Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • fred246
    • By fred246 4th Jan 18, 3:51 PM
    • 947Posts
    • 520Thanks
    fred246
    Prestigious cars or retire early
    • #1
    • 4th Jan 18, 3:51 PM
    Prestigious cars or retire early 4th Jan 18 at 3:51 PM
    I am planning to retire very early in the next year. All my colleagues are saying that they've many more years to go. I have been reflecting on how I have got to my current financial position. The number one saving has been avoiding private education. Number 2 is avoiding buying posh cars. I normally buy standard cars and maintain them myself till they die. Most of my colleagues buy a new prestigious car every 3 years. I reckon I will retire five years early as a result from my back of a fag packet calculations. I was sat in the Jacuzzi the other day working out my investments.
    Property-slowly increases in value over the years
    Shares-ups and downs but should make plenty.
    Bonds-safer should make a bit.
    New cars-MASSIVE LOSSES GUARANTEED.
    So do people make that connection? Would people rather enjoy years of retirement or have a posh badge on their car? Or would they prefer to deny the association?
Page 2
    • motorguy
    • By motorguy 4th Jan 18, 7:24 PM
    • 15,968 Posts
    • 9,223 Thanks
    motorguy
    I think the reality is, the bulk of people who have retired early can do so because of final salary based pensions and have had long tenure with a particular employer OR have benefited at some point from a property boom.

    Interesting article here on how much of a pension pot you'd need to retire @ 55....

    https://www.nutmeg.com/nutmegonomics/will-your-pension-be-big-enough-for-you-to-retire-at-55/

    To have a household income of just £26,000 to have a "comfortable" retirement, you'd need a pension pot of £1,300,000 (and presumably have your mortgage cleared by then too)

    For a more luxurious retirement (including buying a new car every 10 years!) and having £39,000 of household income for the rest of your days, you'd need a pension pot of £2,000,000.
    You are not special. You are not a beautiful and unique snowflake.
    • AndyMc.....
    • By AndyMc..... 4th Jan 18, 7:28 PM
    • 903 Posts
    • 667 Thanks
    AndyMc.....
    I think the reality is, the bulk of people who have retired early can do so because of final salary based pensions and have had long tenure with a particular employer OR have benefited at some point from a property boom.

    Interesting article here on how much of a pension pot you'd need to retire @ 55....

    https://www.nutmeg.com/nutmegonomics/will-your-pension-be-big-enough-for-you-to-retire-at-55/

    To have a household income of just £26,000 to have a "comfortable" retirement, you'd need a pension pot of £1,300,000 (and presumably have your mortgage cleared by then too)

    For a more luxurious retirement (including buying a new car every 10 years!) and having £39,000 of household income for the rest of your days, you'd need a pension pot of £2,000,000.
    Originally posted by motorguy
    Well tha bits sorted. Given Iím the same age as you Iíve got another three years before retirement.
    • motorguy
    • By motorguy 4th Jan 18, 7:32 PM
    • 15,968 Posts
    • 9,223 Thanks
    motorguy

    I used to think like this, and worked hard to put money aside "for my retirement". Now I think I'd rather find a way to live cheaply and do without all those "rewards" I promise myself for working hard by simply not working hard any more.
    Originally posted by facade
    Personally, i dont "work hard" - far from it if truth be told - but fortunately get well paid for it.

    I used to knock my !!!!!!!! in, but i knocked that on the head when i turned 40.

    I've fortunately found a niche whereby i can add value to the organisations i engage with, not have to work terribly hard to do so and get well paid for it.


