Early-retirement wannabe

gallygirl

Marine_life wrote: »

I've run my projections our to age 90 using incredibly conservative assumptions (1% return on investment; 2% inflation, 35% cushion on projected expenditure) and we would still be cash positive so the question is .....if the chance of the pension not paying out are super low, why am I still working again?

Because you're a big fat chicken .

Another one amazed by the number of ostriches around when it comes to pensions. Sister-in-law cashed in her small pot last year in full - she's out of work but now can't claim benefits as over the ceiling cap for savings...... And once that's gone, that's it.

Even at work, where you had to be reasonably financially literate, most people were either uninterested or in some cases deliberately avoiding the issue. The few like me who had planned for ER (and then executed it Marine Life!!!!!!) were of course 'lucky' :mad:.

Sjmb

Bluntly? Because giving up a secure income after a lifetime of working requires courage and belief in yourself. Do you have that?
It is far easier to take the path of least resistance and carry on working. You persuade yourself every day as you go to the office that you really are in control because of course you could give up working if you wanted to. You tell yourself that if you just do one more year, then it's really worth double, because you are still earning and not spending your savings. Well that's true, but remember you also have one less year to enjoy life and that can never be replaced. My husband used to say that we had the cake and the icing, he just wanted the cherry on top. So you will continue to put off taking any positive action until some external event outside of your control forces your hand. Redundancy, serious illness, a family crisis, an inheritance, who knows what it will take to make you see that life is more than a spreadsheet.

bugslet

Wednesday2000 wrote: »

Does anyone on here talk to friends and family about their plans? I went over the top at first and kept telling people (to huge disinterest) and I find there aren't any UK early retirement forums to share ideas or just to vent.
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I come at things from a slightly different angle.

I started putting £25.00 into a pension when I was about 25 - I know, but I earned peanuts and it was a start:D. I set up in business four years later and for many many years, took a reduced wage to subsidise pension payments.

Part of my thinking has been that the business has a value ( not in terms of sale, it's not a business that can be sold really), but from sale of assets and whatevers on the books when it finishes. So the idea is that it's a combination of savings and pension.

I'm coming to the point that I'm thinking of when to finish the current work - I like it, but it's stressful and tiring. There may be an external push next year, otherwise the next leaping off point is 2019-2020, which money wise would be better - probably equate to another 100k in the pension pot.

It's not circumstances most people can relate to, but in answer to the main question, it isn't something a lot of people want to do. I do try and take a balanced approach as well ( nothing wrong with the all out approach, but I know too many people that died before 50, so I do try and enjoy life now and save. I don't feel a connection with the extreme savers myself.

Marine_life

Wednesday2000 wrote: »

Does anyone on here talk to friends and family about their plans?

One of my brothers is already retired (he retired a few years ago aged 50) and we have had mostly had discussions about what he does to fill his time. He's quite different to me in that he's quite 'good with his hands' and because he retired on a lowish income he needs to do a lot of things himself. So he spends a lot of time doing DIY in one form or another, planning for holidays and going on holidays and other hobbies (running, walking etc.). Another older family member was made redundant in his 50's and used that a platform to set up his own business.

In general I think it's a well know and well reported fact that 'people' are less interested in saving for something which feels a long way off (hence the UK government introducing the workplace pension). One of our children started work recently and we made sure that they A. sign up for maximum salary sacrifice B. Start trickling money into a passive tracker. Personally I think the more you can automate pension saving the easier it is.

Marine_life

Sjmb wrote: »

Because giving up a secure income after a lifetime of working requires courage and belief in yourself?

To some extent that's a fair comment.

I think it also depends on how settled you feel with your projected retirement lifestyle i.e. is it predictable (stay in the same house, clear view on activities that will fill time etc. etc.). As Mrs ML says, she is reluctant to "let me" retire until I can tell her what I'm going to do with my time. So while there's uncertainty it often seems easier to do nothing.

