Has Covid changed your approach?

hugheskevi

cfw1994 said:

The effect Covid had on me was to put off handing in my notice for 12 months!
My original plan was popped on hold when it became rapidly apparent that sitting at home was going to happen either way....

COVID has a somewhat similar impact on my plans.

As COVID started, I was just getting to the position that retirement was plausible albeit with less than would be ideal (but still should be a perfectly adequate amount). Our plans for retirement start with a few years of overseas travel, so COVID prevents that and there is no point in retiring until COVID is sorted one way or another. I do wonder what I might have done in normal times, and whether the lure of travel would have led me to retiring earlier. In particular, if there had been any frustrations at work I suspect that just handing in notice and going would have been difficult to resist, with a push factor combined with a strong pull factor.

We are now looking at the end of 2021 to retire, as it is difficult to envisage all travel restrictions being removed much before that. This time is also one of two 'ideal' points to retire within the financial year, as it would avoid higher rate tax in 2021/22. We will review in summer and if things aren't looking good, push plans back to June 2022, which is the other ideal point, as it would use up Personal Allowance in 2022/23 and give a State Pension qualifying year, so would be a nice boost. Small wins

Still, it isn't until June 2024 that we reach the scenario based on the highest possible expenditure plausible for us (which is way in excess of requirements). In normal times, if we are still working then we would be very guilty of having fallen into the 'one more year' trap, so hopefully we won't get anywhere near to that!

JohnWinder

hugheskevi said:

 so would be a nice boost. Small wins

....and quantifiable: https://earlyretirementnow.com/2021/01/13/one-more-year-swr-series-part-42/

cfw1994

JohnWinder said:

hugheskevi said:

 so would be a nice boost. Small wins

....and quantifiable: https://earlyretirementnow.com/2021/01/13/one-more-year-swr-series-part-42/

ERN: someone who truly loves spreadsheets on a level above even those of us who thought we enjoyed them 

DT2001

We cashed in part of our investments on the markets way down in March as our self employed income ‘disappeared’. It was before the Chancellor announced his package of help. We’ve always ridden corrections in stock market and property over the last 35 years but the scenario was more difficult to read and enforced retirement rather than gradual slide into it seemed a real possibility so we foresaw the need for more liquid reserves.

 In lockdown 1 realised how little we need to cover ‘basic’ level of expenditure so confirmed that we had surpassed our number as long as we were willing to be flexible with income. Then OH found new contracts which are full time in August (possible as no overseas or U.K. hols) so plan changed again. Now as we think there will be little travel until 2022 pension will be topped up by OH and as she enjoys the new contracts she’ll try and ensure one of these will continue p/t after we start flying again.

So maybe our approach is more cautious in terms of having more ‘cash’ in the pot but when we can do more it will be with less of an eye on the budget.