Possible early retirement

Chezcat

Hello everybody, this is my first post so please be kind! I have spent a lot of time on this site recently and it is full of good advice so here goes with my query about possible early retirement. I am 54 with £430K savings (£410K equities, £20K cash). I will receive a deferred DB pension at 60 worth around £8K at today's prices and the state pension at 66. My plan was to pack up work at 58 but in May I was made redundant, I did get another job immediately but it has been a complete nightmare and I am now looking at the possibility of just retiring early. My OH works part time and if I withdraw £8400 p.a. from my investments until I am 60, we should be able to manage as we are very frugal. I am interested in peoples thoughts about how best to go about this whilst protecting my capital as far as possible. £200K is in equity ISA funds, £100K other equity funds, £100K various individual shares, £20K cash accounts. I receive around £3K p.a. in dividends.
I am looking for another job but my confidence and self esteem is rock bottom at the moment due to the way I have been treated in my new job and I am aware that my age is not in my favour.
Any thoughts?

pjcox2005

Without wanting to kill the thread, it really feels like you need a financial advisor. I'm no expert but I would have expected 3% returns easily obtainable as a minimum which would give £12k pa income without having to touch the capital you've saved.

Alternatively perhaps have a look round the investments and savings board.

Errata

With the thick end of easily accessed assets of half a milliion quid to keep you going it would be sensible to instruct an IFA to do some number crunching for you.

zygurat789

Chezcat wrote: »

Hello everybody, this is my first post so please be kind! I have spent a lot of time on this site recently and it is full of good advice so here goes with my query about possible early retirement. I am 54 with £430K savings (£410K equities, £20K cash). I will receive a deferred DB pension at 60 worth around £8K at today's prices and the state pension at 66. My plan was to pack up work at 58 but in May I was made redundant, I did get another job immediately but it has been a complete nightmare and I am now looking at the possibility of just retiring early. My OH works part time and if I withdraw £8400 p.a. from my investments until I am 60, we should be able to manage as we are very frugal. I am interested in peoples thoughts about how best to go about this whilst protecting my capital as far as possible. £200K is in equity ISA funds, £100K other equity funds, £100K various individual shares, £20K cash accounts. I receive around £3K p.a. in dividends.
I am looking for another job but my confidence and self esteem is rock bottom at the moment due to the way I have been treated in my new job and I am aware that my age is not in my favour.
Any thoughts?

Anyone who can amass that amount in savings is better than most, you've done alright so far mate.
I suggest you spend time reading the pensions board there are many situations similar to yours discussed on there. It has been suggested that you could achieve £12K from your savings on the pensions board they would consider that return fairly small and they have lots of ideas.
Given that you have considerable sums in ISAs £12k of income should not suffer any tax and would be the equivalent to a salary of £13300.
And if you aren't working how about JSA?

Chezcat

Pjcox2005 and Errata, thank you for your prompt responses. I will have a good look at the Savings and Investment Boards and consider an IFA. I need a kick up the backside at the moment due to recent job problems getting me down and being a natural worrier! I have never earnt a lot of money (max £18K p.a.) but I even had to earn my own pocket money as a kid, so I know the value of money and have always been a saver which is why I have managed to accumulate this sum.

Chezcat

Thank you zyguhat789! I will also have a look at the Pensions Board to get some ideas about what to do. I am still employed at the new job but am now on unpaid leave until August so I am trying to get something sorted before I am due back. I was promised training which never materialised plus I was expected to work 10 hour days instead of the agreed 8. The boss expected me to hit the ground running and has constantly belittled me for my mistakes and the fact I am not as fast as him after a couple of weeks! He is supposed to be arranging some training in August but I think it will suit us both if I just quit as I do not need this aggro at my age and I have never come across a boss like this in 38 years of work. I have looked into JSA and I can claim so that is an option.

Farway

I was in similar position, but opted for voluntary redundancy, and really have never looked backed since I stopped working over ten years ago

Like you I had cash in the bank, shares, and a State pension ahead of me

Have a look at Motley Fool High Yield Portfolio [HYP] which is basically buying good solid company high dividend shares in an ISA

http://www.fool.co.uk/

Chezcat

That's good to hear Farway, hope you are continuing to enjoy your retirement. I feel much better now and am going to sit in the garden and check out all the advice I have been given. Thanks everyone.:)

Goldiegirl

Chezcat wrote: »

I have never earnt a lot of money (max £18K p.a.) but I even had to earn my own pocket money as a kid, so I know the value of money and have always been a saver which is why I have managed to accumulate this sum.

With that level of savings you should be able to continue your current lifestyle with no problems.


Now that you have spent a lifetime of saving up for the future, it would seem the future is here, so perhaps now is also the time to consider spending some of the money, maybe on a couple of good holidays, while you are still (relatively) young and active.


I'm exactly the same age as you, and intend retiring next year. My husband and I have pensions that we are currently receiving, which we'll live on day to day. We have a lot less in savings than you, but will definitely be using some of our savings for holidays. We only have one life, so we are going to enjoy it. There's no pockets in shrouds, as they say.

Chezcat

You are so right Goldiegirl. I was intending loosening the purse strings and spending my salary from the new job on holidays etc but that plan seems to be going down the drain! I have been so used to saving that it is hard and scary to stop but my OH doesn't believe in saving and wants us to leave this world with zero in the bank which is a good plan. We do not have any kids and our nieces and nephews will all be OK so we will just leave them bits and pieces. I am sure they would soon spend the money if they got it as their inheritance! Thank you for your advice, this site is just what I need right now.��

retiredlady

Just to say I took early retirement at 55 on a lot less savings then you have and it is absolutely the best thing I have ever done. I am happier, healthier and easily managing on my income of around £800 a month.
I have started growing my own fruit and veg, I have the time to cook from scratch now which saves a fortune and I have made a whole new circle of friends within the neighbourhood because I now have time to stop and chat when walking the dogs��
I read loads which has always been one of my favorite things to do, but didn't use to have time for. The TV is only on for a couple oh hours in the evening and sometimes not even that! We don't really go on holidays as they work out a little expensive but we are lucky enough to live within an easy day trio to either London or the seaside so we have a days holiday when we feel like it and come home to the comfort of our own beds.

Didn't mean to ramble on, I just got up and for some reason am full of the joys of life today��