Early-retirement wannabe

dreaming

ermine wrote: »

@dreaming work is overrated. The world is plenty interesting enough to keep someone with a halfway active mind more than occupied. Time is the ultimate consumer good - use it well, they're not making any more of it

Couldn't agree more. I have told work that I am happy to work my socks off for the last 4 weeks and will do my best to train the new people and do whatever else I am asked to do to help the relocation go smoothly. But 30th August I am finished and it will only be financial necessity which would make me want to return to employment. I have a good severance package, and will be accessing my pension so hopefully, if I have done my sums right, I should be able to live the life I want to (a fairly simple one admittedly but that suits me). I would rather see if I could cut down expenses (lose the car maybe?) before I would contemplate working again. However, as I said to my outplacement consultant, you can plan as much as you like but until you "live it" you can't really tell what it will be like.

Marine_life

Well how time flies....

Making plans and breaking plans. I had plans to write on here more but the world got in the way. So, here are a few scattered thoughts...

Anyway, so where have we got to on our journey? I have always been in the position that I have (somewhat enviously) watchd colleagues around me be made redundant and (generally very) generous redundancy packages and I have always wondered why I was never selected. Never even came close. I work in a project business of feat or famine and have always wonderd what would happen if i were unable to bring in a big new project to continue to justify my existence.

Well...this July i failed again and secured another big project that will keep me in food stamps until the middle of next year. indeed almost up to the date where i could potentially hand in my notice (of course being made redundant would be preferable!). Anyway at least I am now safe and secure to my pension qualifying date which is my 50th birthday.

I've been reflecting a bit on my working life and what I will do in retirement and i came to the conclusion that I won't really know until I actually retire! Why? well, frankly I spent so much time physically and mentally tired that by the time the weekend comes all i can think of is to down tools and chill that I just cannot muster any passion for anything - other than running - but even that has become more subsistence. i actually think I will need 6-7 months after work just to decompress.

Work has become in some ways very frustrating - I earn a decent wedge but I have been so close to the top (and the mega bucks) but, like a climber reaching out for the final hand-hold, I just can't quite get there. Then again, when I do retire I will look back and say "hey, you managed to bluff your way through that one pretty well". I have this recurring dream that I am the guitarist in a rock band - I run on stage and then have a massive panic attack when I realise I can't play. The band starts playing and I stand there sweating and pretending as my band mates gradually realise. That's work for me.

Goldiegirl

My husband reaches state pension age in October 2016, it has long been our plan for us to both stop working at the same time, but for me it'd be an early retirement, as I'll only be 56 when he's 65.

However, for both of us, it increasingly feels that 3 and a bit years is just too long to carry on, and we're now giving serious consideration to retirement at some point in 2015.

With this I'm mind,after we come back from our holiday in October, we are going to have a trial run for a few months. I've calculated what our income would be if we both stopped work now. That's my current pension with no tax deducted at all, my husband's current pension income with his whole tax allowance allocated to that pension, I've added on what we currently spend in petrol to go to and from work, and a bit more to reflect that we currently have two cars, not one. That will be the money we will use to live on each month. The rest will go straight into savings.

It'll be an interesting exercise, especially with Christmas coming up. However, we never buy much in the way of presents, and our Christmas food is covered by Nectar points and M&S vouchers.

I'm quite looking forward to doing this.

gallygirl

Goldiegirl wrote: »

My husband reaches state pension age in October 2016, it has long been our plan for us to both stop working at the same time, but for me it'd be an early retirement, as I'll only be 56 when he's 65.

However, for both of us, it increasingly feels that 3 and a bit years is just too long to carry on, and we're now giving serious consideration to retirement at some point in 2015.

With this I'm mind,after we come back from our holiday in October, we are going to have a trial run for a few months. I've calculated what our income would be if we both stopped work now. That's my current pension with no tax deducted at all, my husband's current pension income with his whole tax allowance allocated to that pension, I've added on what we currently spend in petrol to go to and from work, and a bit more to reflect that we currently have two cars, not one. That will be the money we will use to live on each month. The rest will go straight into savings.

It'll be an interesting exercise, especially with Christmas coming up. However, we never buy much in the way of presents, and our Christmas food is covered by Nectar points and M&S vouchers.

I'm quite looking forward to doing this.

Remember you'll need to include something for repairs & replacements in your budget - or will that come from pension lump sums? Will be interesting to see how it works, hope you decide you can retire even sooner!

Goldiegirl

gallygirl wrote: »

Remember you'll need to include something for repairs & replacements in your budget - or will that come from pension lump sums? Will be interesting to see how it works, hope you decide you can retire even sooner!

Good point - when OH's state pension, SERPS, and other occupational pension start when he's 65, things would be more comfortable and we'd have 'spare' money for maintenance etc.

