Early retirement

[raysablade]

Had my end of year appraisal today, heaped with praise and feeling a bit crushed.

I'm 55 and facing huge penalties in my public sector scheme for going early. The only way out is redundancy and and with my qualifications and performance there is no change of that. Another 5 years at least for me:(

[KavKav]

Well I’m getting to a certain age - 2 years to my official retirement age (pension age that was, for our company pension scheme that was closed to new contributions last year). And getting more and more dissolusoned with the promises of ‘jam tomorrow’ and less than inflation pay rises and deminishing paltry ‘bonuses’.

Expected to work harder, produce more, with increased responsibility - with no (monatory) benefits.

Continual changes in structure and introduction of methods and practices that were around in 1986 (kanban / JIT) and pretending they are ‘new’ (Agile / Squads).

I’m sick of it.

Wife and I have seen a small place in Portugal- 2 bed ‘farm’ with own water well and solar heated water tank.

Why sweat it for another two years closer to the grave?

what do you think. Have any of you jumped early??

Martyn.

Hi Martyn,
Sorry to hear of your disillusionment, if you can afford it then that place in Portugal sounds attractive, just be prepared for integration not being a bed of roses at first. If tradesmen ‘mañana’ attitudes are similar to those in Provence, you will have ‘interesting times’ Friends of ours bought a property in Portugal about 10 years ago and have never regretted it, they go out there about 4 times a year.

For me, I was fortunate in being able to retire in 2002 at the age of 51 and I have loved every minute of it!
As long as you have interests (and I know you have) you should be fine!

Best of luck in whichever way you decide to jump!

[arisrosmaninho]

Where is it? Maybe I can visit you!
You won’t regret it.


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[PipPip]

I say go for it if the circumstances are right. I’m 47 and will fully retire at 55. I plan to semi retire at 50, when my pension will be fully sorted, by switching to contracting and doing 6 month contracts with long breaks in between. I work in Finance in London where there is a always masses of contract work making this possible. I chose my current job which I started a year ago with this plan in mind.

[yumma]

I retired last year at 53 .
best thing I have ever done .
small apartment in Spain that we use as much as possible .
no pension until next year at 55 as I cashed my company pensions in early and took reduced lump sum as never know what’s round the corner .
we have 2 rental properties and some investments and we get by on that .
life is too short .

To the OP; just do it. But this post gives me hope, I’m currently 43, PAYE, but have a half decent 4 bed detached, 1 bed flat in the city offering a great yield, but am still mortgaged to the hilt, but I know there are better times ahead, so this gives me hope for 10-12 years time. I’d keep a UK base but would consider southern Italy or Southern France.


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[Andyg]

Work to live - sounds like you don't need to.

Live to work - sounds like you hate it.

I retired last year (57) and since then I have loved it.

Hobbies are important hence split my time between gardening, DIY (just finished the downstairs cloakroom and it looks great partly because I was able to take my time), playing golf (and meeting lots of new people), enjoying doing Porsche stuff and finally providing consultancy to a children's charity.

The best bit of all is Sunday nights knowing I don't have to go to work on Monday.

I would do it, and move to Wiltshire Portugal is lovely, but do you really want to spend the rest of your life there?

[Lee A Kada]

I retired at 53. We have an apartment in Cyprus but also have our house in the UK so can flit between the 2. I was fortunate because my employer made me redundant at the right time (for us) and the money helped make the early retirement possible.

[TBKBABAB]

I think you’re ‘hanging in’ comment probably says it all, you want to do it and if you can financially then do it but I would say retire first then look into what you want to do.

I retired 8 days ago at 59, had intended to stay another year but I would have been hanging in.
Decided at Xmas that was pointless and it was time to think about myself and family instead of work.
Guess it’s the same for a lot of people these days but from getting up on Monday morning until I
got home Friday night I was thinking work for 95% of the time and was knackered at weekends.

I have a few things planned for the rest of the year and a reasonably long to do list but think it will take a while to adjust for both myself and my wife so better not to make any major changes immediately.
Also didn’t have a lot of time between deciding and actually going. This probably depends a bit on what you’re job entailed and how much time you have to plan.

