# New van or early retirement?



## Brock (Jun 14, 2005)

What would you do?

Despite being somewhat dispirited with motorhoming because of the inability of a cottage industry to build and service a motorhome fit for purpose, I am contemplating motorhoming until at least I am 70 in 14 years time.

I am likely to be offered the chance to take early retirement. Even with economies, the money I receive will be insufficient to fund my lifestyle until I am 60 when my pension kicks in. 

Should I take early retirement and use up my savings? This means my current 05 plated Hymer would have to last another 14 years because I could not afford to replace it unless I took a lump sum from my pension and accepted the subsequent hit on my pension income. This would mean surviving on a much lower income - possible but not necessarily desirable. It might actually be cheaper to keep the maximum pension income and borrow the money!

I can take my pension now but the long term cost of doing so would mean surviving on a much lower income - possible but not necessarily desirable. I could use my saving to buy a newer motorhome over the next 14 years.

Stick to work - I enjoy my job - and keep going for another 4 years and retire in relative financial security.

I'm not looking for specific advice. I'll get all the help I need on finance from my employer and I am experienced at decision making. However, I am interested in how other people would approach such a decision.


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## greenasthegrass (Oct 27, 2007)

Carry on working if you like it - why stop?

4 years will whizz by.

Or can you reduce your hours? just another thought.

Greenie


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## bognormike (May 10, 2005)

casting aside the financial considerations (if you can?), what about your health? You may be fine & dandy now, but what is round the corner? You could carry on working and build up a bit more in the pension, and retire in due course, but......... I've had several friends who have said when they retire they would do all sorts of things, and they or their partner didn't make it to the planned retirement age 8O . We have also had to re-assess our plans, and now I am working less (self employed, so some flexibility) and we are attempting to get out & about as much as we can, while we can. 
Our 'van is 11 years old now, and has several good years left, but we will replace it if we need to, with one that is 3 or 4 years old - that saves at least 30% of the cost of a new one.

You've only got one chance - there's no going back and trying agin! 8)


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## Wupert (Aug 6, 2007)

Brock said:


> ienced at decision making. However, I am interested in how other people would approach such a decision.


I retired from working for the MoD at the age of 50 17 years ago.

You dont retire as such ....You change lifestyles and this last 17 years have been brilliant.

Your worries are normal but the bonuses are huge

Retired Wups


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## rayhook (May 15, 2005)

*Do it*

We too made this decision when I was in my mid-fifties; you can't take your savings with you! We bought a five year old van and haven't regretted a day since. Back yesterday from 3 months in France, Spain and Portugal. Off again 1st August for another couple of months.

Why work when you can enjoy yourself? How do know you'll ever reach your pensionable age and be able to still motorhome? It's just so easy to make all the usual excuses about why not to do it; it's a lot more fun to go for it!

Ray


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## erneboy (Feb 8, 2007)

Regardless of retirement I would not change your van unless there is a compelling reason to do so, problems or very high mileage come to mind. Buying a new van is just buying problems, buying second hand you may be lucky and get a well sorted van or unlucky and get one some one else has become fed up with. I pity the person who ended up with our last van, at two years old we gave up with it. Our current one is also giving bother but it is nowhere near as bad as the last, Alan.


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## Zebedee (Oct 3, 2007)

Yep!

What they all said.   

Another of our friends has just pegged out, shortly after retiring and with loads of plans for how they would enjoy their twilight years.

He could have retired about 8 years ago under similar circumstances to Brock, but wanted the extra cash to fund even more enjoyment when he eventually did retire. :roll: 

Sadly, all his extra cash has funded is a good funeral. 8O 8O 

Unless you are going to be so strapped for cash that you have to watch every penny, grab the early retirement while it's going.

Retirement is the best job I ever had!!   

Dave


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## Zozzer (Aug 13, 2006)

The are NO refearsals in life, four years is not that long to wait, but life has a terrible habit of changing things in a split second. You don't what is around the corner, you could kick the bucket tomorrow. 

I cashed my pension in a few years ago, and both my wife and I firmly believe it is the best decision we have ever made. We are enjoying the fruits of our labours. The way the global ecomony is performing, Personal Pension Plans are NOT as secure as they once where.

Take the money and run. Look back on a life time of cherished memories, and not a life time of regret.


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## DABurleigh (May 9, 2005)

"However, I am interested in how other people would approach such a decision."

Like a pair of scales, good versus bad - is the extra freedom over just the next 4 years worth the corresponding belt-tightening for the rest of your life?

