When to retire after 2028

M

moneymakeover

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In 2028 the state contributory pension will be paid to people over 68.

I'm pondering how to survive if say I retire early say aged 66.

I have heard job seekers allowance is an option but not an attractive one to me.

Let's say I'm contributing the max for the next 10 or 12 years.

And along the way I manage to hit a total of 800k

Say that happens agre 65.5

And decide to retire aged 66

Pot of cash 25% = 200k

Then I will purchase a AMRF 63k leaves 137k

Then live on pension plus cash for two years until state pension kicks in.

Makes sense?
 
Just occurred to me the 800k that qualifies for 25% lump sum will probably increase in the next 12 years
Probably go up to 1 million
 
You need to look at it differently - how much do you need each year to live on?

The full state pension is just over € 12,000 a year, if you qualify for the full amount.
 
After taking a €200k tax-free lump sum from your targeted €800k pension pot you will still have €600k left to buy an annuity or to invest in an ARF/ARMF that you gradually draw down.

€600k would buy an income of ~€24k per annum.

That's in addition to the €200k lump sum and in addition to any State pension.
 
Yes, the AMRF isn’t purchased using your tax-free lump sum; it comes out of the €600k. And you can access 4% of the AMRF each year.
 
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