Will make more solid plans later in the year, meantime in first week of retirement enjoying the alarm not going off and doing things when I want to do them rather than cramming everything into the weekend when I was knackered.
Sofar had an eye test mid morning Wednesday, mowed the lawn yesterday afternoon in the sunshine and today went up to London at 10 O’clock (used get the train at 06.40) did a F2F sale, tried a few watches on at WOS and Watchfinder and then came home when I wanted to.

My wife has already said I’m much more relaxed and I know I’m smiling a lot more, that started as soon as I told them at work.

Good luck whatever you decide.

[anz3001]

Again, if you can afford to, then do it. Work is about two things for me, money and/or enjoyment. If you don't need the money and aren't enjoying it, why are you still there?

[nibby]

Im 58 now.

I drive trains for a living.

Im retiring in 2 years time...............cant wait!!

Way more to life than work...if you can afford to retire, for me its a no brainer!

(as to "afford it"! we are all different, whats enough for me, is no way near enough for others!!...its a personal thing!)

Wise words - each to his own.

[bambam]

I say go for it if the circumstances are right. I’m 47 and will fully retire at 55. I plan to semi retire at 50, when my pension will be fully sorted, by switching to contracting and doing 6 month contracts with long breaks in between. I work in Finance in London where there is a always masses of contract work making this possible. I chose my current job which I started a year ago with this plan in mind.

That sounds like a good plan. Even better that you're already in a job with that in mind.

[MartynJC (UK)]

Just out of interest, to those of you who have retired early, I take it your mortgage free? How much income per year would you say you need to live comfortably if it were just you and the wife and no mortgage? I’m way off some of you guys being only 34 but I’m hoping at 55 I can own two properties outright. One being my main family home and another being a buy to let that I’m hoping to get this year on a 20 year mortgage. Hoping this could be my pension. I was even thinking about buying a place abroad now and renting it out to cover the mortgage so that in 20 years if I cashed in the Uk property for say £500k+, if I paid myself £40k a year that would take me up to 67.5. Any thoughts?

I have been mortgage free for a number of years due to family inheritances. In my experience your outgoings adapt to your income.

So you really need to figure out your expenditures and work from there ?

There are calculators on line for this - and really depends on your life style. One way to calculate what (retirement) income needed is to check your current income(s) and compare against your current spend. really depends how many Pateks you want to buy! My wife says we can sell one of my watches a year and have a little holiday for the next ten years!

My grand-dad used to say, “a penny more earned than you spend equals happiness, a penny less earned than you spend is sadness”.

[draftsmann]

I may be a dissenting voice here, but one of my great fears is that stopping work equates to starting to die. I totally believe in getting the right work-life balance, I’m not a workaholic, but I will quite happily continue what I’m doing for as long as I live or am able.

[Craizeehair]

I always planned to go at 55...

Best laid plans and all that! One expensive divorce, starting the mortgage game again at nearly 40 and 2 kids going to uni has changed the plan somewhat.

I would still like to go at 55 if I can stick for that long, at 47 now I will definitely have to adjust my aspirations but I am sure there is more to it than grinding out the last of our ‘good years’ at work when we could be trying on watches, playing golf, tormenting the wife or any number of other worthwhile hobbies.

Sounds like you have a plan... I say go for it :)

[MartynJC (UK)]

I may be a dissenting voice here, but one of my great fears is that stopping work equates to starting to die. I totally believe in getting the right work-life balance, I’m not a workaholic, but I will quite happily continue what I’m doing for as long as I live or am able.

Thanks for the fair comment. I do hear of many people dying soon after they retire. I guess retirement is not quite the right word? I want to leave my payed employement and have no constraints on what time or where I have to be

- - - Updated - - -

I may be a dissenting voice here, but one of my great fears is that stopping work equates to starting to die. I totally believe in getting the right work-life balance, I’m not a workaholic, but I will quite happily continue what I’m doing for as long as I live or am able.

Thanks for the fair comment. I do hear of many people dying soon after they retire. I guess retirement is not quite the right word? I want to leave my payed employement and have no constraints on what time or where I have to be

[classics]

I'm 46 and will be turning 47 in 4 months time, I took voluntary redundancy after 30 years last month.

