Just turned 50 - hoping to retire in 4/5 years max - give me a reality check
As title says, I turned 50 this week so am doing a proper overview of the finances to see where we are.
I currently earn £62k as a Social Work manager in NHS in Northern Ireland and I've been paying into the NHS defined benefit pension for around 18 years. If I continue in this role for the next 5 years I will be able to draw a yearly pension of just over £13k from 55. My wife is currently working part-time in a minimum wage job (20 hours) which brings in around £1k per month.
We also own 2 rental properties (mortgage free) which bring in around £1300 per month before taxes and expenses.
So to break everything down it looks like this:
At 55- incomings:
DB NHS pension: £13k
Rental income (before tax and expenses) £15k (so probably around £11k net)
ISA (currently £34k but will pay in max every year): £130-150k depending on markets
at 55 - expenditure:
Aiming to be mortgage free (current mortgage is £44k and we overpay)
Average family expenditure for basics is around £16k per year
So I'm aiming to achieve income of £30k per year until we hit state pension age at 67 when both myself and my wife will get a full pension.
My plan is to use the ISA to top up rental income and pension for potentially 12 years so I could possibly take £10k of that per year if I wanted but in some years I wouldn't use as much. So aim isn't really to maintain the ISA amount, rather to drain it while we are still young enough to enjoy it and then aim to hit 67 with perhaps £40-50k left when the state pension kicks in.
We live fairly frugally but would hope to get at least one holiday a year and live in relative comfort.
Thoughts?