    There's not much point in dropping dead shortly after you retire, or worse before you even get there, because you kept on and on working.
    Originally posted by facade
    Conversely :-

    (a) theres not much point in retiring and eking out an existence until you die.
    (b) you might not make it to retirement even if you plan to retire early.
    You are not special. You are not a beautiful and unique snowflake.
    • motorguy
    • By motorguy 4th Jan 18, 7:32 PM
    • 15,968 Posts
    • 9,223 Thanks
    motorguy
    Well tha bits sorted. Given I’m the same age as you I’ve got another three years before retirement.
    Originally posted by AndyMc.....
    And hows the £2 million pension pot looking?
    Last edited by motorguy; 04-01-2018 at 7:37 PM.
    You are not special. You are not a beautiful and unique snowflake.
    • AndyMc.....
    • By AndyMc..... 4th Jan 18, 7:36 PM
    • 903 Posts
    • 667 Thanks
    AndyMc.....
    And hows the £2 million pension pot looking?
    Originally posted by motorguy
    I know exactly what Iíll be getting and itís loking ok thanks.
    • motorguy
    • By motorguy 4th Jan 18, 7:38 PM
    • 15,968 Posts
    • 9,223 Thanks
    motorguy
    I know exactly what Iíll be getting and itís loking ok thanks.
    Originally posted by AndyMc.....
    Great!

    I hope it all works out for you
    You are not special. You are not a beautiful and unique snowflake.
    • facade
    • By facade 4th Jan 18, 8:03 PM
    • 2,964 Posts
    • 1,512 Thanks
    facade
    Am i reading this right? You're saying retire with nothing and let other people - presumably the state - support you? Is that not what all the dole heads down the dole office have done then?
    Originally posted by motorguy
    I mean to use my savings to survive rather than keep a "nest egg" that the state will seize if I need care.

    And as for the "dole heads" who have never done a days work in their life, have lived with a higher disposable income than me and will get a full state pension, (whereas I won't because I was contacted out, yet still paid a fortune above the threshold for a full pension)- I wish I'd had the sense to join them when I left school, my biggest mistake was to get a job in the first place.
    I want to go back to The Olden Days, when every single thing that I can think of was better.....

    (except air quality and Medical Science )
    • tacpot12
    • By tacpot12 4th Jan 18, 8:25 PM
    • 752 Posts
    • 659 Thanks
    tacpot12
    Well, I managed to get to the point where I had about £0.5M in my pension by the age of 53, and my partner had a little bit more, so I retired in 2017. I've just replaced my car with an old car that cost £750. It needs a bit of work to fix the problems it has, but I have time and will have the satisfaction of repairing it.

    We won't be taking lots of holidays or cruises, but not having to go back to work after Christmas is priceless!
    • MataNui
    • By MataNui 4th Jan 18, 8:54 PM
    • 917 Posts
    • 487 Thanks
    MataNui
    The difference between an OK retirement and a great long retirement that gives you the cash to do everything you would of missed out on would require a pension pot in the millions. Regardless of how much you save in your short working life that well beyond the means of the majority. Except those still able to retire on gold plated pensions (thinking of civil service and higher management) or those who got lucky with particular investments.

    So you tend to see those who have lived an austere and boring life to save for a better retirement still end up having an austere and boring retirement anyway (just a bit more comfortable than those who didnt and a bit longer). Frankly i would rather spend my money enjoying the life i have while i am young enough to enjoy it and have the money to enjoy it and keep my boring austere years short.
    • LeeUK
    • By LeeUK 4th Jan 18, 10:28 PM
    • 5,716 Posts
    • 2,627 Thanks
    LeeUK
    People can enjoy life, go travel and see the world and work? My wife and i do.
    Originally posted by motorguy
    That's very nice for you and your wife but that depends on the type of work you do and the hours you work.

    I only get just over 6 weeks holiday leave a year, and the hours and shifts I work impact on "enjoyment" time out of work. We don't all work a cushy 9-5 mon-fri job.

    Weekends away are nigh on impossible, and getting more than 2 weeks holiday from work authorised at a time is hard work too. So when I retire I will bloody well enjoy it.
    Last edited by LeeUK; 04-01-2018 at 10:31 PM.
    • welfayre
    • By welfayre 5th Jan 18, 2:33 AM
    • 165 Posts
    • 141 Thanks
    welfayre
    Think I must be the only person who genuinely doesn't intend to retire, just don't see the appeal in it. I'm only 30 atm so might change but I quite like my current job and I'm currently studying towards a degree in a field I've been interested in my whole life, so if I'm lucky enough to get a job in that I'll happily work forever.