I had enough with the demands, the so called achievable targets and PC bullshit, yes I'm too young, don't have property and don't have finances to retire yet but I got a very good leaving package.

I've paid into a company pension scheme for 28 years, put a fair chunk into a stock/shares and cash ISA account over the last 5 years so hopefully by 55 I can have the option to retire early, in the mean time I will be looking for a job that helps paid for a luxury holiday once a year.

Good luck with your next move in life.

[Motman]

The Father in Law took early retirement at 61 and enjoyed extended stays at their villa in Spain during the colder months. Had he worked on till his retirement age, he would have enjoyed just months of retirement before being struck down with cancer and dying at just 66 years old. If you can afford it, do it, you never know what is round the corner.

[village]

Martyn-
If you have had enough of work and can afford to go then just do it. Life is far to short to spend a couple of extra years doing something you don't really want to do and then looking back and regretting it.

[Slamdoor]

I packed it in at 56 with no regrets. Less income but what profiteth a man who gains the world but looses his soul? Or the chance for contentment free from the Sunday evening gut clenching feeling. If you really enjoy your work fair enough but otherwise go for it. When folk used to ask me why I retired early I said ‘because I can.’

[village]

Just out of interest, to those of you who have retired early, I take it your mortgage free? How much income per year would you say you need to live comfortably if it were just you and the wife and no mortgage? I’m way off some of you guys being only 34 but I’m hoping at 55 I can own two properties outright. One being my main family home and another being a buy to let that I’m hoping to get this year on a 20 year mortgage. Hoping this could be my pension. I was even thinking about buying a place abroad now and renting it out to cover the mortgage so that in 20 years if I cashed in the Uk property for say £500k+, if I paid myself £40k a year that would take me up to 67.5. Any thoughts?

Bit boring but are you solely relying on the property as your pension? 67 isn't much of an age to plan to tbh. I'm no pensions expert but I would advise starting a pension fund if you haven't already.

[ryanb741]

I’m 40 but will bugger off to Thailand at 56. Wife doesn’t work and I have a relatively large mortgage (£420k) but building up a decent pension pot, will set up a load of Isas plus the wife already has a house in Chiang Mai. So can probably get by in Thailand for £30k a year or so for me and the missus which by then the Isas will cover until I’m 60, at which point there should be a million or so in the pension and I can take out 5% of that (the average annual growth) and easily live off that. Meanwhile rent out the UK property so it gets paid off and my son can have that when I kick the bucket.


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[Cookie]

Retired 2 years ago at 55. Loving every minute of it. Busier now than I ever was at work - but doing the things I enjoy and want to do. Key for me was reducing my outgoings from around 50, getting rid of any debt, overpaying mortgage and generally trying to live on less. Moved house at 55 and cleared the last of the mortgage and living of flexi drawdown income and a few investments. Decided against property abroad but upped number of holidays to around 6 to compensate.

As many have said already - if you think you can do it, don’t procrastinate . You’re a long time dead. 🤔

[oldoakknives]

I retired at 60 thanks to some good fortune with property and thought I would miss work and colleagues etc.
Nothing could be further from the truth for me, enjoying more time for hobbies and generally enjoying life.
If you are the sort of person who has few interests then you might be bored perhaps and miss work. We don’t.

[demonloop]

You won’t be able to draw on any pension plans until 55, but perhaps you have other investment? Good luck with whatever you do!

Yes, that’s my understanding. My pension can’t be drawn until 55. But it’s only small anyway.

Im naturally suspicious of any financial services (crooks and chancers imo) so I’ve been making my own investments over the years.

And knowing my luck the stock market will collapse when I’m 54 anyway and hammer the pension pot, so I’m rowing my own canoe.

[Passenger]

Yes, that’s my understanding. My pension can’t be drawn until 55. But it’s only small anyway.

Im naturally suspicious of any financial services (crooks and chancers imo) so I’ve been making my own investments over the years.

And knowing my luck the stock market will collapse when I’m 54 anyway and hammer the pension pot, so I’m rowing my own canoe.

