How close am I to my early retirement?

MallyGirl

I'd work out how much carry forward I had from previous years' pension contributions (if they were under £40k).

If pension is salary sacrifice I would fill those gaps for sure.

LV_426

IamWood said:

Thanks a lot to everyone for the helpful comments. I would like to update you that I have accepted the offer to see what pans out. I know I'll regret it if I don't at least try.

The next question please how to make hard-earned money be more tax-efficient besides paying 40K in my pension. The company would contribute 10% of my base salary to my pension BTW.

Congratulations on the new job!
Btw nobody can definitively answer your original question because it depends on a lot of factors, not least of which is expected lifestyle and associated expenses. Everyone has a unique profile.
You need to build a financial plan. This starts with collecting all your current assets, and clearly listing your income/expenditure.
I have to say though, it's looking good for you.

michaels

MallyGirl said:

I'd work out how much carry forward I had from previous years' pension contributions (if they were under £40k).

If pension is salary sacrifice I would fill those gaps for sure.

Would you not want to 'spin out' any carry over annual allowance to stay below the threshold where the personal allowance is withdrawn for as many years as possible?

Terron

bostonerimus said:

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.

I am sorry, but no. No detailed budget is "needed". A rough one can work. I subtracted the increase in my bank account from the income that went in to work out my yearly spend, rounded it up and used that as my first approximation for how much I needed.

IamWood

I am thinking of buying a one bed property in a place where it is faster to get into London. I can stay there for 3 days during my work. Potentially, it could be rented out as retirement income in the future. Or pass it on to my boys if they also work in London after they graduate.

What does the idea sound like? Both of the mortgages of my two properties are paid off, so there shouldn't be a problem remortage one of them to generate a decent deposit.

Any input would be appreciated.

LV_426

IamWood said:

I am thinking of buying a one bed property in a place where it is faster to get into London. I can stay there for 3 days during my work. Potentially, it could be rented out as retirement income in the future. Or pass it on to my boys if they also work in London after they graduate.

What does the idea sound like? Both of the mortgages of my two properties are paid off, so there shouldn't be a problem remortage one of them to generate a decent deposit.

Any input would be appreciated.

Sounds like a great idea to me, if you have the cash. Can't imagine you'd get anything more than a shoe box in the vicinity of London, but it saves you having to endure that big commute every day, which I would certainly not want to be doing. And as you say it's a nice asset for possible future income.

IamWood

Thanks!

Any recommended locations? I'm looking at Woking / Reading atm.

QrizB

IamWood said:

Any recommended locations? I'm looking at Woking / Reading atm.

There's also Basingstoke on the Waterloo line, which might be an option (a little cheaper than Reading, or at least it used to be).

MDMD

IamWood said:

Thanks!

Any recommended locations? I'm looking at Woking / Reading atm.

I’d research the travel costs as well as where the train comes into. A daily ticket from reading to Paddington is £130 a week (or £50 if you buy it daily), more if you need the tube. The new flexi tickets are £350 a month for 8 days travel in 28.

IamWood

I have now formally resigned from my current job and the new job starts in early February. Funny though my current employer has suddenly found extra funds and is willing to give me a big pay rise. They provided a counter-offer, for which I politely declined. However, they insisted and promised that they would like to match my offer if I could share the number. I seriously doubted they would if they knew the number was more than doubled. Anyway, I did not share any details of my offer and handed in my resignation letter. 

TBH, their behaviour to retain me simply pushed me away. I understood they simply panicked and were afraid to lose my in-depth knowledge of the system. Well, they should blame themselves for taking everything for granted for so long.

I also made an offer for a one-bed flat in Reading. Am I too hasty in this process? Should I wait a while before making a firm commitment to purchase the flat?

Your advice is always welcome.

Thank you!

Update:

My boss just sent me another email for one more chat after New Year regarding my current position and pay. I know it's not a good idea to stay with current employment after resignation. Should I decline it or attend the meeting to see what he would like to say?