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    • Marine_life
    • By Marine_life 5th Nov 10, 10:46 AM
    • 764Posts
    • 1,272Thanks
    Marine_life
    Early-retirement wannabe
    • #1
    • 5th Nov 10, 10:46 AM
    Early-retirement wannabe 5th Nov 10 at 10:46 AM
    I would like to create a topic (don't see it at the moment - other than the NUMBER thread).

    Who is aiming for early retirement (or who has retired early already)?
    When did you begin planning and what drove the decision?
    What is the strategy for getting there?
    How much of a relative decline in income are you prepared to take / did you take?
    What are your main concerns?
    For those already in early retirement - how is it progressing? What have been the good and bad surprises (financial and otherwise)?

    I will post my strategy but wanted to get some thoughts
Page 164
    • Techno
    • By Techno 16th Jun 17, 7:30 PM
    • 1,029 Posts
    • 577 Thanks
    Techno
    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
    • By Marine_life 16th Jun 17, 10:22 PM
    • 764 Posts
    • 1,272 Thanks
    Marine_life
    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 😁😁😁😁😁😁
    Originally posted by Techno
    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....
    Make it idiot proof and someone will make a better idiot…
    • swedespeed
    • By swedespeed 18th Jun 17, 10:36 AM
    • 3 Posts
    • 8 Thanks
    swedespeed
    1) Who is aiming for early retirement (or who has retired early already)?

    I am 32, aiming to have the option to retire at 50 if I wish but certainly by 55.

    2) When did you begin planning and what drove the decision?

    I began initial planning during my university years - so late teens, but it wasn't until my mid-20s that I started the process with any seriousness. Mainly driven by seeing my parents in a position where they would have liked to, but could not afford to retire.

    3) What is the strategy for getting there?

    Pay off the mortgage (done).
    Earn as much benefits through my DB pension scheme as possible (doing).
    Put as much as possible into tax efficient long term savings - SIPP, LISA, etc. (doing).
    To ensure that I have enough available funds to see me from retirement until when my DB pension kicks in without having to take it early and suffer actuarial reduction (ongoing).

    4) How much of a relative decline in income are you prepared to take / did you take?
    What are your main concerns?

    Quite a bit. We live on approx 1/3 of our current post-tax salary. The rest is pushed into savings, investments and pensions. I current monetary value, I would be fairly comfortable on an income of £25-30k per year after tax.

    5) For those already in early retirement - how is it progressing? What have been the good and bad surprises (financial and otherwise)?

    N/A!
    Last edited by swedespeed; 18-06-2017 at 10:40 AM.
    • atush
    • By atush 18th Jun 17, 11:19 AM
    • 15,930 Posts
    • 9,671 Thanks
    atush
    Paying off a cheap mtg early, over extra pension contributions isnt always the wisest choice.

    Do you have kids? putting 3 thru university put us back a few years.

    You are starting planning at the right time. and if you want to go early, then fill your ISAs and a DC pension. Dont waste your DB pension on lump sums and actuarial reduction.
    Last edited by atush; 19-06-2017 at 11:37 AM.
    • swedespeed
    • By swedespeed 18th Jun 17, 1:11 PM
    • 3 Posts
    • 8 Thanks
    swedespeed
    Paying off the mortgage early was more about wanting to do so and not having any debts. It would have made far more sense, in hindsight, to invest the money!

    We don't have children and never will.

    At the moment we're putting £36k a year into SIPPS, LISAs (funds, not cash) and S&S ISAs. This is on top of a DB pension which I have planned to take from 68 (i.e. no actuarial reduction) and no lump sum either.
    • Broadsword
    • By Broadsword 19th Jun 17, 11:09 AM
    • 93 Posts
    • 70 Thanks
    Broadsword
    Experience with retirement in the rear view mirror
    I retired at 65 and three months to maximise retirement income. The experience may not relate to your own. I was able to engineer that so I was made redundant as it coincided with a restructure that affected me. I might otherwise have continued to work and I enjoyed it. Retirement is not always as idyllic as it appears to be but in the early years we travelled extensively and helped my daughter, car, money towards home etc while she was at a local university. We also undertook challenging voluntary work, sometimes day and night being on-hand for those in dire need. Putting something back seemed right.

