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

fred246

It's complicated because there are so many possible scenarios. The only way to pay your loan off is to earn very good money year after year after year. The hope is that you can then cope with an extra 9% tax. You could pay £80k up front for a 4 year course and then they don't like the high powered job, they have a chronic illness or get run over by a bus, or decide to stay home looking after children. In all those cases you wouldn't pay a penny back in student loans. I sat down with my kids and we decided to borrow the max which means they will have cash to set up homes when they need it. The risk is that they will have a reduced income if they have large incomes later in life.

Willi3000

Did it last year age 57...never looked back!
Took a good DB CETV, combined all other pensions, living off savings and a drawdown.
State pension in 10 yrs is a bonus
This is MY TIME TO PLAY while I still can. Canada, Dubai and Japan so far this year��

JessyM

I'm new to the forums and so while there are some acronyms I can work out, these two, which I see frequently have me scratching my head. Yes - I know it will be obvious when explained::)
DB?
Cetv?

coyrls

DB = Defined Benefit (Pension)
Cetv = Cash Equivalent Transfer Value (from a DB pension)

NoMore

DB - Defined Benefit - A form of pension where the benefits are defined usually by your length of service and salary during said service rather than a amount of money you just pay into. As opposed to DC (Defined Contribution ) which is just a pot of money you contribute to.

CETV - Cash Equivalent Transfer value - A number that you can get if you have a DB pension and want to convert it to effectively a DC pension.

inflationbuster

dont_use_vistaprint wrote: »

I'm interested in why people choose to retire early, I'm the opposite and want to work for as long as my mind and body allow, I love the work, the people and what it allows me to do - travel , adventure, impact etc. Spending money on me and my family is fun too.

For me my passive income has demotivated me, l really didn't realise that could happen. I have a boring and unchallenging job that pays an excellent salary for IT. Salary has been my main motivation for years but recently it's no longer the case. There's only so much lower the boredom threshold can go. Now it's a case of ensuring i've got enough saved in a rainy day account before packing it in.

Andyed201

Hi, another new joiner to the thread here, reading with interest so thanks to everyone.

I am 44 and looking to "sort of" retire early at 55. I am fortunate enough to make a good living and have no debt apart from a mortgage, so I follow a few FIRE principles and hit a good saving rate which goes into pensions, S&S ISA and a cash emergency fund. The aim is to get to a point where at 55 ish I would be able to draw £35,000 a year income from my investments forever if I need to, but instead of starting to do that, I plan to take a lower paid job that I really want to do so still have income. The S&S ISA would be used to make up any income difference I may need and the pension pots should stay invested for another 10 years.

So through investment and growth I have my eye on hitting £800k across pension, S&S ISA and a smaller amount of cash, and I think that is somewhere near to where I want to be. I've ignored state pension in my calculations for now, but if I put it in I think I should be able to keep the full £800k in place forever, but I don't mind running it down to zero.

Its going to be an interesting 10 years and 6 months to see if I can get there......

JoeEngland

Andyed201 wrote: »

Hi, another new joiner to the thread here, reading with interest so thanks to everyone.

I am 44 and looking to "sort of" retire early at 55. I am fortunate enough to make a good living and have no debt apart from a mortgage, so I follow a few FIRE principles and hit a good saving rate which goes into pensions, S&S ISA and a cash emergency fund. The aim is to get to a point where at 55 ish I would be able to draw £35,000 a year income from my investments forever if I need to, but instead of starting to do that, I plan to take a lower paid job that I really want to do so still have income. The S&S ISA would be used to make up any income difference I may need and the pension pots should stay invested for another 10 years.

So through investment and growth I have my eye on hitting £800k across pension, S&S ISA and a smaller amount of cash, and I think that is somewhere near to where I want to be. I've ignored state pension in my calculations for now, but if I put it in I think I should be able to keep the full £800k in place forever, but I don't mind running it down to zero.

Its going to be an interesting 10 years and 6 months to see if I can get there......

Unless you plan to leave an inheritance or are worried about care costs when you're older then there's no point in leaving several hundred thousand in your pot until you die.

michaels

JoeEngland wrote: »

Unless you plan to leave an inheritance or are worried about care costs when you're older then there's no point in leaving several hundred thousand in your pot until you die.

I thought we would need 800k at 55 to get 32 for life with two state pensions so I can't see that the op is over provisioning.

Andyed201

JoeEngland wrote: »

Unless you plan to leave an inheritance or are worried about care costs when you're older then there's no point in leaving several hundred thousand in your pot until you die.

Agreed, I plan to leave some inheritance or be able to give it away while I am alive