Financial Advice

[PSumbler]

Yes, having retired early I was drawing much more from investments up until the state pension kicked in. A year later my wife's state pension started and we're now getting over £2K every 4 weeks plus her teacher's pension. Thus drawing from investments has dropped to the point where we're living well and the investments are increasing in value despite drawing whatever we need from them.

I so hope I can match this achievement

 

[3swan]

Again, everything is personal choice but the fear of having enough to get through retirement is often an overstated amount of money.

At some stage the state pension kicks in (depending on your age) and if you have a private pension its possible to draw more money in the early days and reduce it down as the state pension kicks in. That is my plan.


But look at what your essential expenditure needs to be. How much you want for "luxuries" on top of that and use a basic tax calculator to gross that monthly net income up to an annual income.

Take that annual income and divide it by say 6% (see previous annuity rate quote) and that tells you broadly what your pension pot needs to be to deliver that income. (Remember that figure should be after you take your 25% tax free cash)

This is hypothetical and works for me so my disclaimer is this is not financial advice and you should consult someone who finished their exams instead of taking the easy option

Agree

I took early retirement but a different situation as I have an occupational pension and state pension.

That gives me the knowledge of how much my monthly income will be without including savings etc

Although not having to rely on investments my thought process when I took the decision was look to the extremes.

You should have more time to do what you want and maybe with more expence.

Also dependent on situation, look at any high value expenses that may need to be done in the future.

How many times to change cars, maybe central heating even a new roof.

I also looked at if I'd made a mistake, what I could reasonably cut back on.

It's a big decision so the more advice and thought you can give the better

 

[3swan]

When you say retirement date are you referring to state pension age ?

And is she happy that we all now her age