At 69, Mike Collins is far from slowing down. After a career spent teaching in schools across the UK, he now works part-time as an education ranger at an outdoor learning centre an active retirement by most standards. Each month, he manages a post-retirement income of £2,600, drawn from a mix of his state pension, the Teachers’ Pension Scheme, and a workplace pension from his current part-time job.

In this week’s instalment of How I Manage My Money, we talk to Mike about financial planning in later life, the freedom pensions provide, and the role of careful investing in enjoying a secure retirement.

Life After Full-Time Work

Mike officially retired several years ago but didn’t feel ready to leave the workforce entirely. “I loved teaching, and I still wanted to stay active and do something meaningful,” he says.

He found a new role as an education ranger, which allows him to work in nature, guide school trips, and promote environmental education. His part-time job pays around £1,900 per month before tax, and he also receives £700 per month from a workplace pension, bringing his total monthly income to about £2,600 after tax.

This amount comfortably covers his living costs, allows for leisure spending, and lets him continue supporting his children and grandchildren when needed.

Pension Planning and Retirement Income

A significant portion of Mike’s income comes from pensions he began contributing to early in his teaching career. He receives a Teachers’ Pension as well as his State Pension, which is currently up to £221.20 per week for those qualifying for the full new State Pension amount (as of 2024–2025).

Mike also receives an additional £700 per month from a private workplace pension connected to his part-time employment, showing the value of continuing to work with employers offering pension schemes even after official retirement.

“I made the decision early to pay extra into my pension,” he says. “It’s definitely paid off.”

Investing the Lump Sum

Upon retirement, Mike opted to take part of his Teachers’ Pension as a lump sum, a common option available through many public-sector pension schemes. He didn’t spend it all; instead, he worked with a financial advisor to invest it in a balanced portfolio.

His investments include:

• A Stocks and Shares ISA, which offers tax-free returns on investments.
• A General Investment Account (GIA).
• A personal pension, allowing additional flexibility for later-life withdrawals.

For more details on pension lump sums and tax rules, the government provides guidance at gov.uk/tax-on-your-private-pension.

“I didn’t want to just sit on the money,” Mike says. “I wanted it to keep growing and give me peace of mind.”

Spending and Saving

Mike is disciplined but not frugal. He rents a home, which he says keeps things simple, and his biggest recurring expenses include:

• Rent: £850/month
• Food and household bills: £400/month
• Car and travel: £200/month
• Leisure and hobbies: £150/month

He also sets aside money each month for holidays particularly adventure breaks. “Mountain biking, hiking, photography I love it all,” he says. “I wouldn’t enjoy retirement if I couldn’t explore.”

Importantly, he maintains an emergency fund and keeps regular tabs on his investments and pension drawdowns.

Advice to Others

For those thinking about retirement, Mike offers three key takeaways:

1. Start your pension early: “Even small contributions add up over time. And if you’re a teacher, make sure you’re enrolled in the Teachers’ Pension Scheme.”
2. Seek financial advice: “A good advisor can help you make the most of your lump sum or investments.”
3. Stay active and curious: “Retirement doesn’t have to mean stopping work it can mean choosing work that fits your passions.”

Resources

If you’re planning for retirement or want to understand your pension options, here are some useful links:

• State Pension – GOV.UK
• Teachers’ Pensions – Official Site
• Tax on Your Private Pension – GOV.UK
• Pension Wise (Free Guidance Service)

Final Thought

Mike’s story is a refreshing reminder that financial freedom in retirement doesn’t require extraordinary wealth it takes foresight, consistency, and a willingness to adapt. By planning early, staying engaged, and using the tools available like pensions, ISAs, and professional advice he’s carved out a life filled with purpose, security, and joy. For anyone approaching retirement or rethinking what later life can look like, Mike’s journey shows that it’s never too late to build a future that works for you.