Turning off the tap

Linton

Triumph13 wrote: »

I'm on 3 months notice, which helps in some ways with the countdown as if I count to give-my-notice-day that is 3 months closer than retirement day!
Incidentally, do employers actually have any practical sanction if you just walked out without giving notice? If you're retiring anyway you don't care about references.

Its very unlikely to be worth their while to sue you. In my experience once you have handed in your notice they are likely to agree a departure plan and let you go or give you gardening leave as soon as your work has been handed over. It doesnt help the work atmosphere to have one unmotivated employee hanging around with nothing to do.

Much better to leave gracefully than to walk out.

blisteringblue

Great thread, I'm another early retirement wannabee but only turn 50 this year. Transferred a couple of DB pots this year during the golden window of CETV and if truth be told have enough for a simple existence now. I keep telling myself not to wish the next 5 years away because I will never get them back, but I was also thinking of being totally radical, leaving my job and contracting for the last 5 years. I'm in a field where this would be possible but it's a major shift when I could just wind down for 5 years into retirement. I've given myself until the New Year to decide on this, because I have a window where I'm sure my current firm will keep me on at day rate for a while, but obviously not falling foul of IR35.

Contracting would afford me more time off on the road the retirement but can I really be bothered with the networking it will take to get my company going and maintain a steady stream of work? Leaves open a source of income after I hit 55 mind you, but my life goal since the early 20s has been to stop working period as soon as possible.

Decisions decisions, but at least they are nice decisions

OldMusicGuy

blisteringblue wrote: »

Contracting would afford me more time off on the road the retirement but can I really be bothered with the networking it will take to get my company going and maintain a steady stream of work? Leaves open a source of income after I hit 55 mind you, but my life goal since the early 20s has been to stop working period as soon as possible.

I'm in IT and doing "a bit of consulting" is a very obvious option for me. I originally planned to do that for possibly a year or two after retiring at 60, just to gradually "turn off the tap". However, I've decided not to do that at all. I will retire in 22 weeks and never go near anything to do with IT again. Partly it's because after 40 years I have had enough, but also it's because "a bit of consulting" could turn into quite hard work because of the networking and reading (to stay current on technology) I would have to do to have "value" as a consultant.

A colleague of mine retired early last year and was doing "a bit of consulting" but gave it up pretty quick after they found the amount of time required to generate a small amount of consulting work was getting in the way of enjoying retirement. I think it depends on how much you love your area of work (because you will have to stay current with it) and how much you need the money.

blisteringblue

OldMusicGuy wrote: »

A colleague of mine retired early last year and was doing "a bit of consulting" but gave it up pretty quick after they found the amount of time required to generate a small amount of consulting work was getting in the way of enjoying retirement. I think it depends on how much you love your area of work (because you will have to stay current with it) and how much you need the money.

This is always the nagging doubt and why lazy me will probably opt for the easy slide into retirement but my no.2 left last year and seems to be thriving, but he is 15 years younger than me and it does seem a young mans game. Never say never though.

Terron

OldMusicGuy wrote: »

but also it's because "a bit of consulting" could turn into quite hard work because of the networking and reading (to stay current on technology) I would have to do to have "value" as a consultant.

Many don't bother.

Parking_Trouble

This thread is a compelling read and very timely for me.
I have 8 more pay days until I am 60.
I started work at age 17 and only had 3 employers in my career.
7 + 5 + 30 years so far.

Always been financially comfortable but should have been more careful. Been hard to save as much as I would have liked when my DW gets to choose if she works or not. She used to earn more 25 years ago than she does now! Wouldn't change any of that though.

My heart in no longer in my work. I have been coasting for the last 18 months. Partly because I had worked my butt off for several years and it wasn't recognised - would have had to resign to try to force a pay rise to get me to market rate. I have mentally switched off work and onto retirement plans for which I blame this excellent forum but I also like my work life balance and to be honest I can't keep up with the youngsters and have zero desire to compete with them.

