Should I take my pension early ?
Discussion
Please bear with me on this and try and look at it from my point of view. Reason I say that is I'm probably in a different position to you.
I'm sure most of you are married, have children, grandchildren looming,wanting to look after your spouse,etc,etc, financial security/future is obviously very important to you.
Me, I'm 51, single, have no kids, can't see myself having any, mortgage paid, left work 6years ago on an early severance deal. Went travelling/sailing , having a bloody good time, survived on the rental income from my house and some savings. Picked up the odd job the last couple of winters to top the savings up.
Purchased a narrow boat last summer so want to spent a lot of time on that from spring to autumns.
I want to continue my lifestyle my way doing what I enjoy and travel when I want.
Now I must admit that after my boat purchase my savings are depleted !
So it got me thinking - I have a civil service pension due when I'm 60. I can take it now obviously on a reduced amount (5% per year). I think I've worked out the following -
If I take my pension now (at a 40% reduced rate) , I will receive the same amount in total by the time I am 70'ish compared to if I wait until I'm 60 to get the full amount. So after 70 I will obviously be losing out. But at 67 I will get my full state pension.
So what gives ? Why not have an extra income NOW to ensure I continue my current brilliant lifestyle ? When I'm 70 I will be all travelled out, sailed out, I'll undoubtedly be back in my modest 2 bed house just wanting to tend to my garden and won't need much to get by, my bucket list will be well and truly ticked off.
Am I thinking irresponsibly ?
Am I a financial disaster waiting to happen ?
(Congratulations to you if you managed to get this far - and thank you).
I'm sure most of you are married, have children, grandchildren looming,wanting to look after your spouse,etc,etc, financial security/future is obviously very important to you.
Me, I'm 51, single, have no kids, can't see myself having any, mortgage paid, left work 6years ago on an early severance deal. Went travelling/sailing , having a bloody good time, survived on the rental income from my house and some savings. Picked up the odd job the last couple of winters to top the savings up.
Purchased a narrow boat last summer so want to spent a lot of time on that from spring to autumns.
I want to continue my lifestyle my way doing what I enjoy and travel when I want.
Now I must admit that after my boat purchase my savings are depleted !
So it got me thinking - I have a civil service pension due when I'm 60. I can take it now obviously on a reduced amount (5% per year). I think I've worked out the following -
If I take my pension now (at a 40% reduced rate) , I will receive the same amount in total by the time I am 70'ish compared to if I wait until I'm 60 to get the full amount. So after 70 I will obviously be losing out. But at 67 I will get my full state pension.
So what gives ? Why not have an extra income NOW to ensure I continue my current brilliant lifestyle ? When I'm 70 I will be all travelled out, sailed out, I'll undoubtedly be back in my modest 2 bed house just wanting to tend to my garden and won't need much to get by, my bucket list will be well and truly ticked off.
Am I thinking irresponsibly ?
Am I a financial disaster waiting to happen ?
(Congratulations to you if you managed to get this far - and thank you).
SimonTheSailor said:
Please bear with me on this and try and look at it from my point of view. Reason I say that is I'm probably in a different position to you.
I'm sure most of you are married, have children, grandchildren looming,wanting to look after your spouse,etc,etc, financial security/future is obviously very important to you.
Me, I'm 51, single, have no kids, can't see myself having any, mortgage paid, left work 6years ago on an early severance deal. Went travelling/sailing , having a bloody good time, survived on the rental income from my house and some savings. Picked up the odd job the last couple of winters to top the savings up.
Purchased a narrow boat last summer so want to spent a lot of time on that from spring to autumns.
I want to continue my lifestyle my way doing what I enjoy and travel when I want.
Now I must admit that after my boat purchase my savings are depleted !
So it got me thinking - I have a civil service pension due when I'm 60. I can take it now obviously on a reduced amount (5% per year). I think I've worked out the following -
If I take my pension now (at a 40% reduced rate) , I will receive the same amount in total by the time I am 70'ish compared to if I wait until I'm 60 to get the full amount. So after 70 I will obviously be losing out. But at 67 I will get my full state pension.
So what gives ? Why not have an extra income NOW to ensure I continue my current brilliant lifestyle ? When I'm 70 I will be all travelled out, sailed out, I'll undoubtedly be back in my modest 2 bed house just wanting to tend to my garden and won't need much to get by, my bucket list will be well and truly ticked off.
Am I thinking irresponsibly ?
Am I a financial disaster waiting to happen ?
(Congratulations to you if you managed to get this far - and thank you).
Questions to ask yourself should includeI'm sure most of you are married, have children, grandchildren looming,wanting to look after your spouse,etc,etc, financial security/future is obviously very important to you.
Me, I'm 51, single, have no kids, can't see myself having any, mortgage paid, left work 6years ago on an early severance deal. Went travelling/sailing , having a bloody good time, survived on the rental income from my house and some savings. Picked up the odd job the last couple of winters to top the savings up.
Purchased a narrow boat last summer so want to spent a lot of time on that from spring to autumns.
I want to continue my lifestyle my way doing what I enjoy and travel when I want.
