Early Retirement viewpoints

Anonymous101

Terron wrote: »

The 4% rule from which x25 comes was based on retirement lasting 30 years, i.e. on a normal retirement not an early one. It may be used for early retirement but that is very likely a mistake. See https://earlyretirementnow.com/2016/12/07/the-ultimate-guide-to-safe-withdrawal-rates-part-1-intro/

Yes, I've read that a few times. Very good article.


This Monevator one? Also interesting.
https://monevator.com/what-is-a-sustainable-withdrawal-rate-for-a-world-portfolio/


Don't get fixated on whether the 4% rule is 0.5% out this way or that. I know its a rule of thumb. I'd like a little more comfort than that but I also know that I can be flexible both on spending and if required earning more money. Everyone's spending will change over retirement. Especially if thats for a 30,40,50 year period, for me its about assessing the risks and having a plan for various scenarios.

crv1963

1. What's the retirement age in your mind?/ or What age did you retire?

Retirement age hopefully me at 58, Mrs CRV at 55.

2. What is sufficient amount in your mind for a comfortable retirement?

The million dollar question, aiming for 2k per month after tax, could manage on 1500 pm if needed, would prefer 2.5k pm, all before SP kicks in when income level would then jump, providing we reach it! With that in mind and wanting to make sure Mrs CRV doesn't have to return to work if I curl my toes up I am working on until 58.

3. What are your plans ?

Work to 58 get maximum possible DB (me), save into SIPP (Mrs CRV) with aim of draw down to zero 55-67, so no change in pension income for her, plus draw another pension she has at 4k pa, this should see her okay and if not spent on care needs in the future (hopefully distant one) then about 100k- 120k pension pot left to heirs. My SP starts at 67 so an additional income, Mrs CRV SP will simply replace her SIPP draw don pot.

If we find we do not need/ spend all of our planned income then we will open a SIPP- possibly one each depending on under spend and save 2880 pa for possible care needs in older age. If it isn't needed then bonus for heirs if it is needed we should have enough income for the survivor to self fund care so increasing choice.

Currently working overtime when available and trying to age proof home, purchase replacement items such as white goods/ sofas/ plan some building works, all coming out of income or if capital is needed to fund these then replace as much as possible before retiring.

Plan EF of 20k.
4. Do you have any Asset allocation strategies?

Life style funds, accepting that I don't know enough to time the market or judge the stocks myself, nor would I gain that knowledge well enough to do it myself.

5. Do You follow any F.I.R.E. blogs?

In addition to the above mentioned I also follow The Humble Penny

6. Have you taken any professional advice for retirement planning? Was it useful? Could you share some important pointers?

Years ago. I was told in my 20s that my DB scheme was unbeatable, Mrs CRV was advised to get SERPs which she did and forgot about. So for me yes it was useful I stayed put. For Mrs CRV not gaining advice has meant she didn't save enough at a young enough age, hence playing catch up in our 50s. An IFA would have urged her to save more and into a pension plan of some sort.

Pointer- save as much as you can, decide a floor level of a set percentage of income and stick with it, save more if you can, when you can.

7. Any specific advice you can share which would help others to achieve early retirement?

Save, live within your means, credit cards are not evil but need to be managed and paid off. Use whatever tools you can, get a LISA if you can, get a bit of rainy day money put by, spend but ask- do I need it, will I be better off waiting or hiring it.

8. What would you do after retirement?

Die. After stopping work before that point I intend following hobbies and interests. Travel and enjoy life. I may volunteer or even work part time in a different field. Study, probably something garden based.

9. Have you got any hobbies which would keep you busy after retirement?

Gardening, some wood working and dogs. Music and records.

JoeCrystal

1. What's the retirement age in your mind?/ or What age did you retire? Planning to retire at 60 in 27 years.

2. What is a sufficient amount in your mind for a comfortable retirement? £720,000 (£28,800 income) in today's money for a purely luxurious retirement. £360,000 (£14,400 income) in today's money if I want to meet essential costs.

3. What are your plans? Contribute 25% of my base salary until I retire and find a job with a DB pension scheme and transfer the pension fund into it to get an index-linked pension and start contributing into a new pension scheme.

4. Do you have any Asset allocation strategies? I don't have a plan, but I believe that paying much as possible into the pension scheme works. I have meant to do S&S ISA as well, but that is on a backburn at the moment as I need to balance the figures. I kept withdrawing the money from the S&S ISA. That is why the pension scheme is so useful as I cannot withdraw any money from it

5. Do You follow any F.I.R.E. blogs? None

6. Have you taken any professional advice for retirement planning? Was it useful? Could you share some important pointers? Used an IFA for setting up the pension scheme and again for transferring into a cheaper pension scheme. I likely will do a review in a few years.

