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  • FIRST POST
    • Triumph13
    • By Triumph13 22nd Sep 17, 10:47 AM
    • 1,071Posts
    • 1,297Thanks
    Triumph13
    Turning off the tap
    • #1
    • 22nd Sep 17, 10:47 AM
    Turning off the tap 22nd Sep 17 at 10:47 AM
    A question for all you early retirees and wannabe early retirees: The more I get into all this, the more I find that the psychological aspects are more interesting than the financial ones. There is one particular aspect that I would love to hear people's views on. Most discussions we have on here tend to centre on making sure you have enough money for your retirement, but the other side of that is that when you do retire early you turn off the money tap from your employment. Yes, you have (hopefully) made sure you have enough to live on, but if you delayed retirement for x more days you would have £y more that you could spend on whatever floats your boat. This is the slippery slope leading to OMY (or quite a few more years in ML's case). What are the thought processes that let you decide that the utility of the £y isn't enough to make up for the x days?


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    Last edited by MSE Andrea; 04-10-2017 at 9:29 AM.
Page 5
    • ams25
    • By ams25 1st Oct 17, 8:44 AM
    • 85 Posts
    • 60 Thanks
    ams25
    I am 34 and hubby is 40 so years away from retirement and no db scheme coming our way. Just curious as to how those of you with no mortgages decided how much was enough to retire on.

    We will hopefully be mortgage free in 10 years. I am in a high stress job with two young children and am planning to retire at 60. Hubby will probably retire the same year so in his case 66 (he is minimum wage lower stress job than me)

    we will be using income draw down. I am just wondering how much you had in your pots to decide - that's enough. I don't want to be a poverty stricken pensioner but at the same time I don't want to work till I drop in a high pressure job.
    Originally posted by haras_nosirrah
    Opinion varies so much on this. You need to work out likely expenses less any state or other pension x the level you are comfortable withdrawing as a guide. So 25 times for 4% withdrawal (Google safe withdrawal rate) or 33 times for 3%. We are spending the same or a little more as when I worked (but excluding savings, pension contributions, NI, lower tax etc).

    Personally i stopped working at 51 last year (younger OH still working another planned 3 yrs) and have gone for 3% or 33 times. But do have a DB from 60 that helps.

    Also don't make the mistake of only paying off the mortgage...make full use of pension tax relief too. Cash invested now for 20 to 30 years will do better invested than paying down mortgage at low interest rates. I still have a small mortgage that I will slowly pay off over next 5 to 10 yrs. I could pay it off tomorrow but prefer to be invested.

    I also had high stress job and always planned on retiring at 55. In the end I stopped a few years earlier than anticipated. As others on this forum say, high stress jobs (and others) are often harder to maintain in your 50s and 60s so if you can give yourself the headroom go stop earlier if needed its worth it...means saving and investing more. Also worth building ISA funds in case needed to bridge gap between pension access and any earlier retirement.
    Last edited by ams25; 01-10-2017 at 1:04 PM.
    • Kazt2006
    • By Kazt2006 1st Oct 17, 9:04 AM
    • 6 Posts
    • 14 Thanks
    Kazt2006
    I have a DB Pension (& can't see a career change!). My state retirement age is current 68 but will probably be nearer 70 by the time I get there! My mortgages (1 is a rental property that I used to live in), are timed for 58/59 on purpose.

    I have a plan to go @ 60 with significant reductions in my pension, but where it will be approximately half my current salary. Could I live on it? I intend to have a damn good try!


    If I still have the rental property this could be sold for a cash lump sum. If I don't have the rental property, I'll have far more in savings from not having to cover the mortgage when no rental income! I have my plan and I'm going to enjoy what I will have worked almost 40 years for!
    • NotSkint
    • By NotSkint 1st Oct 17, 11:58 AM
    • 48 Posts
    • 42 Thanks
    NotSkint
    I am 34 and hubby is 40 so years away from retirement and no db scheme coming our way. Just curious as to how those of you with no mortgages decided how much was enough to retire on.

    We will hopefully be mortgage free in 10 years. I am in a high stress job with two young children and am planning to retire at 60. Hubby will probably retire the same year so in his case 66 (he is minimum wage lower stress job than me)

    we will be using income draw down. I am just wondering how much you had in your pots to decide - that's enough. I don't want to be a poverty stricken pensioner but at the same time I don't want to work till I drop in a high pressure job.
    Originally posted by haras_nosirrah
    Not sure how being a mortgage advisor is highly stressful. Try working in an environment where your decisions really mean life or death!

    Back to your question, search for the number thread. You need to work out how much you need or want and work back from there.
    • westv
    • By westv 1st Oct 17, 4:17 PM
    • 4,323 Posts
    • 1,883 Thanks
    westv
    Not sure how being a mortgage advisor is highly stressful. Try working in an environment where your decisions really mean life or death!

    .
    Originally posted by NotSkint
    A bit like saying someone with one leg knows a lot less about disability than a person with no legs.
    • NotSkint
    • By NotSkint 1st Oct 17, 6:06 PM
    • 48 Posts
    • 42 Thanks
    NotSkint
    A bit like saying someone with one leg knows a lot less about disability than a person with no legs.
    Originally posted by westv
    Last time I was legless I didn't know much about anything
    • haras_nosirrah
    • By haras_nosirrah 2nd Oct 17, 10:05 AM
    • 1,267 Posts
    • 2,402 Thanks
    haras_nosirrah
    Not sure how being a mortgage advisor is highly stressful. Try working in an environment where your decisions really mean life or death!

