To those who retired early, what made you take the plunge (and any regrets?)

german_keeper

JustAnotherSaver said:

For those who have retired 'early', especially considerably early vs state pension age, I wonder how you were able to do so.

In other words, I wonder if the people in this thread who've done that are from a totally different position in terms of wage and how many of these people who managed to / decided to retire early were on a similar wage to myself.

To be black and white, I hit in the region of 26-28k currently. Wife is on less at around 16-18k so a combined household of 42k-46k. I'm going to have a stab at most people in the thread who managed to retire early possibly earn somewhere around that or more by themselves alone.

Me and my wife have never earned more than 40 grand pa between us. We have brought up 3 kids and have a large 4 bedroom (all doubles), 3 bathroom house bought brand new in 2005. Mortgage free. Wife has only worked part time since eldest was born 26 years ago. I took partial retirement 2 years ago at 54. I now work 24.5 hrs per week, she does 27.5. I love the fact that she is now working more hours than me!! Mind you it means my share of the housework has increased. We are well on track to retire fully when I am 58 and she is 57, maybe a bit earlier.

I think there are 2 main factors. Firstly we live oop north. Secondly we have never paid a penny in childcare. Initially MIL helped out and then for about 10 years my wife worked a twilight shift. I got home at 4.30 and we passed on the doorstep as she went out. So I had 3 young kids to feed, bathe, help with reading and homework, get to bed et al. So when it came to weekend when friends were off out dining at fancy restaurants, paying for babysitters and the like we genuinely just wanted to have family time with the kids. 

I do agree with your point about those who frequent this board. I suspect the vast majority have an above average income. A couple of my favourites have been an income of something like 60 or 70 grand described as respectable and over 100 grand as above average. But I also believe that the vast majority of posters are thoroughly decent people who genuinely want to help others if they can.

ischofie1

I retired about a month ago a few days after my 54th birthday. I was going to go at 55 but there was a package on offer that was almost a year’s salary so I snatched it. 

Glad to go as the corporate BS world was getting a bit tedious. 

No regrets although it is early doors. COVID lockdown isn’t great although this wasn’t when I was working. Just got to look on the bright side & say this won’t be around for ever. 

Retireinten

JustAnotherSaver said:

For those who have retired 'early', especially considerably early vs state pension age, I wonder how you were able to do so.

In other words, I wonder if the people in this thread who've done that are from a totally different position in terms of wage and how many of these people who managed to / decided to retire early were on a similar wage to myself.

To be black and white, I hit in the region of 26-28k currently. Wife is on less at around 16-18k so a combined household of 42k-46k. I'm going to have a stab at most people in the thread who managed to retire early possibly earn somewhere around that or more by themselves alone.

If you visit the number thread you will see target annual retirement numbers ranging from very low 5 figures to  some quite eye watering amounts...and obviously earned income plays a big part in dictating that number. 

Although I agree that many on this board earn above average there are definitely average earners on here successfully  working towards early retirement. 

For us, our household income has ranged from £70k to £95k in the last 15 years.  We have always been basic rate tax payers and that lower salary range was funding a mortgage of £900 a month and childcare costs of a similar amount for a few years.  Now mortgage free in the higher salary bracket our retirement savings rate is just over 50% of our net income.  We live on a net income of around 30k a year. Our higher than average earnings allow us to have a nice life whilst saving heavily for retirement. 

But early retirement doesn't just happen for above average earners, the amount we have to save is huge to fund financial independence from 55 - it has to be a conscious decision to fund retirement saving over other things. We have friends who earn around the £70k mark, a few years older than us and are desperate to retire early.  They often ask about pension planning (they know I have a keen interest in it) and what they need to do differently to fund retirement, but it's very difficult to say, stop with the expensive holidays abroad, stop upgrading your cars every 2/3 years on the never/never etc etc. We earn more than our friends but certainly don't have the lifestyle they do. 

pensionpawn

When I started my first pension at 23 the financial adviser gave me contribution quotes for retiring at 55, 60 and 65. I saw my father work until 65 and shortly after he confided in me that he came into the good money too late to really enjoy it. That stuck with me so, in my first job with my first mortgage, I decided that although I couldn't afford the 55 contributions I'd aim for 60. As commented above, this isn't the rehearsal, and on average I'm a work to live, rather than live to work person, so whilst balancing the 'live in the moment' idea (another quote from may father was 'tomorrow isn't promised') with good pension planning and bringing up three kids, through good pay and redundancy / periods out of work I've now reached 55 and I could go if I had to (we both have full SP secured). However my youngest has two more years of university remaining and we're dumping all bar the kitchen sink into my wife's pension(s) to make up no contributions for 10 child rearing years. She dropped to 80% in the autumn (due to stress at work this last 13 months) and has her finger on the trigger to drop to 60%. So the plan is to keep going until 57 (both of us) and then we can both retire on a minimum of our personal allowances, £25k with no kids to support although we still have a mortgage. In fact I've only recently convinced myself that I may ask to drop to 60% in two years and see how that goes. I like what I do at work however the office social buzz with colleagues that I like has been killed off by WFH (Skype isn't quite the same), and was on the way out prior to CV19 with the appointment of some incompetent managers. There is also too much pointless bureaucracy, inefficiency (due to poor leadership) and inability by management to act on the priorities continually flagged by those at the coalface to cope with for much longer.
Me and my wife have a plan of things we would like to do together (which work and lack of energy prevents) so I hope we are fortunate enough to be gifted the time together. You can't turn back the clock...

randompenitent

What made me take the plunge?

