Planning for early retirement

The forum home for retired Caretakers. Share your thoughts about retirement and get advice...

Moderators: Dragonrider, jay, thecaretaker, inspector

Post Reply
User avatar
hotwheels
Registered Member
Registered Member
Posts: 114
Joined: Thu, 25th May 2017, 9:43am
Jan 2021 25 07:59

Planning for early retirement

Morning all I am counting the days hoping to take the money and run with early retirement and go part time to make up the money. Anyone else dune the same how's tricks -Success.png-
User avatar
Skoolkeeper
Registered Member
Registered Member
Posts: 2249
Joined: Fri, 12th Apr 2013, 8:43pm
Jan 2021 26 11:48

Re: Planning for early retirement

Remember to work out your personal tax allowance, I took a large lump some and a smaller monthly pension, so no tax paid, I also allowed if I was to find a part time job or when my state pension is to be paid I would not pay any income tax based on my 2020 personal tax allowance, I am also on the understanding that you have to declare your pension taken if you apply for a part time job within a LGPS as this may affect pension payments? I feel you would be ok if you found a part time job outside the LGPS, but consider keeping below your tax threshold unless you want to pay tax, you will also pay NI contributions on your total income if above the threshold, I am assuming you pension plan is with a LGPS, what ever you achieve it would be good to inform your pension provider for tax/NI reasons, good luck my friend, stay safe and healthy.
User avatar
EBJ
Registered Member
Registered Member
Posts: 5147
Joined: Sat, 1st Nov 2008, 5:38pm
Jan 2021 26 12:36

Re: Planning for early retirement

I did it moved from West London to the quite of the Lincolnshire country side with early retirement, but got bored and took a part time job as an assistant caretaker in a theatre in Skegness, great job but it was early morning cleaning and back at 4pm to about 10 pm or later.

Then applied for a vacancy at a special needs school which i was lucky enough to secure and spent many happy years there past retirement age working but i left for full time retirement after a massive argument with the BM, wish it never happened but it did and missed the school very much. -Disappointment.png-

Certainly enjoying retirement now and i still wonder how i found time while in full time work to do the things i still do today, life is easier and quitter but most of all the strain has gone as the last months at school were damaging my health and mental well being. -Cry.png-

Sigillum Militum Xpisti
(The Seal of the Soldier of Christ)
User avatar
Dragonrider
Forum Administrator
Forum Administrator
Posts: 2054
Joined: Fri, 15th Jun 2001, 1:00pm
Jan 2021 26 13:38

Re: Planning for early retirement

Yeah, I ended up taking early retirement after the new head at my school targeted a number of long term staff and peripatetics before setting her sights on me as well. In the end, she was making me so ill, I gave in my notice and walked away without a backwards glance at 55. I did get a part time job fixing computers which brought a little pocket money in.

But I was lucky, I had the proceeds of selling the old family home to tide myself over though just after hitting 60 was taken ill and am unable to work full time or do physical work nowadays. Again, luckily I had paid into personal pensions since my 20's and a couple I was able to take before I hit 65 so I had some income.
Plus they both came with quite sizable tax-free lump sums. Since then, I have taken the other two personal pensions and now have almost as much coming in each month as I used to earn from a 35-40 hour week, plus again a couple more sizeable lump sums. I am being taxed on the last one, unfairly but you cannot get in touch with the taxman as they are all working from home and there are too many people trying to contact them.

When I do get my state pension later this year, then I WILL be paying tax on the total.
After 28 years in one school, moving on to a new start and new lifestyle, Headmistress free! Double Stroke survivor.
User avatar
Keyolder
Registered Member
Registered Member
Posts: 3458
Joined: Sat, 24th Jan 2009, 12:28am
Jan 2021 26 15:11

Re: Planning for early retirement

I, like EBJ worked after retirement age but only for one year, I took a 15% lump sum and better monthly LGPS pension hoping I live long enough to enjoy it. My annual income however is more than my personal £12,500 tax allowance so sadly I’m still a taxpayer.

I would get help from a pension advisor for your particular circumstances, but taking a larger tax-free lump sum might be favourable as any pension payment will be included in your income and taxable above your personal tax allowance.
Good luck -Thumb_up-
I don't suffer from insanity, I enjoy every minute of it... -Crazy.png-
User avatar
thecaretaker
Forum Administrator
Forum Administrator
Posts: 5042
Joined: Fri, 15th Jun 2001, 1:00pm
Jan 2021 26 15:24

Re: Planning for early retirement

I retired at 60 and live off my LGPS pension. I have 2 LGPS pensions (one was referred) and I only pay tax on one of them. I get approx £1k a month (after tax) and manage on that until I get my old age pension in 2 years time (aged 66). It is index linked, so get a rise each year. The wife is still working... -Big grin.png-

Vérité Sans Peur
(Truth Without Fear)
User avatar
beagle
Registered Member
Registered Member
Posts: 572
Joined: Thu, 5th Oct 2006, 1:56pm
Jan 2021 26 16:15

Re: Planning for early retirement

I'm looking to do the same. I am hoping to reduce my hours down to 32 hours, finishing at 1:15 each day, then I intend to do a few odd jobs a couple of afternoons a week to make up the shortfall. I already have a few jobs coming in but need to wait until we can get a second caretaker in to cover the back shift. I then intend to hopefully increase the odd jobs so I can retire early. Still got a year until I can draw my pension, I may bit and bob for a couple of years just to top the pot up a little bit more. Good luck with your plans. -Like.png-
"Life isn't about how to survive the storm, but how to dance in the rain".
User avatar
hotwheels
Registered Member
Registered Member
Posts: 114
Joined: Thu, 25th May 2017, 9:43am
Jan 2021 27 08:18

Re: Planning for early retirement

Hey good to here from everyone with positive thoughts ,I will look at pension advice I still have 530 days to go but I am not counting. Like EBJ we are planning to head up your way we should just about have enough to buy a small house outright and then both find part time jobs to top up the pittance we will have monthly . I build kit cars as a hobby on average two a year and I am a builder by trade so like most on here I can turn my hands to most things. I also here they are planning on building a big tesco near to where we want to buy so trolley dolly here I come lol. -Like.png-
User avatar
Bigbear69
Registered Member
Registered Member
Posts: 176
Joined: Wed, 23rd Nov 2016, 7:49am
Jan 2021 27 08:20

Re: Planning for early retirement

5 years and 7 months to go but I'm not counting -Big grin.png-
Not going to get bored sitting at home though, just no longer paying the mortgage is the same as 5 cruises a YEAR
User avatar
Dexter
Registered Member
Registered Member
Posts: 166
Joined: Fri, 13th Sep 2019, 8:22am
Jan 2021 27 09:18

Re: Planning for early retirement

5yrs and 4 months for me to go at 60. Have all of it mapped out on a spreadsheet showing lump sum, LGPS pensions and state pensions for Mrs D and myself etc with any tax deducted. Have put outgoings on it as well so we can see disposable income for each stage of retirement. It is reassuring to see that it is "doable." We check the pension statements and outgoing estimates each year.

Remember that if you or your wife/husband are not using their taxable allowance they can transfer £1,000 of it (to the other) to save £200 per year. Better than a poke in the eye...
User avatar
Dexter
Registered Member
Registered Member
Posts: 166
Joined: Fri, 13th Sep 2019, 8:22am
Jan 2021 27 09:52

Re: Planning for early retirement

re previous post.

Just checked. Its called the "Marriage Allowance" and it is allows the transfer of £1,250 of the allowance saving £250 per year. (Found out about it via Money Saving Expert website that Martin Lewis used to run.)
Post Reply