Its not a humble brag and i appreciate its a very first world problem, but here goes….
Im aware that my pension will be more than some people, including family members and friends earn, working full time.
Im 55 yrs old v soon. That means i can retire should i wish. Im definately going to retire, but i have a bit of a dilemma.
My pension will start being paid straight away and its index linked. Its linked to whatevr is the lower, CPI or PRi, i cant remember which.
The long and short is do i take a lump sum or not, as this alters my monthly income.
The figures are c.£1700pcm after tax, or £1340pcm after tax and a lump sum of c.£120k The higher figure is more than i currently live on after my mortgaga and a small loan that finish in a month.
Disregarding index linking, the difference will mean around 24yrs of the higher sum to net the lump sum equivalent. That means i will be 79 before the higher monthly pension seems better.
I have a daughter at University who i have saved enough to support for her next 18 months until she qualifies as a Dr. This wont come from my monthly income. My mortgage will be finished and we would like to do some remedial work to the house. Id like to buy a van and convert for me and MrsB to travel and ride bikes/surf/kitesurf in cool locations.
As im 55 i realise that the sun is setting on me and that my best years are behind me. The adventures i want to have need to be done before i get too frail and want cocoa and slippers.
So, what would you do and why? Anyone been in this situation and can say they did it right or wrong?
thanks
Ian