Is it time to retire?

[IanG]

I'd exceed the cap but they can put it into my company pension fund if I so wish. As I'd be moving the fund from the company scheme to my main scheme I assume I could take 25% of the new whole tax free. But will check with my Financial Advisor.
.

I'm not an IFA but that sounds right - good luck.

 

[Deleted Member 1156]

I was made redundant at the end of November. Worked out my finances and assets and thought sod it, I've had enough. I'm 60, was thinking about retiring at 63 anyway. Intended to play golf 3 or 4 times a week and do more cycling too but a certain little virus has got in the way temporarily. You can accumulate money and possessions but you can't accumulate time. I'm not rich but I have enough to tick off a few things on my bucket list whilst I'm still fit and healthy. My advice to you.... take the money and run!

 

[SwingsitlikeHogan]

One thing 'puzzling' me that someone here might be able to advise on.

The figures I've been offered are based upon my current salary. Now I have literally just started on a four day week from 1st Feb - I haven't actually been paid at the new 4/5ths level - and as I have been full time in the company for over 14yrs that seems a bit - erm - harsh. My wife reckons that surely any 'decent' company doing this would base it upon my last full years salary and not one that kicked in just 2 weeks ago - especially as I have had a request to be considered for this - were it to become available - for at least 9months.

Not wishing to seem money-grabbing, but it's a good few thousand pounds that would cover much of paying for private health cover for my wife for a year (she's covered by my company scheme and she'll obviously lose that - and the equivalent for doing it ourselves we got a quote a couple of years ago of £500/month)

Any thoughts.

 

[NearHull]

One thing 'puzzling' me that someone here might be able to advise on.

The figures I've been offered are based upon my current salary. Now I have literally just started on a four day week from 1st Feb - I haven't actually been paid at the new 4/5ths level - and as I have been full time in the company for over 14yrs that seems a bit - erm - harsh. My wife reckons that surely any 'decent' company doing this would base it upon my last full years salary and not one that kicked in just 2 weeks ago - especially as I have had a request to be considered for this - were it to become available - for at least 9months.

Not wishing to seem money-grabbing, but it's a good few thousand pounds that would cover much of paying for private health cover for my wife for a year (she's covered by my company scheme and she'll obviously lose that - and the equivalent for doing it ourselves we got a quote a couple of years ago of £500/month)

Any thoughts.

Can’t help with the Final Salary impacts, but when I left the company Private Health scheme , the scheme themselves suggested switching the prime member over to my wife. I sit on the scheme ‘as a named driver’. She is three year younger than me and the premiums adjust accordingly.

 

[SwingsitlikeHogan]

Can’t help with the Final Salary impacts, but when I left the company Private Health scheme , the scheme themselves suggested switching the prime member over to my wife. I sit on the scheme ‘as a named driver’. She is three year younger than me and the premiums adjust accordingly.

Interesting. When I took a 6month career break H1 2019 I did not qualify to stay on the company Private Health scheme...and as a result my wife lost the cover also. I complained that they had not made me aware that this would happen (I could keep and pay for all other voluntary benefits I had bought into running if I wanted) and after a bit of discussion they agreed to keep my membership running but transferred prime membership of the scheme to my wife. That said if that is a possibility then I'd have thought that the scheme/provider would have offered it to us as individuals (not through the company scheme) back then. I'm thinking you probably still worked for the company - just didn't take the private health cover - and that's how/why they could do it. But worth asking.

 

[Blue in Munich]

I was made redundant at the end of November. Worked out my finances and assets and thought sod it, I've had enough. I'm 60, was thinking about retiring at 63 anyway. Intended to play golf 3 or 4 times a week and do more cycling too but a certain little virus has got in the way temporarily. You can accumulate money and possessions but you can't accumulate time. I'm not rich but I have enough to tick off a few things on my bucket list whilst I'm still fit and healthy. My advice to you.... take the money and run!

I might have to tag this & come back to it regularly to remind myself...

 

[SwingsitlikeHogan]

Point of asking about the salary the settlement is based upon is more to do with how I ask the question without ‘queering my pitch’ as it were. I don’t want my company to change its mind...

I get they probably don’t have to offer me anything and so I will not complain. It’s unfortunate, no - it’s a blessed nuisance - that after 14+ yrs full time and 9 months of asking, I’m only two weeks into a reduced working week when this has come up...but I’d still like to ask the question in some way.

 

[SatchFan]

I was made redundant at the end of November. Worked out my finances and assets and thought sod it, I've had enough. I'm 60, was thinking about retiring at 63 anyway. Intended to play golf 3 or 4 times a week and do more cycling too but a certain little virus has got in the way temporarily. You can accumulate money and possessions but you can't accumulate time. I'm not rich but I have enough to tick off a few things on my bucket list whilst I'm still fit and healthy. My advice to you.... take the money and run!

Totally agree with this. Took redundancy some years ago and have loved every minute of my free time since. Never had time to get bored which is probably why I haven't been fazed by the lockdowns. 100% recommend the grab and run route.

 

[IanM]

I started a similar thread last autumn. I dropped to a 3 day week from January 1st. So far I've only managed a shorter week twice due to workload.

I'm waiting to see what Drakeford says on Friday, then unless longer lockdown, I'm going to pack it from end April.

1st May....free.

 

[Billysboots]

Just over a month left for me. Hopefully the golf courses will open the day my lump sum lands.........