I share some of your views, I've tended towards property over pensions, although I've got a couple of small ones in the background, just couldn't get my head around the restrictions a traditional pension places upon my own hard earned but everyones mileage is different. Genuine price discovery on stock markets is hard, deliberately so, and the confirmed facts on market manipulation is troubling likewise the way that measures like QE can contribute to bubbles.

I took a self funded sabbatical about 8 years ago at 39, so far so good.

[JonRA]

No longer enjoying my job, coupled with redundancy were the catalysts to me retiring at 58.

I'd echo the views of many here that if you're ready for a change then go for it. I'm early 60's now and three of my childhood friends (same age) have died within the past 6 months. Seize the day!

ATB

Jon

[MonkeyBoy]

My father died at 64 and I initially retired at 49 but it wasn't for me. I've worked part time since and happier for that. I'm now 59 and my current project is due to finish this year at which point I will retire. However, I have small holding and will continue to tinker with that.

We have have different circumstances, do whatever feels right for your family and importantly your health.

[senwar]

I always said (even at 16) I wanted to retire at 55. I'm 47 this year.

My first job was a YTS for British Coal and pensions were instilled into us when we went permanent. Was the best advice I ever had, and my only regret was not paying AVC's

Still aiming to finish at 55 and reading this thread makes me feel this even more. Even similar thoughts re buying a property and also fancying Portugal.

Saying that, I start a new job in 2 weeks - it scares me to think it may be my last - but I'm hoping it will be an enjoyable end to an enjoyable career.

Good luck in what you do

[blackal]

I would still advise against selling any house in the UK and severing financial ties, but also:

Wait and see what UK leaving the EU has as an effect on your basic plan?

[LuvWatch]

I am retiring at the end of April after 39 years in the NHS, my wife will also go at the same time - really looking forward to it.

Paying off the mortgage, reducing outgoings and picking up part-time work for a couple of days a week will enable us to do the things we enjoy while still fit and able to do them.

[craig1912]

Retiring at the end of the year. Will be 58. Took a transfer value from FS scheme to give me flexibility. Will look to do some part time or voluntary work. This looks attractive for anyone willing to live in Portugal for at least six months.

https://www.blevinsfranks.com/news/a...-free-pensions

[bambam]

This post seems to be more about financial freedom as opposed to retirement per se and that I think is the way that many people will be / are going. By that I mean that more of us will leave the corporate grind sooner than before (as in younger than traditionally) and continue to work but in a more flexible manner.

Financial freedom is the ability to do that, or not, as the case may be.

I quite like reading what this guy says on the matter - https://theescapeartist.me One of the things he talks about is 'The Number' - as in at what number can you afford to not have to work? His posts talk about many people hanging on for 'just one more year' even though they have hit their number. Some of the posts on here reminded me of that so I thought it was worth sharing.

I went to see him a while back and it was definitely worth the time and money.

For me it has definitely been about trying to learn a new perspective as to how I see money, what I choose to spend it on etc. I can't say that I'm a model student - the 5litre V8 is testament to that! But I am trying...

Fascinating posts and perspectives.

[raptor]

If i may say as i was seeing most of the UK applicants health questionnaires and medical reports i would say retire asap :)
If your excel chart doesnt tell you not to do so maybe your health will do

[Mick P]

To take retirement or to delay - that is the question.

Just received a message this morning, my Brother in Law has just been diagnosed with multiple terminal cancers. He is in his late fifties. So your wire can be cut anytime.

I have lost several friends over the last 12 months, almost one a month and it's got to the stage where I am reluctant to leave the UK in case I miss a funeral.

The best bet is to take your retirement as soon as you can, you are a short time living and a long time dead.

[Passenger]

This post seems to be more about financial freedom as opposed to retirement per se and that I think is the way that many people will be / are going. By that I mean that more of us will leave the corporate grind sooner than before (as in younger than traditionally) and continue to work but in a more flexible manner.

Financial freedom is the ability to do that, or not, as the case may be.

I quite like reading what this guy says on the matter - https://theescapeartist.me One of the things he talks about is 'The Number' - as in at what number can you afford to not have to work? His posts talk about many people hanging on for 'just one more year' even though they have hit their number. Some of the posts on here reminded me of that so I thought it was worth sharing.

I went to see him a while back and it was definitely worth the time and money.

