Retirement n/g | Vital Football

Retirement n/g

wxgill

wxgill

Vital 1st Team Regular
My wife and i have decided to pay off our small mortgage and retire early. We both qualify for a full state penion as we have worked for over 40 years each.

We're not entitled to any pension yet as we're not old enough. We have enough money to last about 14 years - well after we get our pensions.

Do we have to tell the government we have retired?

Also, for those on here who are retired, how do you keep yourself going in retirement?
 
I was made redundant at age 54, just at the same time as my Mum sadly passed away. My employer, being a retail bank, would have automatically informed HMRC.

I received about 18 months salary as my settlement and, having only had one career and very few transferable qualifications, I felt that I would only be able to get an unskilled job on near minimum wage.

I never ruled that out but it just never happened and I just tightened my belt, using my severance payment and inheritance (half the proceeds of a small bungalow) until I qualified for my works pension at age 60. I qualify for my State Pension this July when I reach 66.

Another reason why I never found another job is that I started taking up pastimes which took up a lot of my time. The U3A is very good, my partner has taught me loads about gardening, I have helped out a couple of Amdram groups and now attend daytime Zumba groups for exercise, mostly as the only man surrounded by women! 😊 (invented by a man, though) I also hope to get back on my bike this summer but have a back condition and sciatica that means golf and tennis plus running are no longer possible.

We also have 2 dogs that we walk daily, but they cost quite a lot over their lifetimes.

If I didn't have that, I would look in to the numerous volunteering opportunities here in Suffolk. Others may consider those Mens Sheds but that would not be my thing and I am cr@p at DIY, as my other half would confirm to you. Not patient enough.

There's lots out there if you are proactive and willing to persevere.

Good luck, and happy retirement !!
 
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I voluntarily left an insanely busy job last month and the initial plan was to take the summer off before looking perhaps for some part-time work. I underestimated how ingrained the routine of work is, regardless of whether you enjoy it or not. Consequently, I've struggled to fill the time a little.

However I've started to concentrate on my fitness, which I've neglected and the cricket season starts soon, so plenty of plans to see Kent at home and away. If the work itch doesn't go away, I'll look to do some volunteering, there's an inner city farm in Rotherhithe which is always looking for people to help out.

I'm hoping that the work feeling will subside as the months go on, and at 57 I won't go back, at least to full time work, again. Especially as the Mrs and I have plans for a big trip next year.
 
When I was able to retire early (58) my financial advisor said he spent most of his time helping clients to fund the gap up until recieving the state pension. Taking the 25% tax free pension lump sum and or taking a part time job etc. The HMRC will see your P45 and any future income, so any tax should be applied accordingly. If you were self employed then tell HMRC as the tax implications would likely be worse.

The most important thing however, is to have some hobbies or interests that you can both do together and/or apart. It's not until you stop work that you realise how much of your life working controls. The freedom can be hard for some to get used to. But once you do it's flippin' brilliant.
 
I retired in 2011 at age 60 and went to the Job Centre to sign on (as I did 10 years previously when I was made redundant). The Job Centre told me to go away and that I was not qualified for JSA. I had several private pensions and with my wifes job we survived until we got our state pensions. We have been fortunate enough to do a lot of traveling and managed usually 3 holidays a year, but time goes fast so dont sit around thinking about doing something, do it. My advice is get yourself a shed.
 
I retired at 54, and don’t regret it for a single day! Your company should inform the robbing tax bastards. You’ll wonder who you had time to work, as I don’t. Just off to Leybourne Lakes for a still with the wife as the weather is good. Enjoy your retirement 😊
 
I suppose the great fear of early retirement is that it brings on everything else early and that keeping busy doesn’t satisfy. I’m still working at 70 but, as my wife is quick to point out, with three months off every year I don’t have a real job. Next year will be my last. I’ve been boring the students for years and now I’m finally boring myself. I, of course, worry I’ve left it too late as well as worrying about what I’m going to do.

Good luck WX. I think whenever it feels right, it is right.
 
