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

RueyE

bostonerimus wrote: »

It's a bit ironic, this being an early retirement thread, as debt early on in someone's life can seriously reduce the chances of early retirement. All the money that could have been invested in someone's 20s and have a chance to compound for 30 years must instead be used to pay off loan debt.

On the point this is an early retirement thread, (sorry I originally mentioned the subject of university costs - but it was related to costs leading upto and in our retirement), I can honestly say that we have been preparing for many years (starting from our early 30s) to allow us to get into a position of being able to take early retirement. Sacrifices have been made (not least leaving a relatively well paid, but stressful job a few years back), and with a bit more luck (with investments etc) this means retirement will take place at an age that permits us to really enjoy the position we hope to find ourselves in.
It was probably one of the few times I listened to what my own parents were telling me!! :rotfl:

JessyM

Anyone think about how much money is needed to live post retirement? Friends who have already done it say it is surprisingly little (but they were very well prepared). I think long and hard now about work wear and intend to make do with what is in the wardrobe for the next three years. So wardrobe will change - no more dresses and tailored skirts and trousers. Not a big sacrifice to make. We buy well on the food shop - I wonder if that will change? How will I make NI contributions to ensure my state pension is maximised in 2027? When is the best time to retire? My 60th birthday will fall at the end of March - so is it better to wait a couple of months to get into the new financial year? So many questions!

NoMore

JessyM wrote: »

Anyone think about how much money is needed to live post retirement? Friends who have already done it say it is surprisingly little (but they were very well prepared).

We have a very long thread discussing that very thing

https://forums.moneysavingexpert.com/discussion/2146737/pensions-planning-the-number

cns06

For us as a couple we think we will *need* about £17-£18k a year.

We wont retire until we can fund at least £24k a year as the above would be a bare budget covering just fixed living costs. The additional 6-7k will be for luxuries and whilst not 100% needed there is no point retiring early, in my eyes, unless you can enjoy yourself.

crv1963

cns06 wrote: »

For us as a couple we think we will *need* about £17-£18k a year.

We wont retire until we can fund at least £24k a year as the above would be a bare budget covering just fixed living costs. The additional 6-7k will be for luxuries and whilst not 100% needed there is no point retiring early, in my eyes, unless you can enjoy yourself.

We're in a similar position, I created 3 target amounts-

1) Must have, basic cover regular outgoings and eat with some entertainment budgeting. 16-18k pa

2) Would like budget. 22-26k pa

3) Luxury retirement budget. 30+k pa

Basically aiming for 3 but will be happy enough to land in 2 when we pull the plug, don't want to be the richest in the graveyard but similarly don't want to have to watch every retired penny.

That's the challenge getting the income steady before SPA to allow early retirement age.

missile

Interesting thread>

I did retire at 55. From my experience:
Money is only one albeit important consideration.
I was used to working and most of my friends were really work colleagues.
I did not appreciate that we would have little in common after I retired.
I don't play golf.
My main hobby was motor cycling and I travelled many miles around most European countries.
Had a nasty accident and gave up motorcycling.
Got bored and went back to work.
Found the office politics worse than I remembered.
I have retired again, but this time with a better plan on how to enjoy my leisure time.

happyandcontented

missile wrote: »

Interesting thread>

I did retire at 55. From my experience:
Money is only one albeit important consideration.
I was used to working and most of my friends were really work colleagues.
I did not appreciate that we would have little in common after I retired.
I don't play golf.
My main hobby was motor cycling and I travelled many miles around most European countries.
Had a nasty accident and gave up motorcycling.
Got bored and went back to work.
Found the office politics worse than I remembered.
I have retired again, but this time with a better plan on how to enjoy my leisure time.

Which is what (if you don't mind me asking) my OH fits the categories you mention and it worries me a little that he will also get bored.

missile

happyandcontented wrote: »

Which is what (if you don't mind me asking) my OH fits the categories you mention and it worries me a little that he will also get bored.

I would suggest it is important to make a plan >

Plan needs to be flexible.

Does your OH have any hobbies / interests?

If you are used to being at home whilst he is out working, you will need to make some adjustments to your own routine :A

maxie014

56 in nov and will probably work to 60 at least.
Work shifts so have a bit of spare time,get a few days off after a block.
31 years in a db pension,12k in avc,now in a dc pension.
The mrs has a couple of smallish local gov pensions and a sipp she is paying into.
Got a few long term hobbies i really enjoy and dont have enough time to fit them in properly,fishing,gardening,weights and walking to name a few.
Seen lots of people,my dad for one retire with no interests and are bored stiff after a month.

crv1963

maxie014 wrote: »

56 in nov and will probably work to 60 at least.
Work shifts so have a bit of spare time,get a few days off after a block.
31 years in a db pension,12k in avc,now in a dc pension.
The mrs has a couple of smallish local gov pensions and a sipp she is paying into.
Got a few long term hobbies i really enjoy and dont have enough time to fit them in properly,fishing,gardening,weights and walking to name a few.
Seen lots of people,my dad for one retire with no interests and are bored stiff after a month.

Same here, I work shifts that vary, have them in blocks with runs of days off, allows me to develop hobbies, I think making a plan is a good idea and something we are working on. Having a rostered 13 days/ nights over a 28 day period allows 15 days off. I do work "extras" to try to fund the improvements we want to do but Mrs CRV and my GP have argued that the most I can work is 4 shifts a week a total of 48 hours paid work with 3 clear days off a week.

Part of our preparations for our retirement is creating space for our hobby areas. This week we're getting quotes among other things for a loft conversion to create a sewing/ hobby room in the loft for Mrs CRV, so she can have a dedicated area that doesn't need everything packed away at the end of the day and I'm getting the materials delivered to repair and insulate my large shed to create a workshop for me.

We plan to have spaces so we can follow hobbies without the need to worry about clearing everything away at the end of the day or getting in the others way while they try to do something else. Importantly (for us) is making room in our space(s) for somewhere for the other to also sit so we can if we want sit and chat/ keep each other company.

It may seem over the top to some but the investment of time and money now to sort this while working allows us to plan a budget for the works and slippage if it goes over budget.

I too enjoy my work but having an enforced lengthy period off sick two years ago evidenced that 1) we get along great when together 24/7 2) we can fill the time well 3) we can still make time for our own hobbies and time together without tripping over each other but having our own dedicated space would make that easier.

The other works planned are getting the house in order- so essential repairs, replacing some windows, so far roofing cost look to be around 2k, windows 1.6k and then we'll have plastering/ decorating and flooring costs to add on.

We are trying to plan to get the expensive/ difficult jobs done while working so if they work out more expensive than we thought or if we decide we want to go for a higher specification we can work a little longer if needed.

My Dad retired at 65, went back to work after a couple of months saying that "there is only so much gardening and decorating a person can do", eventually stopping at age 73- so I'm making a plan for me. Highlighted as a very similar experience to maxie014.

Planning is essential in my view, we seem as a group to plan the saving carefully with the end goal of stopping paid work, but have as we're human to have something to retire to. For us it is essential that we have our individual hobbies as well as our joint interests. We aren't particularly social in terms of entertaining others, indeed we rarely have anyone other than close family to our home but we value what we have and want to make the most of it.

For me gardening, dogs, pottering in my workshop, possibly getting my motorcycle licence and some travelling would be my ideal retirement. For Mrs CRV crafting/ sewing, dogs and travel are the order of the day. So a fair split between individual hobbies and joint ones, we'll keep our individual identity and hopefully enjoy our joint ventures.:beer: