Having problems deciding whether to press that resignation button....

Albermarle

Oh!

£30k p.a. is 2.14% of £1.4m
£30k p.a. is 2.22% of £1.34m (taking £60k out for Uni costs)
Oh!, again, as you only need this rate for 10 years before SPA when with one SP the rate is below 1.5%.
SWR (as a guide), admittedly based on the past, would suggest you have a 50% margin on the worst case scenario. If the worst happens, I’ll paraphrase a comment I’ve seen on other threads, we’ll all be in the ****!
What does OMY achieve?

I did OMY /TMY , to get to a similar position ( also a bit cautious but probably not as much as South Coast Boy)
Although my expenditure is higher , a medium sized DB covers that extra, leaving me in a little 'worse ' position than SCB for the rest , although I am over 60 rather than under it.  I must admit to being totally relaxed about the finances , due to the safety factor as you explained, and with hindsight could have retired a little earlier, but the timing worked out well for other reasons. Glad I did not retire in a lockdown as well. 

cfw1994

DT2001 said:

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

cfw1994 said:

SouthCoastBoy said:

I have slipped into n more years syndrome, as all my pension is based on savings and dc pension I am at the vagaries of the stock market, and being a fairly anxious person, I just dont have the confidence to go. If I had access to a db pension I think that would have given me more confidence, unfortunately I dont so think I will be going to at least 60

That old OMY Syndrome is a very real challenge/puzzle 👀
  
We are luck to have 3 *small* DB pensions that kick in over the next 1/3/8 years, but they are not the bulk of our income. 
We also have a 'likely' inheritance at some point (which we haven't included in our number/expectations) which could provide some buffer at some point in the next 1-10 years (or so...).  The main chunk of that will likely be passed on down, so no chickens counted here.

Everyone has their own circumstances to consider, and their own aspirations for the years ahead of them.
My only suggestion would be to try to live off YOUR 'Number' over the next 12 months.  Start today! 

If you find it a struggle, then maybe OMY or even TMYs are right for you 🤷🏼‍♂️

If, in 12 months, you found it 'easy', maybe you will be more confident about taking that step.   Maybe markets will have steadied (although I firmly believe we will never have that perfect crystal ball, only an approximation, subject to change).
It's one small step for man, one giant leap for SCB 🤣

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

What % is the £2.5k p.m. of your pot?
How long until SPA when presumably circa £750-800 p.m. will be from the Govt?

Just under 3%, currently 56, 57 first quarter next year and yes due a full state pension at 67

I thought I saw on a previous post you had £1.4m? £30k is just over 2% and you wisely IMO had roughly 50% is ISAs so can avoid paying any tax. 10 years on SP.

I am sure some of the wise heads on here could suggest a plan or two to allow a minimally stressed retirement. I’d either look at using part of the pot to buy index linked gilts with maturity in 10/15 years (knowing I’d lose some quantifiable ‘real’ value of my money) and then an annuity ( It would give you certainty) or create a naturally income producing portfolio 

Yes that's correct, I make the just under 3% statement as Iike to be pessimistic in my planning, hence allowing buffer.

Oh!

£30k p.a. is 2.14% of £1.4m
£30k p.a. is 2.22% of £1.34m (taking £60k out for Uni costs)
Oh!, again, as you only need this rate for 10 years before SPA when with one SP the rate is below 1.5%.

SWR (as a guide), admittedly based on the past, would suggest you have a 50% margin on the worst case scenario. If the worst happens, I’ll paraphrase a comment I’ve seen on other threads, we’ll all be in the ****!

What does OMY achieve?

I do not know how you change your mindset. A few years ago my OH talked about possibly retiring so I crunched the figures and came up with a pessimistic monthly figure which inc ‘discretionary’ spending. I also included within that plan options if the worst case scenarios started to occur - with  SWR it assumes you take no action, not IMO, a reality - which inc. reducing discretionary expenditure, p/t work, down sizing etc. Maybe having been self employed for many years adjusting to fluctuating circumstances is easier? By the by OH is still working as she enjoys it!

Good luck, you are in a fantastic place.

Nice summary!

I think the other thing people need to do is think really hard about how they see their lives outside work.

For most people, work can be pretty all-consuming when you are in the middle of it.  If you have kids, even more so: life these days is massively hectic compared with when I was growing up!
Working for a US West Coast but global company, there were often emails (& occasionally calls) running into the evenings.  

Having a plan, however vague, for your time once all that stops is so important 👍
In my case, I knew I did not want to 'over-plan' - indeed, I said the first year would be to just figure things out: decompress from decades of manic work, take on a bit more exercise, & figure out the detail of how we wanted life to be.  Some help for an elderly relative could also take a little more priority....& exotic travel is off our list for a while.

But having rough plans - festivals, shows, holidays, immediate DIY/Garden ideas.....even a month-long LEJoG (in my case!) - all helps line up easing into 'retirement'.   I know one 'friend of a friend' who was bored within 2 weeks, & doesn't know what to do with himself.  That smacks of a sorry lack of imagination to me 🤷🏼‍♂️

This forum is massively focussed on the money side.   Clearly that is hugely important.....but given the numbers above, I wouldn't hesitate to chose 'time' over 'money'.   That is all OMY is, at the end of the day!

