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  • FIRST POST
    • Marine_life
    • By Marine_life 5th Nov 10, 10:46 AM
    • 815Posts
    • 1,459Thanks
    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 180
    • westv
    • By westv 5th Dec 17, 11:31 PM
    • 4,369 Posts
    • 1,989 Thanks
    westv
    Getting back to the wannabe part of the thread, my company has made redundancies but I'm not (currently?) one of them.
    If I was, I've calculated I'd get around £25k net including PILON. That'd then bring my current cash fund to £110k (large chunk of that was a recent sold property) and an estimated £300k pension pot come next March when I'll have my 16th 39th birthday.
    Added to that is a PPF rescued DB annual £5k 5 years after that and then SP for the full amount in 12 years.
    In addition my wife has a lot of years of Civil Service pension but none of that starts for at least 7 years minimum.
    Quick back of a fag packet calculation gives me about £1,700 net a month in 2018 - with mortgage paid off in 2020 (when current fix ends) when it'll be 75k or so.
    I currently earn £2,500 net after pension contributions but another £1k (eeek!) or so comes off of that with expenses for Monday to Friday in London and getting there and back. That expense would go if I got the chop.
    Wife gets around £1,500 net but she would like to work less days. This would reduce her net to £1,200 or £1k
    So I think it all looks doable if I do get "the call" otherwise I'd probably wait until 2019 or 2020.
    Last edited by westv; 05-12-2017 at 11:44 PM.
    • gfplux
    • By gfplux 6th Dec 17, 8:28 AM
    • 3,506 Posts
    • 3,259 Thanks
    gfplux
    I agree with this 100% and health has been a main factor in deciding to retire now at 60 rather than carry on for another 2 to 4 years (during which time I would have been able to save significant amounts). I am in good health generally but my health suffered once I reached 55. My body just couldn't keep up with the demands of a stressful job, 10 to 12 hour days, late nights, early mornings and lots of travel. My blood pressure was getting high, my weight was creeping up and I wasn't getting any exercise.

    So a drastic change in lifestyle was called for and part of that was to set an earlier retirement date than planned. I am already doing more exercise, eating better and now I am 12 weeks away from retirement, my stress levels have gone down considerably. I can sleep at nights now. I didn't just get Sunday night angst, I had it every night of the week!

    I saw a comment on another thread recently, along the lines of "I don't want to run out of life before I run out of money". Although it's a difficult balancing act, it's all too easy to keep chasing money and "security" at the expense of health and longevity.
    Originally posted by OldMusicGuy
    Very sensible.
    I just want to come back to dental work. We probably all know that Britons have a reputation for "bad" teeth.
    Any problems anyone has at 40 or 50 will only get worse. Money spent at those ages can create a foundation that will last a lifetime.
    I say this from my experience of not only neglecting my health before I retired I rarely had time to see a dentist. Luckily I finally did and although £££ costly it turned out to be one of the best investments I could have made in the quality of my life.
    Boring but true.
    "Brexit Blight of Uncertainty" sums it all up. Although "Brexit Crisis", "The Curse of Brexit" or "Brexit Disaster" come close. I am a Remainder. Brexit will make Britain poor (again)
    • mgdavid
    • By mgdavid 6th Dec 17, 11:10 AM
    • 5,272 Posts
    • 4,456 Thanks
    mgdavid
    Very sensible.
    I just want to come back to dental work. We probably all know that Britons have a reputation for "bad" teeth.
    Any problems anyone has at 40 or 50 will only get worse. Money spent at those ages can create a foundation that will last a lifetime.
    I say this from my experience of not only neglecting my health before I retired I rarely had time to see a dentist. Luckily I finally did and although £££ costly it turned out to be one of the best investments I could have made in the quality of my life.
    Boring but true.
    Originally posted by gfplux
    Me too; I'm a 'nervous patient' and hated all dentists until I found a really good private one when I was in my late fifties, never looked back, Keeping on topic of pensions I have to say it feels like I'm funding my dentist's one almost single-handed ;-)
    A salary slave no more.....
    • bluenose1
    • By bluenose1 6th Dec 17, 1:23 PM
    • 1,923 Posts
    • 3,104 Thanks
    bluenose1
    Very sensible.
    I just want to come back to dental work. We probably all know that Britons have a reputation for "bad" teeth.
    Any problems anyone has at 40 or 50 will only get worse. Money spent at those ages can create a foundation that will last a lifetime.
    I say this from my experience of not only neglecting my health before I retired I rarely had time to see a dentist. Luckily I finally did and although £££ costly it turned out to be one of the best investments I could have made in the quality of my life.
    Boring but true.
    Originally posted by gfplux
    Funny you should say that. I have massively increased my pension contributions so I could at least consider retirement in 3 and a half years at 55. I am conscious that my teeth, particularly back teeth are full of fillings and worry what will happen to them over the next few years. Have no idea what work I will need or the cost but think I may have to build in the cost to my retirement planning!!
    Money SPENDING Expert

