Help me not to quit yet

[tiredofthisshit21]

Hope this doesn't come across as a brag about my pension pot because it's not meant to be. I just turned 56 and set myself a goal of working until the end of next year before I retire. I started a new job earlier this year after leaving a very toxic one where I was made to feel a bit worthless. I nearly quit work at that point but didn't want to finish my career on a low. New job is mainly good if a little challenging starting again with a new organisation in my 50s, but team around me and manager are very supportive. I WFH most of the time. My issue is that I just can't bring myself to care about any of it and I just can't be bothered most days. I do my work to a good standard but I don't put in any extra effort.

Financials: couple of years left on mortgage but DH could cover it if I quit as he intends to work for another 2-3 years before retiring. He earns £70k ish.
£400k DC pension pot, with £5k pa DB kicking in at 60 (mine, not DH's. He will have a modest pension too when he retires).
£100k in ISAs (again, just mine)
No dependent kids

I know that if I kept going for another year or so I would be better off financially as I'd be able to save around another £20k into ISAs, as well as continuing to add to my pension pot and having another year of growth.

Help me to see that it's only another year and I should just stick it out?

I have retired, at 61. I'd planned to retire at 62, but was diagnosed with cancer 3 months after my 60th birthday. Treatment was successful (although I still get very tired) and I just started to think that I have no idea how much time I have left (because of cancer recurrence), let's get on with retirement now! And obviously I could afford to do it.

Sorry to hear that, glad you're doing ok and enjoying life.

Won't you be shooting yourself in the foot pension wise if you go at 57?
DB and is 5K per annum?
Surely you will lose out massively going early unless you are,Special classes?

Special classes??

The DB scheme pays 5k pa at 60. I have 3 years where I'd just be drawing down on my DC pot (which should be worth more in a year).

Sod that. We work to live. It sounds like you're sorted. Make the most of it dude.

Special classes -some NHS and some civil servants -retirement age in the 1995 section was 55 .
What's your combined pension?

I wouldn't fund 30+ years of retirement on that pot when I could work a bit more, no. You're not poor but I personally think that's a poor decision. Yours to make if youre happy with the long term outcome.

Thanks @oldclock, I think that's where I'm going with it as well. What's your view on whether I'd have enough in a year with additional pension contributions, growth and savings? Bear in mind state pension and my husband's pension as well. Plus I hope to release £150k of capital in the house when we downsize.

If you took £100,000 as a tax free lump sum from a £400,000 pension pot, and used the rest to buy an annuity, you'd get around £21,000 per year before tax.

You WFH in what sounds like a not particularly stressful job, in your situation, unless I had health issues that meant I was likely to die young, I'd carry on until 65, maybe cut down to part-time.

What sort of retirement do you want? Because if you go now, you're not going to be able to afford big travel, help adult kids with weddings/deposits for houses/take them on holiday, not worrying if your roof suddenly needs fixing etc - you're basically saying that you're happy with a pretty no-frills retirement, and it's going to be a long one...............what are you actually going to do with your time?

Cutting down to PT isn't an option in this job, I'd end up doing the same workload for less pay.

Our plan is to sell up and move abroad (Irish passports enable this). So big holidays won't really be required. Adult DD already on the property ladder due to inheritance from grandparents.

No way am I working til 65. My dad died at 67.

OK, hope it all goes to plan!

I dont think the remaining 300K in DC is going to last long enough
You would have to take a drop in pension to cover the extra years taken
I would aim to continue to 60 and then take DB and DC together

Sorry that was to Op

It doesn't make sense to buy an annuity with the 400k pot given I have the DB pension coming at 60, and state pension at 67. I'll need more upfront income from that pot.

Then it will run out..........

@oldclock they do continue to accrue interest as you draw down on them.... I've done my research

Quick calculation
It will run out around 72/3
Leaves you with

Approx 416 DB pension
Approx 800 state

Would you get half DH pension if he died?
Bear in mind if you move abroad then you are not eligible for pension credit/ free prescriptions/ bus pass etc
State pension could also be gone or means tested in 11 years

Too risky

Interested in how you calculate that. Because if I look at taking 4% out every year, and then assume the remainder gains 7% a year from being invested (which is prudent based on the gains I've been seeing), it would last a lot longer.

I based that on you needing 2K per month as you stated up thread
Approx 416 from DB
Plus remainder from DC approx 1500 pcm

Hang on
DB doesn't kick in until 60 so you would actually need 2K pcm from DC for first 3/4 years-8%

And what rate of growth are you assuming from remaining pension pot?

But will the gains we’ve been having continue? That’s the million dollar question.

£1,030,000 in my DC pot / SIPP.

Plan on taking 4% a year from next year age 55. Top up using ISA money to stay under the 40% tax threshold. Still nervous to quit work in a few months time.

I think 57 seems to be the cut off for many of us. I fully intended to carry on until 60, but from 55 my job became untenable, it was awful, I had worked for the same company for 37 years in many different roles but this one wasn't great, coupled with caring for elderlies and the menopause and I CBA to change roles and start afresh. When voluntary redundancy popped up it's head, I'd been waiting two years for that email, I signed and ran. Best thing ever.

Not only has all my stress gone, but my days were filled easily, I lost a shed load of weight, became considerably more active and so my aching joints stopped aching.

Do you have separate finances? I have a DB pension to kick in at 60, will give me about 20k a year, and a DC pot of £120k, but I'm not drawing anything right now as DH is still working, our adult DC are gone and mortgage paid off, so he supports me. I still put £2400 a year into my DC which is allowed when you're not working, DH funds it. But everything we have is shared, savings, pensions, income.

@TimeForATerf sounds like my last job except I did start again with a new role earlier this year! Glad you got out. We do have separate finances but there could be a bit of cross funding from him if I retire early, he is supportive of this.

I fully understand how you feel. I would sit down and think about work - what do you want to achieve? Is there a project, or task you enjoy and want to sort out before you go?

Or is it the company of colleagues that holds you there?

Is there something expensive that you want to pay for this year/next that you can use as a focus?

And if there’s nothing - why stick at a job you’re bored of, in a role you don’t need, when you could be out living your life?