Plotting for an early retirement - anyone want to join me?

crv1963

We've been trying to live on expected pension income for ourselves whilst using surplus from wages to buy for others the things we've thought about getting them such as car each for sons at £500 each (well below market rate from colleagues) to learn to drive in- they tax, insure and fuel, big ticket gifts for other family members - all with the additional mantra take it now soon we'll be pensioners so won't be able to do it for you.

A lot of it is managing others expectations if you are planning to retire in your 50s- or earlier! The national mindset seems to be we have to retire when told at 67/68. Luckily both sons want to buck the trend, oldest has a plan (as yet unknown to anyone else) to retire at 40-45, the youngest to go at 58-60 which he thinks will be 10 years before SPA when he gets there. At 21 even he doesn't think that the SPA will rise above 70 but is hedging his bets!

Pennysmakepounds

Whao…it’s great to read others experiences of ‘Life after Work’ and the planning they are doing/have done to get there

For me, the ‘OPTION’ to retire at around 48-50 (Currently 45) is the
important thing and have been planning for several years to get to a point where I can generate enough income from BTL and savings to be able to have the option to give up working IF I CHOOSE to.

To be honest, I don’t dislike my job and its very well paid. Infact I would say that 90% of the time I love it and I don’t have a problem of carrying on working as long as I am healthy and fit.

However, having the option is VERY important to me.

The way I see it, if I can gain Financial Independence at 50 (Latest) then anything I make from work past that point, I can fritter on things that make me happy.

I would love to travel the world and if I can gain FI early and then continue to work I will have plenty of money to spend on travelling.

Techno

Pennysmakespounds quote 'To be honest, I don’t dislike my job and its very well paid. Infact I would say that 90% of the time I love it and I don’t have a problem of carrying on working as long as I am healthy and fit.
However, having the option is VERY important to me.'

We are in the same boat - have gone down to 3 days and (for the majority of the time) really enjoy the job, BUT if we stop enjoying it, then it is goodbye from him and goodbye from me :D

Pennysmakepounds

Techno wrote: »

We are in the same boat - have gone down to 3 days and (for the majority of the time) really enjoy the job, BUT if we stop enjoying it, then it is goodbye from him and goodbye from me :D

That's the important thing - Having a Choice.

Once you know you have the option to be able to take a step back from working and not worry about where the money is going to come from to support you and your family.

That's when you can allow yourself to relax and REALLY start enjoying your life.

People say 'Money doesn't buy you happens' and whilst I do prescribe to that philosophy because there are plenty of people with money who have horrible lives.

I also firmly believe that money gives you choices and it's those choices that make you happy.

Here's to a Happy and fulfilled life to everyone in their golden years

bugslett

Pennysmakepounds wrote: »

Whao…it’s great to read others experiences of ‘Life after Work’ and the planning they are doing/have done to get there

For me, the ‘OPTION’ to retire at around 48-50 (Currently 45) is the
important thing and have been planning for several years to get to a point where I can generate enough income from BTL and savings to be able to have the option to give up working IF I CHOOSE to.

To be honest, I don’t dislike my job and its very well paid. Infact I would say that 90% of the time I love it and I don’t have a problem of carrying on working as long as I am healthy and fit.

However, having the option is VERY important to me.

.

I enjoyed working for my main customer for about 26 years, Like you around 90% of the time it was good. But they decided to have a complete change in culture and after about a year I found I was really unhappy so I told them to find a new supplier.

If I'd have been in the position of having to work, I'd be very unhappy at this point.

Mrs_Z

JoeEngland wrote: »

How did you arrive at your PCM estimate? I've estimated the annual cost of all the essentials, then dividing that by 12 gives the average per month. In reality some bills aren't paid monthly so some months would be under or over the average. On top of that we have a budget for discretionary spending, then some contingency in the long term plan.

I took out the 'average' spend from my spreadsheet minus mortgage payments and monthly travel card. To 'just about to make it' is too tight for me. I want to 'comfortably make it' and not having to watch every penny - life's too short for that! I don't class myself as a big spender anyway, and relatively 'low maintenance' and generally don't like (and I'm careful not to) to waste money. Although the experiment 'failed' to some extent, it was a good reality check, but it also highlighted that I'm not that far off the target. I see it as a question of tweaking my plan a bit, and this may mean a compromise of part-time work 3 days per week which is acceptable.
We also have some assets (property) which are not included in the calculation so if one was to be sold or rented out for example, then the proceeds could be used to make up the shortfall.

Mrs_Z

Pennysmakepounds wrote: »

That's the important thing - Having a Choice.

Once you know you have the option to be able to take a step back from working and not worry about where the money is going to come from to support you and your family.

That's when you can allow yourself to relax and REALLY start enjoying your life.

People say 'Money doesn't buy you happens' and whilst I do prescribe to that philosophy because there are plenty of people with money who have horrible lives.

I also firmly believe that money gives you choices and it's those choices that make you happy.

Here's to a Happy and fulfilled life to everyone in their golden years

I could not agree with you more! :cool: There are many things to enjoy that don't cost anything but you can't do them unless you have time. And yes, having the choice is the key, to be in charge of your time. Roll-on early retirement!

barnstar2077

A quick update from me.

Hopefully this should be the last month I will need to help my friend financially as they are back at work now. So I will be making extra pension contributions again soon.

I also did something that went a bit against the grain, but is the right thing to do. I extended my mortgage term massively to reduce my monthly payment down to a minuscule amount. This gives me some breathing room and will allow me to continue with my pension plan to retire early. I was a bit too optimistic with the amount of money I was trying to put into my pension every month and this will allow me to stay on track. Plus I wont have to redo my spreadsheets now! :rotfl:

I don't owe much on my mortgage, so my pension will pay it off quite easily as soon as I can access it. It was a difficult decision though, having spent so many years paying off lump sums and trying to get rid of it.

Me mum is back in hospital again, they are doing their best to delay the inevitable but they can only do so much. I feel more determined than ever to stop work as soon as my finances will allow.

How is everyone else getting on?

barnstar2077

crv1963 wrote: »

Luckily both sons want to buck the trend, oldest has a plan (as yet unknown to anyone else)!

You know your son better than I do, but I would try and find out what he is up to sooner rather than later if I was you, just in case his plan involves a diamond heist! :rotfl:

crv1963

barnstar2077 wrote: »

You know your son better than I do, but I would try and find out what he is up to sooner rather than later if I was you, just in case his plan involves a diamond heist! :rotfl:

Lol, no diamond heist! Just plain old saving and planning according to him! Luckily although we do chip in to help with bits and pieces he is standing on his own feet. He lives with his mother at present although is planning on moving out with his brother later in the year, so it is a case of save, save save and time in the market. He rightly recognises living at home with her saves him lots of money!

He's read a lot about FIRE, these threads and tells me he has a plan, is working a lot (another trait he got from me!), but he unlike me at his age is putting a lot away at an earlier age. Younger one is work focused, and he is likewise saving but is taking a slower route, but at 21 saving 11% plus employer 8% into a pension, as well as having a LISA he isn't doing too badly.

I think as long as I've made them aware of the choices that they have and supported them where I can with encouragement and my limited ability financially (car and subsidised holidays) then they make their choices and work hard to meet them.