Retiring unexpectedly and worried financially

[BundleOfLaptops]

Hi

Has anyone here retired suddenly and unexpectedly?

I have suddenly retired through ill health. Not really my choice (my employer pushed it) but I can see it's the right thing. I will not be able to work elsewhere (condition of ill health retirement).

And I still have a mortgage. And school age kids for another 10 years.

I can just about make the sums work but it'll be tight. With potentially a lot of life ahead of me. I'm worried there'll be no fun just paying the essentials.

Has anyone been in a similar situation ? I feel very unusual in still having the mortgage (about £150k) and kids at home. Which scares me.

Can you not work anywhere else at all? I can understand you not being allowed to do a similar job but I'd have thought you would be allowed to do a different one that your disabilities allow.

If you have 10 years left of schooling your youngest must be 8. Personally I couldn’t retire at such a young age. I would decline and look for another job that I could do with my disability. There must be something you can do?

No other work - it's an upper tier pension. There's no point declining. I would not be taken in elsewhere (I look very ill plus my disability is visible).

I am (was) an auditor. So transferable skills but I'd end up with a non professional role where the money would be equal to or less than my pension (especially once tax and NI applied to a lower wage).

Are you eligible for pip?

Yes - I've had DLA for 25 years - not transferred to PIP yet.

That’s good, hopefully will help a bit.

im assuming you’re on your own/no partner working? Would you be eligible for council tax discount?

any ill health insurance policy which might pay the mortgage off?

Yes - just me. Small amount of child support from (self employed) XDH

No insurances. I do have insurance but it doesn't cover anything relating to my (pre existing from childhood) disability and my current ill health is linked (heart condition linked to physical disability).

Is there cash work you could take on? I have a pal in a similar situation and she minds dogs and does babysitting. Gives her an extra 300 or 400 a month during pesky times like holidays.

Sorry to hear about your condition. Given you're an auditor, could you do accountancy/tax returns for individuals or small businesses? Should be flexible and add to your pension.

What kind of auditor? I work in GRC and a GRC analyst role is around the £40-50k mark with loads of WFH roles available.

Different focus areas, main ones being either infosec, auditing against frameworks like ISO27001 or NIST or Legal compliance auditing against laws like Modern Slavery, anti-fraud, Bribery & Corruption.

Take the pension but take other work from time to time, something completely different perhaps. Could you tutor maths? Dog sit? Financial advice from home?

It doesn’t sound ideal but it doesn’t sound like you have much choice. Could you find a wfh role? I hope you have some support to care for your child

I am really not allowed to take other work (or anything akin to work) or my pension will be reduced to lower tier (ie even less). I wouldn't do cash in hand.

I suppose my post was a "has anyone had a greatly reduced income suddenly due to retirement- still with a mortgage - and made it work? Or is life going to be really shitty" kid of query...

I suppose it depends on your income and outgoings and how much spare cash you’re going to have per month? My only advice would be to take pleasure in cheap/free stuff if things are tight. Might sound like a right cliche but going for a walk, reading books, learn a new hobby/skill, get crafting/painting. Could you volunteer for a bit of structure/get you out the house?

Take the pension and DO NOT work. They will find out and lower tier will be horrendous.

Can you advertise for a lodger? Downsize?

Could you downsize at all? At least then the mortgage would be gone.

It’s probably going to be a big mental adjustment, but I suppose it’s an opportunity to rest and get yourself as well as you can be. How early is your early retirement?

Can you explain more, what do you mean your pension will be reduced if you work elsewhere? How is that possible surely pension is linked to your service?

No, they can let you take it early due to ill health with no detriment for taking it early. But the idea is your health is so bad you’ll never work again. So you’re not allowed to.

Yes, the pension entitlement is reviewed every 3 years from here on in. If my condition is considered improved (and being able to work more than an occasional day a year will indicate this, according to the scheme rules) and I'll be moved to lower tier and a lower pension.

So no work, no volunteering unless literally an hour here and there.

I'm 45.

I think I need to chunk up "rest of life" in stages. I cannot downsize or take a lodger now. But might be able to in 12 years time when children have grown up.

Sorry OP that sounds rough.

It's probably worth checking to see if you're eligible for any benefits (including child benefit) - also head over to the MoneySavingExpert forums as they are brilliant at helping people find ways to cut back/find good deals to make your money go further.

I'm sorry you've found yourself here.

MSE is a great way to start living frugally and yes, when the kids are older look at a lodger. Good luck

Eh? 45 year old auditor? There's loads and loads of accounts jobs quite well paid at practices or in industry, well paid, part time, or freelance, or casual, some 2 or 3 days a week, for good money.

I'm baffled that there's nothing you can find?

So a bit of fraud then? Tax fraud and potentially benefits fraud. Bit of a dangerous game and not morally great is it.
you can earn up to £1000pa on a side hustle without declaring it I believe.