Early-retirement wannabe

Rich1976

tell_it_how_it_is wrote: »

Appreciating you've put your 'just' in inverted commas, your suggestions too are a little simplistic in my opinion, for a fair percentage of us mere mortals.

It's all well and good saying how easy it should be when you're reasonably well off, but for most of us, slapping around £400 a month into a pension pot is just not viable.

And bumping up by 2.5% is also a no-no for many, who are finding bills rising astronomically while not seeing a pay rise for years (six in my case). You could argue in lots of cases that reducing by 2.5% per annum would be more realistic!

I myself would love to retire at 55 (I'm 42), and I'm doing all I can to work towards it. However, it is a struggle, and there's every chance it might not come off - it certainly won't be a retirement of riches if it does.

One has to also live and enjoy treats as you go along. For me, there's no point sacrificing loads of things as you move through your daily life just to look towards a retirement you might not even reach.

I agree with every single word you have said. I have paid into a pension for over 14 years and certainly over the last 5 or 6 my contributions have gradually reduced from £200 pm when I was earning less money than I do now to about £100 ( before tax relief ). As someone who only earns in the region of 20k this is just about affordable.

Me and My OH have reduced all our other outgoings. We have no gym contracts, no SkY, no mobile phone contract ( onloy pay as you go ). We move our gasd and electric each year to the best deal for us. We move our cash ISA's when the rate becomes uncompetitive. Our Mortgage is fixed for another 3 years. Where we are suffering is on petrol. A total of £300 between us goes on petrol for the simple reason my OH works 20 miles from where we live and I work 15 miles in the other direction. Food keeps going up even though we budget and buy fresh each week. Our car insurance premiums haven't gone up drastically but still a bit higher and again we shop around. Despite all of this over the years my pension has grown to be worth 31k and my wife's is worth 25k bur for the forseeable future we cannot afford any additional contributions - although my firm is starting the Nest thing later this year.

A lot of the comments made on here are very simplistic and huge pension contributions are fine if you have a big salary and can afford to do it, but for the rest of us on below average earnings massive contributions simply isn't possible. I notice on other posts people get criticised when they say they can only afford to pay in £50 a month and then get shot down by certain people saying it's no where near enough - but if that's all people can afford then so be it. Also lets face it it's more important to be able to pay the mortgage and keep a job over your head than worrying you're not saving enough.

cyclonebri1

atush wrote: »

The reason I asked was that you now have an income shortfall but still big expenses (such as the three you listed).

Yes but I spent 55 years saving and can now afford to spend.

The 3 items I mentioned where either known about or through absolute choice, had 27 years of knowing that the wedding would come and 17 years of looking at a 30mtr long retaining wall that was just about to fall over, not surprises, and easily accommodated.

I was brought up in the generation that didn't do debt. Zero loans when I finished and virtually all through my working life.

My 1 and only mortgage was for £9k on a £19 house, the rest was capital, in was on the old endowment system, mine worked, it paid the £9k plus around £14 bonus;););) We now live in a band E bungalow and it was all through hard work and good or lucky timing.

There is nothing that can really hit me that I won't be able to cope with, given I keep up the insurance.

The 1 thing I really was trying to get over here, and when I posted much earlier is that you may be 1 of the lucky one's whose plans go absolutely swimmingly, but many are not so fortunate and all plans fail due to job loss, illness or divorce etc .

Me?, I was both lucky and unlucky, but had hedged my bets, that's the important bit.

I don't need them to stuff the coffin with paper money thanks, I'll roast perfectly well in my own juices.:D:D:D:

gadgetmind

cyclonebri1 wrote: »

Again no, I am absolutely low risk,

Fine, but perhaps you're starting to understand how risky this is.

cyclonebri1

gadgetmind wrote: »

Fine, but perhaps you're starting to understand how risky this is.

No I'm not, if you don't risk anything you can't lose (or gain anything), I'm happy, get your head round that, without offence GM, it wasn't a pop.

I planned that my pot would feed me, if it didn't I was still left with my pot, you guys dig?


Please don't view my views/posting as contentious, try alternative?

gadgetmind

cyclonebri1 wrote: »

No I'm not, if you don't risk anything you can't lose (or gain anything)

If inflation didn't exist, you'd be right.

I planned that my pot would feed me, if it didn't I was still left with my pot, you guys dig?

As long as you're happy with a diminishing pot that's failing to feed you, then who are we to criticise?

cyclonebri1

gadgetmind wrote: »

If inflation didn't exist, you'd be right.



As long as you're happy with a diminishing pot that's failing to feed you, then who are we to criticise?

We are only touching interest, haven't had to do that until very recently, and the 10 years up to national retirement age was always going to be the biggest concern, but you have to remember I was left with no option about retiring.

Failing to feed me?,:rotfl::rotfl: sorry, you are so far off the mark, I go out and if I take a fancy to something, then it's mine. It's what I worked an average of 60 or more hours per week to achieve.

Without offence if your dream is to die with a fortune and never having had the need to touch then fine, it's your life, live it your way.

Me and the missus, we intend to enjoy a little spending, we've been tight assed for long enough.

We have totally different views on the subject, I did when I was younger.

The whole idea is to provide a wide perspective of both views and experience to those following this thread, neither of us are right or wrong.:A

Moby

Rich1976 wrote: »

A lot of the comments made on here are very simplistic and huge pension
contributions are fine if you have a big salary and can afford to do it, but for
the rest of us on below average earnings massive contributions simply isn't
possible. I notice on other posts people get criticised when they say they can
only afford to pay in £50 a month and then get shot down by certain people
saying it's no where near enough - but if that's all people can afford then so
be it. Also lets face it it's more important to be able to pay the mortgage and
keep a job over your head than worrying you're not saving enough.[/

QUOTE]

Agreed ...........there is an unhelpful lecturing tone by some.

gadgetmind

cyclonebri1 wrote: »

We are only touching interest

And inflation is gnawing away at your capital. If you've modeled for this, and you're happy that this is the approach that best suits your needs and attitude to risk, then who am I to criticise?

There are however, some who "dash for cash" without realising that such low risk assets carry risks all of their own.

cyclonebri1

gadgetmind wrote: »

And inflation is gnawing away at your capital. If you've modeled for this, and you're happy that this is the approach that best suits your needs and attitude to risk, then who am I to criticise?

There are however, some who "dash for cash" without realising that such low risk assets carry risks all of their own.

Don't worry, I fully understand, and you are right to point out the pitfalls, but, as we agree it's what works for me.

"Spend down" is how I view it.
Once you accept you aren't going to live forever, what are you going to do with your cash assuming you are comfortable?

My answer is "enjoy it".

Don't let me give anyone the impression that I'm blowing £notes from every orifice, I'm not, I make the pennies count, but, I am now reaping the rewards of hard graft over a long period, and am happy with my choice:D

Marine_life

cyclonebri1 wrote: »

"Spend down" is how I view it.
Once you accept you aren't going to live forever, what are you going to do with your cash assuming you are comfortable?

This is something I think about.

M position is such that I have enough money / assets to retire today (subject to the fact of reaching the qualifying age for my pension - which is 50) but I won't becasue:

a. I want to have enough money to put the kids through Uni and potentially pay a house deposit.

b. I want my retirement to be one where we can enjoy ourselves without having to think every step of the way about money.

c. I potentially want to leave the kids some money.

In the main though I think you said it yourself the big uncertaint around early retirement is how much you need to last between the day you hang up your work boots to the day the pensions start rolling in!