Now I must admit that after my boat purchase my savings are depleted !
So it got me thinking - I have a civil service pension due when I'm 60. I can take it now obviously on a reduced amount (5% per year). I think I've worked out the following -
If I take my pension now (at a 40% reduced rate) , I will receive the same amount in total by the time I am 70'ish compared to if I wait until I'm 60 to get the full amount. So after 70 I will obviously be losing out. But at 67 I will get my full state pension.
So what gives ? Why not have an extra income NOW to ensure I continue my current brilliant lifestyle ? When I'm 70 I will be all travelled out, sailed out, I'll undoubtedly be back in my modest 2 bed house just wanting to tend to my garden and won't need much to get by, my bucket list will be well and truly ticked off.
Am I thinking irresponsibly ?
Am I a financial disaster waiting to happen ?
(Congratulations to you if you managed to get this far - and thank you).
Can you afford to live on the 60%
Will the small inceases cover cost of living increases
What do you expect to be your life expectancy , most scheme expect you to et to mid 80’s now. Can you afford to live beyond age 70
What will u do if you need pay for care?
Will you really get a full statement pension as you need 40 years of contribution
SMB raises some valid questions for you to understand / quantify.
However in theory your bang on the money.
You’ve no idea how short or long you have left no one does. You might live long and be really healthy to a ripe old age conversely you might become ill and that decimate your lifestyle at some point.
Again you are bang on holidays over say 75yo big ones are rare as your old and it’s not so easy so do it while you can.
I love your outlook on life and from what you describe I’d go for it. Remember to the nay sayers if you find the pennies not stretching far enough you could always find some short term work to top up as and when needed.
You only live once
Money means nothing without happiness, it enables you to do more things but you’ve a long boat can holiday whenever taking advantage of the lowest holiday cost/out of season and £5 easy jet flights et.
However in theory your bang on the money.
You’ve no idea how short or long you have left no one does. You might live long and be really healthy to a ripe old age conversely you might become ill and that decimate your lifestyle at some point.
Again you are bang on holidays over say 75yo big ones are rare as your old and it’s not so easy so do it while you can.
I love your outlook on life and from what you describe I’d go for it. Remember to the nay sayers if you find the pennies not stretching far enough you could always find some short term work to top up as and when needed.
You only live once
Money means nothing without happiness, it enables you to do more things but you’ve a long boat can holiday whenever taking advantage of the lowest holiday cost/out of season and £5 easy jet flights et.
JapanRed said:
I can’t answer your questions OP but do admire your lifestyle. Good on you.
Also his PH garage history is impressive plus the Lotus he currently has is very nice. OP maybe you need to add an estate to your fleet then you can do the European road trips rent and stuff in the boot camp anywhere in any country
SMB said:
You need 40 now, I agree with the sentiment about living for now, but you do need to make sure your logic is sound.
Could you post a link to something that says that please ?Edited by SMB on Wednesday 8th January 22:19
Everything I find on the government website says 35 years. I know it changed from 30 years to 35 years only a couple of years ago.
SimonTheSailor said:
SMB said:
You need 40 now, I agree with the sentiment about living for now, but you do need to make sure your logic is sound.
Could you post a link to something that says that please ?Edited by SMB on Wednesday 8th January 22:19
Everything I find on the government website says 35 years. I know it changed from 30 years to 35 years only a couple of years ago.
https://www.gov.uk/check-state-pension
Its 35 years to get a full state pension, subject to contributions, have a read of this anyway.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
rigga said:
Its 35 years to get a full state pension, subject to contributions, have a read of this anyway.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Watching... https://www.pistonheads.com/gassing/topic.asp?h=0&...
OK, looks a bit confusing !!
Just checked and I've paid 30 years contributions. I've got 16 years to make another 8 years worth of contributions. Probably something to do with only part payment last couple of years and nothing for the three years prior to that ?
I know I can make up any part payments I have made into full years. One of them is only 180 quid so I might do that to see how it changes my forecast !
Just checked and I've paid 30 years contributions. I've got 16 years to make another 8 years worth of contributions. Probably something to do with only part payment last couple of years and nothing for the three years prior to that ?
I know I can make up any part payments I have made into full years. One of them is only 180 quid so I might do that to see how it changes my forecast !
SimonTheSailor said:
OK, looks a bit confusing !!
Just checked and I've paid 30 years contributions. I've got 16 years to make another 8 years worth of contributions. Probably something to do with only part payment last couple of years and nothing for the three years prior to that ?
I know I can make up any part payments I have made into full years. One of them is only 180 quid so I might do that to see how it changes my forecast !
It is, for me I’d need to do 40 years of contribution. I suspect as my scheme was contracted out. Anyhow I was sure you wouldn’t get a full sp on your years completed.Just checked and I've paid 30 years contributions. I've got 16 years to make another 8 years worth of contributions. Probably something to do with only part payment last couple of years and nothing for the three years prior to that ?
I know I can make up any part payments I have made into full years. One of them is only 180 quid so I might do that to see how it changes my forecast !
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