bobnewbury
Well-Known Member
Here's a little poser for you:
End of the 10 year countdown to sailing into the blue yonder accelerated a bit. Boat paid for, and it looks like I may have early retirement forced (?) upon me. The plan therefore was to leave next May (ish).
In an uncharacteristic rush of blood to the head we decided to give some thought to finances and look into pensions etc. My pension should be payable from (say) next April, and will amount to about £370 per week & a lump sum of about £40K. This, we calculate, should be enough to live on if we bugger off to the Med.
Then we looked into Liz's pension arrangements. We assumed that her pension would kick in when she hits 60 (April 2011) but found that due to an obscure clause in her scheme, she could retire at 55 (April 2006).
Now here's the rub. It seems that if we leave next year as planned, she can't get a pension until 2011 and then it will be worth £140 per week. If she stays one more year, she gets a pension of £150 per week AND a lump sum of £23K, which she does not get at all if she leaves one year earlier.
So, by a back of the envelope calculation, the extra year's work is worth 5 years @ £150 per week + £23 000 = £62 000.
Apart form the psychological let-down of building up to leaving and then having to add a year, the question is - Is a year's cruising worth 62 grand?
Answers on a postcard. I'll post this on the liveaboard site and see what the voices of experience say.
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End of the 10 year countdown to sailing into the blue yonder accelerated a bit. Boat paid for, and it looks like I may have early retirement forced (?) upon me. The plan therefore was to leave next May (ish).
In an uncharacteristic rush of blood to the head we decided to give some thought to finances and look into pensions etc. My pension should be payable from (say) next April, and will amount to about £370 per week & a lump sum of about £40K. This, we calculate, should be enough to live on if we bugger off to the Med.
Then we looked into Liz's pension arrangements. We assumed that her pension would kick in when she hits 60 (April 2011) but found that due to an obscure clause in her scheme, she could retire at 55 (April 2006).
Now here's the rub. It seems that if we leave next year as planned, she can't get a pension until 2011 and then it will be worth £140 per week. If she stays one more year, she gets a pension of £150 per week AND a lump sum of £23K, which she does not get at all if she leaves one year earlier.
So, by a back of the envelope calculation, the extra year's work is worth 5 years @ £150 per week + £23 000 = £62 000.
Apart form the psychological let-down of building up to leaving and then having to add a year, the question is - Is a year's cruising worth 62 grand?
Answers on a postcard. I'll post this on the liveaboard site and see what the voices of experience say.
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