Early-retirement wannabe

atush

My OH, was originally going to retire later this year/early next year. But instead he signed up to 2 more years.

But he did get them to agree a 4 day week later next year. Plans to work 5 days a week then bank the one day a week as extra leave. So he can take more than 2 weeks off at a time. Let us see how it goes.

gallygirl

Mnd wrote: »

Let's have a referendum on it

kidmugsy wrote: »

Or a whole series of referendums until we return the right answer.

Can you negotiate a blue works pass? Could be a deal maker/breaker.



I'm with the others on this. And look to the voluntary sector as I'm sure they'd snap you up in a hearbeat.

DairyQueen

Marine_life wrote: »

So where does that leave me/us?
1. I would like to do the work...
2. But only if I can do it on my terms
3. I like the person I'm working for...
4. But I don't like feeling like I'm being pushed around

The onus is on me to give ground...

Straight choice then. You either concede to your employer's terms or you walk. Ending this employment isn't necessarily the end of your working life. Alternative employment perhaps? And on your terms?

Terron

atush wrote: »

All good but maybe you werent caught by the higher stamp duty and lower deductions for costs? Ie the newer harsh tax levels?

If it happened to you today it might not have beeen the best idea/

I wasn't but it would not have made that much difference. I started before sstamp duty was lowered by the removal of the slab system. The new system is worse overall but not by that much much. The reduction in mortgage interest relief would not affected me initially for two reasons:

1. With no job I could not get a mortgage and had to buy using cash until I counted as an "experienced" landlord.
2. I am a basic rate taxpayer, and would be even if the new rules were fully in effect. Next year once I get a pension I will may be a higher rate payer but I should be able to avoid the extra tax,

michaels

DairyQueen wrote: »

Straight choice then. You either concede to your employer's terms or you walk. Ending this employment isn't necessarily the end of your working life. Alternative employment perhaps? And on your terms?

Perhaps a tribunal for constructive dismissal and a nice redundancy payout beckons?!

westv

michaels wrote: »

Perhaps a tribunal for constructive dismissal and a nice redundancy payout beckons?!

Perhaps? In my case, I was TUPEd to another location and my travelling time increased from 10 hours a week to 22. I was told I could either go or resign.
After seeking independent advice I was told a case may not succeed so I have decided to go to the new loocation whilst seeking alternative employment or jacking it all in if nothing turns up..

hugheskevi

Time for a mid-year update on how the early retirement plan is going.

I've been giving careful thought to the next few years, and the plan is to work full time for about 2 more years, then another 2/3 years part-time. Whilst working full-time pension contributions will remove most higher rate tax liability. Once myself and my wife have maxed out some good Defined Benefit pension contributions options, we will then go part-time, with hours set to avoid higher rate tax, which should be a 3 or 4 day week. That should take us to about age 45, and I think we will be in a position to retire then. If redundancy offer or inheritance comes along in the meantime it will bring things forward.

The consultancy I started this year is doing okay and turning a modest profit. But I am not motivated enough to put serious effort into it, and it will be little more than an interesting hobby rather than something I put proper effort into expanding (note, this income is not shown in stats below). If I was 10 years younger, it would have been something I more actively pursued, but it seems a bit of a waste to put a lot of effort in so close to retirement.

I've been doing a lot of running over the last six months, and finally getting close to being able to run 5km in under 20 minutes again - ran 20:46 today. Also doing some half-marathons.

My wife and I went off on a great wildlife volunteering programme in Kenya back in April, spending 2 weeks seeing some amazing animals. That followed a far longer trip across central Africa last year, which was 3 months for me and 1 month for my wife. But no more trips planned at the moment - I'm just taking advantage of not having any children or pets, and so being flexible whenever good options develop. There is a trip from Cairo to Addis Ababa I would like to do, as that would mean I complete (albeit not in one trip) an overland trip between Cairo and Cape Town, to add to Morocco to Cape Town overland, which I have previously traveled. But it is logistically difficult, so will probably have to wait for another year.

In terms of different life stages in the future, the table below shows the progress as at today against funding each 'pot' starting with 3 years of travel, before purchasing a retirement house (this assumes I sell everything, including my current house, before going off traveling).

By State Pension age (68 for us), our target income from Defined Benefit and State Pension is about £50,000 in today's price (CPI) terms. The table takes into account using already-accrued Defined Contribution pension in the 55-68 period. The table shows the position based on retiring today - so every day spent working both increases resources available and reduces the amount of time which needs funding in the 'Post travel to age 50' category.



Since it seems so popular on other discussion boards, I thought I'd write a Statement of Affairs (SoA) to look back on in future years. Note that some of the values are a bit high as they do not net off cashback/gift vouchers, etc, received as incentive at start of contract. As the SoA excludes pensions, which are the biggest part of my total wealth by far, it is very limited in use for anything other than a record of expenditure at a point in time. Note also that employer pension contributions are not included.