    My strategy was to begin pension saving as early as possible, in my case 27, with my 5% maxed out with an employer 10%. In later years I added AVCs but then the pension scheme thought I'd be over-funded. The world changes and Gordon Brown's dividend changes and the later economy down-turn all had its effect. My advice for others is to expect the unexpected in your planning as world, national and life and family events can throw plans off course, as well as inevitable taxation changes. My perception is that things are going to get considerably worse in the future, than my early years of planning ever suggested.

    My experience post-retirement, now 4 years on, has generally been good but more recent serious ill-health and possibly a very limited life-span beckons. For example my wife, younger than me, has given up work significantly early to care for me. That has changed all thinking as providing for her in life ahead becomes a priority. None of this was foreseen but the moral is, this is what can happen to well laid plans and prudent planning. Over-provide if possible and do not stop work too early if possible is my message.
    Last edited by Broadsword; 19-06-2017 at 11:10 AM. Reason: Misspellings
    • happyandcontented
    • By happyandcontented 19th Jun 17, 11:31 AM
    • 670 Posts
    • 1,394 Thanks
    happyandcontented
    A succinct insight, but re not stopping work too early surely the diagnosis means that had you continued to work you would not have been able to enjoy the things you mention? I hope you have many years ahead of you, but if not, retiring early was a good decision.
    • Marine_life
    • By Marine_life 19th Jun 17, 10:44 PM
    • 764 Posts
    • 1,272 Thanks
    Marine_life
    My experience post-retirement, now 4 years on, has generally been good but more recent serious ill-health and possibly a very limited life-span beckons. For example my wife, younger than me, has given up work significantly early to care for me. That has changed all thinking as providing for her in life ahead becomes a priority. None of this was foreseen but the moral is, this is what can happen to well laid plans and prudent planning. Over-provide if possible and do not stop work too early if possible is my message.
    Originally posted by Broadsword
    I think everyone who consciously thinks about early retirement has this conundrum i.e. retire early to try and maximise the benefits of being realtively young and healthy or hang on for another couple of years to add an additional layer of comfort.

    Its not an easy decision but for a healthy 30-40 year old, ill health or (god forbid) an early death are such abstract concepts. I think its easy for us all to think in those years that we are invincible and imagine our 70 year old selves in our 30 year old bodies.

    As I've got older, I'm increasingly aware that 'everything doesn't work as it once did', or when thing go wrong that it takes the body longer to repair. All these have been signals that its time to go. There are those who have followed this thread who would say we should have retired years ago but the timing would not have been right and we would have had to take a reduction in living standards to do it. Our choice - others would have chosen differently.

    However, what's most important is to have a plan which gives you options. If you have worked hard and saved well there may be an option to retire early and having that option sometimes relives the stress that actually enables someone to continue working for a couple more years. The problem is that with university fees, high house prices and less generous pensions the margin of error has reduced significantly meaning people need to plan earlier. Good then that we have a millennial generation that wants to plan less!
    Last edited by Marine_life; 19-06-2017 at 10:46 PM.
    Make it idiot proof and someone will make a better idiot…
    • AnotherJoe
    • By AnotherJoe 19th Jun 17, 10:55 PM
    • 6,519 Posts
    • 6,935 Thanks
    AnotherJoe
    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 😁😁😁😁😁😁
    Originally posted by Techno
    Make that three , but I'm going from 5 days a week to zero. mostly because i can financially, and also because i think even 1 day a week would make my time very restricted when it came to planning trips.

    I dont want to have to think "oh i cant take that half price cruise leaving this Wednesday as I haven't booked the next couple of Fridays off". I regard myself as having booked 365 days off starting 1 July
    • ermine
    • By ermine 20th Jun 17, 6:39 AM
    • 538 Posts
    • 761 Thanks
    ermine
    Make that three , but I'm going from 5 days a week to zero. mostly because i can financially, and also because i think even 1 day a week would make my time very restricted when it came to planning trips.
    Originally posted by AnotherJoe
    It does. I made that mistake for a while, helped some guys I knew out for about a day a week without jumping to that problem. After a while it gets a pain. There's a huge difference between working at all and not working. These days if I am going to tangle with work I want it to be one-off hit and run jobs, get in, do it, and then clear off. I don't mind an intensive stretch if it's interesting, but I absolutely do not want ongoing commitment.
    • OldMusicGuy
    • By OldMusicGuy 20th Jun 17, 9:13 AM
    • 80 Posts
    • 119 Thanks
    OldMusicGuy
    Its not an easy decision but for a healthy 30-40 year old, ill health or (god forbid) an early death are such abstract concepts. I think its easy for us all to think in those years that we are invincible and imagine our 70 year old selves in our 30 year old bodies.