    • gadgetmind
    • By gadgetmind 6th Dec 17, 1:29 PM
    • 10,652 Posts
    • 8,458 Thanks
    gadgetmind
    Me too; I'm a 'nervous patient' and hated all dentists until I found a really good private one when I was in my late fifties, never looked back,
    Originally posted by mgdavid
    I signed up with a dentist a few years ago and was given a *huge* form to fill in with lots of questions having zero relevance to teeth. It even asked for occupation so I put "Medical Malpractice Litigator" and they never sent me any nagging letters about check ups for some reason.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • AlanP
    • By AlanP 6th Dec 17, 1:29 PM
    • 986 Posts
    • 700 Thanks
    AlanP
    Me too; I'm a 'nervous patient' and hated all dentists until I found a really good private one when I was in my late fifties, never looked back, Keeping on topic of pensions I have to say it feels like I'm funding my dentist's one almost single-handed ;-)
    Originally posted by mgdavid
    My wife's books his exotic annual holday every time he sees her name on the Patient List
    • gadgetmind
    • By gadgetmind 6th Dec 17, 1:30 PM
    • 10,652 Posts
    • 8,458 Thanks
    gadgetmind
    Well, that's interesting. Let's just say that my ongoing efforts to make myself less indispensable and not part of every problem solving loop may have been a little too successful!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • Terron
    • By Terron 6th Dec 17, 3:38 PM
    • 112 Posts
    • 115 Thanks
    Terron
    Very sensible.
    I just want to come back to dental work. We probably all know that Britons have a reputation for "bad" teeth.
    Any problems anyone has at 40 or 50 will only get worse. Money spent at those ages can create a foundation that will last a lifetime.
    I say this from my experience of not only neglecting my health before I retired I rarely had time to see a dentist. Luckily I finally did and although £££ costly it turned out to be one of the best investments I could have made in the quality of my life.
    Boring but true.
    Originally posted by gfplux
    I had been told by NHS dentists for years that I had a "funny bite" but they did nothing about it. In my late thirties I moved and could not find a NHS dentist so went to a private one. 2 years and £18,000 later and the cause of my problems had been fixed.
    • OldMusicGuy
    • By OldMusicGuy 6th Dec 17, 5:43 PM
    • 192 Posts
    • 355 Thanks
    OldMusicGuy
    Any problems anyone has at 40 or 50 will only get worse. Money spent at those ages can create a foundation that will last a lifetime.
    Originally posted by gfplux
    Just did that. Spent £2,000 getting 30 year old root canal work drilled out and replaced with the latest modern equivalent. Hopefully that will go with me into the crematorium/afterlife/wicker coffin at the end of the garden.

    That was the only major dental work left I needed doing, I've had all my old fillings gradually replaced over the last 5 years. I wanted to get that out of the way before I retired. Will be signing on with the local NHS dentist when I retire, no more private stuff.
    • DancingBadger
    • By DancingBadger 6th Dec 17, 5:57 PM
    • 143 Posts
    • 115 Thanks
    DancingBadger
    I know we’re in O/T territory discussing dentists, but how do you fund your private dental treatment? Bank account? Denplan? BUPA?
    • OldMusicGuy
    • By OldMusicGuy 6th Dec 17, 6:01 PM
    • 192 Posts
    • 355 Thanks
    OldMusicGuy
    I know we’re in O/T territory discussing dentists, but how do you fund your private dental treatment? Bank account? Denplan? BUPA?
    Originally posted by DancingBadger
    Bank account. That's why no more in retirement.
    • frugal90
    • By frugal90 6th Dec 17, 7:25 PM
    • 229 Posts
    • 115 Thanks
    frugal90
    Atush, we have a similar strategy. We will have four years worth of living expenses when we stop teaching next summer. I"ll be 56 and wife 50. My teachers pension kicks in at 60, then my wife's SIPP will kick in when she is 55, then her teachers pension when she hits 60.

    Our ISA''s we will dip into as and when we need them, but not when the stock market is low. I think we are overdue a correction.
    • mgdavid
    • By mgdavid 6th Dec 17, 7:29 PM
    • 5,272 Posts
    • 4,456 Thanks
    mgdavid
    I know we’re in O/T territory discussing dentists, but how do you fund your private dental treatment? Bank account? Denplan? BUPA?
    Originally posted by DancingBadger
    The first round of crowns etc were paid from a DB pension taken while I was still working, now they're sorted I'm on a Plan which gives me 2 checkups and 2 hygienist visits per year plus an element of additional work. They seem to have a lot of discretion regarding bills and are quite generous to me.
    A salary slave no more.....
    • ams25
    • By ams25 6th Dec 17, 8:10 PM
    • 100 Posts
    • 85 Thanks
    ams25
    Just did that. Spent £2,000 getting 30 year old root canal work drilled out and replaced with the latest modern equivalent. Hopefully that will go with me into the crematorium/afterlife/wicker coffin at the end of the garden.

