• The forum upgrades are now largely complete.
    Please read this thread for more details.
    New user registrations are currently disabled.

Retirement


TAD said:
Thanks
.yes we've two salaries so aiming to live off one. Was previously saving in S&S issue but realised it's better in sipp to get tax relief up front rather than the end.
If you make monthly payments do you get text relief each month added or is it calculated at end of year.
I'm a bit out of it as all our pensions are public sector/average salary.
Click to expand...
I'm not an IFA but as I understand it every contribution into your SIPP is increased by 25% by the pension provider. So say you pay in £80, within a month or so the provider will put in £20.
You declare your contributions on your tax return and if you're in the higher bracket you get back an extra 15%. You can't put in more than you earn. If you're not earning you can put in £2880 pa which will be uplifted to £3600 : bit of free money 😀
Make sure you take anything the employer is offering in terms of statutory contributions or matching contributions 👍
 
YorkMackem said:
Teaching 16 to 21 year olds at 59 gets very tiring, therefore I'm literally out.
Click to expand...

I think everything at 59 gets tiring.
My job was setting up Procurement teams and systems into businesses.
I was just empty at the end, no energy, no enjoyment, nothing.
Walking my dog, fishing, reminiscing is so satisfying now.
Don Birnam said:
Notified work before Christmas that I intended to retire. Handed in my notice yesterday which was a surprisingly nerve-wracking situation. Retiring in July, as is my wife. We’ll both be 55. It’ll be quite a drop in money coming in but quite doable and I can’t wait. The next 6 months at work will be interesting to say the least.
Click to expand...

Like a prisoner counting down the days.
Nice one Mate. As my Mates tell me and it helps. You deserve it.👍
 
Last edited:
DaveH said:
I think there is something sad but also something natural in that. By the time you retire (or approach retirement) it seems that whatever interest or good intentions you started work are gone.

I started my career with loads of enthusiasm and interest, got into doing IT stuff for large enterprise infrastructure, I do enjoy learning new stuff about it, but any passion is ebbing away and when I retire there are so many aspects of my job I'll just never things about again. Today I have been kicking off a project to get something deployed. I can't imagine sitting at 65 thinking "I wish I had deployed just one more system or could dip into work to give it just one more go".

I guess it is the feeling of been there, done that. The specifics change over your career but overall, that is just the tweaks.
Click to expand...
It’s partly that, management proposing ‘new ideas’ and me telling them why it failed the last 3 times we tried it, or people just asking me what they should do rather than working it out for themselves.
 
Wearson said:
Beware the small print regarding external jobs.
When I was in a similar position I was encouraged to apply for other positions, because had I been successful the redundancy payment would have been cancelled. Worth checking.
Click to expand...

That’s true. If I take an external role before the 8 weeks or 3 months end then I forfeit redundancy, so I would need to time the start dates if I was to accept a new role
 
I'm 48 but was looking to retire at 58 after part time at 55, one of my best mates of similar age has just had some completely shit cancerous news - its not terminal but its serious - so it makes you think actually should I be investing a load more now and get out the game at 55. To be honest I dont get stresssed and have a good job but I started work as a paper boy at 13 and have worked non-stop for 35 years and feel a bit sick and too lazy to move. The idea of Spain in winter and golf over here in summer is massively appealing as well as some travel.
 
Flip said:
I'm 48 but was looking to retire at 58 after part time at 55, one of my best mates of similar age has just had some completely shit cancerous news - its not terminal but its serious - so it makes you think actually should I be investing a load more now and get out the game at 55. To be honest I dont get stresssed and have a good job but I started work as a paper boy at 13 and have worked non-stop for 35 years and feel a bit sick and too lazy to move. The idea of Spain in winter and golf over here in summer is massively appealing as well as some travel.
Click to expand...

Just lost a mate at 51 to Cancer, funeral in a few weeks.
My Wife (no) just lost a best Mate 55 (heart attack and completely out of the blue).

It happens and this is no dress rehearsal.
Do what is right mate. You are fortunate not to get stressed. My job was killing me and without doubt affected me.
 
elder said:
That’s true. If I take an external role before the 8 weeks or 3 months end then I forfeit redundancy, so I would need to time the start dates if I was to accept a new role
Click to expand...
Depending on how much you trust your current employers. They may still judge that as obtaining external employment.
I’d say it ok to make enquiries but would not risk accepting any post before the money is in your bank.
 
