Early-retirement wannabe

elantan

Whilst yes it is fantasy stuff for me ... I am delighted that it isn't for others, I'm not jealous of ML etc having the money they have ... They have worked hard for it and used their money wisely, it's more than I will ever have, but that doesn't make me jealous or envious, it does make me feel happy that they will realise their dreams

It's not a competition, why not be happy for another human being ... Why feel despondent because your situation is different ?

gadgetmind

itm2 wrote: »

Thanks gadgetmind - both of those two were news to me!

The NI is called Class 2 an HMRC seem happy for you to just register as self-employed, pay £2.60 pw, and let you keep adding years. My wife does this and has to do a self-assessment every year, but that's no great hardship as she only earns a few bob.

My wife also pays £2880 pa into her SIPP, which the tax man adds £720 to. Everyone can do this even if they earn £0 pa. If she earned above this, then I'd just lob the lot in as long as I could afford to.

jamesd

itm2, I wonder whether your interest in some level of work might include some interest in more BTL properties. The interest on a mortgage on your home that is used for BTL property purchases would be deductible from rental income and relatively cheap compared to BTL mortgages, helping with the potential income. Something to do while still working with a good income to use for a mortgage application, that you can continue if needed.

With a million or so of equity there'd be no problem at all in getting ten or so quite decent BTL properties in a range of markets. That'd keep you busy with something providing income.

cyclonebri1, different people, different income levels and needs and expectations. Nothing wrong with lower income and retirement income levels, or plans to retire later based on what income will allow. Perhaps a relative lack of people early in the process or with smaller pot sizes here, though.

It's well worth remembering that only ten percent or so of people are earning enough to be higher rate tax payers and that median pensioner income was £18,000 a few years ago. That's quite respectable and plenty to live on.

atush

I am not insulted at all, but unless you have a few time consuming hobbies, then retiring at 50 could actually be a bit early lol.:D

I am sure you say the BBC news thread about a recent study which showed that retirement gives you a very short term boost in health, but then health declines at an even faster rate than before? This is because many don't keep up a fit and healthy lifestyle afterwards I guess. Plus there was a factor for mental decline as the brain gets less stimulation.

So, if Marine has a good number of hobbies to keep him fit and stimulated (golf anyone lol?) then fine. But many don't have the time to start or keep up such hobbies before they stop work. My OH is over 50 and if he was at home all day cluttering the place up, I might go crazy lol. His comments just when he watches TV now, sound like Victor Meldrew.:eek:

Of course he could take up hill climbing, and all sorts.:D

Marine_life

itm2 wrote: »

I'd kill for your numbers marine_life. I've decided to jump in a few weeks @53 with this lot:
- Joint savings/investments: £330k (half of which is wrapped in ISA's)
- SIPP: £200k
- Other Personal Pensions available at age 60 with guaranteed annuity rate of 9%: £112k (current value)
- Other half's occupational pensions: £50k (current value)
- Main property: £1m (no mortgage)
- 2nd property: £200k (no mortgage) - currently delivering £10k p/a gross rental income
I only have 26 qualifying years, but intend to make additional contributions up to the full 35 years between now and state retirement age.
My wife is 48 and currently doing part time work which brings in about £8k gross p/a
I intend to look for occasional sources of minor income (e.g. helping people out with technology problems) but my cashflow forecast doesn't depend on that.
So we're nowhere near as comfortable as some, but we have pretty low outgoings and are good at tightening our belts if needs be. It's all a bit scary but the appeal of ditching the stress of the day job is too strong to resist

Those are not bad numbers at all yourself especially if you decide to downsize from your main home (?).

Clearly for me what makes the difference is the guaranteed pensions for which I am very lucky - particularly my main non-contributory scheme which was withdrawn to new members two years after I joined.

itm2

Marine_life wrote: »

Those are not bad numbers at all yourself especially if you decide to downsize from your main home (?).

Clearly for me what makes the difference is the guaranteed pensions for which I am very lucky - particularly my main non-contributory scheme which was withdrawn to new members two years after I joined.

Why thank you.
We're keeping the main property in reserve as we love our location and have no desire to move. However it's a 3-storey townhouse so we may well fall out of the love with the staircases when we're in our 80s.
We'd certainly be up for some sort of equity release maybe in 20 years time (particularly as we have no kids), but who knows what'll happen between now and then?

JamesD: Thanks - interesting suggestion re more BTL properties. I wasn't overly keen on the up-front costs of buying more properties, but maybe it's worth crunching the numbers to quantify the benefits of the tax-deductible mortgage payments. With less than 6 weeks to go to R-day I probably won't have time to negotiate a mortgage etc while still a salaried employee,and I'm guessing it'll be alot more difficult as a retiree?

gadgetmind

Marine_life wrote: »

Those are not bad numbers at all

I may share my numbers come retirement but there's little point right now.

Clearly for me what makes the difference is the guaranteed pensions for which I am very lucky

Absolutely. There is no part of my retirement plan that is someone else's problem!

gallygirl

itm2 wrote: »

I'd kill for your numbers marine_life.

Am trying to work out if I did kill OH how close to those numbers I'd get :rotfl:.

There really is another world out there - when I read about you all with massive pots, wondering if you can afford to retire, I worry I really am being too gung ho about going asap .

Almo

Marine_life wrote: »

Actually I would say that its almost difficult to continue to consume without seriously diminishing returns i.e. if you have a perfectl decent television will a new super dooper 3-D interactive TV really make your life that much better - No it won't. After a while spending seems vacuous.

I would say that it's much more fun bagging a bargain and I really hate paying full price for something (especially if I see the same thing cheaper elsewhere).

M brother-in-law sounds similar to you, he got a good degree from Oxford and could have walked into pretty much an job he wanted but he chose to become a policeman. It was a calling if you like. The important point is, you would have to be pretty mercenary to do a job you hate for 30-40 years JUST for the money. That's a heart attack waiting to happen.

What a high salary does do however, is it allows you to make mistakes and recover (you could also say it mkes you careless!). Similarly, with things like sending the children to private school - is it absolutely necessary? no it isn't! but I think its worth it. So good money is not (only) about spending - its also about choices.

You're quite right about having a cushion to make mistakes, I wouldn't disagree at all and it's a good point.

I agree, personally, that it's much more fun bagging a bargain etc, but I think that is probably the case for most on MSE!

Spending being vacuous: yes, possibly. We are all around 30 so all have a few things left to accumulate, I'd say. Time will tell at what stage it becomes vacuous.

I should add that these are dear friends who work hard and are not going into debt for what they buy, I don't want to sound like I think I'm superior to them .

JoeCrystal

gallygirl wrote: »

Am trying to work out if I did kill OH how close to those numbers I'd get :rotfl:.

There really is another world out there - when I read about you all with massive pots, wondering if you can afford to retire, I worry I really am being too gung ho about going asap .

But surely, it is better to do something about it than not to do anything at all! Beside, the situation is unique to different person on retiring. I tend to get depressed with my plan to put away a considerable percent of my income for retirement only to see the forecast in just over thirty years only to yield low income compared to my current income.

But, but, it is still worth trying!

Cheers,
Joe