Early-retirement wannabe

OldBeanz

Living in TRNC will certainly be cheaper than here. A spreadsheet showing your income year-on-year may help you envisage your finances more easily.
You also need to consider what the survivor will do when the inevitable happens. You will also need private medicine insurance.
I would be going for it in your position:).

Mint1955

Living costs will be minimum£10,000 to £12,000 up to £18,000 and this will give us a good margin and nice way of life.
I have factored in medical cover.
I will try and do a spreadsheet as you say that might help see things clearer. It just felt a little simplistic but no matter how much I thought it through I still couldn't see why not so I just felt I would ask.

Goldiegirl

redbuzzard wrote: »

Tricky one. I am mostly retired (more so than I intended - I do some freelance work but don't get that much, so far).

Part of the problem is that the more you enjoy the retirement part, the more de-institutionalised you become. I was never a great one for corporate bull droppings, and now I can't play the game properly because it seems so stupid - and you see the politics for what it is. A friend of mine was redundant about 3 years ago from a high powered marketing job with a well known drinks company - he hoped to wind down rather than retire but having had a year off said he became unemployable!

You don't need so much money when you aren't working, for the basics of existence anyway - and you have more time to save money. I just changed my own brake discs and pads, and last week I replaced the broken screen on my eye-phone. I also grind exceeding small on my car insurance renewals, and shop like an Aberdonian.

One thing I am conscious of as a mere 60 year old is that the possible spread of life expectancy is quite large - on the one hand, I know we have enough savings to survive the next 5 years and still have a decent amount in the bank when then the full retirement income is due, inflation permitting. In principle, I think we should spend money enjoying ourselves while we have the health, and now the time. On the other hand, I might want those savings to last a long time...should I spend 5% a year, or 10%, or even more?

I keep trying to persuade myself that the rainy day has arrived and instead of stinting on umbrellas I should indulge in some luxuries and decent holidays - but the shift in outlook required to move from always spending less than our income, to wilfully spending a lot more, is difficult to get comfortable with after a lifetime of saving.

I have also developed mañana syndrome - I have to force myself do today, anything that can be put off until tomorrow. Watch out for that one.

I suppose I could describe myself as semi retired. When I was made redundant I was able to take a pension as part of my redundancy settlement, at age 50.

I now have a part time job two days a week, which I've been doing for three and a half years

I'm finding that I'm enjoying the retired part of the week more and more as time goes by, the days when I'm at work seem to be an inconvenience and interruption to my otherwise enjoyable life. They are hinting that they would like me to do some overtime and I am strongly resisting the hints, as an extra day in the office would be intolerable!

My husband is now working a four day week, and he is also in receipt of a pension.

We hugely enjoy the additional time we have for leisure, and both feel we are getting close to the point when we'll stop work altogether.

We are aiming to stop work in April 2016. This will be 6 months before my husbands 65th birthday. We are busy saving all we can ahead of that, we'd then have 6 months before my husbands other pensions kick in. It will be strange moving from a saving mindset to a spending mindset, and I think that will be one area where I will struggle, as I've always been able to save something each month.

But we have been saving so we can enjoy our retirement while we are still fit and healthy enough to do it, so I'll have to work on changing my mindset.

gallygirl

Interesting reading about various strategies, plus the moving from saving to spending mindset.

I live fairly frugally in most areas and having added up what I spend each month and knocking off some for petrol to work (long round trip), then £1500 a month would cover it, including all annual bills, and one cheap holiday. No savings in there for big ticket items though, but I could easily trim the £1500 a month at least another £150. The rest of my income goes on the cost of getting to work, SIPP, mortgage and savings. When I retire I'll have more disposable income than I do at present :T, especially as the £1,500 is on UK prices and we will be overseas.

I went into a sandal shop on holiday and decided to treat myself and buy every pair of shoes I wanted. I bought one pair. That was every pair I wanted. Friend bought three then did some online shopping and bought another pair. I really think I'll get more pleasure from my one pair than she will from her four. She also spent over £130 in duty free on sunglasses and make up. I saw a watch I really liked and made a note of it so I can get it for my birthday. I like the comfort of being able to buy what I want, but don't feel the need for much (Mr GG doesn't necessarily agree with that ).

Mint1955

gallygirl wrote: »

Interesting reading about various strategies, plus the moving from saving to spending mindset.
When I retire I'll have more disposable income than I do at present :T, especially as the £1,500 is on UK prices and we will be overseas.

I am also going to be out of the UK in Northern Cyprus where will you be?

gallygirl

Mint1955 wrote: »

gallygirl wrote: »

Interesting reading about various strategies, plus the moving from saving to spending mindset.
When I retire I'll have more disposable income than I do at present :T, especially as the £1,500 is on UK prices and we will be overseas.

I am also going to be out of the UK in Northern Cyprus where will you be?

Spain

The sooner the better - I don't think I'll be the type to say 'maybe just another year' :rotfl:.

Mint1955

gallygirl wrote: »

Mint1955 wrote: »

Spain

The sooner the better - I don't think I'll be the type to say 'maybe just another year' :rotfl:.

We have a date of 6th Sept 2015 to be sold up and out of the UK

I will be just short of 60 and OH will be 50.

He has pensions that can if needed be taken from 55 and we are planning madly now we have had that light bulb moment.

ttoli

Mint1955 wrote: »

We would have approx £220000.00 to bank. We are thinking of living of the interest which at present is 7% but I am working on 4% which will be 8.5k year and then taking 500 maximum per month out of savings.
This would bring our lump sum down over the following 5 years until OH is 55 and gets his pension of 14,000 year and I will get state pension.

What am I missing? He thinks this is doable but I am not sure what the actual figures will look like.

On £220k Creditwest http://www.creditwestbank.com/index.php/en/
currently paying 11% on TRY 6% on GBP.

I own my own property £6k a year a realistic figure

Mint1955

ttoli wrote: »

On £220k Creditwest http://www.creditwestbank.com/index.php/en/
currently paying 11% on TRY 6% on GBP.

I own my own property £6k a year a realistic figure

Not wishing to high jack this thread but thanks ttoli I would love your breakdown of £6000 a year living maybe I am over thinking this.

ttoli

Mint1955 wrote: »

Not wishing to high jack this thread but thanks ttoli I would love your breakdown of £6000 a year living maybe I am over thinking this.

Thats my annual salary (part time job ) and I don't touch my savings