    Back to your question, search for the number thread. You need to work out how much you need or want and work back from there.
    Originally posted by NotSkint
    It may not be life of death however it is high stress. I write a lot of business (usually between 15 and 20 mortgages a month) I work part time as I have a 1 year old and a 4 year old and as I do pretty much exclusively housing association they are mostly on 28 day exchange deadlines. It may not be life and death but it certainly isn't a low stress job.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Triumph13
    • By Triumph13 2nd Oct 17, 11:08 AM
    • 1,071 Posts
    • 1,297 Thanks
    Triumph13
    I have a DB Pension (& can't see a career change!). My state retirement age is current 68 but will probably be nearer 70 by the time I get there! My mortgages (1 is a rental property that I used to live in), are timed for 58/59 on purpose.

    I have a plan to go @ 60 with significant reductions in my pension, but where it will be approximately half my current salary. Could I live on it? I intend to have a damn good try!


    If I still have the rental property this could be sold for a cash lump sum. If I don't have the rental property, I'll have far more in savings from not having to cover the mortgage when no rental income! I have my plan and I'm going to enjoy what I will have worked almost 40 years for!
    Originally posted by Kazt2006
    Have you looked into the possibility of selling the rental property at 60, living off the proceeds until they are exhausted and only then taking the DB pension with a much smaller reduction? That would seem a rather more 'bomb-proof' solution.
    • Triumph13
    • By Triumph13 2nd Oct 17, 11:16 AM
    • 1,071 Posts
    • 1,297 Thanks
    Triumph13
    I am 34 and hubby is 40 so years away from retirement and no db scheme coming our way. Just curious as to how those of you with no mortgages decided how much was enough to retire on.

    We will hopefully be mortgage free in 10 years. I am in a high stress job with two young children and am planning to retire at 60. Hubby will probably retire the same year so in his case 66 (he is minimum wage lower stress job than me)

    we will be using income draw down. I am just wondering how much you had in your pots to decide - that's enough. I don't want to be a poverty stricken pensioner but at the same time I don't want to work till I drop in a high pressure job.
    Originally posted by haras_nosirrah
    Definitely read 'The Number' thread - As Not Skint has suggested. You have to answer the question 'How much is enough to be comfortable?' before you can ask 'Is working longer for even more worth it to me?'
    • Northamptonblue
    • By Northamptonblue 2nd Oct 17, 5:47 PM
    • 19 Posts
    • 29 Thanks
    Northamptonblue
    I think you need to find the "number" thread which I found very useful when planning my exit (5 weeks retired at 59). As a rule of thumb, most seem to be looking in the 25k to 30k range, assuming that you own your own home. Some of course way below and some way above.

    Hope it helps.
    • username12345678
    • By username12345678 2nd Oct 17, 6:20 PM
    • 127 Posts
    • 50 Thanks
    username12345678
    This question has been causing me a real headache for a while now and tbh it's not one I expected to be wrestling with.

    I'm still 10 years from being able to draw on my SIPP but at 3% i'd be taking out more than my current spending at the moment.

    This has lead me in to an avenue where i've become more loss averse than I probably should be given the timescales involved.

    The picture is complicated by me using ISA's (x2) each year to either delay the point I need to start taking out of my SIPP OR bring forward my retirement a point from age 50.

    Even if going at 50 is an option it is a question of whether it is too young. It's al very well saying i'd be doing this, that and the other with my time but i've worked since I was 15 and at the back of my mind i'm wondering if giving up too early can be as bad as giving up too late. Careful what you wish for and all that.
    • psouth
    • By psouth 4th Oct 17, 12:53 AM
    • 15 Posts
    • 12 Thanks
    psouth
    We always planned to retire at 55 so were frugal throughout our married life. At 50 the stress of work forced my husband to give up his job but he wasn't entitled to benefits so I took on more work. At 55 ill health forced me to give up work too. We lived on our savings until my husband's professional pension matured. Three years later, mine matured. We will also have a staggered state pension coming in. Since retiring we have made sure to spend our savings doing what we love while we both have the health to do it. When I am on a zimmer walking from the lounge to the loo at least I will have all the fabulous photos and memories! One thing we have found... we need far less money to live than we thought...
    • Teacher2
    • By Teacher2 4th Oct 17, 11:07 AM
    • 494 Posts
    • 2,497 Thanks
    Teacher2
    We have just had this decision made for us by my OH being made redundant at 61 when he was going to do part of the week until our state pensions kick in in five years' time. We have planned for the worst for years, have little in the way of debt and live frugal lives. Yet we live in a very expensive part of the country and our outgoings are high. We shall see how it goes.

    The conundrum is that when you are working you have money and no time and when you are retired you have the time without the money to enjoy it.
    • Terron
    • By Terron 4th Oct 17, 1:54 PM
    • 80 Posts
    • 86 Thanks
    Terron
    The conundrum is that when you are working you have money and no time and when you are retired you have the time without the money to enjoy it.
    Originally posted by Teacher2
    That has not been my experience.
    It is true that I only paid for 1 night in a hotel on holiday since I lost my job 4 years ago, but I have found cheap ways to enjoy my time.
    Luckily when my private pensions start in 18 months I will have both.
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