Possible early retirement

Pollycat

Depending where you work, you may save money on transport costs.

Looking at things from the other side, some of your household costs may go up - gas/electric/water - as you will be at home more.

If it's something you like to do, you would have more time to cook from scratch & batch cook (if you have a freezer) which would save you money. Visit the Old Style board for lots of tips for saving money, including meal planning, menus etc.

Although your state pension age is currently 66 years, this could be changed over the next 12 years before you reach that age.

And do you have the full number of qualifying years to get the full state pension (35 years for your DOB)?

I'd actually repost this - with all the additional info from your later posts - on the Pensions board.
There's some really good guys on there.

Hope it works out for you.
I took early retirement at the age of 50 (10 years ago) but I did have a substantial lump sum to add to our investments and do get a pretty good pension.

8 years ago, we did a very detailed spreadsheet to decide when OH could retire without any income (until his deferred pension kicks in) and it's still looking good.
We underestimated any income inflation and over-estimated expenditure inflation so we're in a better position than we planned to be - council tax, utilities etc are less than we expected and my pension is £100 per month more than we hoped.


The only 2 things that haven't gone to our financial plan is that the Government put my pension age back by just over a year and also tied free bus travel to retirement age instead of age 60 but we can live with that.

In fact, OH says I must buy more shoes! :rotfl:

Chezcat

Thank you for your comments. My work travelling costs are £40 per month plus I have to use my car for work travel for which I do not get reimbursed fully so there is an immediate saving there. That saving would help towards extra gas/electricity costs etc.
I am wary of my state pension age being raised again so try and think of it as a bonus whenever I do get it.
I enjoy gardening, reading and walking so it would be nice to have more time for those pursuits. I would also like to volunteer at my local animal rescue centre one day a week and get my own dog again at long last! I will do some more research on money saving ideas on this site (particularly with cooking) and put this post on the Pension site as well. It is heartening to read of how you all enjoy early retirement and it seems a positive step. My OH only works 3 days a week now and he is happy with that, I would like to do something similar but will see how things pan out.

NAR

Chezcat wrote: »

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.��

The bits highlighted are what you should concentrate on IMHO! In 25 years you will be approaching 80 and (if hopefully still alive) starting to slow down in respect of travelling far and wide and ticking things off your bucket list. Therefore you will have approximately £20k a year to enjoy.

As you say you have worked and saved hard all your life, do you not think you have earned the right to start enjoying your nest egg? If the answer is yes then retire and start planning how you are going to spend the money enjoying yourself and make a list of things you have always wanted to do but not got round to doing.

itch_for_a_glitch

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?

Chezcat wrote: »

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.

Despite not being able to join up those numbers, I reckon if you have been living (and saving) on £18k max, you already have too much money.
I retired @ 50 with c £140k in savings, and a deferred pension - best thing I ever did.If you retire you will have 50 hours a week in the comfort of your own home to learn how to/decide how best to invest your money.
As for JSA I wouldnt bother, its only £1800 quid(or less) and is for jobseekers, which you will not be.

Chezcat

Thank you Nar. I am now two thirds of the way through my life (hopefully!) so I do need to start doing the things I want to do instead of dancing to somebody else tune. My Mum died suddenly at the age of 66 which concentrates the mind in terms of how long I may live. My family is generally long lived (80's upwards) but that was a curved ball to say the least and I still feel angry at how many years she lost out on.
I have been going for long 2 hour walks on my own this week which is helping me think things out and the advice on here has helped me prioritise what is important. This enforced sabbatical is actually turning out very well!:)

Chezcat

itch_for_a_glitch wrote: »

Despite not being able to join up those numbers, I reckon if you have been living (and saving) on £18k max, you already have too much money.
I retired @ 50 with c £140k in savings, and a deferred pension - best thing I ever did.If you retire you will have 50 hours a week in the comfort of your own home to learn how to/decide how best to invest your money.
As for JSA I wouldnt bother, its only £1800 quid(or less) and is for jobseekers, which you will not be.

I have had a few lucky breaks moneywise over the years including share save schemes at work which I maxed out and then more than trebled my money plus I have been an aggressive investor in things like emerging markets which paid off handsomely. I also invested my small inheritance from my parents. My OH has always worked and we took out our mortgage in the 80s and paid it off 5 years early.
I know what you mean about JSA, a friend was claiming recently after redundancy and it was a nightmare, he had to apply for so many jobs a week (cannot remember how many offhand) and keep a record of it all, the jobs he could do were just not available so he had to apply for jobs he couldn't do just to meet his target. The staff treated him like dirt (he is 57 with 41 years full time work behind him) and made him feel like a scrounger. Fortunately he has now got another job.
It's good to hear you retired at 50 and are enjoying your retirement, it is all very encouraging I must say!

Errata

Chezcat wrote: »

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.��

Perhaps if you're finding the thought of not saving 'hard and scary' it would be useful for you to figure out what you're saving for?

Chezcat

A comfortable early retirement when I want it I suppose and that day has obviously come sooner than I expected. I have one friend who retired early at 56 last year as she hated her job and she is very happy so she is inspiring me. Me and the OH would like to travel round Canada, Australia and New Zealand so I should start looking at arranging something in the next year or so. I am beginning to think that being made redundant and getting a horrible new job which has thoroughly depressed me is a sign from somewhere to get out of the land of work at last.

itch_for_a_glitch

Chezcat wrote: »

I have had a few lucky breaks moneywise over the years including share save schemes at work which I maxed out and then more than trebled my money plus I have been an aggressive investor in things like emerging markets which paid off handsomely. I also invested my small inheritance from my parents. My OH has always worked and we took out our mortgage in the 80s and paid it off 5 years early.
I know what you mean about JSA, a friend was claiming recently after redundancy and it was a nightmare, he had to apply for so many jobs a week (cannot remember how many offhand) and keep a record of it all, the jobs he could do were just not available so he had to apply for jobs he couldn't do just to meet his target. The staff treated him like dirt (he is 57 with 41 years full time work behind him) and made him feel like a scrounger. Fortunately he has now got another job.
It's good to hear you retired at 50 and are enjoying your retirement, it is all very encouraging I must say!

You are well enough equipped then, but do heed the advice to move into less risky shares/investments as you get older.
My OH still works although £6k pa wont be missed:rotfl:.

Chezcat

itch_for_a_glitch wrote: »

You are well enough equipped then, but do heed the advice to move into less risky shares/investments as you get older.
My OH still works although £6k pa wont be missed:rotfl:.

I have already moved most of my emerging market investments to equity funds as I don't need that roller coaster ride anymore. Just left enough for a small thrill.

My OH has to work 5 days this week instead of his usual 3 to cover for holidays, I think he is expecting a medal tomorrow afternoon!:)