    Both my granddad's worked into their 80s (one passed at 89, the other at 90) and both were physically and mentally as strong as you could be at that age. I think working while older helps give some people a purpose and helps keep them sharp.

    One thing I absolutely don't understand is why people want to wait to go travelling. I've been with my wife 7 years overall, first 4 were spent saving for a house and a wedding. The thought of scrimping and saving for another 20 years before being able to enjoy ourselves scared the hell out of us so we said sod it were going on holidays now and have been abroad 10 times since.

    That's led to some crazy memories over the last 3 years. Like renting a scooter in Thailand and getting utterly lost, (we left the hotel at 7am that day and got back at half 10ish) which led to finding a monument with the most spectacular views I've ever seen, before eventually being rescued by a nice guy from a random house we stopped at, who despite not speaking a lick of English and my Thai being limited to "hello", "thank you" and "lightning", led us back to a road where we knew how to get back to the hotel from.

    Or renting a boat and finding a pristine and totally isolated beach in a cove of a little island in ibiza, before getting the boat stuck on rocks (managed to wiggle it off after about an hour of trying) and then almost capsizing the thing when we chased after a ferry so we could try jumping its wake.

    Or going to Amsterdam for new year's eve and stopping for a quick drink in bar in the red light district, which led to us skipping our pre-booked meal and the nye event we'd paid Ä40 each for and partying in there till 7am with people, quite literally, from all over the world (U.K., USA, Poland, India, Morocco, Germany, Norway, Italy, Kuwait are the ones I can remember).

    I doubt very much if we'd waited till 50 any of that would appeal to us or that we'd be stupid enough to do it but I can guarantee when I get to 50 I'll look back on those trips, laugh and think I can't believe I actually did that but thank my lucky stars I did.

    Seize the day, live a little, **** the future etc etc.
    • Mercdriver
    • By Mercdriver 5th Jan 18, 2:43 AM
    • 1,496 Posts
    • 1,017 Thanks
    Mercdriver
    Retire too late and you risk pegging it before you can enjoy your retirement. Like my neighbour who retired at 65 then died 3 months later.

    Earlier you can retire the better then enjoy life, go travel, see the world etc. But of course this all depends on if you can afford too. No point in retiring early if you will only have £100 a week to live on etc.

    If all the difference between retiring or keep on working with a new car, retiring would win hands down.
    Originally posted by LeeUK
    Or retire early, and find you and your significant other aren't used to spending so much time together and then need to go back to work to pay for the consequences of a divorce!
    • motorguy
    • By motorguy 5th Jan 18, 11:00 AM
    • 15,968 Posts
    • 9,223 Thanks
    motorguy
    That's very nice for you and your wife but that depends on the type of work you do and the hours you work.

    I only get just over 6 weeks holiday leave a year, and the hours and shifts I work impact on "enjoyment" time out of work. We don't all work a cushy 9-5 mon-fri job.

    Weekends away are nigh on impossible, and getting more than 2 weeks holiday from work authorised at a time is hard work too. So when I retire I will bloody well enjoy it.
    Originally posted by LeeUK
    Exactly!

    Hence what i'm saying - working and having great holidays and enjoying life are not mutually exclusive. A lot of people dont have to / dont want to wait until they retire to do that.

    And you're wholly correct - theres no "one size fits all" answer that works for everyone and their circumstances.

    For those who have millions in a pension pot / pension pots coming in at 50+ then fantastic. I'm genuinely very happy for them.

