Early-retirement wannabe

Marine_life

peterg1965 wrote: »

my passion is cars and travel

That is one of the big considerations of retirement - how much can we drop our "car" standards! it may seem trivial to some but its a big one for us as we have a number of years of "nice" cars behind us (cuurently an AMG Mercedes for me and a Q5 Audi for her). I do think we can trade down but I am not convinced it will be easy!

Anyway - I have one big car change before I retire so it will be a careful choice (Nissan GT-R? Audi RS5? Another AMG?). I have no intention of sacrificing all current pleasures in the pursuit of early retirement.

We like a bit of travel but to be honest I have travelled soooooo much with work the novelty has somewhat worn off. However, we are thinking about a two home strategy (warm winters, warm summers etc). As I mentioned in a previous post - Cyprus has some very attractive tax options for retirees - worth a look if you will have big income in retirement. In my case, my deferred compensation scheme pays a big lump sum in the fifth year which could equate to around 400,000 - in Europe would be taxed at 40% plus, in Cyprus taxed at 5% meaning a saving of around 140,000!!!:eek: Worth a thought.

Domain.Rider

I retired at 55 on Weds 29th July 2010 (I decided on the previous Friday!). I was intending to go at 57 or 58, but a company buy-out and consequent pension changes forced my hand.

Fortunately, I'm single, no dependents, and the mortgage is paid off. I'd enjoyed my job as a software developer in the city - it was well paid, not overly stressful (I always refused management positions - for me, the money doesn't compensate for the stress), I was good at it, and had a decent final salary pension. But after 26 years doing the same kind of stuff, I'd just grown tired of it. I was just going through the motions.

For the last 7-10 years, I was maxing out my AVCs and savings, ready for early retirement, and when I totted it all up at the crucial time, it came to just over my NUMBER (about 1/3 of my salary), which is easily enough for my quiet lifestyle. So I took the FS pension and a flat annuity with the AVCs, plus there's still a healthy chunk of savings for security, repairs, major items, and pension top-ups if state pension is trimmed too far.

Since my sudden departure, I've been happier and more relaxed than for many years. I realise now that the job was mildly depressing me, because I'd lost interest in it. Now I can get up early, or sleep in as long as I like (hearing next door scraping ice off the car early in the morning before I turn over to go back to sleep can't be costed in monetary terms!), I exercise, go for runs, got myself a bicycle, eat healthily, take long walks along the coast, spend hours online, stay up late watching the Ashes, and still keep getting that little smile of realisation that I don't ever have to work for money again All the things I'd planned to do in retirement are still on hold while I continue to 'adjust to' (i.e. enjoy) my sudden leisure status.

I'm so glad I stopped when I did - the rail season ticket for the commute into London has gone up 12.5% this year, after an 8% rise last year (I would be paying almost £5,000!). The new company owners are trimming costs by killing projects, freezing pay & recruitment, removing coffee machines (yes!), no bonuses, no profit-share, no share options, and the new pension scheme is poor. Morale has plummeted - the only thing keeping people there is the difficulty of finding other jobs... those that can are leaving. I don't miss any of it

Marine_life

Domain.Rider - yours is an interesting post and thanks for adding your thoughts.

In some ways my own experience is similar to yours i.e. I seem to be losing enthusiasm for a job that I once enjoyed. Part of that is the economic environment which has put a lot of pressure on all of us and part of it is the fact that our environment seems to have changed from one focused on the team to one focused on the individual. A combination of factors which mean it is less exciting to get up every morning and go to work.

Of course it is possible that it could change we would reignite my enthusiasm. Also, I have heard a number of people say that once work becomes a grind then its time to move on. Well......not so easy either in today's economic environment or - to be honest - in any environment to move to a job that would pay me anything like what I earn at the moment. So the alternative route is to "suck it up" and plan for an early as possible exit.