I'm a percentage player, tend to be risk averse (or at least pro-risk- mitigation) but even so, for me it's head down doing my best to enjoy work and stash the £ away. The idea of having lack of £ cramping my style when I have the time to enjoy it appeals the least of all the options 

And don't forget I don't think it has really sunk into people how much belt-tightening they will have to do over the next decade. If you are in paid employment, in reasonable health and don't hate your work, you're probably in the best place right now.

Dave


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## nicholsong (May 26, 2009)

Another scenario for your consideration:_

Go on working for another year, reduce your expenditure to what you would if you were retired now (but of course allow for the cost of supporting the job, commuting to work, work clothes etc.) and see how that feels.

For income in excess of what is required for this excercise I suggest trying following: Talk to your Employer about (temporarily) reducing your salary [don't switch off yet!] this will reduce NI contribs for you and Employer pro rata.. Then ask for all savings of salary and NI to be put into your Company Pension scheme (if final salary) or a Personal Pension. It is possible to contribute 100% of annual salary per year.

If this is a 'goer' talk to an Pension Adviser, such as Woodrow Wyatt, as this might need some careful negotiating but it might surprise you how much you could boost your pension in 1 yr

Of course, whether your employer wants to help you retire early or keep you there is only for you to know, but if you 'retire' they do not have to pay redundancy.

Even if this scheme does not work, you can still put the excess income tax-free into a Private Pension, which with a bit of growth and taking the 25% tax-free lump sum could go towards upgrading the Hymer ( maybe even to a N+B !! )

Another thought , from 70 (BUT DEFINITELY NOT BEFORE) Equity Release starts to become viable.

Good Luck

Geoff


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## goldi (Feb 4, 2009)

Afternoon all,

Lots of ideas and suggestions as usual erneboy talks a lot of sense about not selling unless theres a good reason to, How about part time say 2 or three days a week ? 



norm


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## sallytrafic (Jan 17, 2006)

One consideration is the amount of money that you think you need. From observation just of MHF I can assure you that one man's pittance is another man's fortune. How much does going to work cost?

On the other hand today's brand new van will be four years older then and already there will be something much better, Euro 5 6 or 7 engines perhaps. What would replace work for you? Me I don't know how I found the time to work others can not imagine stopping.

Best of luck what ever you decide.


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## DTPCHEMICALS (Jul 24, 2006)

I retired for a whole week.
Now I ensure that i only do three days a week.

The only problem I can see with retirement is 

We do not know how long it will be for.

If you can reduce hours as previously sugested that may be a solution
If you can afford to retire in full do it.

Dave p
All my advice is free of charge and may contain errors :lol:


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## dragonflyer (Nov 4, 2007)

*Early retirement*

Hi Brock

I offer my view on your situation.

You enjoy your work/job
- Keep on working if at all possible and accrue funds towards your motorhoming future.

You will find if difficult to maintain your lifestyle if retiring before 60. 
- Perhaps you need to take a really serious look at your expenditure. What are you spending so much money on? Mortgage perhaps!

You look forward to motorhoming until age 70.
- We are still enjoying motorhoming at 75+. The only anticipated future problem at the moment is failing eyesight forcing us to give up our freedom.

Regards
Joyce


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## rft (May 4, 2006)

All good advice. Remember that the value of money halves over every 7 years. I would keep working but go the extra contributions route.


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## MyGalSal (Dec 8, 2008)

The clock is ticking! I echo 'Take the money and run'.

Like other retirees we are very busy and VERY VERY happy. It IS scary to make the jump - no more income sounds like someone just shifted the safety net and I worried too. However, once I had done it I wondered what I was worrying about. 

We have met lots of nice, like-minded people on our travels but we have also met some who lost their partner just weeks into retirement - and the long held dreams of long and happy retirement are shattered.

Take the moment and take it just as soon as you can.

Sal


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## overthemoon (May 12, 2010)

I have always lived with the ethos that this life is not a practise run. I know that at sometime in the future I will not be capable of driving a large motorhome or dealing with the responsibilities of owning one so I say go for it, you are only here once!


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## Uller (May 29, 2010)

I'm sure that your financial adviser will tell you this but, in relation to the previous suggestion to cut your salary and put extra contributions into your pension scheme, this will not work if you are in a final salary scheme;

a - because your pension will then be calculated on your lower salary and
b - your pension isn't related to the contributions you make - it is based on final salary & length of service, so any additional contributions will not make any difference to your final payout

Sarah


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## gandj (May 11, 2005)

I stopped work at 55, rented out the house and set off into the sunset. Apart from savings, the rental income was our only income.
Work was not so bad but the idea of touring Europe, doing all the walking/biking and seeing places was just so attractive. Financially we were not certain (no pension until 60) but we decided to try it for 6 months, and if if did not work out we could always move back in the house and get a job. That was six years ago and we are enjoying this active lifestyle as much as ever.

