I feel like retiring at 60 - 65 is too old

itwasntme001

I suspect most of the replies are from those in their 50s/60s which I imagine is what the OP wanted.  Lot of good advice mainly around saving/investing your income, moving to cheaper location, finding the right work etc.  But if it wasn't for what appears to be a bucket load of constant questionable posts from the OP, I would actually feel a bit of sympathy for him.  Those in his generation trying to retire "early" is a lot more difficult in our (i am in my 30s) generation than for the generation retiring now.

Those in their 50s/60s now have had the advantage of:

- rising real wages

- low property prices relative wages

- DB pension schemes and GARs

- falling interest rates boosting asset values and reducing the cost of debt

None of these will likely be true for our generation in the coming decades.  Some are already not true which have been a huge benefit to current retirees (DB pensions, property prices, rising real wages).  No one knows for sure what the future will be like.  But it is important to put things in perspective of how favourable the conditions have been for the current retirees and how those in their 20s/30s will not benefit from, putting them at a great disadvantage unless they have wealthy parents and/or earn significantly above average wages (luckily both of which I have the benefit of).

CreditCardChris

To all those recommending the FIRE movement or to save heavily in general, that's what I'm doing as of this year. After all my bills and living expenses I can easily save 50% of my wages, or even 75% if I give up all joys but that's probably not going to be good for my mental health. 

The only problem is this is entirely dependant on what the stock market does over the next 20 years. If it maintains a roughly 7% rate of return then I can retire at 50 and live off a 4% withdrawal rate. Anything less than 7% and I'm probably looking at 55 - 60 but I'm investing in the https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-global-all-cap-index-fund-gbp-accumulation-shares every month (dividends automatically reinvested) so I guess I just have to play the waiting game now and see what happens.

Thanks for all your comments, I have read them all but obviously cannot reply to everyone.  

eskbanker

penners324 said:

The average life expectancy in the UK is nearly 80. That's 20 years after you turn 60.
How do you propose that people you consider as 'old' live without decent pension provision? Most people can only do that by retiring at 65 or 70....
I fully expect your retirement age will be between 70 and 75, just to get the government pension...

Average life expectancy is one of those stats that needs plenty of attention to detail to ensure that the most relevant figure is being used, but according to the most recent ONS analysis, someone aged 31 (such as OP) now has a life expectancy of 85 (male) or 88 (female), plus a far-from-negligible 1 in 4 chance of living to 95 (male) or 96 (female):

https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/lifeexpectancies/bulletins/pastandprojecteddatafromtheperiodandcohortlifetables/1981to2068#how-long-can-you-expect-to-live

Pollycat

itwasntme001 said:

I suspect most of the replies are from those in their 50s/60s which I imagine is what the OP wanted.  Lot of good advice mainly around saving/investing your income, moving to cheaper location, finding the right work etc.  But if it wasn't for what appears to be a bucket load of constant questionable posts from the OP, I would actually feel a bit of sympathy for him.  Those in his generation trying to retire "early" is a lot more difficult in our (i am in my 30s) generation than for the generation retiring now.

Those in their 50s/60s now have had the advantage of:

- rising real wages

- low property prices relative wages

- DB pension schemes and GARs

- falling interest rates boosting asset values and reducing the cost of debt

None of these will likely be true for our generation in the coming decades.  Some are already not true which have been a huge benefit to current retirees (DB pensions, property prices, rising real wages).  No one knows for sure what the future will be like.  But it is important to put things in perspective of how favourable the conditions have been for the current retirees and how those in their 20s/30s will not benefit from, putting them at a great disadvantage unless they have wealthy parents and/or earn significantly above average wages (luckily both of which I have the benefit of).

Didn't we also have the disadvantage of incredibly high interest rates that crippled those who had a mortgage?

Thrugelmir

itwasntme001 said:

Those in their 50s/60s now have had the advantage of:

- rising real wages

- low property prices relative wages

- DB pension schemes and GARs

- falling interest rates boosting asset values and reducing the cost of debt

1. In 1997 I was employing credit credit controllers on over £18k per annum. Little wage inflation in majority of finance jobs over past decades now. Technology has changed many roles. 

2.  We had to save deposits to buy houses , no leg up on a minimal amount of money.

3. DB schemes started closing in 1997. 

4. Paying 14% on a mortgage isn't any fun. Rates rose by 4 consecutive months at 1%. To budget used to walk around Sainsburys with a calculator. No sticking it on a plastic friend then defaulting. 

