Possible retirement at 55

mojothefishmo · Post by **mojothefishmo** » 09 Aug 2016, 20:29

I have 7 years to go to 55 and that would give me 24 years service pension wise and the way the job is going at the moment it cant come quick enough,is it a viable option to retire at 55 and what sort of figures lump sums and choices would be available

Many thx

Steve

Post by **RobertT** » 10 Aug 2016, 16:48

Your NRA60 would be reduced by 25% and your NRA65(upto 2018 when the RMPP is expected to close) will be reduced by 50% if you take it all at 55. The same would apply to any lump sums you take. The figures involved will be on your annual statement.

From 2018 onwards it looks like we’ll be paying into the RMDCP instead which would give you an ‘extra’ chunk of money to play with. But how much that is worth will depend on your level of contributions and the returns on the investments.

Whether retiring at 55 is viable will depend on your own circumstances.

jetblack · Post by **jetblack** » 10 Aug 2016, 17:57

As Robert said, it depends on your individual circumstances.

But if you're serious about retiring at 55, if you haven't already, maximise (tax friendly) payments to your pension via AVC's and Sipps. ISA's also will play a part. You need enough to keep you ticking over till the state pension kicks in at 66. I personally wouldn't want to "eat into" my capital to do that - but if that wasn't a concern for you it might be much more do-able.

I know it sounds like a truism, but your ability to live a decent life isn't just dependant on the money you have coming in, but on the money going out also - so that side needs to be a big part of your retirement planning also.