My main difference to you is dependents and particularly providing for the childrens education. Of course it is a luxury for them to have daddy fund their entire education but I simply cannot accept that they should begin their working lives deep in debt, when there are likely to be many other pressures that they need to bear.

So as with all decisions, the early retirement decision is one of compromise and balance. At the moment, the balance is in favour of sitting tight and stuffing as much cash as possible into retirement savings........but who knows if that will change.

Retirement date for me is looking like either 30 June 2014 (at age 49 when my son finishes school) or 30 June 2015 (when I will be 50). 30 June is the end of our financial year and would mean I accrue a full annual bonus!

Domain.Rider

Marine_life wrote: »

...Also, I have heard a number of people say that once work becomes a grind then its time to move on. Well......not so easy either in today's economic environment or - to be honest - in any environment to move to a job that would pay me anything like what I earn at the moment. So the alternative route is to "suck it up" and plan for an early as possible exit.

Yes, a decent job is really worth something today; the problem is that once you've decided or realised you're disenchanted and you've had enough, it suddenly becomes much more difficult to carry on.

My main difference to you is dependents and particularly providing for the childrens education. Of course it is a luxury for them to have daddy fund their entire education but I simply cannot accept that they should begin their working lives deep in debt, when there are likely to be many other pressures that they need to bear.

Having dependents changes everything. Which is best, to reduce their initial debt, or to help with new debt, such as mortgages, cars, etc.?

Retirement date for me is looking like either 30 June 2014 (at age 49 when my son finishes school) or 30 June 2015 (when I will be 50). 30 June is the end of our financial year and would mean I accrue a full annual bonus!

Given that timescale, and stopping so early, you potentially have time to consider a change of career - including retraining...

Marine_life

Domain Rider

You are right - it is quite early to consider full retirement (although my brother retired last year at 50 after 30 years with the fire service and is enjoying it a lot - probably partly contributing to my unease!). In reality I would like to continue in a role that I really enjoy (which would be teaching / guest lecturing). However, as I said the main block with me doing that now is the fact that even full-time I would be unlikely to earn even 20% of what I do today - which speaks towards building a big fund and then making choices later.

For the children I am more tempted to pay now while funds are rolling in than pay later when any support is likely to have to be drawn from the retirement pot which is likely to hurt proportionatly more!

Marine_life

So to keep myself focused on the target I decided to include a countdown clock to my intended retirement at 50 which is on 23 October 2014:

So:

There are 1378 days to go.

To put in another way:

1. 197 weeks (that makes it seem longer)
2. 46 pay days

I am also going to try and record some of the retirement planning thoughts I have been having.

First of all, I was thinking this morning about cash expenditure. Actually, I have very close to zero cash outgoings - for a couple of reasons:

a. When I am in the office I almost always bring a packed lunch (or leftovers from the previous nights dinner.
b. I don't smoke.
c. I don't buy frothy coffee (I make my own tea at work - my employer provides teabags).
d. I cut my own hair (and have done for almost 10 years).
e. I don't buy a newspaper (I drive to work so have no time to read it but also I tend to read the news on the internet)

My cash tends to disappear on either my wife raiding my wallet or on business expenses (like taxi's) which I subsequently get back anyway.

On reflection I am quite pleased with that (my low cash outgoings) but I really need to get on and do the regular expenses monitoring so I can assess my (likely) retirement spend.

peterg1965

Marine_life wrote: »

So to keep myself focused on the target I decided to include a countdown clock to my intended retirement at 50 which is on 23 October 2014:

So:

There are 1378 days to go.

To put in another way:

1. 197 weeks (that makes it seem longer)
2. 46 pay days

I am also going to try and record some of the retirement planning thoughts I have been having.

