Reduncancy (maybe) and retirement beckons

Some of my previous posts highlighted the stresses and strains of deciding to retire. Retiring is a significant life step, so it mustn't be taken lightly, but it can also be a liberating and positive decision.

Earlier today my company announced more redundancies, having only completed a round earlier this year. Redundancies suck, even if you're not directly affected. Productivity sinks as folk reevaluate things. Even if you're position is safe, it is natural that you ask searching questions about what you want in the future. Is this still the company you see yourself working for? How can I protect myself from any future redundancies?

The tech industry is going through a hard time of late. One look at LinkedIn and it tells you there are lots of folk being laid off. The good news is there are jobs out there, even if the competition for them is more challenging.

I'm waiting to see with bated breath if I'll be affected. I already know that others around me are. News like this is upsetting and sucks all energy from you. A state of inertia everywhere sees everyone stop doing real work and ask questions. People like certainty, and without it, you can't function effectively.

I'm in a lucky position. I'm at the tail end of my career. If the worst happens I won't be too bothered. That's not that I won't feel shocked. I want to retire on my terms, not someone else's, but it won't be the end of the world. 

Over the last year, I've thought about retirement and how I'd fill my days. Voluntary work is something I want to pursue, as is improving my golf, and learning Arabic. Whilst the general themes are beginning to be fleshed out, the detail has yet to be firmed up. It is this that is the most unsettling as I'd hoped to have this sorted before the fateful day when I turn off the laptop for the last time.

Whatever happens in the next few days, you can be sure I'll be OK. I'm thankful to have spent (to date) 47 years paying my taxes. I've had a whale of a time making many friends and even more fond memories. So if I'm made redundant I'll raise a glass to the past, and another to the future.

The 2023 Spring budget: what will it offer prospective retirees?

Remember when a Chancellor's budget was full of surprises? The anticipation of just how much the income tax threshold would rise or fall was palpable. No one outside of a select group of senior cabinet ministers had even an inkling of what the Chancellor was going to say when they stood up in the House of Commons.

That has all changed. These days we pretty much know the headlines days beforehand. Despite reminders from the Speaker of the House that leaking details of the budget is not allowed, it is now standard practice. Of course, it doesn't officially happen. If you ask the Prime Minister or Chancellor how on earth it could happen, you'll get no answer.

The absence of any real surprises in the budget is a bit of a letdown. If we know what the Chancellor is going to say, what is the point in him saying it. It just adds some political theatre. Admittedly they may have one or two cards up their sleeve, and they may add some colour to the overall picture.

As a prospective retiree, I'm interested in what the Chancellor is doing for folk like me. Yes just like everyone else, I'm just interested in pounds, shillings, and pence. He seems to be trying to encourage folk like me to delay retirement. Will his strategy work?

Increases to the pension contribution thresholds are helpful to those able to contribute more to their pension funds, but that won't be many. Even the current £40k annual limit is beyond most of us, so raising it to a reported £60k will only help high earners with lots of disposable income. Out of the few who have at least £40k a year spare, how many would consider a £20k increase enough of an incentive to keep their nose to the grindstone?

After 40+ years of service, I won't be tempted to continue working. As soon as I feel the time is right, I'll hang up my name badge for good and disappear into the sunset with an enormous grin on my face. I'm not alone. Why would anyone in my position want to carry on working?

The whole point of a pension is to build up a pot big enough to provide what you need later in life. Once you've achieved that objective, most would call it a day. Having additional cash to spend may be OK for some, but if you've done your calculations correctly why would you need it?

To retire or carry on regardless?

Last week I very nearly made the decision to retire. I'll cover the reasons why I didn't in a future post, but for now I'm still in the land of the employed.

Retiring is not a decision to be taken lightly. There are many factors to consider before making the leap. 

Top of my list is whether I'll be able to afford the standard of living I aspire to in retirement. Thankfully it looks like I'll have no issues there, although unless you're on a final salary pension, your pension annuity is always an unknown quantity until the day you decide to take it.

Then there is how I'll spend all that free time. I doubt I'll have any problems with that either. I want to spend more time outdoors doing what I enjoy, be it walking, playing golf, or exercising. Maybe I'll volunteer somewhere and give something back to society.

Finally, there's the question of what my wife wants. She may continue working for a few years after I retire. That would be my ideal scenario, as selfishly it would allow me to do the things I know she doesn't like. However, anyone in a long-term relationship knows that a bit of give and take is part of the deal, and you know what they say...

"A happy wife is a happy life."