Scary stuff!!

[sunny2468]

Hello I am interested to know what your thoughts are regarding my situation and if this is/could be feasible. I’ve taught in school for years now I’m 61 and have generally had enough. I’ve reached the stage where I just don’t want to do it anymore. I’ve worked since I was 16 I’m paid up regarding NI contributions but state pension at 67 is still a long way away.
Its just my husband and myself now as the children have left home and are independent. We live in my fully paid for house which I purchased before we got together. At some point he will inherit his mother’s estate and we are then going to buy somewhere together.
I can use some of my equity to fund my retirement further on, so in the meantime I’m considering using my works pension to live on and doing some supply. I hope this makes sense. I think I’ll be happy once I’ve made a decision although I’m terrified at the thought of it.

Will taking your pension plus supply give you enough to live on? If so, retirement sounds great.

It’s manageable as my husband covers utilities/going out and holidays and I pay for food shops and house maintenance as it’s my house. Using equity further down the line is a safety net.

Honestly I think you need to model every eventuality.

That is what planning thoroughly is about.

Will your DH continue to work and will he be happy with that? Does he have enough to live on if he retired early / earlier than state pension?

What if his Mum uses all her assets in care costs?

What if something happened and you divorced? In a divorce of a long established marriage there is no ‘my house’, he would likely get half

What if he became incapacitated and couldn’t work?

What if he died in the next 5 years / 10 years?

Running a home on a single pension or income is very different to sharing costs.

I hope you can work out a route that gives you security and free yourself from your work.

Thank you for this. It does help to see different perspectives. DH is a few years younger and so is happy to continue working and support my decision. His mother has a private pension which would cover care costs if it came to her going into care and needing the funds.
We have a post nup in place from when we married and I also have a will which protects my assets in the case of a
divorce. He has an ongoing medical condition and has his income protected. We also have life insurance policies. There are so many things that can happen at any time in life and with the best intentions some things are unavoidable.

Are you in the teachers pension scheme? If you are and you're 61 you need to apply for your pension asap. You won't be adding to it and many people fall into this trap. You're losing out on your pension.
Please go onto the Facebook group Teachers to Teachers U.K. and look on there.

Sit down together and do the sums on a piece of paper. What can you both agree too?
But if he is willing to make up the short fall and you are happy to rely on him, go for it! He will benefit too, from you being happier.

If you are in the Teachers Pension scheme, once you take your pension you are restricted on how much you can earn from teaching afterwards. So check into it carefully. But if you've taught for a very long time it should be a decent pension and you may not need to work.

With no mortgage and children grown up, your outgoings should be low unless you have some sort of extravagant lifestyle/expensive hobby.

So not sure why you are concerned especially as your dh will still be working.

Abatement applies with TPS. If you’d taken a days break at 59 and 11 months, claimed your pension then carried on working at the same school on a new contract you could earn whatever you wanted but because you haven’t done that the poster below is correct. You’re limited what you can earn.

However you can earn whatever you like if you get a different job in a different industry.

I left aged 61 at Xmas. Like you I had had enough. Teaching is not the job it was.
I needed to do my sums first as like you, I dont get state pension until age 67.
Luckily I have 38 years Teachers pension and have paid AVC s for about 30 years. I also had savings and some money I inherited from my mum.
My husband will be working until the end of August and the intention is then that we retire and enjoy time together.
His works pension is small but he will get full state pension.
House is paid for. Children are independent.
Before making the decision, we made a spreadsheet of our budget. We worked out that we could afford to live on just his wage/pension and my TP.
We dont have expensive tastes so for us this is feasible.
In addition we have an instant access savings account for repairs/emergencies/big bills to bridge the 6 year gap.
We have another account for leisure and treats.
AVCs have been converted into a SIPP (which we are leaving unclaimed at the moment so it can grow) This could be used for drawdown if we needed it. We have stocks and shares ISAs. These and the SIPP protect against tax and maximise interest. We will only dip into these if we absolutely have to.
I dont regret finishing for a second, but you do have to change your mindset. You need to use all that extra time constructively but frugally as you tend to spend more if you dont plan your time.
I have a weekly routine. The house and garden have never been so tidy and I have been learning more DIY /decorating skills.
I toyed with the idea of getting another part time job outside teaching but at the moment I have not seen anything that I fancy committing my time to.
Its nice to have choices though.

Surely you and your husband need to sit down and work out what you need in order to live comfortably until you're 67?

It reads as if you're single, rather than it being a joint decision.

As an aside, you say it's your house.
So your husband is not a joint owner?
Where does that leave him if you die first? Have you a will, saying he can live there or will your children inherit your house?
Does he not feel insecure?

I'm assuming this is a 2nd marriage for you (at least) and he moved into your house.

Be aware that a post-nup can be contested.

Yes. You can always go back to teaching full time if it doesn’t work?