4-7 Years Before Retiring....

Happier_Me

I wouldn't say I'm obsessed but I can usually quote the amount of time I have left to my planned retirement, which is 13 years and 353 days if anyone is interested!

So still a long way to go for me but I am very focussed on leaving the workplace at 55. The older I get the less tolerant I become of the daily work grind and at some point I may need to sacrifice pay, although I am by no means a big earner, for sanity.

I am quietly confident at 41 though that we could retire at 55 with a net income of £30k per annum as long as we continue to pay into our current pensions (I feel very fortunate to have been a member of the LGPS for 20 years, plus OH's small company pension) and we downsize to release equity.

However we save in addition to this also, comfortably living on effectively one salary, which is less than our planned retirement income, as a family of four (most of the time!). So we should have some flexibility in terms of how we fund ourselves from 55 onwards and hopefully there will be some in the pot to help out the kids too!

Thrugelmir

redmalc wrote: »

I agree one more months salary and 7% from the company into my pension keeps me working another month.

Likewise. Downsized the job so no longer work excessive or unpaid hours and have no stress. With the salary I earn every month, enjoy life without any worry or concerns. Meanwhile my employers 26% contribution into my pension. With changes afoot will happily sit it out at work and await an attractive redundancy offer.

From a planning perspective. All I can control is the inputs. I'll be comfortable in retirement. So no complaints. Nor any desire to accumulate money for the sheer sake of it.

richbeth

We hope/plan to retire in around 2 years at 50/51. About 6 years ago I decided to do the maths and work out the earliest we could stop working. During this period I was definitely obsessed ! I created a mega spreadsheet which went through lots of functional additions, I analysed our spend, gathered info on the current situation, worked out what we would need moving forward, discussed with OH lifestyle we wanted and all the usual things.

We then decided on a strategy which involved passive investment, lots of pension contributions and some ISA contributions. At this point my obsession definitely eased off. I now just check we're on plan and look at the impact of any budget and employment changes. I TRY not to do this too often as I think there is a danger of over analysing and feeling you must take action when it's not actually necessary. I'm looking at this forum again just to make sure my knowledge is up to date and to see if I can learn from the posters.

Doing the analysis and setting the strategy was key and made making other decisions easier. e.g. when my wife, who was contracting,was offered a permanent role we looked at the package in light of the retirement strategy. We decided it was worth taking a 30 % pay cut for 4 or 5 years of a final salary pension as this would take our guaranteed income above the minimum we would want post 67.

However, I expect the obsession to come back again in the next 12 months or so as the finishing line approaches :beer:
R

RADDERS

enthusiasticsaver wrote: »

We meant for my Oh to go in 2018 and me in 2020. I only work pt and am younger. We have been investing and saving for a few years and have good pensions. Quotes for early retirement for DH arrived Monday and we have decided we can afford for him to go this October. 6 months and counting. Only question is how long before I can join him:)

That sounds exactly like us, got the new figures two weeks ago and thought sod it so we are both going in August !!!
So now I have a lot of planning to do first thing is off to Europe for 3 months in motorhome and then our daughters wedding in December. After that who knows :j

ex-pat_scot

Thrugelmir wrote: »

Likewise. Downsized the job so no longer work excessive or unpaid hours and have no stress. With the salary I earn every month, enjoy life without any worry or concerns. Meanwhile my employers 26% contribution into my pension. With changes afoot will happily sit it out at work and await an attractive redundancy offer.

From a planning perspective. All I can control is the inputs. I'll be comfortable in retirement. So no complaints. Nor any desire to accumulate money for the sheer sake of it.

Google "One more year syndrome".


I find the psychology of the whole thing fascinating (really!). There's the basic deferred gratification angle, plus the endless research on 4% withdrawal rates, marginal tax rates, Monte Carlo simulations of pot performance (Firecalc). The real thing is the challenge around stuff like "loss of status", finding meaning and purpose, not being bored, how much is enough (AKA "The Number"), with a healthy dose of daydreaming. It's all set against a considerable challenge of the money furnace that is presently required for my large growing family: there's never enough money to do all the stuff we want, so it does feel a little selfish diverting a hefty portion of the monthly salary to spend on "future me".


The basics are simple; but, as you all seem to be aware, the detail is amazingly complex in numbers and psychology.


My basics:
- earliest exit @55 (2024), unless the min access age to pensions changes.
- simplified planning only on my pension, viewing any state pension as possible, not probable; spouse will have minimal pension so not material to planning
- lobbing the max at my pension via sal sac, which is by far the most efficient way of avoiding penal marginal tax rate.
- get to 55 then consider our options.


Most strategies are predicated on one of two approaches - either work until £x pa, or work until x age and accept whatever's in the pot.
My strategy is different. I fully expect my position in 8 years' time to be pretty fundamentally different to my plans (although that's no excuse not to be planning and preparing!). I'm expecting lots of speedbumps ahead that will throw my assumptions, as well as a fair bit of uncertainty over "enough". (to come back to the "one more month" quote at the start of the comment).