First of all, I was thinking this morning about cash expenditure. Actually, I have very close to zero cash outgoings - for a couple of reasons:

a. When I am in the office I almost always bring a packed lunch (or leftovers from the previous nights dinner.
b. I don't smoke.
c. I don't buy frothy coffee (I make my own tea at work - my employer provides teabags).
d. I cut my own hair (and have done for almost 10 years).
e. I don't buy a newspaper (I drive to work so have no time to read it but also I tend to read the news on the internet)

My cash tends to disappear on either my wife raiding my wallet or on business expenses (like taxi's) which I subsequently get back anyway.

On reflection I am quite pleased with that (my low cash outgoings) but I really need to get on and do the regular expenses monitoring so I can assess my (likely) retirement spend.

You are a similar age to me, I will be 50 in September 2015. However, my planned retirement date is September 2020, when I am 55. So, for me about 3530 days to go. I am not one to wish away my life, but it does bring it home to you and time does seem to fly by quicker the older you get!

I have a retirement financial plan and strategy, the difficulty for me is the discipline of keeping to it and also the uncertainty of what may change in the future in terms of Govt policy, interest rates, and employment.

I used to rely on annual salary increments and annual pay rises to keep increasing SIPP and ISA contributions. There are no longer pay rises for me until at least 2013 and the increasing cost of living makes saving even harder.
(it also doesn't help that I have just bought myself a sports car)

Good luck!

Marine_life

peterg1965 wrote: »

You are a similar age to me, I will be 50 in September 2015. However, my planned retirement date is September 2020, when I am 55. So, for me about 3530 days to go. I am not one to wish away my life, but it does bring it home to you and time does seem to fly by quicker the older you get!

I have a retirement financial plan and strategy, the difficulty for me is the discipline of keeping to it and also the uncertainty of what may change in the future in terms of Govt policy, interest rates, and employment.

I used to rely on annual salary increments and annual pay rises to keep increasing SIPP and ISA contributions. There are no longer pay rises for me until at least 2013 and the increasing cost of living makes saving even harder.
(it also doesn't help that I have just bought myself a sports car)

Good luck!

Is the car the one in the pic?

I have had three Porsche 911's (my indulgence for 20 years of sandwich lunches) - two Carerra S4's and one Carerra S2. Two of them ended up being sent back to Porsche! when they were working properly it was an amazing car. I currently drive a Mercedes C63AMG which is a different experience - especially in the winter.

I have challenged myself with 50 as, looking at where I want to be that will give me the kind of income for a comfortable retirement. Options of course are always open. At the moment I am not enjoying my job but if that should change I could opt to delay. Seems unlikely at the moment.

peterg1965

Marine_life wrote: »

Is the car the one in the pic?

I have had three Porsche 911's (my indulgence for 20 years of sandwich lunches) - two Carerra S4's and one Carerra S2. Two of them ended up being sent back to Porsche! when they were working properly it was an amazing car. I currently drive a Mercedes C63AMG which is a different experience - especially in the winter.

I have challenged myself with 50 as, looking at where I want to be that will give me the kind of income for a comfortable retirement. Options of course are always open. At the moment I am not enjoying my job but if that should change I could opt to delay. Seems unlikely at the moment.

It is not the one in the pic, although it is a Porsche, a 997 C4S Cab - pure indulgence, but an awesome machine. I do like the C63 though!

Fortunately I enjoy my career and I will leave when I have to, which currently is 53. That gives me a two year gap to plug, but I am sure I will find something! 55 to me is the optimum age to retire from working for someone else!

Gatser

Marine_life wrote: »

So to keep myself focused on the target I decided to include a countdown clock to my intended retirement at 50 which is on 23 October 2014:

So:

There are 1378 days to go.

To put in another way:

1. 197 weeks (that makes it seem longer)
2. 46 pay days

One may say... you SADDO! counting the days of your life away....BUT.... my count is 621 WORK DAYS to go!!!

I think once you get a taste of "retirement", like I did following redundancy.... I just cannot wait until it happens for real :T

Time is so precious when you are fit, healthy and "not THAT old!"

Good luck with the countdown clocks