Spartan said:
I'm not an IFA but as I understand it every contribution into your SIPP is increased by 25% by the pension provider. So say you pay in £80, within a month or so the provider will put in £20.
You declare your contributions on your tax return and if you're in the higher bracket you get back an extra 15%. You can't put in more than you earn. If you're not earning you can put in £2880 pa which will be uplifted to £3600 : bit of free money 😀
Make sure you take anything the employer is offering in terms of statutory contributions or matching contributions 👍
Click to expand...
Cheers my employer pays onto my civil service pension so the sipp will be an extra one..think I'll just get the 20% tax added back from the government in the sipp side. I'm not higher rate tax.
 
Wearson said:
Depending on how much you trust your current employers. They may still judge that as obtaining external employment.
I’d say it ok to make enquiries but would not risk accepting any post before the money is in your bank.
Click to expand...

I’m in the public service so it’s pretty cut and dry and there shouldn’t be any shenanigans.
I’m not going to jeopardise any payout and will wait until I’ve got the paperwork/money before I start any new role.

I’ve been on the other end of recruiting lately and a few applicants have asked for delayed start dates for one reason or another
 
TAD said:
Cheers my employer pays onto my civil service pension so the sipp will be an extra one..think I'll just get the 20% tax added back from the government in the sipp side. I'm not higher rate tax.
Click to expand...

You'll just then pay the 20% back when you draw it. If you've got a decent number of years in CS pension and /or on a decent wage, then CS pension will be higher than the personal allowance.
The only tax benefit you'll get on the SIPP is taking 25% of it tax free, so effectively getting a 5% tax break. You then need to decide if that small tax break is worth the loss of flexibility & political interference of the ISA option.
 
Been retired 6 months now and loving every minute of it. Literally never thought of work once since i left ( an extremely well paid relatively easy job) although it popped up in a dream last week. 5 of 6 pensions now paying, just one little one to sort out. Drawdown pension is up a decent amount since I started drawing it also - happy days
 
I want to retire mid 50’s so another decade-ish to work. Would like to move once more before then so not an exact age as I would need to do the math depending on what we buy. Lost my Dad in his 50’s and can only think of my grandad making it to 80 so not sure longevity is in the genes. Don’t want to work up until I go and want to travel whilst I can.
 
42 said:
You'll just then pay the 20% back when you draw it. If you've got a decent number of years in CS pension and /or on a decent wage, then CS pension will be higher than the personal allowance.
The only tax benefit you'll get on the SIPP is taking 25% of it tax free, so effectively getting a 5% tax break. You then need to decide if that small tax break is worth the loss of flexibility & political interference of the ISA option.
Click to expand...
Yes I did think ISA was easier but financial adviser pointed out sipp is better as you get the 20% up front so if I put for example 10k this year I'll hopefully be getting interest on 12.5k so it will grow faster then ISA.
 
I’ve worked out I can be done at 57. 12 year!! Can’t wait.
bat_finchale said:
I want to retire mid 50’s so another decade-ish to work. Would like to move once more before then so not an exact age as I would need to do the math depending on what we buy. Lost my Dad in his 50’s and can only think of my grandad making it to 80 so not sure longevity is in the genes. Don’t want to work up until I go and want to travel whilst I can.
Click to expand...
This 100%.
 
TAD said:
Yes I did think ISA was easier but financial adviser pointed out sipp is better as you get the 20% up front so if I put for example 10k this year I'll hopefully be getting interest on 12.5k so it will grow faster then ISA.
Click to expand...

Yeah but when you withdraw that 12.5k, you'll only receive 10k as you'll pay 2.5k in tax. The only benefit is that you can currently (which might change in the future) is that you can take 25% of the pot tax free, so you'll save £625 in tax.
Did you inform the FA that you also have a public sector DB pension? The fact the tax rebate is upfront makes no difference as whatever 25% they add on, is exactly the same as the 20% they then take off (ignoring the 25% tax free bit)
 
You must log in or register to reply here.
Back
Top