 

[IanG]

Point of asking about the salary the settlement is based upon is more to do with how I ask the question without ‘queering my pitch’ as it were. I don’t want my company to change its mind...

I get they probably don’t have to offer me anything and so I will not complain. It’s unfortunate, no - it’s a blessed nuisance - that after 14+ yrs full time and 9 months of asking, I’m only two weeks into a reduced working week when this has come up...but I’d still like to ask the question in some way.

How about an adapted version of ....

'Thank you for the settlement numbers and am seeking a little further clarification. The numbers appear to be based on a 4 day week when in fact I have worked full time since 20XX and have only gone down to 4 days a week a fortnight ago. Is this standard practice ? - I was expecting them to be based around e.g. average earnings over the past few years. Thanks in advance for your help. '

 

[AliMc]

Sound advice, similar to what I did.

If you go from a busy job to nowt overnight, IMO you are asking for trouble.
I did 8 years of low paid no brainer part time hobby jobs so that I could keep my pension pot value. I really enjoyed that time.
Reduced hours as I went along so that my last job was only 12 hours a week.

Kept busy with voluntary work, helping with g'kids and bowling.
Occasionally I wish I had taken the advice of an earlier poster to not get tied down with pets and grandparenting....especially during summer holidays.

Not an issue for me, I retired at 60 three years ago and have had no issues whatsoever, liked my job in IT fine but haven't missed it in the slightest, revitalised my golf, wife who is only 54 still works PT and kids are 17 and 14 so they help keep me young !

 

[williamalex1]

As far as I remember my works pension was the based on the best of my last 3 years.
But honestly mate I would grab the offer with both hands , a bird in the hand .
Edit don't worry about being bored, you'll wonder how you ever had enough time to work .

 

[AliMc]

As far as I remember my works pension was the based on the best of my last 3 years.
But honestly mate I would grab the offer with both hands , a bird in the hand .

Yeah same for me i was in a final salary scheme all my working life, pension is based on best of last 3 years, I worked PT for the last few years, my monthly pension payments, from 2 employments are more than my pay when working so it was a no brainer for me to go.

 

[Doon frae Troon]

It's an old thread and I know this subject has been touched on in others more recent...but as of precisely one hour ago the question of the OP is 100% the question I have to answer.

Just had a call from my boss and my company is looking to cut costs and I've been offered an early exit. Package works out at just under 95% of one year top line (about 16months bottom line). I need to decide this week as there are only limited funds and offer has been made to a few...so I shouldn't dither. I think it could see me walk out of the door in next couple of weeks.

Was thinking I might well finish next Spring - if not even this coming August if things had opened up out there. A serious conversation with our financial advisor is in order methinks. But what else must I consider that I haven't thought of. State Pension would kick in in a handful of years time (yes - I'm a late-1950s baby) - so would need a bridge between now and then - which we're fortunate to have the funds for.

I know that once we are reopened I can do a part-time work in our church cafe...couple days a week...and then there is midweek golf...now there's a thing I know nothing at all about...

Hmmm...

Always worth considering buying extra years on your state pension if required.
I was only 3 years off paying for a full state pension so payed up the extra years with pleasure.
That was nearly 10 years ago so it has already paid the difference in spades.

 

[williamalex1]

Always worth considering buying extra years on your state pension if required.
I was only 3 years off paying for a full state pension so payed up the extra years with pleasure.
That was nearly 10 years ago so it has already paid the difference in spades.

It changed many years ago, if you had 35 years of NI contributions you were entitled to a full state pension at 65. Maybe a few years later now.

 

[rudebhoy]

Not an issue for me, I retired at 60 three years ago and have had no issues whatsoever, liked my job in IT fine but haven't missed it in the slightest, revitalised my golf, wife who is only 54 still works PT and kids are 17 and 14 so they help keep me young !

Was lucky enough to be able to pack in at 54. 6 years have gone by in a flash, you get one or two days when it's pouring of rain, and you get a bit bored, but nowhere near as much as I used to at work. Went back to work for a week 2 years ago on big bucks as a favour to a mate, hated every minute of it. Definitely made the right decision.

 

[Liverbirdie]

Always worth considering buying extra years on your state pension if required.
I was only 3 years off paying for a full state pension so payed up the extra years with pleasure.
That was nearly 10 years ago so it has already paid the difference in spades.

Can you expand on this, please.

 

[Doon frae Troon]

It changed many years ago, if you had 35 years of NI contributions you were entitled to a full state pension at 65. Maybe a few years later now.

I started work at 15, then had nearly 10 years part time jobs semi retirement at the end of my working years.
I was lucky enough to have had an extra 10 years added to my company retirement package which made a huge difference.
I never had a day unemployed, gap year etc. so basically 50 years work with an added 10 years.

 

[Doon frae Troon]

Can you expand on this, please.

https://www.which.co.uk/money/pensi...on/can-i-top-up-my-state-pension-an0q09p37nsj
Both my wife and I used this to top up to full state pension.
That was about 10 years ago so may have been 30 years contributions, not sure when it changed to 35.
Cost us about £7k but well worth it.
Breaks even after 3 years.

Re. easing into retirement.
I lost two very close friends, both had demanding jobs and were what you would call workaholics.
Both were desperate to retire.
Both died suddenly within two years of retiring.
They had no hobbies or interests outside of their work other than their three to four rather lavish holidays a year.