Can I afford to quit

pjcox2005

It doesn’t have to be permanent, if your expenses are that low then take a break and enjoy bringing up your child in early years.

You could take event work on occasion e.g. big race weekends, nec or project work if career allows so only working odd weeks that suit to top up income.

Risk of it being harder to get back into career but perhaps after a year or two off you’ll be ready to be employed again.

Dazza1902

I think you are very well placed for retirement, but not yet. 
Surely another 5 years of saving into ISA's and your Sipp and you've cracked it. How much can you save per month ?

wannabe_a_saver

You need to find work that you enjoy or at least find vaguely fulfilling/satisfying. 

You're very young, and I would view your savings as, rather than a bridge to retirement, as a buffer so that you can retrain or try out some different things for a few years in order to find work that you don't mind doing until 65-70.  

With no job and very little money I can't imagine how bored you will be for, well, the rest of your life!

mark55man

With 4 little cost centres of my own (well not so little now), I always had the theory that while one parent can look after even all of them two parents could look after them just as well - by which I mean kids will absorb all the time you both have if you let it (which may be what you want, but doesn't have to be 100%).  Plus I echo the posters above saying that hobbies (especially if the kids are good) can be very expensive even if its just ferrying about

I think an under-estimated fact is that even a moderate side-hustle or source of income can go a long way to prolong a pot.  Plus you need to be very careful about poor returns on your pot early on which can reduce (even further) your income later.  Also, at the target level of income you are talking about, there are many many lower paid jobs that are available, that are not in play for higher target incomes.  I think if you are flexible and take work when you need it, then you could certainly escape the rat race but unlikely you could completely avoid work.

PS In terms of holidays, little kids enjoy the beach in UK every bit as much as in exotic locations, and camping is a real adventure, but older kids do like it a bit more expensive    

Albermarle

In terms of holidays, little kids enjoy the beach in UK every bit as much as in exotic locations, and camping is a real adventure, but older kids do like it a bit more expensive    

And when they are not kids , or even teenagers and they are fully independent adults ( in their opinion anyway) but still wanting free holidays , then they like it even more expensive 

AnotherJoe

NorthernMonkey1 said:

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?

Yes unless you want to be scraping by rest of your life..

]If your current job is insufferable look for a different one, even if lower paid, maybe one you can move to part time later,  that gives you the chance to build up more pension and cash to provide a buffer for all the major expenses others have mentioned.

Roygroyg

Sounds like retiring would be very tight even though you must be good at managing costs to keep spending so low and build up fairly sizeable funds for your age (inc mortgage paid off).

I went part time in my mid 40s when kids were still young and I will certainly never regret the lost earnings compared to time spent with them at that early age. Perhaps taking a year or more break to enjoy being with them as they develop and mentally refresh and reevaluate could be an option. Your funds and spending allow for that and doubt you would regret that time. 

Saving for retirement is important but if work getting you down and affecting you mentally whilst meaning you miss lots of family time then a good break might work. Will be more difficult getting back into work after that but you could use that time off to work out or test out other jobs or sources of income. 

Another thing to take into account is lack of NI credits towards state pension if both not working and your wife gets the child benefit credit. I would factor on not being able to access pension until probably 58 to be safe in your calcs which makes stretching those isa funds more difficult. 

Dropping the second car when at end of its life (depends how remote you are) and walking/cycling/bus would help keep costs down and one of things we did and adjusted to only one very easily.

SomeMadeUpName

Has anyone mentioned building entitlement to SP in the preceding posts?

I doubt your there yet, which means either working to earn more years, or budgeting to buy more years.

SomeMadeUpName

I'd be looking for a low'ish paid but easy or fun SE gig.

Monetarise a hobby.

That way you don't waste all of your tax free allowance for the next 13 years, you qualify for class 2 NI (a bargain) to get to full SP, and you boost your income to make SIPP contribs of £2,880 a year viable and so get the 'tax' uplift (also a bargain). 

SomeMadeUpName

SomeMadeUpName said:

Has anyone mentioned building entitlement to SP in the preceding posts?

I doubt your there yet, which means either working to earn more years, or budgeting to buy more years.

Oh, yes, they have.  In the post directly above mine! No substitute for stupidity, sorry.