Regret retiring too early with not enough money?

melanzana

My goal was to go at 55. But the package only came into being when I was 56. It was a no brainer really.

Anyway, it all depends on YOU, and YOUR expectations and your ability to deal with a reduced income.

For me the package was great. I knew it was coming, so for a few years before that I paid off the mortgage, got the big ticket items done in the house etc.

My occupational pension was of course actuarially reduced, but not by much as per the terms of the package (got an extra three years added to kick us out lol!). I was also entitled to a generous tax free lump sum. Yay!

I did worry a bit that I wouldn't exist on the work pension, but what I did was, two years before I went I did shorter working hours, i.e. worked three weeks on, and one week off. Therefore I knew I would cope on a pension of near enough half final salary, which was based on full time aswell, bonus!

I have had wobbles in the beginning, but that's all gone now. Remember when you are retired you do not have commuting costs and all the other associated costs of working, new business suits, shoes, a good bag and driving everywhere for work.

I got a new car the day I retired that was in 2014 and that will last me ten years with good maintenance. Then I will buy a three year old one. I only use it for visiting friends, and shopping. Otherwise it is just sitting out there in the cold, all alone!

It is a leap of faith, but if you work it out, you will know. And if you are within a hairsbreath of it working for you, GO FOR IT. You will not regret it.

I know this, and have never been more content. Sunday nights are bliss now...

jennyjj

Stubod wrote: »

I always wanted to go "early"...but found it was always "one more year".

Same here. I did it 4 weeks ago after 6 months of 3 day week.

Stubod wrote: »

I have worked full time all my life and find it a real shock to the system to not have to think about work, but hopefully I will get used to it.!

Took me all of 3 days to get into the rhythm.
The only thing that surprises me is that the days and weeks still whistle by: I'd rather expected to feel as though time slowed down, but it hasn't.
Can't ever imagine regretting it.:beer:

bigfreddiel

You'll only regret retiring early if you haven't got enough income to suit your lifestyle, and some rainy day money.

Everyone is different.

In my case it's £2,500 per month, and £360k ISA portfolio.


You must own your home tho. Does it for me

fj

atush

nearlyrich wrote: »

I left at the end of June 10 days before I was 55 (that was my goal) I have not a single day of boredom and I have spent less than I thought I would. Not had any major exotic trips yet but we have 2 planned for 2017 I haven't taken any money from my investments or from my pension funds yet still living on my running away fund and my tax refund..

Let us know updates like when you need to replace something expensive (like car, roof boiler etc).

You spent less than expected, as most simulations have you saving for the next unexpected expense. Which can explain unexpected boosts in the cash flow dept?

atush

bigfreddiel wrote: »

You'll only regret retiring early if you haven't got enough income to suit your lifestyle, and some rainy day money.

Everyone is different.

In my case it's £2,500 per month, and £360k ISA portfolio.


You must own your home tho. Does it for me

fj

Pretty much no one (apart from lottery winners and the top 1 %) can retire before SPA. Unless they have substantial pensions and savings.

Silvertabby

You'll only regret retiring early if you haven't got enough income to suit your lifestyle, and some rainy day money.

Everyone is different.

In my case it's £2,500 per month, and £360k ISA portfolio.


You must own your home tho. Does it for me

bigfreddiel - absolutely. I can't imagine how anyone could even consider early retirement before they've paid off their mortgage. We don't have as much as you in savings, but our pensions (4 x public sector final salary schemes) are more. Good thing is that our income will keep up with (CPI) inflation, and we won't have to worry about drawing down too fast and running out of money - but I suppose that some people would prefer to have full control over their 'investments'. We've both got some time to go before we get our State pensions, but we've got enough to be more than comfortable on and certainly don't regret retiring at 60.

jennyjj

atush wrote: »

Pretty much no one (apart from lottery winners and the top 1 %) can retire before SPA. Unless they have substantial pensions and savings.

Getaway LOL. Well if you have substantial pensions and savings, that's what puts you in that top 1%, so seems a bit circular.

I don't quite agree with your 'Pretty much no-one': I think many CAN afford to retire before SPA with only moderate pensions and savings. My finger in the air numbers for being able to retire at about 60 would be house paid and maybe £250K near cash.

Anyway, here is what the man on t'internet says about top percentiles of UK wealth:-

The net worth information is based on data from HMRC for 2004–2005 (Rather out of date) and includes marketable assets including house equity, cash, shares, bonds and investment trusts.
Top
1% £688,228 21% of total UK wealth
2% £460,179 28% of total UK wealth

I believe more up to date figures put net wealth of over £1.2m to be in the 1% club

kidmugsy

atush wrote: »

Cant stand beaches where cars can drive on the sand.

I used to love it when I was fifteen or so and Dad would let me do driving on the beach. Much more exciting than pootling about on a tractor.

kidmugsy

Triumph13 wrote: »

I am planning several cruises such as the Norwegian Fjords ...

If it's our winters you'd like to avoid, why not do the NZ fiords then?

kidmugsy

moneyistooshorttomention wrote: »

I thought roofs were supposed to last around 100 years - and you say your house is a 1970 one (ie its only 46 years old):eek:.

My last house was a Victorian terrace house.

A Victorian roof might well last 100 years, but you wouldn't expect a 1970s roof to. What was the design life in the 70s? 40 years perhaps?