Small things matter

[Joeboy]

The 4% rule is your friend. Add up all your investments & cash and see what 4% of that figure pa is. If its greater than your anticipated outgoings post retirement pa its looking good.

Its a handy wee thought process and accurate.

I have heard of that rule and it does seem to make sense - but I also heard that it was originally designed for retiring at 65 rather than 55, so maybe slightly less likely to work in worst case scenarios if you are looking at maybe 40 years of drawdown from it.
If the investments keep going up the way they have recently (+10% in 5 months), it might be do-able including the ~1 year of redundancy money I will get - I've been aiming at 60 as my retirement date for a good few years now.
Having said that, my other half is 6 years younger and would be mightily annoyed if I retired while she was still miles away from it - although she has suggested that if I actually get all the household DIY jobs / decorating / garden plans done & take on the house cleaning as well, she might go for it

Rich, first of all, sorry to hear about the redundancy.

Secondly, I can speak from family experience that one parent retired a decade ahead of the other, and had to do housework etc to make up for it. I'm not going to say it was straightforward, the retiree is a lazy so and so at the best of times when it comes to household chores and cooking etc but it's definitely worth looking at.

Joeboy, thanks for all the links, I'll be taking a look at them this weekend.

What age are you Krill?

[Krill]

Mid thirties. I have a while to go yet. Both my wife and I work in the public sector and we have public sector (defined benefit) pensions, so planning can be complicated due to tax etc but it's always good to understand options.

[Joeboy]

DB & a career has its own trajectory. Doesn't stop a SIPP being opened if you can. Gives a second viewpoint to the DB performance.

I played with my pension funds from about 24yrs old. Cut my teeth on it so to speak. I can remember guys discussing whether to stick with the minimum percentage or go up. The company matched the increase. I sat there listening to guys justifying reasons to leave a 4% wage rise on the table.

Not putting that out there as a brag, just to underline how different people see a situation in different ways.

These books along with pension magic can make a big difference. Game changers tbh. Really raised my awareness of the pension playing field and the avenues I could open for myself (& SWMBO).

https://www.goodreads.com/en/book/show/13838197

https://www.wob.com/en-gb/books/thomas- ... R001405088

[nowty]

Redundancy can be a superb opportunity. I was made redundant near 9 years ago at age 46 and have never worked since.

I would only go back to work if I either got bored or needed the money. Neither has happened yet and I doubt it ever will.

I’m about to push the button on my SIPP as I’m 55 this month. My strategy is to pull max tax free cash from the SIPP, pay off all my debts, and keep building up our ISA’s for another 5 years and then live near tax free on ISA income plus low tax withdrawal from the remaining SIPP income. Also buy a few more NI years to max out the state pension as a top up later in life.

[Joeboy]

Redundancy can be a superb opportunity. I was made redundant near 9 years ago at age 46 and have never worked since.

I would only go back to work if I either got bored or needed the money. Neither has happened yet and I doubt it ever will.

I’m about to push the button on my SIPP as I’m 55 this month. My strategy is to pull max tax free cash from the SIPP, pay off all my debts, and keep building up our ISA’s for another 5 years and then live near tax free on ISA income plus low tax withdrawal from the remaining SIPP income. Also buy a few more NI years to max out the state pension as a top up later in life.

I'm going the other way. Will eventually cane the ISA's and leave SIPP's growing in the interim. I can see a scenario where we won't get past the 25% tax free part of the SIPP's and the kids will inherit them tax free. How's Baja Nowty?

[AGT]

We had financial advisor on a teams chat yesterday..
he wants another spreadsheet filled with income/outgoings..

I wish I could retire now, but afraid I have at least 6 years till I hit 55.

By then all my reasonably expensive jobs around the house will be done, kids will 23 and 19 and will make a decision then.

[nowty]

How's Baja Nowty?

In a word, Tequila.

[Joeboy]

How's Baja Nowty?

In a word, Tequila.

That'll do!

[richbee]

How's Baja Nowty?

In a word, Tequila.

It makes me happy

[richbee]

Redundancy can be a superb opportunity. I was made redundant near 9 years ago at age 46 and have never worked since.

I'm trying to look at it like that - it's an opportunity to do something different, that I would never have done without this kick up the backside!