Early-retirement wannabe

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    OldMusicGuy wrote: »
    No pension but a significant amount of restricted stock options vesting plus my annual bonus. Would fund around two years of retirement income. My son finished Uni this month so did not want to stop before that. I have considered going now but the lump sum I will get in February is making me hang on. But it is tough!

    If you don't have a pension, open one up now, don't pass up the tax bump especially if you are on 40% or higher tax, not to mention depending what you earn this year you could claw back allowances you've missed out on for at least last year.
  • OldMusicGuy
    OldMusicGuy Posts: 1,758 Forumite
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    Marine_life wrote: »
    It is difficult but I would focus on building in a few small milestones along the way (maybe a couple of holidays) to give you something positive to look forward to during the difficult months ahead. After so many years of working I am sure the next few months will pass in a flash.
    Good advice, I'm already doing that with major work projects, getting into the "well that's the last time I will have to do that" mindframe. My employer knows I am retiring so there are some things that are already being allocated to other people and at least I can refuse getting involved in new projects. But the days are dragging.....
    AnotherJoe wrote: »
    If you don't have a pension, open one up now, don't pass up the tax bump especially if you are on 40% or higher tax, not to mention depending what you earn this year you could claw back allowances you've missed out on for at least last year.
    Don't worry, I have a big SIPP pot. I have completely maxed out all my contribution allowances (including the carry forward allowances) in the last few years as I have been in the 45% tax bracket. That's why my income will drop so much in retirement. After a 40 year career I've ended up earning quite well so have been putting a lot of money into the SIPP over the last 5 years.

    However, I have no DB pensions at all, hence no specific need to wait until 60. The first job I had back in 1978 was working for Amoco, and that was the only company in my career that had a DB pension scheme (which was probably non-contributory). I worked there for just under 5 years before I moved to a new job. I found out later in life that if I had worked there for at least 5 years, I would have been entitled to a pension. OK it wouldn't have been massive, but any inflation linked income stream is worth having in retirement IMO. Old me is kicking young me up the backside for not just hanging on a few months more in that first job! :rotfl:
  • Marine_life
    Marine_life Posts: 1,059 Forumite
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    OldMusicGuy wrote: »
    The first job I had back in 1978 was working for Amoco, and that was the only company in my career that had a DB pension scheme (which was probably non-contributory). I worked there for just under 5 years before I moved to a new job. I found out later in life that if I had worked there for at least 5 years, I would have been entitled to a pension. OK it wouldn't have been massive, but any inflation linked income stream is worth having in retirement IMO. Old me is kicking young me up the backside for not just hanging on a few months more in that first job! :rotfl:

    I guess we were all a little bit oblivious to the true value of DB pensions back in the day and I am one of those who believes that there should be some financial training in schools and universities.

    I have one such pension where the qualifying criteria was something like two years. Now that I look at that pension the actual value of the pot is around £50,000 but the pension itself has a guaranteed mimimum payout based on current prices of around £12,000 per annum (index linked!). It makes me laugh as they also offer me the "opportunity" to take the fund and buy a cash annuity with a value just over £2,000 per annum. Errrr....that will be a no then.
    Money won't buy you happiness....but I have never been in a situation where more money made things worse!
  • westv
    westv Posts: 6,086 Forumite
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    Some of us have DB pensions that had to be rescued by the PPF so they aren't quite as generous as they should be - no lump sum for example.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    OldMusicGuy wrote: »
    Don't worry, I have a big SIPP pot. I have completely maxed out all my contribution allowances (including the carry forward allowances) in the last few years as I have been in the 45% tax bracket. That's why my income will drop so much in retirement. After a 40 year career I've ended up earning quite well so have been putting a lot of money into the SIPP over the last 5 years.
    !

    It was your comment "no pension" that lead me to believe you, errm, didn't have a pension.

    :D
  • OldMusicGuy
    OldMusicGuy Posts: 1,758 Forumite
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    AnotherJoe wrote: »
    It was your comment "no pension" that lead me to believe you, errm, didn't have a pension.

    :D
    My bad, I should have been clearer! The question seemed to be asking about a DB pension kicking in, and I don't have any of that.
  • RoonilWazlib_2
    RoonilWazlib_2 Posts: 150 Forumite
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    A number of months since I visited this thread so spent a few hours (on work time :)) catching up.


    The big day is nearly here ML. Must feel great :)
  • Marine_life
    Marine_life Posts: 1,059 Forumite
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    RoonilWazlib wrote: »
    A number of months since I visited this thread so spent a few hours (on work time :)) catching up.


    The big day is nearly here ML. Must feel great :)

    It is indeed .....and I will admit I have been counting down the days (two weeks today). :j

    I have my one day a week contract for next year and I'm not yet sure how that will work out and there is no precedent as nobody has done it before :eek: However, in my mind the ideal scenario is that I will spend say one hour per day on answering emails and then two days where I work three hours. But one thing is sure......I will NOT be letting the hours creep up!

    My first job will be to get my blog fully up and running so you'll be able to spend a few more work hours catching up ;-)
    Money won't buy you happiness....but I have never been in a situation where more money made things worse!
  • Techno
    Techno Posts: 1,169 Forumite
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    Hey, Marine Life we are going on the same day 😁 - from a 70 hour week to 2 days per week for the next year and then see what happens. Can. Not. Wait 😁😁😁😁😁😁
    ;) If you think you are too small to make a difference, try getting in bed with a mosquito!
  • Marine_life
    Marine_life Posts: 1,059 Forumite
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    Techno wrote: »
    Hey, Marine Life we are going on the same day 😁 - from a 70 hour week to 2 days per week for the next year and then see what happens. Can. Not. Wait 😁😁😁😁😁😁

    Feels good doesn't it - and it will only be 6 years, 7 months and 26 days since i started this thread. Never rush anything....
    Money won't buy you happiness....but I have never been in a situation where more money made things worse!
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