How close am I to my early retirement?

sevenhills

IamWood said:

I always wanted to do volunteer work abroad. I am making the worst assumption that there will be no income for the work I am going to do.

That is rather vague. You are asking the forum when you can retire, but you need to know how much money you will need.

Annual Gross Salary = 75k minus £30k into saving = £45k

Is your wife working, do you support her, how much does she spend?

IamWood

sevenhills said:

That is rather vague. You are asking the forum when you can retire, but you need to know how much money you will need.

Annual Gross Salary = 75k minus £30k into saving = £45k

Is your wife working, do you support her, how much does she spend?

Rather unique situation here.

I promised never to spend on wife's money before marrying her and have kept my promise ever since. The wife was self-employed before last year. I have no access to her business account. I guess that'll be minimal as most of the money was donated to some charity work she was involved in (as far as I'm aware). She is now on her pay-based part-time job with a salary of around £28K. half goes to her pension and the other half to her current account (for potential donation). I have no intention of accessing her funds on my part.

Her SIPP is my gift to her.

jimi_man

I think the problem that people are having is that you've asked how close you are retiring and stated how much money you have (though it now seems that may be less (or more!) depending on your housing/wife's pension situation!).

However you seem rather reticent to impart how much per year that you need to live on for a comfortable retirement, other than food bills.

If you want some ideas/suggestions/thoughts on how close you are then you really need to give some more (quite a lot more really!) information about your future lifestyle and its costs. Otherwise - as I remarked on another thread - it's like painting the hall through the letterbox and it's just guesswork!

IamWood

My intention was to fully rely on my fund. If my wife is willing to contribute it's a bonus for me, so I'm planning my retirement based on my financial situation only.

I aim for semi-retirement when my second child goes to university in 3 years. An income of 30K would easily get our lives going. Is it feasible?

Roger175

IanWood

Try this pension planning website by Guiide:- https://www.guiide.co.uk/ It is almost perfectly suited to give you the answer to your question.
 
It is seriously good and has helped my wife and I realise we are getting very close to early retirement, hopefully next summer, aged 58 in our cases.

You have to do individual projections for you and wife, which can be a bit of a faff, but once you get all the data in, you can play with the scenarios and make adjustments with regards retirement age, rates of return etc and it shows you how much will remain in your various pots year by year as you go through retirement  - the website holds your data and enables you to come back time and time again to have another play - my tip would be to download each projection (an re-name it) before trying another.

I can guarantee you wont get all your data right first time, we made a few silly errors, but it's easy to edit.

IamWood

Thanks, @Roger175

Will play with it. It seems to require the minimum retirement age to 55, however, it should be helpful.

Roger175

If that's the case, I apologise, I'm already past this and it was just so helpful in our case

QrizB

IamWood said:

Thanks, @Roger175
Will play with it. It seems to require the minimum retirement age to 55, however, it should be helpful.

That's probably because you can't normally access your retirement savings until then (for you it could be 57).

You'll need to make sure you have non retirement dsavings avsailable to bridge the period from 51(?) to 55/57.

Triumph13

IamWood said:

My intention was to fully rely on my fund. If my wife is willing to contribute it's a bonus for me, so I'm planning my retirement based on my financial situation only.

I aim for semi-retirement when my second child goes to university in 3 years. An income of 30K would easily get our lives going. Is it feasible?

As per my previous post it is entirely feasible.  It just depends on what you want to do with the second house,

Scenario 1 - sell the house
That's what I modelled above and you can retire tomorrow.  Doing it in 3 years time makes you about £200k better off (3 less years to fund plus 3 years saving) so you're laughing.

Scenario 2 - keep the house as a rental
Certainly doable in three years , but you'd need to take out a mortgage to help bridge the 7 years to pension access and then pay it off from the 25% lump sum.

Scenario 3 - keep both houses with you living in one and kids rent free in the other
Nope.

bostonerimus

Before anyone can give you a remotely sensible answer you need to do a detailed budget for at least a year so you catch seasonal variations and then also come up with an emergency amount that will cover things like a new roof, boiler, major car repairs etc.