I was fortunate enough to be able to retire at 60 and had enough with pension and savings to live well until state pension age.
Mrs Shotty continued to work until July last year.
Now, we travel, chill, do exactly what we want, when we want.
Like most situations in life.
It’s all about the money.
If you can afford it, go for it.
I didn’t inform HMRC because I still need to do a tax return every year.
Mrs S sold her business last year so will probably get clobbered this year but that’s what we pay the accountant for.
 
wxgill said:
My wife and i have decided to pay off our small mortgage and retire early. We both qualify for a full state penion as we have worked for over 40 years each.

We're not entitled to any pension yet as we're not old enough. We have enough money to last about 14 years - well after we get our pensions.

Do we have to tell the government we have retired?

Also, for those on here who are retired, how do you keep yourself going in retirement?
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"Do we have to tell the government we have retired?"
No.

On your mortgage - what is the interest rate ?
If still fixed before recent pre-Base Rate rises, you may get a better return from saving / investment.

High Street banks pay (mostly) rubbish rates.
5% plus is available from several places - all FSCS protected.
Check MoneySavingExpert etc
With actual interest now paid - interest over £1,000 may be taxable (depending on other income)....
...unless in an ISA.

If your mortgage is now on a Standard Variable Rate it may be from 7.5% to 8.5%.
Only a few investments can beat that (return of capital not guaranteed.) Pointers can be given, but ultimately it's DYOR.

So if mortgage at SVR, paying off seems best....
(...unless you have plans to renovate or something.)

"We have enough money to last about 14 years".
I hope that is mostly in ISAs - built up over several years.
If not, then put some in an ISA before the end of the Tax Year on 5th April.

More importantly, that is the sort of sum that ought to be (at least partly) invested (shares etc) - not saved (interest).
If unfamiliar with financial markets, I'd say:
- Never invest in a company you don't understand
- Better to spread risk in a Portfolio
- Ready-made Portfolios exist in "Funds" (thousands of them)
- Personally I don't like Funds because of their pricing mechanism. I prefer Investment Trusts (a couple of hundred to choose from) - also Portfolios, but more transparent. (Again, ultimately DYOR)
- Try to resist following the crowd by investing at a short-term market peak !

"how do you keep yourself going in retirement?"
Rarely felt busier !;)
 
Does the UK pension scheme incentivize keeping going? The US social security system does up to 70, and it is quite a difference. Most people still draw on it as early as possible however out of need, although I think this does maximize dollar amounts if you live to an average age.
 
jokerman said:
Does the UK pension scheme incentivize keeping going? The US social security system does up to 70, and it is quite a difference. Most people still draw on it as early as possible however out of need, although I think this does maximize dollar amounts if you live to an average age.
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It is the same.
If you defer, you get additional when you eventually draw it
Of course, the risk is popping your clogs before you get your just rewards.
Imagine how gutted you’d feel.
 
shotshy said:
It is the same.
If you defer, you get additional when you eventually draw it
Of course, the risk is popping your clogs before you get your just rewards.
Imagine how gutted you’d feel.
Click to expand...

It's very nice. I collect and still work full time but, as you say, do I feel lucky, punk. Well do I? Obviously government actuaries have figured out the deal favours the state overall.
 
jokerman said:
Does the UK pension scheme incentivize keeping going? The US social security system does up to 70, and it is quite a difference. Most people still draw on it as early as possible however out of need, although I think this does maximize dollar amounts if you live to an average age.
Click to expand...
Arguably its the opposite. Build up too big a pot (lifetime allowance) and you get clobbered with tax. Although I am PAYE i got a tax bill every year for exceeding the annual allowance saved into my pension. I never paid in anywhere near 40K a year but the bizarre rules of DB schemes (multiply by 16) meant the calculation was over 40K.
 
I'm 42 so have (quite) a while yet.

Congratulations to those who have retired, I hope you enjoy your hobbies.
 
SE1_Gills said:
I'm 42 so have (quite) a while yet.

Congratulations to those who have retired, I hope you enjoy your hobbies.
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Have a target age in mind and prepare for it.
I was fortunate enough to pay my mortgage off at 50 so continued to pay a good proportion of it into an investment fund.
It soon mounts up.
I was also able to help the kids with a house deposit.
Then transfer into ISAs as soon as you can.
You can do £20k each a year.
You do have to cut your cloth a bit after you call it a day, but we have pretty much what we need and as long as I don’t start buying Porches or something, we’ll be fine.
 
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