Comapnay offering a lump sum for me to retire

[paulajayne]

Hi to all.

I cannot seem to find any guidelines on my situation.
Perhaps one of our experts can assist.

1. Just turned 66.
2. Work as an engineer in refrigeration/ cold storage.
3. Very fit with no medical problems.
4. Was planning to retire in spring of 2019.
5. The above date will allow me to finish rebuild of my yacht and move aboard ready to cruise the Med and Caribbean.
6. Retiring early will allow me to concentrate on the boat rebuild and finish much earlier.
7. Moving on board means no rent / gas / water bill.
8. Wages from the company are circa £25K -
9. I also have state pension and Military pension which is about £1.4 k / month.

My company have asked if I will bring my retirement forward with the offer of a lump sum.

After playing the numbers game, my initial feeling are a sum of one years wage £25k, or a very minimum offer of £15K.

£15k would allow me to pay off the boat purchase loan and reduce my outgoings by £400 and so my state and army pension becomes just viable to live on.

Thoughts - guidance please.

Thanks

Paula

[ostell]

Re: Comapnay offering a lump sum for me to retire

So will you also be getting a pension from this company? You will find that what you think of as just viable will be more than adequate because of the reduction in other payments, such as travel to and from work etc. If you gave us your gross salary then remember there will be no NI on a pension.

Can they perhaps offer you a redundancy so that you can take advantage of the tax relief afforded by redundancy?

I took retirement earlier than planned, a lot earlier, and was worried about if I could live on the pension etc but was pleasantly surprised that I could.

Best of luck with the sailing off into the blue yonder. Have just sepnt a year off the water because some b***g t boned me on the mooring and put a hole in it, besides other damage.

[paulajayne]

Re: Comapnay offering a lump sum for me to retire

No pension from this company.

How are your repairs coming along?

[ostell]

Re: Comapnay offering a lump sum for me to retire

Repairs now done but today should have been lift out day at the club. Will be on here later on help to raise a claim against the person that hit me..

[warwick65]

Re: Comapnay offering a lump sum for me to retire

No pension at all? Not even a work place one which i know isn't worth a great deal but ...

Something else to think about is how much notice does your contract require them to give you

At 66 I really would be looking at this very carefully because you want to be able to spend your retirement doing what you want to do and who knows what may happen in the next 15 months

BTW is the pension you mentioned gross or net or are you paying tax on all your earnings - I also assume that at the moment you are not paying any NI contributions - if you are get that checked out

[paulajayne]

Re: Comapnay offering a lump sum for me to retire

Not paying NI. Pension amounts are net and taxable. One months notice.

[Guest]

Re: Comapnay offering a lump sum for me to retire

My Facts

1. Just turned 66.
2. Work as an engineer in refrigeration/ cold storage.
3. Very fit with no medical problems.
4. Was planning to retire in spring of 2019.
5. The above date will allow me to finish rebuild of my yacht and move aboard ready to cruise the Med and Caribbean.
6. Retiring early will allow me to concentrate on the boat rebuild and finish much earlier.
7. Moving on board means no rent / gas / water bill.
8. Wages from the company are circa £25K -
9. I also have state pension and Military pension which is about £1.4 k / month.

Most of your facts have no real real relevence!.

Those from 1 -6 in particular, need I to actually specify reasons?
7. just reduces your costs

1.Age; why is 66 significant?

2.Work; is this a protected area?

3 - 7 These are Personal choices, you choose?

8 - 9 are your income

Could you live on these, Your choice?