Early retirement - is when or how much more important?

k6chris

chucknorris wrote: »

I probably can't spend what I have now, but why should I give up a job that I really enjoy doing? There isn't an option in the poll to express that view. But as it is about early retirement, I understand.

EDIT: I did originally retire when I was 42, 19 years ago, but I started a new career 10 years after that, which I really enjoy. I dropped down to one day a week a couple of years ago, but this year I have moved back up to 2 days a week.

This is the big one for me....I am just swapping time for money at the moment, absolutely no enjoyment at all. However, the job is not stressful so I am caught between the two thoughts of going now or one more year.... I really thought pulling the plug would be easier than this!!

chucknorris

k6chris wrote: »

This is the big one for me....I am just swapping time for money at the moment, absolutely no enjoyment at all. However, the job is not stressful so I am caught between the two thoughts of going now or one more year.... I really thought pulling the plug would be easier than this!!

Can you split the difference and work part time? One day a week was just like another hobby to me, 2 days a week feels like the same, so far.

michaels

chucknorris wrote: »

Can you split the difference and work part time? One day a week was just like another hobby to me, 2 days a week feels like the same, so far.

This is what I was thinking after reading your first post. Effectively you are retired and choosing to fill your time doing what you want. That one of your hobbies brings in some pin money that in the grand scheme makes zero difference to your standard of living doesn't mean it is not a hobby

Did I mention that I and my whole family are available for adoption should you so desire?

pensionpawn

A sombre thought to start. My father, who fought through WW2, was full of wise words. Two which resonate are 'tomorrow is never promised' and at retiring (state pension) at 65 I remember him saying 'I came into the money (decent salary) too old to enjoy it'. I will retire as soon as I can as although I presently quite like my job (currently less stress than previous jobs, quite flexi, decent salary) I have so many other things I want to do that I presently don't have the time and energy to do. I'm 53 and if my youngest goes to university she will finish when I'm 57, which is also when I qualify for the the full new state pension. That's the target however if I'm still enjoying work I may continue a little longer however definitely not past 59. My wife is also building up her own pension and since we don't have a too extravagant lifestyle, on clearing our debts at 55 I think £25k pa tax free (drawing our personal allowances out of our pensions) will allow us to keep our standard of living, occasionally dipping a little further into our pots for the odd treat here and there. I look around me online, and in my office, and I see people obsessed with accumulating their cash mountain. Some are in their late 60's being almost unable to stop working, even though the are not enjoying their work. Being secure and not financially reckless is prudent, however give yourself enough time to enjoy your pension before you grind to a halt and will be just happy to have a warm house and food on the table!

k6chris

chucknorris wrote: »

Can you split the difference and work part time? One day a week was just like another hobby to me, 2 days a week feels like the same, so far.

Currently work 4 days a week, could possibly negotiate 3 day. Fewer days with the current employer is unlikely. The other dynamic is whilst the income is nice to have, we don’t need it. Yes, first world problems......

pensionpawn

Whilst driving to work around 8 years ago I heard a listener define retirement on Radio 4, and it seems to sum it up perfectly for me! Retirement is when you are fiscally secure enough not to have to go to work, even if you still do.

TBC15

My employer has informed me I’ll be retiring at 60. I’ve looked at the pot and decided good call.

TBC15

michaels wrote: »

This is what I was thinking after reading your first post. Effectively you are retired and choosing to fill your time doing what you want. That one of your hobbies brings in some pin money that in the grand scheme makes zero difference to your standard of living doesn't mean it is not a hobby

Did I mention that I and my whole family are available for adoption should you so desire?

Do you have any pictures and are you willing to split a set?

Bimbly

My Dad was 62 when he said to me he should continue working because his pension would be so much better when he was 65.

Could he afford to live on the money if he retired now? I asked. Well, yes, he said. So I told him to retire at that point, using the old proverbial, he could get run over by a bus tomorrow.

He retired. I don't think he regretted it. His monthly pension is now more than my salary, so it worked out. I think he had a different idea of "afford" to me.

I'm building up a pot so I can quit at 60. Although, as my birthday is December (dark, cold, horrible), I expect to hang on until the April when a long service bonus is due. That's ten years away! Anything could happen in the meantime, but that's what I'm heading for. I could, in theory, possibly go a bit earlier if work turns sour. I'm happy there at the moment.

Before this, I sorted out my house and increased the mortgage to make myself more comfortable over the next decade. I also joined the council leisure centre to encourge me to exercise to improve my health. After a long time of saying I will go walking/running for free etc, I decided I needed more of an incentive and made the investment. I now do Zumba twice a week, a yoga class and a pilates class an am feeling much better for it.

To answer your question, I have a financial goal and a date goal and I aim to see what happens when I get nearer to both.

ex-pat_scot

I guess the binary "time OR money" question is only going to get a binary response.

I think life a little more nuanced.

My plan gets me to FIRE number at about 55-56. Ish. However it won't get me to <55 as it is all about the pension. I acknowledge a risk to this approach, but the 62% tax relief (plus refunded ers NI) is utterly compelling. (in extremis, I #could# remortage to release cash before 55, then live on that until 55 then start on the SIPP withdrawal).

If I don't get to the Number at 55-56, then at the moment I plan to continue until I get there. It will likely be another year or so.

However, I fully expect that external factors will be the decision, not age or the Number. These could be any of:
- planned factors, such as youngest going to Uni when I'm 56
- changes in tax / pension legislation eg moving the earliest access point from 55
- my health
- wife's health
- caring responsibilities for elderly parents

The Gods laugh when men make plans...

For my parents, it was the loss of a sibling at 50 which resulted in reassessing their Number and ER for the whole wider family of that generation. I hope and pray that we won't have the same trigger event, but the odds are not in our favour (huge family, not underlying risk factors).

Much I think hinges upon your wider outlook on life -in how fixed your view is of the Number, on life plans /milestones, of the flexibility in drawdown (ie the flexed 4% SWR approach) etc. My plans adapt and adopt, and are regularly challenged and revisited. I'm comfortable with that.