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

MallyGirl

We had a big wall of IBM manuals but operated a system of clean and dirty programmers - if you had ever opened the manuals you were dirty. Every year I had to sign something to say I hadn't had a peek! Dirty programmers were only allowed to spec certain things not write the code - that way we could never be sued for copying IBM code.

Terron

nigelbb wrote: »

It was VAX/VMS 3.6 when I started in IT. Do you remember the orange wall of VMS manuals?

The orange and the grey. I started doing IBM assmbler programming but soo moved to VAX?VMS starting with 2.3.Used it up to 2013.on VAXes, Alphas and Itaniums.

JohnnyJet

I followed Marine Life's thread for ages and am also interested in this one as I am also planning early retirement, or maybe as things get nearer, financial independence.

I had a horrible job which got me started on retirement planning, I didn't earn much at the time but always insisted on saving a small amount every month, even if it was just a few pounds. I've never been a higher rate tax payer and probably never will be but I would still like to try and achieve FI by 55 which is just over 5 years away.

Like a lot of people on this thread, I also work in IT and am finding it less interesting by the day. Staring at a screen all day solving other people's problems is not my idea of fun. I have a lot of hobbies outside of work and would really like spend more time doing them before I am too old.

The hardest thing I find about planning for retirement is the many variables there are. I can only really have a rough idea how much I will need in retirement and also predicting interest and inflation is never going to be spot on, so my actual retirement date may be between 54-60.

crv1963

GazHol wrote: »

Being told by a young colleague a few years that she wasn’t born when I joined the company (IT in the VMS 4.0 days, 6250bpi tapes etc) did make me reflect somewhat!

I worked out with a younger colleague that I will be 97 years old when she reaches her retirement age! So I've suggested she reads around this site and others to plan for going earlier.

crv1963

JohnnyJet wrote: »

I followed Marine Life's thread for ages and am also interested in this one as I am also planning early retirement, or maybe as things get nearer, financial independence.


Like a lot of people on this thread, I also work in IT and am finding it less interesting by the day. Staring at a screen all day solving other people's problems is not my idea of fun. I have a lot of hobbies outside of work and would really like spend more time doing them before I am too old.

The hardest thing I find about planning for retirement is the many variables there are. I can only really have a rough idea how much I will need in retirement and also predicting interest and inflation is never going to be spot on, so my actual retirement date may be between 54-60.

I don't work in IT. My planned retirement date was always 55, but life, health and changing circumstances life throws at you has made this a fluid target for me (and us).

I've learnt that among the variables to consider are-

1) Partner/ spouse retirement income, we have had to start serious planning for Mrs CRV pension income as she is younger than me by 3 nearly 4 years and is an independent woman by nature she needs "her income" even if it is simply her spending money she does not want to rely on getting "pocket money" from me. So we're using her workplace pension(NEST) and a SIPP plus cash savings and ISA for her. This is to give her the option of going before 55.

2) Preparing the house/ garden for retirement- trying to future proof while saving creates at times conflicting aims. So we're using savings and a gift from my mother to do the "big ticket items".

3) Planning future taxable pension income between us to try to get an even spread of income so use both of our tax allowances. I will always be a taxpayer!

4) Death benefits- trying to get to a point that on first death the survivor doesn't have to either really live "getting by" or return to the workplace- when we retire we want to retire. Mrs CRV has a mindset that if she goes first then she wants to leave a sum for me in her pension pot even if I have enough income already.

Pension planning is an interesting Psychological exercise, I didn't realise that sometimes the logical doesn't get past the life experience/ though process of the individuals concerned until I read the threads and discussed planning with Mrs CRV- for instance I can tell her at 52 money in her SIPP beats her ISA hands down everytime but her thought process tells her "You can't get at it until you're 55 so will work until you're 55 unless you have a pot outside your pension".

