Would you retire really early and burn down most of your DC pension assets?

Notepad_Phil

How well does the DB pension cover you against inflation and how strong is the company behind it (i.e. is there a chance it could fall into the PPF).

Mine is very poor (i.e. next to no inflationary rises) so I'm actually using that to help my DC pensions last well past state pension age by reducing the amount I need to drawdown in the early years before any resumption of inflation whittles it away. However if you're covered to the max against inflation and you want to retire early then it would seem to make sense to put the heavy load onto the DC pensions in the early years.

barnstar2077

I plan on burning my savings and DC pension in order to retire earlier.  Planning to, and pulling the trigger though are probably two very different things! :  )

LV_426

shinytop said:

ajfielden said:

Thrugelmir said:

ajfielden said:

I've been doing some serious number crunching recently, well the software application I'm using has, and it's thrown up some really interesting things.

How many scenarios have you run? 

Just the extremes so far. 
My next step is to run some more scenarios at different ages, and see what the numbers/graphs look like. Fascinating stuff isn't it?

Of course retirement isn't just about money although that is important. As the Mrs said to me, what would you do with your days? And she's right, most people need some kind of structure and purpose, which a job does provide.
I mean drinking coffee and staring out the window at the world might sound great, but I think after a while you'd start to get mighty bored.

It is and you don't!!

Seriously, if you're really not enjoying work and you can afford it then you should consider going.  The trouble is, once you know you can afford to do it, work somehow becomes even more irritating/stressful/boring and the lure of jacking it all in becomes stronger.

Hehe! 
Correct, now I know I don't have to work it all seems that much more pointless.

LV_426

Notepad_Phil said:

How well does the DB pension cover you against inflation and how strong is the company behind it (i.e. is there a chance it could fall into the PPF).

Mine is very poor (i.e. next to no inflationary rises) so I'm actually using that to help my DC pensions last well past state pension age by reducing the amount I need to drawdown in the early years before any resumption of inflation whittles it away. However if you're covered to the max against inflation and you want to retire early then it would seem to make sense to put the heavy load onto the DC pensions in the early years.

Good points about PPF. I have confidence in the pension and company being strong. It's an established telecoms and network company, so probably not going to fold.

LV_426

barnstar2077 said:

I plan on burning my savings and DC pension in order to retire earlier.  Planning to, and pulling the trigger though are probably two very different things! :  )

I know what you mean.
In some ways it is a kind of leap of faith, as you're looking at projections.

Albermarle

ajfielden said:

barnstar2077 said:

I plan on burning my savings and DC pension in order to retire earlier.  Planning to, and pulling the trigger though are probably two very different things! :  )

I know what you mean.
In some ways it is a kind of leap of faith, as you're looking at projections.

It also depends on your personality . If you are the worrying cautious type , it is better to have a bigger safety margin, just so you can relax /sleep better .
Although this can mean you get into OMY syndrome ( Just carrying on at work for One More Year , which becomes two or three or more ) 

Thrugelmir

ajfielden said:

Thrugelmir said:

ajfielden said:

I've been doing some serious number crunching recently, well the software application I'm using has, and it's thrown up some really interesting things.

How many scenarios have you run? 

Just the extremes so far. 
My next step is to run some more scenarios at different ages, and see what the numbers/graphs look like. Fascinating stuff isn't it?

Spent many years financial modelling in a work capacity. Now prefer my time focusing on what I can directly control, i.e. the investments themselves. 

LV_426

Albermarle said:

ajfielden said:

barnstar2077 said:

I plan on burning my savings and DC pension in order to retire earlier.  Planning to, and pulling the trigger though are probably two very different things! :  )

I know what you mean.
In some ways it is a kind of leap of faith, as you're looking at projections.

It also depends on your personality . If you are the worrying cautious type , it is better to have a bigger safety margin, just so you can relax /sleep better .
Although this can mean you get into OMY syndrome ( Just carrying on at work for One More Year , which becomes two or three or more ) 

I am indeed the worrying cautious type, and for that reason I'll probably compromise on the start date. But I'll be happy retiring before I'm 60.
For now I'll just bask in the knowledge I don't have to work. Think the freedom of being able to say just what you want
Joking, I'm not like that, but this may explain the behaviour of certain individuals I've worked with in the past

bluenose1

There is a book Die With Zero, which makes interesting reading.  The concept is that when you have saved enough to retire you are wasting time working instead of using it enjoying the precious time we have left. 

I  feel jaded, fed up with work and the needless bureaucracy,  especially now I know I can more or less afford to go. Intend to retire in 11 months at latest age 56.

I think my biggest problem in retirement will be fitting it all in.  

Off top of head - 
1. Go to gym/ or run.
2. Shopping for healthy food.
3. Cooking new recipes.
4. Growing my own veg
5.  Swimming/ sauna.
6.  Reading 
7. Walking, plus join local rambling group
8. Meeting friends for coffee and meals.
9.  Decorating.
10. Volunteering at Park Run etc
11. Knitting more than snoods!!!
12. Long holidays, maybe touring Scotland  for 3 weeks etc.
13. Watching Netflix. Loving “Unforgotten” at moment. 

14. Listening to podcasts. 

Looking forward to not having the frazzled feeling after work, though even in retirement intend to keep my Cleaner. Going to need her so I can concentrate on above!!!

Sea_Shell

Never underestimate the feeling of joy when you're out for a run or a walk on a lovely early summer morning, passing a queue of cars waiting at the lights on their daily commute.

And then sitting in the garden with a cold one in the early evening whilst they are all making their way home again!!


Or staying under the duvet on a winter morning, hearing the neighbours scraping the ice off their car.


It really is the little things.