Are you considering early retirement? Experts estimate that you'll need 60 to 70 per cent of your current income to live fairly well. Here's how to work out your potential assets.
Check with your company's pension plan administrator to find out how early retirement would affect your pension.
Also check with the Department of Social Security. Their rules are constantly being adjusted. However, at the time of writing, you will receive full benefits if you retire at the age of 60 (for women) or 65 (for men), providing you have a full contribution record. Write to the DSS in Newcastle for a Pensions Forecast which will tell you how much pension you will receive and what additional National Insurance Contributions you can make if you want to retire early.
See how your investments could be rearranged to provide income instead of long-term growth.
Workout how much money you would have if you cashed in your capital assets and add the amount to your savings. Then add in the money you would save if you kept just enough life insurance to allow your dependants to maintain their standard of living and to pay any estate duty, any leftover debts and your funeral expenses.
Do you think you could live comfortably on the results?
Delaying retirement When you reach retirement age you do not have to draw your state pension. You can defer it for a maximum of five years. You will receive a bigger pension that way, but it might be better for you to draw your pension regularly and invest it elsewhere.
You do not have to retire from your job to receive your state pension. But if you are working, it may put you into a higher tax bracket and this might be a good reason for deferral.