We're bobbing along with all of the above, probably making mistakes at times but now my target is go before 60 (at 58 I reach the maximum possible work pension, at 60 I can take the pension and work without it being reduced), have enough for Mrs CRV to be FI if (or when) I go first.

The most important thing however variable it may need to be is to have a plan, and try to make it work. As basic rate taxpayers - although I do sometimes get to HR depending on overtime- Mrs CRV always BR we think we're on track to meet our age target and hopefully income target. We began planning very late and only really seriously after I had a life changing health issue, my sons on the other hand are early 20s and have already grasped the concept and the nettle!

The Forum and the threads and contributors have made what was initially a dream turn into a plan and then into a process, we may not reach our upper goal but we'll land somewhere in our middle goal, we planned, basic, desired and luxury income goals in our planning.

Edit to amend grammer and add a couple of sentences.

MallyGirl

JohnnyJet wrote: »

The hardest thing I find about planning for retirement is the many variables there are. I can only really have a rough idea how much I will need in retirement and also predicting interest and inflation is never going to be spot on, so my actual retirement date may be between 54-60.

That is still way better than 67!
Yes there are lots of variables but a slightly 'off' plan is still better than no plan. Good luck.

We were also late to the mindset (I say we but actually it is all me) so in a big catchup push now. Things are slightly simpler in that DH is just 2 weeks younger than me so we will hit 55 around the same time - at that point we will evaluate just how expensive life (and daighter at uni) actually is.

Andyed201

JohnnyJet wrote: »

The hardest thing I find about planning for retirement is the many variables there are. I can only really have a rough idea how much I will need in retirement and also predicting interest and inflation is never going to be spot on, so my actual retirement date may be between 54-60.

I think I have exactly the same problem - I am aiming for 55, hedging tat with plans to be able to do a lower paid job that I really want to do post 55 and then will see what "retirement" actually means after that. I may do some sort of work for much longer, but definitely not full time.

lisyloo

I have been thinking about the lower paid job issue.
I’m not sure it’s that easy to find a low paid job you really love, so my thinking is that if I earn 3x min wage then I’d rather work 1/3rd time (I quite like my job).
If you earn 10x then I’d say it’s a no-brainer perhaps even if you hate it for 1/10th time.

What sort of things do people think they’d be doing?

I like motorcycling but doing CBT training to youths who know it all would be PITA territory. Working in say a camera shop or any shop probably has an element of rubbish jobs you don’t want to do.

So what low paid and interesting jobs do people have in mind? And are they on tap? (I imagine they aren’t).
Perhaps I’m Not being imaginative enough so help me out.

The only one I can think of is working in tourism information because then you get to find out about stuff, but I can’t imagine there are tons of vacancies.

My current plan is not to have to worry about it at all, but that might mean working a little longer.

JoeCrystal

lisyloo wrote: »

My current plan is not to have to worry about it at all, but that might mean working a little longer.

There is a possible halfway choice. Since every permanent job I did in the past was starting as a temporary casual. I always thought that to top up my income if I retire was to find a casual job during Xmas time, plenty around like Royal Mail or in Manufacturing sectors. Since it is a temporary job, there is no surprise once they let you go at the end of the contract, although it is hard to avoid disappointment. So that is my plan in order to work sometime. The thought of retirement with no work terrifies me actually.

lisyloo

Well it’s an idea, but I’d still rather do my job for 3 times the pay (and more importantly 1/3rd time) that pick boxes at Argos.
I thought the point was to do things you love like maybe walking dogs.

There are loads of things on offer if you don’t want to be paid but you are more in control of your hours and stopping when you want. Examples are

Dog walking (if you like dogs of course)
Some kind of volunteer charity work (I fancy helping old soldiers claim their benefits).
Walking horses for the disabled
Community project e.g. building carnival floats
Soup kitchen for the homeless.
Drive old people or disabled people around.
Become a befriended e.g. just read to someone in a nursing home.

Plenty of things that would give deep meaning, help people, be enjoyable and possibly add some physical activity without the drudgery of the daily grind.