If we did do an early retirement, until he's 65 any extras would have to come out of savings. However, I'm trying to work it that the extras are essentials, and not just a new pair of shoes that I'd like!

dreaming

Goldiegirl wrote: »

With this I'm mind,after we come back from our holiday in October, we are going to have a trial run for a few months. I've calculated what our income would be if we both stopped work now. That's my current pension with no tax deducted at all, my husband's current pension income with his whole tax allowance allocated to that pension, I've added on what we currently spend in petrol to go to and from work, and a bit more to reflect that we currently have two cars, not one. That will be the money we will use to live on each month. The rest will go straight into savings.

Marine_life wrote: »

Well how time flies....
I've been reflecting a bit on my working life and what I will do in retirement and i came to the conclusion that I won't really know until I actually retire! Why? well, frankly I spent so much time physically and mentally tired that by the time the weekend comes all i can think of is to down tools and chill that I just cannot muster any passion for anything - other than running - but even that has become more subsistence. i actually think I will need 6-7 months after work just to decompress.
Then again, when I do retire I will look back and say "hey, you managed to bluff your way through that one pretty well".

Marine Life, time certainly does fly - I now only have 3 working days left and I'm hoping the good weather lasts until the end of next week at least. Still everyone around seems obsessed with what I'm going "to do". My answer varies depending on who is asking but tends to be along the lines of "whatever I want to do", or occasionally "sweet f-a"! I have often felt a fake - even last year when I was running the team and senior management were saying what a great job I was doing I kept thinking someone was going to come and tell me it had all been a big mistake and they actually had meant to offer me a job sweeping up - and that is after 22 years.

Goldie Girl - I did a trial run for the first 6 months of the year with my budget. Except for mortgage payments I lived on my calculated budget and didn't really notice any feelings of deprivation. Mind you, I always knew I had the cash in reserve so not sure if it was a real test. I went through my credit card and debit card statements for past 2 years to calculate budget, including birthday/xmas gifts for family; haircuts; clothes; tv/internet package (including tv licence), as well as bills, and found it do-able. I actually spent last year using cashback credit card for just about everything (paying it off each month as Martin Lewis advises) so I wasn't wondering so much where any cash had gone (mostly in WHSmith and bookshops it seems). The weird thing was when paying for large items (Car tax) thinking that I had better start putting the cash away for next year.
At the moment I keep thinking "it's really happening now", and yet it also seems slightly unreal. Roll on Friday 30th:j

gallygirl

How exciting dreaming, hope it all goes well and you find lots of nothing to do .

itm2

I'm 2 months into early retirement now (timed it perfectly!), and can totally recommend it. The enormity of the change in lifestyle takes a while to sink in - no more having to go to work? Ever? Really? The sense of relief and the feeling of unwinding is palpable. My wife thinks I'm a completely different man - the things that used to wind me up don't seem to have quite the same effect these days.
My last few years of work were a real struggle - I think the stress of managing people in particular eats away at you. After a couple of months of what still feels like a very long weekend you really do begin to understand how pointless it is when someone asks "what will you do with your time?". It would be a bit like asking a colleague that question on a Friday night when you're both heading out of the office for the weekend - finding pleasant ways to pass the time is really not difficult. More importantly, the lack of any time pressures is a huge weight off the shoulders - if you don't finish something today it can always wait until tomorrow.
My overriding fear is that it seems too good to last....

atush

itm2,

you have given me hope/

When my OH has time off at home, while he is still working, he drives me mad. With his Victor Meldrew comments on the TV shows I have on (and no, never this Morning lol). He gets right crotchety yelling at the TV.

If he is like this when retired, we won't make our 30th I am sure. but if like you he doesn't care any more, it will help me no end

But somehow I doubt it.

Goldiegirl

Dreaming I remember reading a few months ago about your plans for retirement on Aug 30th. It seems to have gone very quickly. Do let us know how you get on!

As you say, I think my budget is do-able, but there's no real pressure, as I know I have savings, and if necessary, I could just use part of our salary from that month.

But we're going to give it a good go, as it will give us a good sense of how we'd get on if we did retire a bit earlier. In many ways we'd like to stop work now, but both agree that it would be a bit too soon. We just need to top up our savings a little bit more to feel comfortable, and my husband can pay some more into his pension plan.

itm2 I was interested to read your comments. The last few years at work are certainly a struggle. I was made redundant from my full time job nearly 4 years ago, which is why I took my pension early. I found myself a part time job 2 days a week, and even that is an effort now. At least my time at work goes quickly, but I don't really feel involved with the job. It's as if my brain is switching off from the working environment.

When I finally stop, I have a feeling I'll start rushing around doing loads of leisure activities, just like it is when you have a holiday. I think it'll take a while to realise that I have time to do nothing at all if I feel like it.