Early-retirement wannabe

MallyGirl

westv wrote: »

How many others are finding the biggest obstacle to the possibility of early retirement is their other half? :D

I think mine was shocked by the concept when I first raised it - and this is something I am planning on happening in 9.5 years time. I now just mention it every now and then so that he gets used to it. He has absolutely no understanding of our financial situation so was happy when I said that we would be able to afford to do so.
We have some big financial commitments coming up before then - 2 years school fees followed by 5 or 6 year degree course for DD - but once those are behind us then we can settle on a date.

atush

alancwearing wrote: »

Hi Thanks for the reply. My savings used to pay more than my mortgage, i.e. when Santander paid 3%.
However since the reduction in interest to 1.5% this is no longer the case.

What rate is your mtg? how is your 65/m invested? What is the 400/month you are reciving?

My first thought is you should pay 400/m into a DC pension. Will receive TR. Or if you are retiring next year, put up to your max into a DC pension between now and april. Will be your salary minus your DB pension, and i think has to be over min wage left as income.

alancwearing

Thanks for the prompt reply. My mortgage rate is 2.93% (6 years to go, I can overpay). 60 k is in Santander 123 accounts. The £400/ month is my private pension (30k of the 60k was a pension lump sum)

OldMusicGuy

westv wrote: »

How many others are finding the biggest obstacle to the possibility of early retirement is their other half? :D

No, fortunately my other half is encouraging me to retire early. She would much rather have less money and live with a laid back and less stressed me rather than plenty of money but live with an over-stressed, over-opinionated corporate wonk that's heading for an early grave.

However, I think it's really important that partners share the same outlook. It's a big move, and for us will represent a major downsizing in lifestyle. But my wife is keen for us to adopt a more sustainable lifestyle rather than one that relies too much on consumption (and I agree with her).

ex-pat_scot

MallyGirl wrote: »

I think mine was shocked by the concept when I first raised it - and this is something I am planning on happening in 9.5 years time. I now just mention it every now and then so that he gets used to it. He has absolutely no understanding of our financial situation so was happy when I said that we would be able to afford to do so.
We have some big financial commitments coming up before then - 2 years school fees followed by 5 or 6 year degree course for DD - but once those are behind us then we can settle on a date.

Yes.
My OH is rather disinterested in anything financial planning related really, beyond a vague understanding that my pension is accumulating at a good rate.


It's a general case of "tell me we are secure in income, access to emergency funds, and that we will be OK in later life".
I could expound at length on the plans, but I very quickly get a glazed-over look.


There are lots of rather separate discussions to be had at some point:
- the number
- a possible exit date
- a possible glide path (ie going part time / consulting / local (lower paid at some point)


At present (nearing 49) these remain distant ambitions; nearer 55 then they can start to firm up as goals. Pot valuation will be a lot clearer at that point as well.


The next few years will be financially painful: my eldest will start university shortly, and will require a minimum contribution (ie loan shortfall) of c£500/m.
Our local secondary, whilst excellent, stops at 16, with 3 further children requiring sixth form fees and possibly FE loan contribution. The temptation would be to forego pension saving, which would be compelling to OH but at huge opportunity cost (would yield £11,200 net instead of £ 41,572 in the pension).

Selfishly, I fear that introducing the discussion and options will let the genie out of the bottle. The conversation will end up "if you work another 3/4/5 years then we can send the children to X". I will end up hanging on by my fingertips for a few more years, exhausted and burnt out, and feeling guilty that I dare consider putting my own happiness ahead of the children.


[I work away from home; huge hours, exhausting schedule, consulting environment with lots of travel, antisocial hrs; demanding clients and tons of firefighting. I'm exhausted now, and the thought of 6 more years is just about bearable. I'm not sure morale and health will last indefinitely - just hope I can hang on until 55]


Sorry for a bit of a ramble but you hit a bit of a nerve!

westv

OldMusicGuy wrote: »

No, fortunately my other half is encouraging me to retire early.

Redundancy may be on the horizon but my wife is of the opinion that 55 is "too early to retire" and she'd rather I ended up doing a rubbish local job than enjoy myself! :mad::rotfl:

OldMusicGuy

ex-pat_scot wrote: »

I work away from home; huge hours, exhausting schedule, consulting environment with lots of travel, antisocial hrs; demanding clients and tons of firefighting. I'm exhausted now, and the thought of 6 more years is just about bearable. I'm not sure morale and health will last indefinitely - just hope I can hang on until 55

That was me about 2.5 years ago. I nearly had a breakdown, fortunately work were great and took some of the workload off me. My wife said at the time just stop, we will manage somehow but I have soldiered on for another 2 years while son finished university. Really glad to be finishing now.

55 would have been a good age to stop IMO, but financially I was not ready due to poor planning on my part.

cobson

alancwearing wrote: »

60 k is in Santander 123 accounts.

Don't Santander only pay interest on the first 20k in a 123 account ?

bugslet

OldMusicGuy wrote: »

.

However, I think it's really important that partners share the same outlook. It's a big move, and for us will represent a major downsizing in lifestyle. But my wife is keen for us to adopt a more sustainable lifestyle rather than one that relies too much on consumption (and I agree with her).

A friend of mine age 58 would love to retire, but she and her husband (72) have a business that he won't stop working in.

Without winding the business down, it would be difficult for her and as anyone that has run a small family business knows, you don't shut your front door and forget about it, especially when it's a 24/7 business. The situation is causing some stress.

'Luckily', I'm single

NoMore

cobson wrote: »

Don't Santander only pay interest on the first 20k in a 123 account ?

Most likely its his and his partners and a joint account, that covers 60k in Santander 123.


Lots of people use this arrangement