As for the finance, we have barely dipped into our savings because it is in fact a very economical lifestyle. So if the option of renting out your house is viable, then you should have no problems at all. Spending a lot of time in your motorhome, while at the same time maintaining a house, is a much more expensive option.

Graham


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## metblue (Oct 9, 2006)

*retirement*

My wife and I HAD the same problem several years ago , we begged Both pension and retired early after an accident.My friend was / is a Financial Advisor and we all talked at length about this Subject .
End result was we That Took Both the stock sum and purchased a new van . The reasoning behind the Decision was simple , we tax -paid When We earned our cash and notes did want to pay anymore , the stock is tax- sum fee and our pension is only taxed a little .
So the goverment gets very little at the moment and IF Cameron and Clegg Do As They Say and raise the tax allowance We Will be Paying nothing ! Smiles all round .
Days / weeks / months away Whenever we want and no more Worrying about funds , best of all in four years time "When the wife and retire in our pension starting Within four weeks of eachothers so we get more cash ! Means more thrips too.brilliant


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## nicholsong (May 26, 2009)

Sarah

My suggestion about higher contributions to the Employer scheme is for an AVC (Additional Voluntary Contribution) which does boost one's pension - or why would anyone do it? Alternatively to a Personal Pension.

But I did say it only works if the Employer is willing, and in that case the OP should consult a Pension Adviser, not just a Financial Adviser without the necessary additional qualification to advise on Pensions, and preferably someone who is qualified as a Financial Planner - a higher qualification than a Financial Adviser.

[The FSA still spell it "Adviser" in their Rules, so anybody who describes themselves as a "Financial Advisor" has not read the rules very well - so beware! ]

Geoff


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## Brock (Jun 14, 2005)

Thanks for all the comments. I decided to carry on working. The money side became less important as I talked to people. My employer wanted me to stay and has given me a new challenge - but no more money - to keep me going for a few years.

Part time working was ruled out because of my pension position.


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## SpeedyDux (Jul 13, 2007)

Brock,

Who knows what will happen in the next 4 years. I have a friend who wants to keep on working for the next 4 years to maximise occupational pension benefits before retiring. All their financial planning has been based on the assumption that the job will carry on as intended. Unfortunately the business has just been sold, and under the new owners all the pension scheme benefits will be frozen. In 4 years time the pension will not be worth more than it is today. So why carry on working? Just to maintain a certain lifestyle until official retirement age? At some point reality will kick in and adjustments / downshifting will have to happen anyway. 

I hope events will not scupper your plans, but it must be right never to assume that things will stay as they are, and always have a Plan B. 

Then Plan C, Plan D ... 

I think I am on Plan F now! :roll: 


SD


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## Tan-all-over (Jun 26, 2010)

Lifes to short and we never know whats around the corner..............my brothers and sister carried on working past retirement but I think grab what you can of life now. You still have a M/H so make the best of it and enjoy life. I was in the very same poition early this year but its hard for anyone to advise as you are the only one who can make that choice. Hard I know. I used part of my payout to update to a 2005 !!!! although a lower pension. I do not regret it. Best of luck


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## silverdreamers (Nov 22, 2006)

Its so true you dont know whats round the corner Peter and I were supposed to work for another 5 yr. but a virus nearly killed him last year on new years eve out of the blue. He is now disabled, but alive and improving, we have an 04 camper and are just getting used to early retirement and making the most of things. The best laid plans etc.... Hoping to spend this winter in Spain, low income, but warm I really think live for today and enjoy it.
regards


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## mags52 (May 9, 2010)

We met a couple on a site who had sold their house and bought a McCarthy and Stone retirement flat. They were very young looking 60s. That way they got a chunk of equity to support their travelling life styles, a new motorhome and the knowledge that their flat was being looked after while they were on their extensive travels. I thought it was a pretty good idea - possibly better than equity release. You have to be at least 60 to get one though.


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## asprn (Feb 10, 2006)

mags52 said:


> ....McCarthy and Stone ....You have to be at least 60 to get one though.


Unless they've recently changed their rules, it's actually been 55 for many years.

Dougie.


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## mags52 (May 9, 2010)

I didn't know that ... possible sooner then!


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