    That was the only major dental work left I needed doing, I've had all my old fillings gradually replaced over the last 5 years. I wanted to get that out of the way before I retired. Will be signing on with the local NHS dentist when I retire, no more private stuff.
    Originally posted by OldMusicGuy
    I'd advise caution here. Implants are not available on the NHS (except in exceptional circumstances). I am in the process of having several and it's so expensive. I am choosing to pay more than is possible with the go to Hungary type deals because I'd rather not risk it....but anybody retiring should have a dental emergency fund option if possible imho.

    I dislike dentists more for the pain they inflict on your wallet than on your teeth....and they smile as they do it.
    • enthusiasticsaver
    • By enthusiasticsaver 6th Dec 17, 8:23 PM
    • 4,827 Posts
    • 9,104 Thanks
    enthusiasticsaver
    Something I can't quite decide on when sticking numbers on spreadsheets is would I have a cash pot purely for emergencies/big spend items or would I have a cash pot which both contributes to income(the usual 4% or whatever) and is available for the former?
    Originally posted by westv
    We have a large cash pot for big spend items and to top up DB pensions and income portfolio so both of the above. It is there as backup if we decide to do a long haul holiday or need to do something to house or change one of the cars. I would feel nervous not having that buffer as our monthly income is obviously lower than when we were working and no annual bonuses. 75% of our assets are invested and 25% spread over a number of cash deposit accounts. We will reduce that once my second DB pension kicks in 2020 and when our state pensions start paying out in 2024 and 2026.
    2 weeks to go until early retirement in December . Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • sebo0607
    • By sebo0607 6th Dec 17, 9:14 PM
    • 26 Posts
    • 3 Thanks
    sebo0607
    I am planning to retire early but still have 20 years to go, but it is never to early to start planning. I thought I had a reasonable understanding of the pension rules but I have confused myself.

    My current salary takes me into the higher rate tax bracket, but I have worked out I can afford to make contributions into my company pension scheme and SIPP which will reduce my salary to under the higher rate threshold.

    If I do this are there any negative impacts?

    What will happen to the higher rate tax relief I currently receive from the SIPP, I assume this will not longer apply. As I have not paid higher rate tax in the first place.

    Will I be able to claim the married tax allowance as my wife is a non tax payer.
    • atush
    • By atush 6th Dec 17, 9:23 PM
    • 16,371 Posts
    • 10,131 Thanks
    atush
    Funny you should say that. I have massively increased my pension contributions so I could at least consider retirement in 3 and a half years at 55. I am conscious that my teeth, particularly back teeth are full of fillings and worry what will happen to them over the next few years. Have no idea what work I will need or the cost but think I may have to build in the cost to my retirement planning!!
    Originally posted by bluenose1
    my back teeth have a few fillings, but not many. But if they are lowers? My second has broen now.

    I blame a younger lifetime of icy drinks- I used to like chewing ice. When i lived somewhere warm enough to need ice lol.
    • atush
    • By atush 6th Dec 17, 9:26 PM
    • 16,371 Posts
    • 10,131 Thanks
    atush
    I am planning to retire early but still have 20 years to go, but it is never to early to start planning. I thought I had a reasonable understanding of the pension rules but I have confused myself.

    My current salary takes me into the higher rate tax bracket, but I have worked out I can afford to make contributions into my company pension scheme and SIPP which will reduce my salary to under the higher rate threshold.

    If I do this are there any negative impacts?

    What will happen to the higher rate tax relief I currently receive from the SIPP, I assume this will not longer apply. As I have not paid higher rate tax in the first place.

    Will I be able to claim the married tax allowance as my wife is a non tax payer.
    Originally posted by sebo0607
    What will happen to the higher rate tax relief I currently receive from the SIPP
    You subtract your current sipp contribs fro your salary. And salty above the treshold after that can get HRT relief. After that, you get only BRT relief
    • westv
    • By westv 6th Dec 17, 10:32 PM
    • 4,369 Posts
    • 1,989 Thanks
    westv
    I'd advise caution here. Implants are not available on the NHS (except in exceptional circumstances). I am in the process of having several and it's so expensive. I am choosing to pay more than is possible with the go to Hungary type deals because I'd rather not risk it....but anybody retiring should have a dental emergency fund option if possible imho.

    I dislike dentists more for the pain they inflict on your wallet than on your teeth....and they smile as they do it.
    Originally posted by ams25
    Implants £1k or so a tooth? Not sure if I class that as expensive or not considering the implant should last a lot longer than its owner.
    • justme111
    • By justme111 6th Dec 17, 11:11 PM
    • 2,878 Posts
    • 2,764 Thanks
    justme111
    [QUOTE

    I dislike dentists more for the pain they inflict on your wallet than on your teeth....and they smile as they do it. [/QUOTE]

    funnily enough you do not dislike car maufacturers I guess - their costs are eeven higher and cars last for less time.
    Or resent money spent on holiday or eating at a fancy restaurant - I never came across an expression how one dislikes gourmet chefs because they inflict pain on one's wallet.
    OldMusicGuy , you probably will realise thar not only implants are not " included" in NHS so in a few years you will be back to your dentist.
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