, worked ‘all my life’ post university, including PT during all my teens but I don’t reach the magic 35 years until I’m 55, according to the website

calimali · 17/04/2023 07:13

I worked in the public sector until I was 51 and could not take any more. I left, intending to live off my savings until I could start to draw my pension. What actually happened was that after a year of to recharge my batteries I felt ready to try something new. I now work in a totally different job for less than half of my old pay, but I love what I am doing and my quality of life is so much better.

My plans for the future are flexible. I could draw my pension next year. I could keep working in my current job. I could do both. I have also very nearly paid my NI contributions towards a full state pension. I was very lucky to have paid off the mortgage early and that has really helped to give me more financial freedom.

The year out I took was an absolute lifesaver. It gave me time to finally do things fo me and really appreciate my family and little things like how beautiful my local area is. I would never have dreamed that I would be starting to work in a new filed in my 50s, but I almost 'fell' into it. Now is a great time for anyone who is looking for a change of jobs if you are not really chasing a high salary. At my time of life I am happy (and lucky) that I can choose job satisfaction over pay.

The world really is your oyster. Get out of the job you no longer enjoy and start a new adventure.

chimichangaz · 17/04/2023 13:54

Ooh @calimali your post came at a good time for me! I'm 57, have a private pension I'm going to pay off most of my mortgage with and two DB (small) pensions as well as being fully paid with my NI contributions. My job is very stressful and even though I've slightly reduced my hours and work over 4 days, it still gets to me. But, it's very well paid.

I'm in a comfort zone situation at the moment and I need a kick up the bum!! I would absolutely love a few months off to recover, and work on my health and my side project (which I'm hoping will bring in a little income), and am contemplating a change of career. I'd be working part time self employed as a coach, which feels very risky, however I'm also not someone who never takes risk - I changed career in my mid forties, and do all sorts of (legal!) things I would never have dreamed of 10 years ago. I think this time I feel my age is against me if it doesn't work out.

But what if it does?!!!

RepairShopCafe · 29/04/2023 12:13

If you have the means to pay off your mortgage I would do that asap

It is a great feeling to be mortgage free !

Then you can look at your other options

Astrabees · 25/05/2023 15:15

DH took his public sector pension at 63 and started a part time job, 2 days a week which is well remunerated and very rewarding (think industrial archaeology) I was still working part time and we had a lovely 3 years with really good income and far less stress. I’m retired now and his job is just like a good hobby so he is carrying on, we are still getting a good income and life is just so much better.

New posts on this thread. Refresh page