Early retirement - is when or how much more important?

michaels

SO some of us subscribe to the idea of having 'the number' - an (inflation adjusted) annual income that our retirement provisions need to reliably provide us with up to some 'maximum anticipated death date' - e.g. £30k in current money terms starting at age 60 and lasting for at least 35 years.

WE then save up assets in whatever vehicle at a rate we anticipate will allow us to have this income.

For a lot of us savings are in risk assets such as stocks and shares where the value can change.

This means that as well as reaching the planned for asset stash at the planned for retirement date we might actually reach a point of being able to achieve the number earlier than expected or indeed might still be short at the planned date.

So my question is about whether most would change their date forward or back to meet there income goal or whether actually for most it is a 'time' goal and they will retire at the set date even if they are over their planned income or below it.

michaels

I would definitely go early - if my pension pot grows faster than expected then I would stop once it allowed me to safely live off my number for the rest of my life.

I am not as certain about going later than planned if the fund has grown less than expected. Would it really be worth working another year to avoid having to live on £1000 pa less for the rest of my life?

GunJack

I'm quite lucky in that I have 2 DB pensions, but once the mortgage is clear I'll be able to stop comfortably before SP age by 5-ish years, then when SP kicks in it's party time

It's about having enough income to cover living expenses and fun money, SP will be a big bonus on top...

SuiDreams

I have a DC pot and I will stop work as soon as I have enough in the pot and am able to access it, I am hoping to be able to reduce working hours and go part time once my pot get to a certain value. Part time working will be affordable if I no longer require the additional AVC's I'm adding to my pot currently.

MallyGirl

I would definitely go early - if my pension pot grows faster than expected then I would stop once it allowed me to safely live off my number for the rest of my life. My DH is more cautious but could probably be persuaded. As we get closer I will be monitoring the coffers and the spending more closely.

I won't be working past 60 - I have set that as the target. Our 'number' is quite high by most people's standards so I think there is room to flex if we are not quite there.

Spreadsheetman

I'm stopping when my business commitments are finished in 2020, but dropping down to part-time this autumn. I'll be 58 when I stop for good.

I reached "my number" a couple of years ago, but personal and business things have kept me working a little longer while I tidy up the loose ends. That has let me get a bit more of a cash buffer in place too, so no bad thing.

Greta_Sharbo

Still 30 years from SP age but was late starting with pensions so playing catch up now. At this stage in my life (although my thought might change) I would stop once I reach my number. Partner is 10 years younger so the challenge could be bridging that gap to allow us to retire at same time.

MallyGirl

I can see that might be a challenge - my husband is 2 weeks younger than me so it makes everything quite simple on that front

Nual

My aim was to keep working until youngest had finished Uni , and I no longer had to pay her rent. Maybe keep going for another year to 61 to up the savings cushion that bit more. I actually took redundancy and a DB pension 12 weeks before she graduated, now nearly three years ago. With hindsight I could have gone earlier and would still have been fine financially. The last couple of years of my working life were horrendous, a blend of exteme stress and boredom.

Albermarle

I have probably reached the number, but I can't get my head around retiring when I am 'only ' 60. It just doesn't feel right somehow, although I am not the workaholic type at all. Three relevant points to add though;
1) My job is not too stressful with a good work/life balance ; I get on with my boss; I can work from home most of the time and I still get quite well paid with company car etc
2) I do not have a lot of hobbies, sports interests etc and I worry that if I retire, I will just fester at home doing household chores and getting bored.
3) For family reasons retiring to the coast or going on lots of holidays is not possible .

So will press on for another year or two at least and probably it will become clear when it is time to move on.

Thrugelmir

This month moved to part time, 4 day week. A happy balance. Still accruing further DB pension while having an income to enjoy life with. Go travelling etc. Have no precise figure in mind. Suspect my body and mind will tell me when it's time to retire fully. Why worry about something over which you have no full control. My SIPP rises and falls like a proverbial yo-yo. Too busy doing things to endlessly study spreadsheets. Spend enough time on those at work.