The real thing I reckon will be the trigger will be an external nudge from left field. For my parents, it was the unexpected early death of a sibling at 49 - the whole generation of them really changed attitudes and priorities after that, and most took early retirements with modest incomes (and, to a man, haven't regretted it for a moment). For me, I suspect it might be care responsibilities. The important point will be to be prepared and have the financial flexibility.




NB the speedbumps ahead could include:
- changing the min retirement age / access to pension pot (there's a debate around whether this should be changed to 5 or 10 years pre Normal Retirement Date)
- changes to Pensions Freedom - ie no longer being able to flex drawdown
- further restrictions on Lifetime Limit (or lack of indexing of the current £1m)
- reduction in Annual Contribution level, or extending the taper downwards from the current levels
- tinkering with salary sacrifice rules
- merging tax & NI
I fully expect the tax free lump sum to be scaled back.

Thrugelmir

ex-pat_scot wrote: »

Google "One more year syndrome".


I find the psychology of the whole thing fascinating (really!). There's the basic deferred gratification angle, plus the endless research on 4% withdrawal rates, marginal tax rates, Monte Carlo simulations of pot performance (Firecalc). The real thing is the challenge around stuff like "loss of status", finding meaning and purpose, not being bored, how much is enough (AKA "The Number"), with a healthy dose of daydreaming. It's all set against a considerable challenge of the money furnace that is presently required for my large growing family: there's never enough money to do all the stuff we want, so it does feel a little selfish diverting a hefty portion of the monthly salary to spend on "future me".


The basics are simple; but, as you all seem to be aware, the detail is amazingly complex in numbers and psychology.


My basics:
- earliest exit @55 (2024), unless the min access age to pensions changes.
- simplified planning only on my pension, viewing any state pension as possible, not probable; spouse will have minimal pension so not material to planning
- lobbing the max at my pension via sal sac, which is by far the most efficient way of avoiding penal marginal tax rate.
- get to 55 then consider our options.


Most strategies are predicated on one of two approaches - either work until £x pa, or work until x age and accept whatever's in the pot.
My strategy is different. I fully expect my position in 8 years' time to be pretty fundamentally different to my plans (although that's no excuse not to be planning and preparing!). I'm expecting lots of speedbumps ahead that will throw my assumptions, as well as a fair bit of uncertainty over "enough". (to come back to the "one more month" quote at the start of the comment).


The real thing I reckon will be the trigger will be an external nudge from left field. For my parents, it was the unexpected early death of a sibling at 49 - the whole generation of them really changed attitudes and priorities after that, and most took early retirements with modest incomes (and, to a man, haven't regretted it for a moment). For me, I suspect it might be care responsibilities. The important point will be to be prepared and have the financial flexibility.




NB the speedbumps ahead could include:
- changing the min retirement age / access to pension pot (there's a debate around whether this should be changed to 5 or 10 years pre Normal Retirement Date)
- changes to Pensions Freedom - ie no longer being able to flex drawdown
- further restrictions on Lifetime Limit (or lack of indexing of the current £1m)
- reduction in Annual Contribution level, or extending the taper downwards from the current levels
- tinkering with salary sacrifice rules
- merging tax & NI
I fully expect the tax free lump sum to be scaled back.

Sounds so boring to sit there analysing to the nth degree. Life is unpredictable. Enjoy every day is if it were your last. Ultimately it's down to ones personal attitude. I have "fun" at work. I never have had time for "status". Everyone is equal and should be treated as such. Work and the challenges posed at least keep ones brain active. Age is a state of mind.

ex-pat_scot

Thrugelmir wrote: »

Sounds so boring to sit there analysing to the nth degree. Life is unpredictable. Enjoy every day is if it were your last. Ultimately it's down to ones personal attitude. I have "fun" at work. I never have had time for "status". Everyone is equal and should be treated as such. Work and the challenges posed at least keep ones brain active. Age is a state of mind.

Boring - ah yes. But relative. Relative to work, which is much duller. But well paid. Hence the conundrum / exit strategy.


It's all a balance between enjoying life now and ensuring that later life will remain enjoyable (or at least that a lack of funds won't derail said enjoyment)

kidmugsy

ArmyDilllo wrote: »

I don't believe in an afterlife but I'm considering putting clauses in my will to have them perform ridiculous tasks in order to claim it (like some 30's suspense novel) just for my own fun.
Just in case there is an afterlife.

Tell 'em never to swat a fly - just in case.

atush

spouse will have minimal pension so not material to planning

I would adress this issue pronto. AS her PA will go to waste (apart from the 1K she can lend to you).

Try not to pay tax, if you dont have to.

Triumph13

Obsessed? Let me think...

• Graph of my pension fund value with weekly data points for the last 2 years? Tick.
• Disappointed when I ran out of different ways to model my retirement strategy and had to stop playing with my spreadsheet? Tick.
• Do a meerkat impression whenever I hear anyone at work discussing pensions, then go and explain to them how the scheme / LTA rules / Single tier pension actually works? Tick.

Oh dear...