7. Any specific advice you can share, which would help others to achieve early retirement? Save much of the salary as possible!

8. What would you do after retirement? I love working, so it is likely I will do a part-time job to keep my mind ticking over and for social reasons. If I stop working, I won't be able to interact with people, and that would be more of a disappointment for me.

9. Have you got any hobbies which would keep you busy after retirement? I love travelling, so I will be holidaying in the UK & aboard.

andy001

crv1963 wrote: »

1. What's the retirement age in your mind?/ or What age did you retire?

Retirement age hopefully me at 58, Mrs CRV at 55.

2. What is sufficient amount in your mind for a comfortable retirement?

The million dollar question, aiming for 2k per month after tax, could manage on 1500 pm if needed, would prefer 2.5k pm, all before SP kicks in when income level would then jump, providing we reach it! With that in mind and wanting to make sure Mrs CRV doesn't have to return to work if I curl my toes up I am working on until 58.

3. What are your plans ?

Work to 58 get maximum possible DB (me), save into SIPP (Mrs CRV) with aim of draw down to zero 55-67, so no change in pension income for her, plus draw another pension she has at 4k pa, this should see her okay and if not spent on care needs in the future (hopefully distant one) then about 100k- 120k pension pot left to heirs. My SP starts at 67 so an additional income, Mrs CRV SP will simply replace her SIPP draw don pot.

If we find we do not need/ spend all of our planned income then we will open a SIPP- possibly one each depending on under spend and save 2880 pa for possible care needs in older age. If it isn't needed then bonus for heirs if it is needed we should have enough income for the survivor to self fund care so increasing choice.

Currently working overtime when available and trying to age proof home, purchase replacement items such as white goods/ sofas/ plan some building works, all coming out of income or if capital is needed to fund these then replace as much as possible before retiring.

Plan EF of 20k.
4. Do you have any Asset allocation strategies?

Life style funds, accepting that I don't know enough to time the market or judge the stocks myself, nor would I gain that knowledge well enough to do it myself.

5. Do You follow any F.I.R.E. blogs?

In addition to the above mentioned I also follow The Humble Penny

6. Have you taken any professional advice for retirement planning? Was it useful? Could you share some important pointers?

Years ago. I was told in my 20s that my DB scheme was unbeatable, Mrs CRV was advised to get SERPs which she did and forgot about. So for me yes it was useful I stayed put. For Mrs CRV not gaining advice has meant she didn't save enough at a young enough age, hence playing catch up in our 50s. An IFA would have urged her to save more and into a pension plan of some sort.

Pointer- save as much as you can, decide a floor level of a set percentage of income and stick with it, save more if you can, when you can.

7. Any specific advice you can share which would help others to achieve early retirement?

Save, live within your means, credit cards are not evil but need to be managed and paid off. Use whatever tools you can, get a LISA if you can, get a bit of rainy day money put by, spend but ask- do I need it, will I be better off waiting or hiring it.

8. What would you do after retirement?

Die. After stopping work before that point I intend following hobbies and interests. Travel and enjoy life. I may volunteer or even work part time in a different field. Study, probably something garden based.

9. Have you got any hobbies which would keep you busy after retirement?

Gardening, some wood working and dogs. Music and records.

Nice one!
DB pension is index linked
Max possible pension is £45k ?

crv1963

andy001 wrote: »

Nice one!
DB pension is index linked
Max possible pension is £45k ?

DB Pension is index linked. If I took it today it is probably worth around 21k pa, if I wait another 2 years 6 months hopefully I should get around 24.5k, so meeting the baseline need of 2k per month. So we could get our lowest figure of 18k, if we went today.

When Mrs CRV hits 55, we should be able to draw 4k pa from her SERPs pot, and if we meet savings target we will draw 8k per annum 55-67, exhausting this by 67 when 8.5 k SP starts. In reality we'll probably get around 50k into her SIPP so she'll draw around 5k pa from it giving her a 9k pa income.

My SP will start at age 67 so taking my total to 33k pa less tax and a consistent 12- 12.5k pa from Mrs CRV so yes 45k pa pension income.

If I kick the bucket Mrs CRV has a constant income of around 24k pa as she will have her DC, SP and Survivors Pension from my DB and if care needs intervene in the future then as average stay in a Care Home is 28 months she should be able to self fund running her SERPS pension down faster or using capital from the house.

If Mrs CRV goes first then I have around 37k pa using her SERPs pot at 4k pa and that will as previous paragraph be able to be used for my care needs or capital from the house.

Downsizing is not really an option, although moving to a cheaper part of town maybe in the distant future.

