Regret retiring too early with not enough money?

Ray_Singh-Blue

Regarding the 2 different figures in post above about houseold wealth.

Household weath as defined by the National Office for Statistics (post 2) includes the value of any pensions, including notional value of defined benefit pensions.

"Marketable assets" as described in post 1 does not include pensions. An index linked final salary pension of £30K per year could be worth around £1 Million, which I suspect is a reason why the second figure seems much higher

Fireflyaway

If you do retire early it doesn't mean you are totally done with working. I know many recent retired folks who after a while of chilling take on a part time job. In the cases I know its for the purpose of getting out and keeping busy, meeting people and feeling useful rather than needing money . you could do a very part time job or do short contracts here and there or even seasonal temp posts. Knowing you don't have to be there must feel quite liberating! Personally I would work for a few years more to enjoy a comfortable retirement.

Triumph13

atush wrote: »

Pretty much no one (apart from lottery winners and the top 1 %) can retire before SPA.

This is so true. I mean, if you were only in the top 10% of incomes, then to save enough to retire early you'd have to restrict your spending as if you were only in the top 20% and that would be just awful!

Wenlock

I would say that the vast majority of people could retire before SPA if that was their main goal. The only secret to early retirement for those of us with normal incomes is to live relatively frugally whilst working to enable you to pay off the mortgage and any other debts pre-retirement. You also have to save a pot large enough to bridge the gap to SPA, particularly if you have no occupational pension.

Once you have retired - with no mortgage, no pension contributions, no work expenses to pay you can (if you choose) live on a fraction of what you required at an earlier age.

Of course, most people would rather have "jam today' and spend most or all of what they earn on holidays, gadgets, socialising etc. Nothing wrong with that at all (you never know when your expiry date is going to be!) - but it is ultimately a choice.

aldershot

This is another interesting thread. I will retire sometime in the first half of next year age 53. There, I've said it. No more OMY. I know our assets will comfortably cover our retirement (pensions and savings >£2m) so why am I so stressed about it that I've had to seek help? I think the move from certainty (well paid City job) to uncertainty ("what are you going to do?") is really unsettling me. Has anyone else had similar thoughts/doubts/difficulty and did they go away once you finally made the leap? This is less about cash and more about change.....

zagfles

Ray_Singh-Blue wrote: »

Regarding the 2 different figures in post above about houseold wealth.

Household weath as defined by the National Office for Statistics (post 2) includes the value of any pensions, including notional value of defined benefit pensions.

"Marketable assets" as described in post 1 does not include pensions. An index linked final salary pension of £30K per year could be worth around £1 Million, which I suspect is a reason why the second figure seems much higher

A properly useful figure would include pension wealth but not housing - you can't "spend" the equity in your house unless you downsize or decide to live in a cardboard box! Or use one of these dodgy home reversion type loans, but you'll usually only get a fraction of your equity from them.

[Deleted User]

aldershot wrote: »

This is another interesting thread. I will retire sometime in the first half of next year age 53. There, I've said it. No more OMY. I know our assets will comfortably cover our retirement (pensions and savings >£2m) so why am I so stressed about it that I've had to seek help? I think the move from certainty (well paid City job) to uncertainty ("what are you going to do?") is really unsettling me. Has anyone else had similar thoughts/doubts/difficulty and did they go away once you finally made the leap? This is less about cash and more about change.....

I made the leap 5 years ago, aged 54. No regrets but plenty of doubts similar to yours. Well-paid job with professional status. I worried less about the money (I was well prepared) and more about the loss of identity. The doubts do lessen, but don't go away completely. Only tell those you can trust. You will meet plenty of people who can't understand your decision or are secretly envious of your freedom, and will make negative comments which can be hurtful. If your emotional state is affected by such comments, avoid these people or don't discuss your situation. It's your life and your decision.

trailingspouse

Well, OH and I intend to work as hard as we can for as long as we can, so that our pension pot is as good as we can make it. We then intend to spend some of it on travel - there are many places in the world that look fascinating and that we haven't yet had the privilege to visit. We will take photos. We will post some of those photos on Facebook.

If this offends the OPs sensibilities, all I can do is apologise. And suggest that he/she does what feels right for them - as sure as heck we will be doing what feels right for us. You only come this way once.

jennyjj

aldershot wrote: »

I will retire sometime in the first half of next year age 53. There, I've said it. No more OMY. . . I think the move from certainty . . to uncertainty . . is really unsettling me. Has anyone else had similar thoughts/doubts/difficulty and did they go away once you finally made the leap? This is less about cash and more about change.....

Join the club. That uncertainty is a true obstacle. Close family and friends saying 'You'll get bored' or 'You're too young'. They are SO wrong!
If the financials stack up, then it is important to set a date and tie yourself to that date. Maybe tell your boss unnofficially roughly when you'll be going. Almost paint yourself into a corner so that you MUST quit on that date. Otherwise you might find yourself doing 'one more Christmas'

JFDI.

jennyjj

trailingspouse wrote: »

Well, OH and I intend to work as hard as we can for as long as we can, so that our pension pot is as good as we can make it.

But don't you see a contradiction in that? Stash as much cash as you can by working till the day you die? Is that as good as a pension pot can get? Or is the ideal pension pot already achieved when you know it will be enough to service your chosen retirement?

trailingspouse wrote: »

You only come this way once.

So why waste time working for the inheritance of your benefactors, who will spend your money with no qualms at all.