A combination of things: Although I was well paid and enjoyed work, I realised that I was beginning to get itchy feet. I could have looked for another job but I lacked the enthusiasm to start looking. At the same time, I was reaching a point where I'd accumulated enough savings that I really could consider stopping work without having to worry too much about money afterwards. To be honest, I think that this awareness changed my view of work - once you realise you can stop whenever you want, the ambition to spend more time at the office (or on Zoom) does rather drain away.  But there were other factors - the effect of working from home for the best part of a year (thanks to Covid) and a health scare a year ago that provided a very clear signal that life is finite - also had an impact.

I am 59, stopped working at the end of January. Lots of plans for post-Covid, but spending most of my time catching up on reading for now.

Once you start thinking about the amount of money you need to provide yourself with a decent standard of living from now until your probable demise, you also become very aware that that period is growing shorter day by day. If you've a long list of things you'd do if only work didn't get in the way, the sooner you stop working, the sooner you can get on with the rest of your life.

No regrets (yet) - but after just two months, why would there be?

Ganga

Msjf said:

My salary in my 20s and 30s was high, between £50K and £100K+, and that was when I made the pension contributions that have allowed me to start phased retirement (I still work a bit) in my late 50s.

Since having a child in my early 40s, I've had time off for childcare and gaps between work for my own business (now ended) as has my OH who has always been a BR tax-payer, and we've lived relatively modestly on a household income of £20K when just one of us has been working or c£40-45K pa with both of us working.

The key thing has been benefiting from the investment growth of early pension contributions, but a slower, steadier approach to investment with lower contributions over a longer period may well have given a similar result.

I am happier on a lower income with the life I've had over the past 15 years than I ever was with the stress of a senior management role, albeit I enjoyed the challenge and some of the international travel. 

It's not just about income relative to expenses, but priorities and values. Mine changed and the pandemic is doing that again for us as a couple.

I am not disagreeing with you or knocking your thinking BUT  "priorities and values " on there own will not finance early retirement .

Msjf

I agree, Ganga. I should have explained that having previously taken stock financially when family income reduced about what we really needed and what we valued doing in our lives, we've done that again in the pandemic.

Having managed on £20k as a family of three, albeit with only a small mortgage by then, having double the income again did not mean going back to previous expenditure as we were by then happy to do without some of the discretionary spend.  The pandemic has made us treasure our time together - thankfully we've been compatible cooped up in the lockdown winter - making us keen to make use of our healthy and mobile days while we can.

To the OP: I don't regret starting SIPP drawdown to transition to retirement. I wouldn't have been able to help much with GCSE homeschooling for example or find the winter sun on a local hill if I'd still been nose to the screen with a work lunch sandwich everyday. Yet I enjoy working a week here and there, which I'm lucky to be able to do. I don't think I'd have adapted well to full retirement in one go. Most people I know seem to have gone part-time over the past couple of years and preferred it, so I imagine the demand for flexiwork will be enormous post-pandemic where people have found they can manage on less income.

Time4T_Accounts

I finished 3 years ago as planned - my wife is 7 years older, and we figured a long time ago that I would have to do that for us to enjoy an active retirement.  Covid has, of course, played a part - and fortunately we’ve both been able to freelance to pass lockdown constructively.  I also help out pro bono  at my local (Russell Group) university (as an accountant) contributing to entrepreneurial courses for mech engineering and physics undergrads. Explaining cash flow and the effects of bad debts in business to 20-year old budding entrepreneurs is very, very rewarding.  Having the opportunity to do so is, truthfully, priceless.

Toucan13

Thanks everyone for telling your stories.  There don't seem to be many regrets amongst them, aside from wishing you'd done it sooner! I'm sorry that some of you have had to change your plans due to health or covid; here's hoping you can get back on with them soon or find things that you enjoy just as much in the meantime.

It's really encouraging to read your comments.  I definitely agree that once you lose your enthusiasm for whatever work you do it's hard to keep going, particularly if you're close to making the numbers work.  And yet unless there's some sort of catalyst (redundancy or some sort of life change) it's tempting to just plod on.  I know I am plodding myself albeit I'm working a lot less than I did 3 years ago.

I have a lot to think about.

michaels

Toucan13 said:

Thanks everyone for telling your stories.  There don't seem to be many regrets amongst them, aside from wishing you'd done it sooner! I'm sorry that some of you have had to change your plans due to health or covid; here's hoping you can get back on with them soon or find things that you enjoy just as much in the meantime.

It's really encouraging to read your comments.  I definitely agree that once you lose your enthusiasm for whatever work you do it's hard to keep going, particularly if you're close to making the numbers work.  And yet unless there's some sort of catalyst (redundancy or some sort of life change) it's tempting to just plod on.  I know I am plodding myself albeit I'm working a lot less than I did 3 years ago.

I have a lot to think about.

This is me too.  I have reduced hours to 70% but still have no interest in the job.  cfirresim says I could go now at 50 and spend more per year then I currently do but I just don't believe that historic data tells us everything about the future and am also worried about keeping up with average earnings rather than just prices - 45 years slipping behind each year by the increase in real wages puts you into some very low income percentiles.