    As I've got older, I'm increasingly aware that 'everything doesn't work as it once did', or when thing go wrong that it takes the body longer to repair. All these have been signals that its time to go. There are those who have followed this thread who would say we should have retired years ago but the timing would not have been right and we would have had to take a reduction in living standards to do it. Our choice - others would have chosen differently.
    Originally posted by Marine_life
    I can only agree. For me, it has been the last five years that have really changed my outlook. I've had a well paid, high pressure job for many years but had never given early retirement much of a thought. However since turning 55 (I'm 60 in a couple of months) I have found working in such an environment really taking its toll mentally and physically. I have realised that I do only have limited time on this earth and I don't want to spoil what time I have left by damaging my health even more by slaving my guts out for somebody else.

    I had always assumed that I would work until about 65 and just have a small gap to state pension age. Keep working, keep saving. But now I am going to stop completely at 60 and my wife and I will have to make do with what we have at that age. No one can really tell you what "the number" is so we have decided to make do with what we have now (well by February next year) and enjoy what limited time we have left together. We can't wait.
    • chiefie
    • By chiefie 20th Jun 17, 9:50 AM
    • 276 Posts
    • 286 Thanks
    chiefie
    I can only agree. For me, it has been the last five years that have really changed my outlook. I've had a well paid, high pressure job for many years but had never given early retirement much of a thought. However since turning 55 (I'm 60 in a couple of months) I have found working in such an environment really taking its toll mentally and physically. I have realised that I do only have limited time on this earth and I don't want to spoil what time I have left by damaging my health even more by slaving my guts out for somebody else.

    I had always assumed that I would work until about 65 and just have a small gap to state pension age. Keep working, keep saving. But now I am going to stop completely at 60 and my wife and I will have to make do with what we have at that age. No one can really tell you what "the number" is so we have decided to make do with what we have now (well by February next year) and enjoy what limited time we have left together. We can't wait.
    Originally posted by OldMusicGuy
    Such a great approach - you can keep chasing the money but that cant buy you years of healthy living.
    • Redknapps Dog
    • By Redknapps Dog 20th Jun 17, 12:53 PM
    • 1,123 Posts
    • 2,081 Thanks
    Redknapps Dog
    I can only agree. For me, it has been the last five years that have really changed my outlook. I've had a well paid, high pressure job for many years but had never given early retirement much of a thought. However since turning 55 (I'm 60 in a couple of months) I have found working in such an environment really taking its toll mentally and physically. I have realised that I do only have limited time on this earth and I don't want to spoil what time I have left by damaging my health even more by slaving my guts out for somebody else.

    I had always assumed that I would work until about 65 and just have a small gap to state pension age. Keep working, keep saving. But now I am going to stop completely at 60 and my wife and I will have to make do with what we have at that age. No one can really tell you what "the number" is so we have decided to make do with what we have now (well by February next year) and enjoy what limited time we have left together. We can't wait.
    Originally posted by OldMusicGuy
    I'm 53 and in pretty much the same boat. I don't want to carry on beyond about 57/58, flying to France or Germany for 2/3 days work at least once a month. I'm hoping to go to 4 days a week from next April.
    • Spreadsheetman
    • By Spreadsheetman 20th Jun 17, 2:05 PM
    • 15 Posts
    • 11 Thanks
    Spreadsheetman
    .....However since turning 55 (I'm 60 in a couple of months) I have found working in such an environment really taking its toll mentally and physically. .....
    Originally posted by OldMusicGuy
    I have found this too, post-50 the job stress+pressure started really getting to me and now at 55 I know I don't have that long left before my coping resources are gone and something blows. I've taken steps on the financial side, but at some point it's just going to have to do even if it's not as safe as I'd like.
    • Marine_life
    • By Marine_life 20th Jun 17, 10:39 PM
    • 764 Posts
    • 1,272 Thanks
    Marine_life
    Make that three , but I'm going from 5 days a week to zero. mostly because i can financially, and also because i think even 1 day a week would make my time very restricted when it came to planning trips.