    But frankly for everyone else, its an unrealistic / aspirational dream, unless you're happy to live a frugal lifestyle in their retirement.
    Last edited by motorguy; 05-01-2018 at 11:09 AM.
    You are not special. You are not a beautiful and unique snowflake.
    • motorguy
    • By motorguy 5th Jan 18, 11:06 AM
    • 15,968 Posts
    • 9,223 Thanks
    motorguy
    Or retire early, and find you and your significant other aren't used to spending so much time together and then need to go back to work to pay for the consequences of a divorce!
    Originally posted by Mercdriver
    OR retire early, find you dont have enough money a few years down the line then have to take on some menial job to make ends meet....
    You are not special. You are not a beautiful and unique snowflake.
    • LeeUK
    • By LeeUK 5th Jan 18, 11:14 AM
    • 5,716 Posts
    • 2,627 Thanks
    LeeUK
    Or retire early, and find you and your significant other aren't used to spending so much time together and then need to go back to work to pay for the consequences of a divorce!
    Originally posted by Mercdriver
    That's where you need hobbies and interests that aren't always shared.
    • motorguy
    • By motorguy 5th Jan 18, 12:46 PM
    • 15,968 Posts
    • 9,223 Thanks
    motorguy
    That's where you need hobbies and interests that aren't always shared.
    Originally posted by LeeUK
    Hookers and cocaine?

    You are not special. You are not a beautiful and unique snowflake.
    • TheMoonandBack
    • By TheMoonandBack 5th Jan 18, 1:23 PM
    • 59 Posts
    • 95 Thanks
    TheMoonandBack
    ĒI spent a lot of money on booze, birds and fast cars. The rest I just squandered.Ē
    When you get to the end of your rope, tie a knot and hang on

    Proud to be dealing with my debts
    • IanMSpencer
    • By IanMSpencer 5th Jan 18, 1:45 PM
    • 1,291 Posts
    • 975 Thanks
    IanMSpencer
    My best mate invested for retirement, was putting maximum amounts into AVCs. Also was fixated on his health as his dad died young through smoking and stress so ate some awful healthy food rather than simply enjoying good quality food.

    Dropped down dead at 52 from a simple health issue that could happen to anyone.

    It certainly changes your perspective on working till retirement age. Not everyone has the luxury of choice, but the trick is to work out what is really important and then work out how much of the bad stuff you need to do to get there.

    Some people love their work - it can be as enjoyable pastime as most things - and ultimately, what is the point but to enjoy the passing of time?

    When you start realising you might be sat in an office for 2 months of the year simply to have a nice car to get to that office, then you might be a little less enthusiastic about the worth of it.

    So I sit on both sides - enjoy it while you can, but don't lock yourself into a job you don't enjoy. Find the balance.
    • motorguy
    • By motorguy 5th Jan 18, 1:51 PM
    • 15,968 Posts
    • 9,223 Thanks
    motorguy

    When you start realising you might be sat in an office for 2 months of the year simply to have a nice car to get to that office, then you might be a little less enthusiastic about the worth of it.

    So I sit on both sides - enjoy it while you can, but don't lock yourself into a job you don't enjoy. Find the balance.
    Originally posted by IanMSpencer
    I think thats the trick really.
    You are not special. You are not a beautiful and unique snowflake.
    • TheMoonandBack
    • By TheMoonandBack 5th Jan 18, 2:27 PM
    • 59 Posts
    • 95 Thanks
    TheMoonandBack
    I am planning to retire very early in the next year. All my colleagues are saying that they've many more years to go. I have been reflecting on how I have got to my current financial position. The number one saving has been avoiding private education. Number 2 is avoiding buying posh cars. I normally buy standard cars and maintain them myself till they die. Most of my colleagues buy a new prestigious car every 3 years. I reckon I will retire five years early as a result from my back of a fag packet calculations. I was sat in the Jacuzzi the other day working out my investments.
    Property-slowly increases in value over the years
    Shares-ups and downs but should make plenty.
    Bonds-safer should make a bit.
    New cars-MASSIVE LOSSES GUARANTEED.
    So do people make that connection? Would people rather enjoy years of retirement or have a posh badge on their car? Or would they prefer to deny the association?
    Originally posted by fred246
    You are awesome.
    Iím better though, as I didnít even waste money on a jacuzzi !
    When you get to the end of your rope, tie a knot and hang on

    Proud to be dealing with my debts
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,479Posts Today

8,223Users online

Martin's Twitter