Statement of Affairs and Personal Balance Sheet (several nil values excluded)

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 3,450[plus £1,031 of pension contributions]
Partners monthly income after tax....... 3,416[plus £1,085 of pension contributions]
Total monthly income.................... 6,866

Monthly Expense Details
Mortgage................................ 263
Council tax............................. 136
Electricity............................. 31.5
Gas..................................... 30.5
Water rates............................. 23
Telephone (land line)................... 17
Mobile phone (for 2 people)............. 27
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services(offer until March).... 1
Groceries etc. ......................... 400
Clothing................................ 10
Petrol/diesel........................... 20
Road tax................................ 2.5
Car Insurance........................... 23
Car maintenance (including MOT)......... 30
Car parking............................. 5
Other travel(bicycles/public transport). 50
Medical (prescriptions, dentist etc).... 6
Pet insurance/vet bills................. 0
Buildings insurance..................... 6
Contents insurance...................... 6
Life assurance (included in pension).... 0
Other insurance (bicycles).............. 2
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 1,000
Holiday (varies a lot year-to-year)..... 300
Emergency fund (not really relevant).... 0
Total monthly expenses.................. 2432.5

Assets
Cash.................................... 20,403
House value (Gross)..................... 514,543
Shares and bonds (ISA).................. 133,373
Car(s).................................. 2,000
Other assets (piano, jewelry, etc)...... 15,000
Total Assets............................ 685,319

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 52,111....(263)......1.69
Total secured & HP debts...... 52,111.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit cards...................57,655.....600.......0
Total unsecured debts..........57,655.....600.......-

Monthly Budget Summary
Total monthly income.................... 6,866
Expenses (including HP & secured debts). 2,432.5
Available for debt repayments........... 4,433.5
Monthly UNsecured debt repayments....... 600
Amount left after debt repayments....... 3,833.5

Personal Balance Sheet Summary
Total assets (things you own)........... 685,319
Total mortgage.......................... -52,111
Total credit card debt (Stoozing)....... -57,655
Net Assets.............................. 575,553

gallygirl

MallyGirl wrote: »

I sorted the itinerary myself although we ended up going through Kuoni to book - we had a poorly family member at the time and the idea of someone having to deal with cancellations if necessary was attractive. Thankfully it was not needed.
When we go back I will do it all myself.
Feel free to PM - I could wax lyrical about this holiday for some time

Somewhat belatedly, thanks! I will take you up on the offer and PM me if you don't mind .

hugheskevi wrote: »

Time for a mid-year update on how the early retirement plan is going.

Ooooohhh, getting close

I assume you've considered devoting more time to the consultancy to bring forward the date?

hugheskevi

I assume you've considered devoting more time to the consultancy to bring forward the date?

Yes, but I'm not in any hurry. If I wasn't enjoying work things would be different, but whilst the going is good there isn't the motivation to put in more effort just to bring things forward by a year or two.



Five more years of work, a bit over half of it part-time, isn't a burden. There comes a point where developing the consultancy stops being interesting, and progressively become a chore. So unless things change, it can stay just as a sideline. Nonetheless, it is nice to have different options.

bluenose1

hugheskevi wrote: »

Time for a mid-year update on how the early retirement plan is going.

[

I've been doing a lot of running over the last six months, and finally getting close to being able to run 5km in under 20 minutes again - ran 20:46 today. Also doing some half-marathons.

]
In terms of different life stages in the future, the table below shows the progress as at today against funding each 'pot' starting with 3 years of travel, before purchasing a retirement house (this assumes I sell everything, including my current house, before going off traveling).

[F]

Since it seems so popular on other discussion boards, I thought I'd write a Statement of Affairs (SoA) to look back on in future years. Note that some of the values are a bit high as they do not net off cashback/gift vouchers, etc, received as incentive at start of contract. As the SoA excludes pensions, which are the biggest part of my total wealth by far, it is very limited in use for anything other than a record of expenditure at a point in time. Note also that employer pension contributions are not

[

[/FONT]

A Statement of Affairs is a really good idea. My oh and I need to sit down and do this.
Looking at your SOA I am determined to run our cars into the ground as that could be a big saving for us. We normally upgrade new cars every 4 years or so. Not very expensive ones but it does affect ability to save. Annoyed with myself we upgraded oh's car last year, and I best not even dwell on the private number plate we got.
Had my pension epiphany November last year and since then have been much more focused.
Mind you that hasn't stopped us booking for Disney next year!!

Do a 5K Park Run every week but seem to be getting slower rather than quicker. My excuse it the quicker I run the more injuries I get.
There again this week part of the path was covered in about 2 foot of sand. The joys of running by the beach.