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?
"
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 !