    I dont want to have to think "oh i cant take that half price cruise leaving this Wednesday as I haven't booked the next couple of Fridays off". I regard myself as having booked 365 days off starting 1 July
    Originally posted by AnotherJoe
    Generally I agree however for me its part of a package. We have an early retirement scheme which starts at 56 and an early early retirement scheme which starts at 54. As I'm 52 they weren't prepared to give me that so taking a one-day a week contract was a way to bridge to early early retirement. Its a fantastic package.

    Actually the one day a week is not so bad as essentially its 25% spread in anyway that works over the year so it could be three days one week then nothing for the next two. Totally flexible. I imagine myself ringing an imaginary bell in any event i.e. once the 25% is booked "ding, ding" times up
    Make it idiot proof and someone will make a better idiot…
    • Marine_life
    • By Marine_life 21st Jun 17, 8:00 AM
    • 764 Posts
    • 1,272 Thanks
    Marine_life
    I have found this too, post-50 the job stress+pressure started really getting to me and now at 55 I know I don't have that long left before my coping resources are gone and something blows. I've taken steps on the financial side, but at some point it's just going to have to do even if it's not as safe as I'd like.
    Originally posted by Spreadsheetman
    Yep, i can sympathize with that.

    I have felt the stress for a long time errr.....probably since 2010 when I started this thread but seriously since 2012. I think the stress makes it difficult to retain the same performance levels which leads to more stress and so it compounds.

    I do a lot of travelling, probably something like 1,000 flights in the last 10 years - maybe more - and its typically an early start / late finish. I find now that even on the short haul flights I feel like I've got jet lag for a few days after.

    Anyway I am now looking at my diary for the weeks starting from 3rd July and all I can see is big blank spaces!

    8 working days to go.
    Make it idiot proof and someone will make a better idiot…
    • justme111
    • By justme111 21st Jun 17, 8:08 AM
    • 2,615 Posts
    • 2,502 Thanks
    justme111
    I can not imagine how someone in managing/organising role can cut workload to a specific time to an hour/day. I would expect in some occupations it would be easy ( a teacher doing one hour tuition a day or a factory worker turning up for work once a week) but in others I just do not see how it can work. A surgeon can not put the instruments down midop or a manager stop meeting mid sentence . If working life consists of issues that need to be solved it is not fraction Ed per hour , it is fractioned per issue and even then the issues are interlocked and not solving the next one impacts on quality of a solution of previous one.
    Suppose part of the solution is to eliminate travelling as you say in the post above. But then if it is essential for your role what is left for you to offer that you could do in 7 hours/week while someone else takes on what you used to do?
    Last edited by justme111; 21-06-2017 at 8:15 AM.
    • chiefie
    • By chiefie 21st Jun 17, 8:17 AM
    • 276 Posts
    • 286 Thanks
    chiefie
    I have found this too, post-50 the job stress+pressure started really getting to me and now at 55 I know I don't have that long left before my coping resources are gone and something blows. I've taken steps on the financial side, but at some point it's just going to have to do even if it's not as safe as I'd like.
    Originally posted by Spreadsheetman
    Ditto to all that. And now the winter months make things even worse for me to be able to cope. I think stopping for a bit at last at 55 is the ideal solution and knowing myself I will eventually get my zest and mojo back for some form of paid employment that stretches me a bit but not in the way the last 5 years have. Good lucka
    • OldMusicGuy
    • By OldMusicGuy 21st Jun 17, 9:13 AM
    • 80 Posts
    • 119 Thanks
    OldMusicGuy
    I have felt the stress for a long time errr.....probably since 2010 when I started this thread but seriously since 2012. I think the stress makes it difficult to retain the same performance levels which leads to more stress and so it compounds.

    I do a lot of travelling, probably something like 1,000 flights in the last 10 years - maybe more - and its typically an early start / late finish. I find now that even on the short haul flights I feel like I've got jet lag for a few days after.
    Originally posted by Marine_life
    Me too. I dread long haul, even in business class. I can't sleep on planes and even those short haul flights are tiring these days. Once I am retired I will do a couple of holiday trips with my wife to use up air miles but after that I don't ever plan on getting on a plane again!

    Anyway I am now looking at my diary for the weeks starting from 3rd July and all I can see is big blank spaces!

    8 working days to go.
    Originally posted by Marine_life
    Wow, I am jealous. 8 months for me.......
    • justme111
    • By justme111 21st Jun 17, 9:32 AM
    • 2,615 Posts
    • 2,502 Thanks
    justme111
    . 8 months for me.......
    Originally posted by OldMusicGuy
    Lucky you !
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