This forum has been invaluable to me in sitting down and really looking at what we want to achieve for retirement, when we want retirement and planning to get what we want.

The best part has been seeing through the maze and running plans/ ideas and getting others thoughts. We've gone from confused and nebulous to understanding the process, having a plan and knuckling down to meet the goals while still living a life.

Our heirs (4 of them) have been told that they need to plan their pensions and although we hope to leave them something they should not count on it! Two have started and are planning, two have not as yet but I expect they will do eventually when the penny drops.

quirkydeptless

1. What's the retirement age in your mind?/ or What age did you retire?

I don't have a retirement age in mind, more a point whereby work becomes optional. I think I am already at that now, so carrying on working is down to a choice.

At 56, 2 years from now, I will have fully paid my NI contributions to max my state pension, so that's something I have in mind for a retirement age.

2. What is sufficient amount in your mind for a comfortable retirement?

I'd be more than comfortable with 24K per year after tax and being rent free.

3. What are your plans ?

I purchased a house this year, so I am now rent free.

My company DB scheme and state pension can cover my comfortable retirement needs from 67.

My company DC scheme (which my company makes a 20% contribution to), my S&S ISA, my SIPP and my cash savings (pushed to max interest I can based on advice on this site - getting around 3% average now) can cover me till then, with enough to spare for some retirement treats I hope!

4. Do you have any Asset allocation strategies?

For my DIY investments, I have a split between adventurous and wealth preservation funds which has been moving steadily towards the latter. Currently a 30/70 split. X-Ray analysis shows it as 55% equity.

However together with my other investments (strategy is to leave the company ones alone to do their stuff), my X-ray comes out as 16% cash, 37% equity, 38% bonds, 9% other.

5. Do You follow any F.I.R.E. blogs?

No, but have been checking some of the ones mention previously. I regularly check this site and the Monevator site.

6. Have you taken any professional advice for retirement planning? Was it useful? Could you share some important pointers?

Never taken professional advice.

7. Any specific advice you can share which would help others to achieve early retirement?

Have a strategy and resist tinkering (advice I fail to follow myself!)

8. What would you do after retirement?

Maintain my house/garden, write a book (I have 3 in mind), travel, meet new and interesting people, pursue hobbies, try some new ones.

9. Have you got any hobbies which would keep you busy after retirement?

I don't seem to have a problem filling in (ED: don't you mean wasting!) my spare time.

pile-o-stone

1. What's the retirement age in your mind?/ or What age did you retire?

My plan is to go flat out until 55 (I'm nearly 51) then see if I can pick up contract work that will pay me a similar salary but with more freedom to put my retirement plan into action.

2. What is sufficient amount in your mind for a comfortable retirement?

As much as possible, but I'll have a better idea once my plan starts coming together

3. What are your plans ?
I want to buy some land and build an eco house that is as off-grid as I can possibly get without it being too uncomfortable.

The ideal would be 3 acres with 2 given over to willow trees or other fats growing wood and the rest would be an allotment. The house would be built to passive standards - so no heating required, with electricity supplied by solar, wind turbine and (hopefully) occasional import from the grid. Sewage would be reed bed and water from rain and borehole. The willow trees would be harvested on rotation to supply wood for cooking and hot water via a rayburn stove. Food would come from the garden (and from a four season passive greenhouse).

This would mean zero utility bills and low food bills. Outgoings would be council tax, buildings insurance and not much else.

The fundamental aim would be to be completely self-sufficient so if a financial crash occurred along the lines of the Great depression, I'd be completed insulated from it (literally in my super insulated home!!)


4. Do you have any Asset allocation strategies?
A balance of tracker funds

5. Do You follow any F.I.R.E. blogs?
Mr Money Mustache

6. Have you taken any professional advice for retirement planning?Was it useful? Could you share some important pointers?

It was useful for the IFAin getting a commission, not great for me. I decided to invest in a SIPP and have never looked back.

7. Any specific advice you can share which would help others to achieve early retirement?

Save for the life you want, not the life you have.

8. What would you do after retirement?

Tend to my crops, trees and swap food with likeminded people. volunteer to help others live a sustainable life.

9. Have you got any hobbies which would keep you busy after retirement?

as above.