I have been very lucky in my career. Well paid. DB pension(s). Almost always enjoyed what I have done. Lots of foreign travel which other colleagues never got.

Come May 2018 I will take a TFLS, start drawing the pension and stay OMY or so, or until I get kicked out, or totally bored. There may be redundancy on offer which would be an ideal exit plan.

The idea is to let the tap flow freely for that OMY and have a bit of a spend up and seriously consider if we really do want to move to the somewhere quieter. Downsizing could free up a decent amount.

Biggest risk is my adult kids needing financial help. Second is our health. I think I'll get a full medical checkover before I retire.

It will be big drop in income but the bills will be covered and hopefully enough savings to cover bigger expenditure during the golden years before life really slows down.

Fingers crossed.

fangoose

I 'retired' at 41. Totally sick of my career. I had already gone part time and reduced earnings by taking extra holiday, ploughing money into savings. Since then I've been picking up part time temping jobs, doing a whole host of stuff as much to relieve boredom as for income (apart from running a charity for many years full time with no income). I don't have a lavish lifestyle, old car, few holidays etc but I do have peace of mind. My father died at 52 so I guess that was a big factor. I estimate my loss of earnings is around 500k - something I find quite staggering but I really haven't missed it. There is more to life.

marlot

Triumph13 wrote: »

...
Incidentally, do employers actually have any practical sanction if you just walked out without giving notice? If you're retiring anyway you don't care about references.

Someone who came to work for me was (successfully) sued by his previous employer for the costs of bringing in a contractor to do the essential pieces of his previous job.

The employer had form for never paying up for people's last month of work, which is why my chap simply left on payday. That wasn't deemed relevant by the magistrate.

haras_nosirrah

I am 34 and hubby is 40 so years away from retirement and no db scheme coming our way. Just curious as to how those of you with no mortgages decided how much was enough to retire on.

We will hopefully be mortgage free in 10 years. I am in a high stress job with two young children and am planning to retire at 60. Hubby will probably retire the same year so in his case 66 (he is minimum wage lower stress job than me)

we will be using income draw down. I am just wondering how much you had in your pots to decide - that's enough. I don't want to be a poverty stricken pensioner but at the same time I don't want to work till I drop in a high pressure job.

ams25

haras_nosirrah wrote: »

I am 34 and hubby is 40 so years away from retirement and no db scheme coming our way. Just curious as to how those of you with no mortgages decided how much was enough to retire on.

We will hopefully be mortgage free in 10 years. I am in a high stress job with two young children and am planning to retire at 60. Hubby will probably retire the same year so in his case 66 (he is minimum wage lower stress job than me)

we will be using income draw down. I am just wondering how much you had in your pots to decide - that's enough. I don't want to be a poverty stricken pensioner but at the same time I don't want to work till I drop in a high pressure job.

Opinion varies so much on this. You need to work out likely expenses less any state or other pension x the level you are comfortable withdrawing as a guide. So 25 times for 4% withdrawal (Google safe withdrawal rate) or 33 times for 3%. We are spending the same or a little more as when I worked (but excluding savings, pension contributions, NI, lower tax etc).

Personally i stopped working at 51 last year (younger OH still working another planned 3 yrs) and have gone for 3% or 33 times. But do have a DB from 60 that helps.

Also don't make the mistake of only paying off the mortgage...make full use of pension tax relief too. Cash invested now for 20 to 30 years will do better invested than paying down mortgage at low interest rates. I still have a small mortgage that I will slowly pay off over next 5 to 10 yrs. I could pay it off tomorrow but prefer to be invested.

I also had high stress job and always planned on retiring at 55. In the end I stopped a few years earlier than anticipated. As others on this forum say, high stress jobs (and others) are often harder to maintain in your 50s and 60s so if you can give yourself the headroom go stop earlier if needed its worth it...means saving and investing more. Also worth building ISA funds in case needed to bridge gap between pension access and any earlier retirement.