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Can I afford to quit

68 replies 8.5K views
Hello all,

I’m hoping someone can cast an eye over my numbers and opine if they think quitting work is a good idea or not

I’m approaching 42, and I’ve mostly had enough of work. Live in the northeast, with mrs NM, and a <1yr daughter. We have no debt other than a small, paid of each month CC balance. Mortgage paid off, 2 cars (6 year old Leaf and a 12 year old runabout) paid off.

Current expenses are ~£1100 per month. 

Current Assets (excluding house and cars)
SIP - £332k
S&S ISA - £138k
Cash - £11k
Share Save - £9k
Crypto - £5k

I think I can use my current non-pension savings to live for the next 13 years, and then start draw down of my pension at 55 to quit work

Does this seem an unreasonable plan?


  • AlbermarleAlbermarle Forumite
    7.7K posts
    1,000 Posts Second Anniversary Name Dropper
    Obvious stand out point is that spending £1100 per month is very low .

  • sysadminsysadmin Forumite
    194 posts
    Part of the Furniture 100 Posts Combo Breaker
    Probably - but at what 'standard' of life ?
  • gamblerukgambleruk Forumite
    28 posts
    Tenth Anniversary 10 Posts Combo Breaker
    I would normally say yes to most people who ask this question as I am now a year into early retirement at age 51 but and it's a big but our child is now grown up and making his own way in the world where with the best will in the world you will be 60 before your daughter would be able to do that and that's not even considering university. Children are very expensive and get more and more expensive the older they get so I honestly think you may struggle for the first 13 years especially. Also your cars will eventually need replacing as another large cost.

    There is so much information around on this forum and others so have a read about other peoples thoughts, sea_shell's squirrelled nuts post is a good one, I have done one recently which will tell you about my situation with a lot smaller pension pot than yours.

    Another thing to consider is your wife working or will she go back to work ? If both of you stay at home with a young child one or both of you could find it hard work to cope. There is so much to consider and you are still young, I presume all your friends will still be working so what would you plan to do every day ? I have a set routine every day which keeps me busy and occupied, my 2 dogs being a massive plus in that department. I could go on and on with questions and ideas and I am sure there will be the financial wizards coming along to advise better on the money aspect. Like I said read as many posts and forums as you can with similar people in your situation.

    Good luck in what you ever decide to do.

  • michaelsmichaels Forumite
    25.4K posts
    Part of the Furniture 10,000 Posts Name Dropper
    1100 x 12 x 13 years = 171.6k which already looks tight compared to your non-pension assets.

    Similarly your sipp for the next 12 or 13 years until state pension age.

    Will you definitely qualify for 55 pension entitlement given this age is increasing soon?

    On the plus side, you will get child benefit of about £100 per month.

    WE also have a 6 year old leaf and a second car (16 year sold in our case), we factor into our budget about £150 per month for depreciation/new car budget on top of fuel, insurance, tax and servicing/repairs
    I think....
  • michaelsmichaels Forumite
    25.4K posts
    Part of the Furniture 10,000 Posts Name Dropper
    MX5huggy said:
    Your child has not started eating..... my 7 year old eats about £1100 per month on her own. 
    Really - we have 12, 15 and 16 yos and a total monthly food bill of about 500.
    I think....
  • NorthernMonkey1NorthernMonkey1 Forumite
    328 posts
    Sixth Anniversary 100 Posts Combo Breaker Mortgage-free Glee!
    michaels said:

    Will you definitely qualify for 55 pension entitlement given this age is increasing soon?

    On the plus side, you will get child benefit of about £100 per month.

    I think this is ultimately the crux of the problem. The govt has a consultation document out now, and although my pension supports retirement at 55, the rules could change and make that no longer the case. 

    13 years is possible, 16 years (or even 20) seems unlikely 

  • edited 30 April at 12:50PM
    ThrugelmirThrugelmir Forumite
    80.8K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 30 April at 12:50PM

    Current expenses are ~£1100 per month. 

    Little budget for one off items of expenditure over many years.

    What's the plan if your investments underperform for a decade? 
    ““Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.”

    ― Sir John Templeton
  • GeordieGeorgeGeordieGeorge Forumite
    230 posts
    100 Posts Name Dropper
    I think that you’ve a very high probability of feeling extremely poor over the next few years if you do this.

    Will your children have no hobbies, or do any sports? Will you not want to go away with them, or on your own? Will they never ski, or show a real aptitude for karting?

    What about if you decide that the house isn’t big enough, or that you’d rather live somewhere else?

    What if your personal pension pot hasn’t grown much, or the rules on when you can access it change?
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