MallyGirl

1. What's the retirement age in your mind?/ or What age did you retire?
Originally it was 60 but I am now thinking 58 may be all I can stick (the mortgage expires then and I'd rather not have to extend it, DD should have finished uni then or be in final year)
2. What is sufficient amount in your mind for a comfortable retirement?
We would need £24k to cover current bills/food/ socialising/petrol once mortgage free but we would not retire if that is all we had to play with. Target figure is £60k as we want to do some serious travelling
3. What are your plans ?
Travel, garden, outdoors, not have to downsize till we choose to
4. Do you have any Asset allocation strategies?
currently 72% equity plus bonds, a bit of property and cash. Not including our home in this.
5. Do You follow any F.I.R.E. blogs?
Monevator, have read some of the others occasionally
6. Have you taken any professional advice for retirement planning? Was it useful? Could you share some important pointers?
I went to a seminar provider by work - it didn't tell me anything I didn't already know but that was quite reassuring.
7. Any specific advice you can share which would help others to achieve early retirement?
Pay as much as you can afford into your pension as early in your career as possible - compounding really helps.Never turn down free money so always make sure you contribute enough to get the max employer contribution
8. What would you do after retirement?
Travel, chill, walk dogs, exercise, walk, turn off the alarm clock, keep learning new things (thinking piano and French)
9. Have you got any hobbies which would keep you busy after retirement?
some existing and some that need the time I don't currently have due to working

Linton

andy001 wrote: »

Hi All

I am thinking of early retirement for years, but not able to focus myself and wondered if MSEs ( planners/already retired ) could give some view points please? I plan to retire at least 8-10yrs before SPA.

I'm sorry , if there is similar thread already!

1. What's the retirement age in your mind?/ or What age did you retire?

Retired at 56.

2. What is sufficient amount in your mind for a comfortable retirement?

The plan in 2005 was £37000 increasing with CPI, equivalent to about £50K today. The current sustainable budget limit is £60K but that doesnt allow for large one-off expenditures. However there is enough slack for decisions to be made on those at the time. In practice £50K is sufficient to cover most things.

3. What are your plans ?

Spend enough on what we really want so that all our total wealth remaining when we die is just sufficient to pay for our long term care costs had that been necessary.

4. Do you have any Asset allocation strategies?

My whole financial plan is built around asset allocation between 3/7 100% equity growth portfolio, 2/7 50% equity 50% bond and other stuff income portfolio and 2/7 assorted stuff wealth preservation portfolio. Each portfolio has its own detailed asset allocation.

5. Do You follow any F.I.R.E. blogs?

No - Ive already been there.

6. Have you taken any professional advice for retirement planning? Was it useful? Could you share some important pointers?

None taken. I had taken some 30 years ago when the IFA changed my life by asking a question I had never considered - When do you want to retire? After a quick thought I said 55. Just failed to meet it by 6 weeks, but that was due to waiting for the next regular set of voluntary redundancies.

7. Any specific advice you can share which would help others to achieve early retirement?

a - Make a year by year spreadsheet plan and track/modify it each year in line with reality.
b - plan for a constant standard of living, ie save more as your income increases whilst working and adjust your spending budget whilst working to ensure that it can continue in retirement.

8. What would you do after retirement?

What I actually do....

MSE! Volunteer. Get out on our narrowboat. Open University degrees. Travel. Reading. Listening to classical music. Cooking. Birdwatching and walking though not sufficiently often now.

9. Have you got any hobbies which would keep you busy after retirement?

See 8

bluenose1

1. What's the retirement age in your mind?/ or What age did you retire?
I intend to retire at 55 at latest, though would go from now at 53 if VS scheme. My oh retired at 49.
2. What is sufficient amount in your mind for a comfortable retirement?
£40k per annum. Only have that in mind as that is most we will have.
3. What are your plans ?
I have plans of my plans. I never stop planning:o Thinking about various options - Short Term - long holidays abroad and possibly doing University degree. Longer Term - living abroad, possibly Portugal or Spain.
4. Do you have any Asset allocation strategies?
Not really, We both have DB pension schemes and I save a significant amount of my salary to my D.C. pot.
5. Do You follow any F.I.R.E. blogs?
Simple Living in Somerset
Quietly Saving
The Humble Penny
The Finance Zombie.
Monevator

I tend to binge read blogs, so loads more than above. Weenie on Quietly Saving has a blogroll with links to loads of FIRE bloggers.
I also listen to a lot of FIRE podcasts eg The Mad Fientist.

6. Have you taken any professional advice for retirement planning? Was it useful? Could you share some important pointers?
No.
7. Any specific advice you can share which would help others to achieve early retirement?
Don't mindlessly spend on items you don't need but don't stop spending on items you will get pleasure from. Don't put your life on hold until you retire and get obsessed with your spreadsheets (like me.)
8. What would you do after retirement?
See number 3. I intend to research low cost of living places to live for a couple of months each year. Look into Travel Hacking to reduce airline costs. Plus I would also like to start practicing Mindfulness and doing Yoga.
9. Have you got any hobbies which would keep you busy after retirement?
I love reading, walking, holidays. Enjoy going the gym and jogging.
Hopefully combine all my hobbies whilst on holiday in the Sun.