For me it has definitely been about trying to learn a new perspective as to how I see money, what I choose to spend it on etc. I can't say that I'm a model student - the 5litre V8 is testament to that! But I am trying...


Fascinating posts and perspectives.

Good point, thanks for the link.

At first glance I'd say thats definitely worth a look if you're interested in the subject. His recomendation about ensuring your investment portfolio is at least 25 times annual expenditure, is on the money.

[bambam]

Good point, thanks for the link.

You're welcome. My view is that the more people share their views and perspectives the more we will all learn and potentially come across something that inspires or is a way of looking at things that means more than previously.

That's why I like threads like this - you get to hear all kinds of views and perspectives and approaches. Some resonate and reinforce and some don't, but both are helpful.

[Yeti]

Bit boring but are you solely relying on the property as your pension? 67 isn't much of an age to plan to tbh. I'm no pensions expert but I would advise starting a pension fund if you haven't already.

I have a pension at work, nothing special. I’m like a lot of others on here, I’m hoping to make my own pension or be in a position where property works better for me..

[Gee252]

Go for it, the last couple of years losing loved ones has changed my perspective!
I'm 48 with two years left on my mortgage, I have been paying 10% of my income into a pension for quite a while so I'm hoping at 55 that's me done with stress and hassle!
Not saying stop work altogether, worked from 16 and get bored easy (years of my mind being occupied 7 days a week with or thinking about work!)
I would like to think work a few days a week for spending money, lots of holidays in the sun and basically do what I want when I want, I think that is the key and that means being financially secure.
I think at 55, 39 years of working in a stressful environment spending 30 of them working from home, missing my kids growing up I will have earned it !!!

I say crack on, jump off the daily slog and live a little (or should I say alot)
Good luck with this.

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[D_redd]

Interesting read. I've not sat down (ever) and worked where I will be in 5, 10, 15 years. I have read that successful people usually have a 5, 10, 15.... year plan. I'm a little slow though. I'm in the process of remortgaging (85k over 20 years on a 30k PAYE salary) to pay for a divorce at the age of 42. I've only had a company pension for 8 years and all the isas I've had have been withdrawn to pay the ex wife off. House is valued at approx 420k. Unless I start doing the lottery AND win big, I'm working until I'm 99. I envy everyone that doesn't need to work until government retirement age.

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[jwillans]

Interesting read. I've not sat down (ever) and worked where I will be in 5, 10, 15 years. I have read that successful people usually have a 5, 10, 15.... year plan. I'm a little slow though. I'm in the process of remortgaging (85k over 20 years on a 30k PAYE salary) to pay for a divorce at the age of 42. I've only had a company pension for 8 years and all the isas I've had have been withdrawn to pay the ex wife off. House is valued at approx 420k. Unless I start doing the lottery AND win big, I'm working until I'm 99. I envy everyone that doesn't need to work until government retirement age.

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In the interest of balance - I think many of us are in the same boat with pensions. I very much enjoy working and have no aspiration at this stage to retire in my 50s (I am 41) but then it is unlikely my pension pots and other commitments would allow me to do so.

[D_redd]

I don't mind my paper shuffling desk job, but it would be nice to have more time with my kids. And when the boss retires I'm probably out of a job anyway. I've not thought about it at all because I wouldn't have the option to retire early anyway.

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[magirus]

I retired at 50, 11 years ago come June, after 32 years as a firefighter. The first 10 years were wonderful, then the wife wrapped in . . .

[TomGW]

To the OP; you're considering two major life changes together and I totally understand that one is dependant on the other. As far as retiring early is concerned, I would thoroughly recommend going for it, providing the numbers stack up.

My wife and I both 'retired' 6 years ago at 55. However, we were fortunate in that voluntary redundancy was being offered on enhanced terms and my wife continued to do some part-time supply teaching until last year. I was a civil servant and started a private consultancy, which I am still carrying on, so we both continued to have an income and didn't take our pensions until age 58. Now my wife doesn't work at all, while my work is as flexible as I want it to be. We are enjoying the freedom of retirement and the opportunity to travel that we didn't have when we were working and raising a family.