On the advice of my late father. At starting work at 17.  I commenced my first pension policy at £10 per month. Never looked back since. We all have choices. The key is in compounding. 

OldMusicGuy

itwasntme001 said:

Those in their 50s/60s now have had the advantage of:

- rising real wages

- low property prices relative wages

- DB pension schemes and GARs

- falling interest rates boosting asset values and reducing the cost of debt

Not completely true, no DB pension or GAR here (I'm 63). Everything is DC pension for me. Also no rising real wages since 2008 for me, those that did increase above inflation before then were only by a small amount (eg .5%). Anyway, most of my wage rises that made a significant difference to pensions/saving came from career moves or bonus/incentive schemes. But I did do ok on property and we are downsizing to make the best of that.

FWIW I was planning to retire at 63/64 but went at 60 for exactly the reasons the OP suggests. The "go go" years of the 60s are definitely the best ones and I am glad I didn't waste any of them by working. Although I am pretty fit, it's obvious my bodily capabilities are gradually declining and I want to enjoy life to the full while I can.

I think planning to retire or go part time by 55 would be a good long term plan for anyone. If I had paid more attention to pensions earlier in my life and made more informed investment decisions I would probably have been able to retire earlier than 60. 

Murphy_The_Cat

Thrugelmir said:

On the advice of my late father. At starting work at 17.  I commenced my first pension policy at £10 per month. Never looked back since. We all have choices. The key is in compounding. 

I started full time work when I was 15 and nearly straight away started contributing to a pension at £50 per month.  It was probably the biggest & most influential (although I didn't realise it then) decision in my life.  Fast forward X years and the pension pot is looking healthy.  In hindsight, the only misatke that I made was not ticking the "increase the contributions in line with inflation each year" box.

I actively look forward to advising my children to do the same when they get the opportunty.

carpy

CreditCardChris said:

I'm sorry if this comes across as insensitive to our older community members but I'm 31 and absolutely hate the thought of retiring at 60+. Assuming I even live to 60, it feels like it's kinda too late to start enjoying your freedom? Your health deteriorates exponentially as you get older, I mean I still feel as young and healthy as I did when I was 18 but I'm sure when I'm 60 I'll start feeling it. Then 70+ is around the age when I feel like retirement is more about surviving than living. 

So if you retire at 60, you've probably got 10 good years but then after that you kinda just become a couch grandpa / grandma. I'm hoping to save like a beast and retire at 50 but since I only just started investing that probably isn't going to happen. 

I see actors on tv shows and I google their age and they're like 65 or 70 in some cases and they look fit as a fiddle but then I walk down my high street and I see people who look about 60 year old walking with frames, or straight up dying from cancer or some other illness... Like my mother did.

I just feel like working for 47 years to have 10 - 15 years of freedom (real freedom not couch retirement) just isn't a decent trade off.

couldn't agree more.... 
hence why i packed up end of March 2019 at the age of 42
not because i'm rich, in fact far from it!!!  just a lifestyle choice and years of being very frugal and planning.
just shows what's possible.

crv1963

Murphy_The_Cat said:

Thrugelmir said:

On the advice of my late father. At starting work at 17.  I commenced my first pension policy at £10 per month. Never looked back since. We all have choices. The key is in compounding. 

I started full time work when I was 15 and nearly straight away started contributing to a pension at £50 per month.  It was probably the biggest & most influential (although I didn't realise it then) decision in my life.  Fast forward X years and the pension pot is looking healthy.  In hindsight, the only misatke that I made was not ticking the "increase the contributions in line with inflation each year" box.

I actively look forward to advising my children to do the same when they get the opportunty.

My advice to my sons was get into saving for two things- pension as soon as you start work and for a house deposit. 

Mrs_Z

Some very good replies here.
For the OP, nothing wrong with aiming to retire early. Knowing your goal now is great as you have TIME on your side to do something about it.
I always dreamt to retiring around 40-50yrs when I was younger and this thought has always been on the back of my mind.  I would not call myself frugal but I've always been very conscious of not wasting money, knowing my needs from wants, trying to get the best deal for whatever purchases and saving the surplus and making the surplus working as hard as possible for me. I'm now 52yrs and on the verge of very possibly retiring - the numbers just about to stack up to bridge the gap between now and work pension (from 63yrs).  I'll be finishing work in couple of months, although I may well end up still working during the next 10 years, who knows. Possibly just part-time but it's great having a choice about it!