Regret retiring too early with not enough money?

Triumph13

atush wrote: »

Well you didnt ask me but i'll say- my kids father got a free university education with grant on top ( I didnt as grew up in USA), houses were cheaper, DB pensions were still available to name 3.

Those are 3 of the key ones I would have listed too as I benefitted from all of them.

• I only had 7 years in a DB, but that still combines with state pension and my wife's LGPS to give us a rock solid underpinning to our retirement finances.
• Mortgage rates were higher, but houses cost a much lower multiple of income making paying them off quickly MUCH easier.
• University was free - and in my first year or two I could even get unemployment benefit in the holidays.

There are lots of ways in which the world has improved too - not least the things the internet offers, but improved communications is also a big pressure towards a global convergence in incomes. This may well lead to a big reduction in the value of what was the biggest benefit I had of all - being born in a first world country. A huge percentage of the people I have worked with over the years have had their jobs offshored to third world countries. Add in the continuing rise of automation and AI and the world can seem a very scary place to be starting your career.

Thrugelmir

Triumph13 wrote: »

[*]Mortgage rates were higher, but houses cost a much lower multiple of income making paying them off quickly MUCH easier.

I started on the ladder with a 95% LTV mortgage, and saw interest rates climb to 14%. Weekly shopping consisted of walking round Sainsburys with a calculator in hand. As our budget was so tight. No credit cards. If we didn't have the money we went without. Now people borrow and simply default. Different culture.

k6chris

Thrugelmir wrote: »

I started on the ladder with a 95% LTV mortgage, and saw interest rates climb to 14%. Weekly shopping consisted of walking round Sainsburys with a calculator in hand. As our budget was so tight. No credit cards. If we didn't have the money we went without. Now people borrow and simply default. Different culture.

I have to agree that although there are some elements of 'we had it easy', especially re student costs, many of us bought houses in less that popular areas and rented out rooms to make the monthly payments. Deposits were lower, interest was much higher. We neither had it easier or harder, just different times and a different attitude to what life's 'base package' looks like.

username12345678

Buyers in the 70s and 80s had wage inflation working to reduce their debt unlike today's youngsters. Multiples were also a little more sensible!

marlot

When I was newly out to work in 1989, I bought my first house for 5x my salary on a 100% mortgage. Mortgage rates rose to 14%, and then house prices crashed. I had to relocate for work and lost a third of the value of the house.

I was paying off the additional debt for years.

justme111

Pensions - yes but life expectancy increased and investing can be done easier and cheaper with more flexibility. Remember high charges , no access at 55 like now, bankrupt pensions and annuities?
Degrees - yes but my impression it was far more difficult to get into uni in the first place and/or more expensive - did student loans exist generation before? I come across people from working families who did not go to uni a few decades ago because "it was not the thing that working people could afford"
Mortgages - there are plenty of people who argue it was not easier before.
I would add that technology progress made life easier in general.
I honestly do not have preconceived idea on when it is easier overall , just genuinely curious and the explanations above do not convince me it is more difficult now. Sounds like different challenges rather than blanket easier/more difficult division.
May be the difference in how different people see it depends on their socioeconomical status when they were 20 as they remember it and their offsprings' status as they perceive it ?

enthusiasticsaver

I think the biggest issue young people face these days is property prices and the fact that jobs are not always available in home towns so they need to pay rent while saving for a mortgage. Rents are also high.

We did not receive parental help to buy property as my dad believed we should stand on our own two feet but since he died and left a considerable amount of money and very high pension my mum has been incredibly generous and passed over three figure sums over the last twenty years to me and my sister and brother. Consequently we have done the same with our two now adult daughters(not three figure sums but sufficient for house deposits and help towards cost of cars and nursery costs for our granddaughter). If you can afford it and it does not jeopardise your future needs then it seems sensible to help family out.

I am selling a second property this year and half will stay with me to fund my early retirement (my OH already retired) and I will be donating the other half to my daughters for them either to save, pay off their mortgages or spend as they see fit. Once I retire though I do not envisage being able to fund significant gifts beyond the usual gifts we do at Christmas, birthdays and the odd family meal out or holiday.

I think it does depend on how you feel your offspring manage their money though. Mine budget and never assume gifts will be forthcoming so we feel they behave responsibly with money and are happy to gift when we can afford it. If we felt they were spendthrifts I don't think we would be doing them any favours by continually bailing them out as they are adults and have to stand on their own two feet.

AnotherJoe

Interesting use of phrase.
3 figure sum.

To me a 3 figure sum is between £100 and £999.
I guess it doesnt mean that to you? Does it mean in hundreds of thousands ?
eg "3 figure" would be £300k?

Linton

atush wrote: »

Well you didnt ask me but i'll say- my kids father got a free university education with grant on top ( I didnt as grew up in USA), houses were cheaper, DB pensions were still available to name 3.

In the 1960s only about 7% of people were able to get higher education. The majority left school at 15 with no qualifications and went straight into work. Sure, the 7% did very well with maintenance grants and no tuition fees, but they were a small privileged minority. You should base any comparison between conditions then and now on the 93%.

k6chris

Moving away from the issue of helping children once you are retired and seemingly unable to find anyone who finacially regrest retiring early, has anyone felt guilty (or been made to feel guilty) about retiring early? Equally has any regret been derived from 'missing work'? That little voice on my shoulder is still saying "you'll regret it" but for the life of me I don't know why?

Thanks