While the notion of moving to a sunnier climate is certainly attractive, family ties, not least a first grandson, make that a likely non-starter for us. Having said that, we are seriously considering selling an investment property and buying a holiday property abroad (France/Spain/Portugal).

[Pretzel]

Excellent thread and keep the replies coming. I liked that link which said work out how much you need to spend a year and times that by 25 to see if your assets/portfolio would cover it. After talking to friends a while back we came up with the figure of £30k a year for a couple to have a good comfortable retirement life in the UK. I wonder what those already retired think about that?

In addition it would be interesting to see how that figure (£30k) in the Uk compares with other countries, Portugal, Spain and France in particular.

[Omegamanic]

I had originally planned to retire at 55, but a costly separation and two children far too close to Uni age will no doubt see any chance of that disappear quite quickly.

I did however scale back my hours quite considerable for a while until last year, but will reduce them back down again this year. Im hoping that the part-time will give me just enough freedoms and all cover a little more than the basics.

I'd love to retire, but simply won't have a pension comfortable enough to achieve it, and it wouldn't be payable for another 20 years in any case.

Maybe I need to do something completely different, or just concentrate more on areas that I really enjoy. There are lots of options and opportunities for most people at all ages.

[Mick P]

Excellent thread and keep the replies coming. I liked that link which said work out how much you need to spend a year and times that by 25 to see if your assets/portfolio would cover it. After talking to friends a while back we came up with the figure of £30k a year for a couple to have a good comfortable retirement life in the UK. I wonder what those already retired think about that?

I couldn't live on that but I will admit to living a rather over indulgent lifestyle. I have three houses (one in the UK and two in Spain) which I flit around in. So I have to maintain 3 houses and I don't rent them because I like to just turn up on a whim. Also a lot of air flights and eating out in good restaurants all add to the cost. Also as you get older, you start paying people to do what you once would have done yourself.

The thing to remember that retirement is not as cheap as the non retired think it is. You don't work any longer and you got to get out and do things or you would go bananas. The concept of retired people staying in the house all day, wearing the same clothes for years, running the same old car for ever and not buying anything new just is not reality.

Basically the aim in retirement should be to do the things you did not previously have the time to do and go for it before you expire this mortal coil.

If I were to drop dead right now, everyone would say "he had a bloody good retirement" and that should be the aim of every retiree.

[Griswold]

Another early retiree here. 18 months early at 58 when I realised that I wasn't working for my salary, I was working for the difference between my salary and the pension I could immediately draw on. The aggravation alone of the travel into Manchester every day wasn't worth that difference and had I realised that earlier I would have gone even sooner. Several of my work colleagues did the same.

I now own my own small IT business which keeps my brain active and brings in a few extra beans to help pay for all the hobbies I now have the time to pursue.

Apart from marrying Lynn it's the best thing I ever did.

If you're debt free then you really do have to consider if the difference between your salary and your pension is worth going into work to make someone else look good for.

[KavKav]

You are so right, you are working for the difference and if that does not stack up as value, time to go! The big one for me which is often overlooked is that your time becomes your own!

[sid]

Retired from NHS at 56 but returned to work one day 12 hrs per week which i can do as annualised hours. Spend three one month periods in the year in europe motorhoming. No mortage for ten years can easily live on 30k per year as a couple. You get to a certain age and you realise you are nearer the end than the beginning and your attitude to everything changes

[draftsmann]

I couldn't live on that but I will admit to living a rather over indulgent lifestyle. I have three houses (one in the UK and two in Spain) which I flit around in. So I have to maintain 3 houses and I don't rent them because I like to just turn up on a whim. Also a lot of air flights and eating out in good restaurants all add to the cost. Also as you get older, you start paying people to do what you once would have done yourself.

The thing to remember that retirement is not as cheap as the non retired think it is. You don't work any longer and you got to get out and do things or you would go bananas. The concept of retired people staying in the house all day, wearing the same clothes for years, running the same old car for ever and not buying anything new just is not reality.

Basically the aim in retirement should be to do the things you did not previously have the time to do and go for it before you expire this mortal coil.

If I were to drop dead right now, everyone would say "he had a bloody good retirement" and that should be the aim of every retiree.

Mick, I know that my agreeing with you sends you incandescent, but I think you’re absolutely right on all counts there.