Can I retire at 55?

Johnny_Doe

I would say, with those numbers and what you can survive on, definitely go for it! Dependent on health of course, Enjoy a good 20 years between 55-75 and anything else is a bonus. I personally think some are being far too cautious with their projections and will end up the richest in the graveyard making all the hard saving rather pointless but each to their own!! (although a very decent inheritance if you have dependents!)

Bimbly

I could live on 20k a year once my mortgage is paid off with no problem. With the state pension on top, you have money for jam.

As suggested above, work out your personal budget and see how much you personally spend and, therefore, what you need to live on.

Unless you want to keep working or want to save up for expensive travel, then it looks totally do'able for you.

JoeEngland

Johnny_Doe wrote: »

I would say, with those numbers and what you can survive on, definitely go for it! Dependent on health of course, Enjoy a good 20 years between 55-75 and anything else is a bonus. I personally think some are being far too cautious with their projections and will end up the richest in the graveyard making all the hard saving rather pointless but each to their own!! (although a very decent inheritance if you have dependents!)

If I was to draw up a list of reasons to carry on working and a list of reasons to retire early, the first list would boil down to one entry: money. The other list would have lots of things on it!

jerrysimon

We are living off that approx (my 18K DB and my wife's p/t £200/month) comfortably (retired a year ago at 56) no mortgage to pay and 50K of savings. As yet we haven't done any expensive travel and currently have no desire to do so, though it may be an option see below.

Always look at the monthly income as its much more than if you were working and paying NI and Pension.

I worked out that to earn the £1600/month that we get now if I was working and paying NI and pension, I would actually need a salary of 23K!

We also have a DB pension currently worth 2.3K/year that my wife has not taken yet. We may actually cash that in/move it to a SIPP as its worth 50K and we could use that to smooth the income out over the next 9 years, until our joint 17K of state pension kicks in.

In the last year we have had a second grandchild, see them every/twice a week as we live close, I have done lots of DIY, bike building, gardening and voluntary work. We are increasing the number of short breaks we have in the UK usually in school term time often Sunday/Monday night as hotels are cheaper, especially in London

bostonerimus

jerrysimon wrote: »

We are living off that approx (my 18K DB and my wife's p/t £200/month) comfortably (retired a year ago at 56) no mortgage to pay and 50K of savings. As yet we haven't done any expensive travel and currently have no desire to do so, though it may be an option see below.

Always look at the monthly income as its much more than if you were working and paying NI and Pension.

Diverse income sources and a DC pension pot are important to a relatively worry free early retirement, but the other side of the equation is control of spending and if you have a frugal nature it helps a lot.

I retired at 52 (I'm now 56) and my annual spending is $30k (I live in the USA). That includes substantial amounts in real estate taxes and medical insurance. I have no debt or mortgages. I get $20k/year from a DB pension and another 20k/year rent from a property I own so I have things covered. In 11 years I'll get SP from the US and the UK, I estimate the UK SP will be around $15k/year by then and my US social security pension will be $25k/year, so I'll have a total of $80k. I plan to invest anything that I don't spend. I also have a mid seven figure DC pension/regular investment pot that I don't intend to touch and plan to leave to a couple of charities and my heirs.