How close am I to my early retirement?

lisyloo

IamWood said:

A quick update:

I've formally withdrawn my purchase for the Reading flat and started to look for temporary accommodation in London for 3/4 nights a week at a budget of £500-600 per month.

That seems to low to me (I lived in London for 6 years in down market accommodation).
others say they have done it though.

i guess you have to cut your cloth, but I think you’ll have to set your expectations low for that.

IamWood

Thanks @lisyloo

I currently stay in London with a lovely semi retired lady for only one night. The lady is so nice and charges me minimal £30 per stay with no strings attached. She even shares meals with me. I did fix her WiFi though😃

IamWood

Just a quick update:

The change of job to London turned out to be a good decision. In fact, I don't have to be in the office every week. I've managed to go to the office twice this year so far and spent a few weeks in Singapore. I plan to show my face at least once a month. The work is challenging but I enjoy it so far. The recent 15% pay rise and the continuous flexible working hours would keep me there for a while.

Here are my numbers (the pension pot has been 10% down compared to the peak of 2021):

Age: 49
Annual Gross Salary = 200K
Accidental Landlord = 1,650 monthly (the rental income goes to wife)
Workplace pension pot = 248K + 104K + 80K
SIPP = 78K
Spouse SIPP = 70K + 20K
ISA = 54K
Spouse ISA = 50K
Saving = 30K
Pension contribution since this year: 30% + 10% = 40%
NI qualifying years (self) = 6 years to full pension
No mortgage
Children: One is in the first year of the uni. and the other the first year of six form

IamWood

Another quick update.

I still work in London. Work-wise, I'm doing very well. The advantage of this job is that I can go abroad to visit other offices. I could combine my business trip with my vacation. It's good because I don't have to pay for the expensive flight to have a business cabinet. I have been to Singapore and India twice this year. I plan to visit the United States soon.

I've only been to the London office 5 times this year 😂, far less time than I have stayed in Singapore. lol

I went to the London office yesterday as we rearranged the office seating. The CEO is now sitting not far from me 😭. When he saw me at the office, he grabbed me for a chat. He seemed very pleased with my “valuable contribution” to the firm and spoke about my career plans within the firm. Of course, I didn’t share my earlier retirement plan. However, the big boss mentioned that if I'm happy with my current role, he might allow me to work remotely full time. However, if I want to be promoted, I need to be more visible to junior colleagues and there is an opportunity in my team. He would like to make it official soon and wait for my response. 

Understandably, my end year performance and bonus will be reviewed in October. I think he's trying to put a little pressure on me and at the same time would like me to take more responsibility.

I'm not so sure, to be honest. I love my job and I would take this opportunity if I didn't have my plan here first. 😂. At the same time, I'm a little tempted to try new things before retiring.

So here I am, to seek the collective wisdom again. i hope nobody is going to laugh at me. i just cannot make up my mind.

cheers

Bimbly

IamWood said:

I'm a little tempted to try new things before retiring.

Then try. If you don't like it, then retire 

IamWood

As of August 18, 2024, for my record

• Age: 50

• Annual Gross Salary: £200K

• Monthly Rental Income: £1,650 (paid to my wife)

• Workplace Pension Pot: £725K (comprising £200K, £305K, £130K, and £90K)

• ISA: £100K

• Annual Pension Contribution: £60K

• Spouse's SIPP: £175K (£125K + £50K)

• Spouse's ISA: £70K

• Spouse's Annual SIPP Contribution: £24K

• NI Qualifying Years (Self): 6 years remaining for full pension

• Mortgage: None

• Children:

  • Child 1 is in year 2 of uni.
  • Child 2 will start uni  in September.

Goal: Planning to retire at 55. Is it possible to retire earlier?

JoeCrystal

Why you haven't retire yet? You clearly got enough assets but the main question is what is your expected expenditures for retirement for a start?

k6chris

JoeCrystal said:

Why you haven't retire yet? You clearly got enough assets but the main question is what is your expected expenditures for retirement for a start?

Agreed.  The amount of savings you have is only half of the equation.  Have you worked out how much you would like to (or expect) to spend, once retired?  I retired at 55 on a tiny fraction of what you have saved, but it may well be that my outgoings are also a tiny fraction?  Lokk at "The Number" thread on this forum.

IamWood

My plan is to retire once both of my children have started their careers. While they're in university, I’m contributing £4,000 annually to each of their LISA accounts and £2,880 to their SIPPs. After they begin working, I’ll let them take charge of their own finances.

By that time, I should be eligible for my full State Pension (fingers crossed), allowing me to continue supporting my children, particularly if they decide to get a roof over their heads.

IamWood

I was assigned a new project at work in mid June. After completing the initial planning, I found myself unexpectedly lacking the motivation to give it my usual full effort. Last week was particularly stressful, and the thought of early retirement resurfaced.

My original plan was to retire once both of my children had graduated. Now, I’m not so sure—especially with the company increasingly pressuring staff to travel to London more frequently, which I understand to mean two days a week for me. So far, I’ve been resisting, but I’m not sure how much longer I can hold out. Financially, continuing to work for a few more years would certainly strengthen our position, but I keep asking myself: is it really worth it?

For my own records, here’s a snapshot of our current financial situation as today:

Personal Details

• Age: 51

• Workplace Pension Pot: £785K (comprised of £315K, £325K, and £145K)

• SIPP: £105K

• ISA: £135K

• NI Qualifying Years: 3 years remaining for full State Pension

• Mortgage: None

• Second Home (Estimated Value): £600K

Spouse’s Financials:

• SIPP: £235K

• ISA: £110K

• Annual SIPP Contribution: £24K

Total Saving is about 1.4M

Incomes:

• Annual Gross Salary: £230K

• Monthly Rental Income: £1,650 (paid to my wife)

• Annual Pension Contributions: £60K

Children

• Child 1: Completed a 3-year undergraduate and is now enrolled in a master’s program

• Child 2: Currently in Year 1 of university

I certainly need a holiday to think through my options.

Would love to hear your perspectives. Would you push on a few more years to maximise flexibility later? Or consider winding down sooner, even if it means adjusting expectations?

Thanks in advance!