Would it be realistic for me to retire in three years time, when I will reach 53 years of age?
I was a teacher for many years but a few years ago changed to a lower paid but less stressful/less time consuming civil service job.
I am now mortgage free with a small bungalow and no dependants.
My teachers’ pension will start in ten years time when I am 60 and will start at approx £12,000 together with a lump sum.
My civil service pension will start in 17 years time when I am 67 and currently will start at about £3,000 (I transferred in an old stakeholder pension) and will start at about £4,500 if I stay working another three years.
My state pension is due to start at 67, so in 17 years time, and I will have built up the full NI contributions by then (I need 37 years due to being contracted out).
What I’m not sure is will I be able to manage on my savings & investments between from age 53 to age 60 when the first pension starts, and then to age 67 when the other two pensions kick in?
I’ve got about £400,000 in savings & investments. A quarter of this is in premium bonds & cash ISAs. The rest is in stocks and shares which produce a dividend income of about £6,000 although it’s currently being reinvested.
I don’t have any children so leaving an inheritance isn’t an issue for me.
I feel like I should be able to take the plunge and retire now and live off the investments and savings, but it feels like a big step to take.