Of course you could also say its a bit like standing on the edge of a swimming pool. The initial shock of jumping in quickly subsides!

gadgetmind

Marine_life wrote: »

As Mrs ML says, she is reluctant to "let me" retire until I can tell her what I'm going to do with my time.

Mrs. GM is the opposite. When she sees work getting me stressed out and down she tells me that "whatever you want to do, we'll make it work" but what I really want to do is sort things out a work! Yes, I could retire now if I wanted, but I've got a team of people who depend on me, and a large company and many customers reliant on what we deliver.

It's not all about money.

saver861

gallygirl wrote: »

Because you're a big fat chicken .

Another one amazed by the number of ostriches around when it comes to pensions. Sister-in-law cashed in her small pot last year in full - she's out of work but now can't claim benefits as over the ceiling cap for savings...... And once that's gone, that's it.

Even at work, where you had to be reasonably financially literate, most people were either uninterested or in some cases deliberately avoiding the issue. The few like me who had planned for ER (and then executed it Marine Life!!!!!!) were of course 'lucky' :mad:.

I think there is some apathy to savings, pensions, financial issues, etc in families, ergo workplaces etc.

However, I think there is often one half of a couple who deals with the financial aspects. In addition, forums such as this has helped many. Personally I see it as a hobby - I do the credit card stoozing, do the bank switches for fun as much as getting the money. I do the pension thing, etc etc also. Clearly long term financial planning is important, but if I look back, much of it was luck as much, or more so, than judgement.

That said, I think the younger people of today will be much more financially astute in their lifetimes than the over 50s generation are today.

These forums, financial apps, internet, etc etc makes financial aspects ever present and thus many more of the younger generation will plan better than most of the older generation today.

If I were to wind myself back to 21 years old today, with the various information etc available, I think my financial planning would have been better - i.e. more judgement than luck!

saver861

gadgetmind wrote: »

Mrs. GM is the opposite. When she sees work getting me stressed out and down she tells me that "whatever you want to do, we'll make it work" but what I really want to do is sort things out a work! Yes, I could retire now if I wanted, but I've got a team of people who depend on me, and a large company and many customers reliant on what we deliver.

It's not all about money.

I think when you retire you will find that the team, organisation etc will carry on. No one person and all that......

In my role I tried to make sure as far as possible, I had things in place fully documented etc so that should I fall ill, or retire etc etc that everything was in place for anybody to pick up and run with.

Indeed, if they don't supersede what I had done then I have failed. As that saying goes, if the student does not excel the master, then the master has failed!!

Wednesday2000

Marine_life wrote: »

One of my brothers is already retired (he retired a few years ago aged 50) and we have had mostly had discussions about what he does to fill his time. He's quite different to me in that he's quite 'good with his hands' and because he retired on a lowish income he needs to do a lot of things himself. So he spends a lot of time doing DIY in one form or another, planning for holidays and going on holidays and other hobbies (running, walking etc.). Another older family member was made redundant in his 50's and used that a platform to set up his own business.

In general I think it's a well know and well reported fact that 'people' are less interested in saving for something which feels a long way off (hence the UK government introducing the workplace pension). One of our children started work recently and we made sure that they A. sign up for maximum salary sacrifice B. Start trickling money into a passive tracker. Personally I think the more you can automate pension saving the easier it is.

I wish I had older siblings that I could talk to about FI. I have tried to talk to my younger brother about his finances, but he is very easy-going and doesn't worry much about the future. Typical Millennial, haha, just kidding.:p I know some younger people must be quite sensible with their money as saver861 said as there is so much more information available these days on the internet.

Marine_life

Two very interesting posts I was reading this morning...which talk about concept of being too cautious.

http://www.marketwatch.com/story/how-saving-too-much-can-make-your-retirement-less-satisfying-2016-07-13

https://www.kitces.com/blog/consumption-gap-in-retirement-why-most-retirees-will-never-spend-down-their-portfolio/

I do find it tough to believe that the 7-8% returns seen historically will be seen in the next 30-40 years which would probably change the maths but overall it seems to make a lot of sense.