Everyone is on their own path.  Chose the one less travelled, and experience things 😎

Albermarle said:

Glad I did not retire in a lockdown as well. 

That's an interesting one!

Lockdown 2020 provided me with the reason to loiter around a bit longer - so effectively taking OMY, I guess.   
It also felt, to some extent, being a deck jockey and not an essential worker, a bit like a practice for retirement.   
Pedalling out to furtively meet up with a mate or two (shhhh!), supporting our local pub-turned-takeout, sitting in a field drinking ale from a cycle bottle at the "Serendipity Inn".....I think I am ready for the lifestyle of a tramp, should things go pear shaped 🍻🤣👍

ex-pat_scot

cfw1994 said:

Good luck, you are in a fantastic place.

Nice summary!

I think the other thing people need to do is think really hard about how they see their lives outside work.

For most people, work can be pretty all-consuming when you are in the middle of it.  If you have kids, even more so: life these days is massively hectic compared with when I was growing up!
Working for a US West Coast but global company, there were often emails (& occasionally calls) running into the evenings.  

Having a plan, however vague, for your time once all that stops is so important 👍
In my case, I knew I did not want to 'over-plan' - indeed, I said the first year would be to just figure things out: decompress from decades of manic work, take on a bit more exercise, & figure out the detail of how we wanted life to be.  Some help for an elderly relative could also take a little more priority....& exotic travel is off our list for a while.

But having rough plans - festivals, shows, holidays, immediate DIY/Garden ideas.....even a month-long LEJoG (in my case!) - all helps line up easing into 'retirement'.   I know one 'friend of a friend' who was bored within 2 weeks, & doesn't know what to do with himself.  That smacks of a sorry lack of imagination to me 🤷🏼‍♂️

This forum is massively focussed on the money side.   Clearly that is hugely important.....but given the numbers above, I wouldn't hesitate to chose 'time' over 'money'.   That is all OMY is, at the end of the day!

Everyone is on their own path.  Chose the one less travelled, and experience things 😎

 
Pedalling out to furtively meet up with a mate or two (shhhh!), supporting our local pub-turned-takeout, sitting in a field drinking ale from a cycle bottle at the "Serendipity Inn".....I think I am ready for the lifestyle of a tramp, should things go pear shaped 🍻🤣👍

It's clearly easy to focus on what can be measured -the Number, the pot, the SWR.

So much of this post echoes with me:
- seeing myself outside of work. That's not a problem
- working stupidly long hours and evenings
- taking / planning time to decompress
- more exercise
- flexibility for care
- boredom is a lack of imagination
- rough cycle plans (perhaps Compostela or Europe end to end or Trans Continental, rather than LeJOG)
- the lifestyle of a tramp. I am most certainly already there.

DT2001

cfw1994 said:

DT2001 said:

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

cfw1994 said:

SouthCoastBoy said:

I have slipped into n more years syndrome, as all my pension is based on savings and dc pension I am at the vagaries of the stock market, and being a fairly anxious person, I just dont have the confidence to go. If I had access to a db pension I think that would have given me more confidence, unfortunately I dont so think I will be going to at least 60

That old OMY Syndrome is a very real challenge/puzzle 👀
  
We are luck to have 3 *small* DB pensions that kick in over the next 1/3/8 years, but they are not the bulk of our income. 
We also have a 'likely' inheritance at some point (which we haven't included in our number/expectations) which could provide some buffer at some point in the next 1-10 years (or so...).  The main chunk of that will likely be passed on down, so no chickens counted here.

Everyone has their own circumstances to consider, and their own aspirations for the years ahead of them.
My only suggestion would be to try to live off YOUR 'Number' over the next 12 months.  Start today! 

If you find it a struggle, then maybe OMY or even TMYs are right for you 🤷🏼‍♂️

If, in 12 months, you found it 'easy', maybe you will be more confident about taking that step.   Maybe markets will have steadied (although I firmly believe we will never have that perfect crystal ball, only an approximation, subject to change).
It's one small step for man, one giant leap for SCB 🤣

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

What % is the £2.5k p.m. of your pot?
How long until SPA when presumably circa £750-800 p.m. will be from the Govt?

Just under 3%, currently 56, 57 first quarter next year and yes due a full state pension at 67

I thought I saw on a previous post you had £1.4m? £30k is just over 2% and you wisely IMO had roughly 50% is ISAs so can avoid paying any tax. 10 years on SP.

I am sure some of the wise heads on here could suggest a plan or two to allow a minimally stressed retirement. I’d either look at using part of the pot to buy index linked gilts with maturity in 10/15 years (knowing I’d lose some quantifiable ‘real’ value of my money) and then an annuity ( It would give you certainty) or create a naturally income producing portfolio 

Yes that's correct, I make the just under 3% statement as Iike to be pessimistic in my planning, hence allowing buffer.

Oh!

£30k p.a. is 2.14% of £1.4m
£30k p.a. is 2.22% of £1.34m (taking £60k out for Uni costs)
Oh!, again, as you only need this rate for 10 years before SPA when with one SP the rate is below 1.5%.

SWR (as a guide), admittedly based on the past, would suggest you have a 50% margin on the worst case scenario. If the worst happens, I’ll paraphrase a comment I’ve seen on other threads, we’ll all be in the ****!

What does OMY achieve?

I do not know how you change your mindset. A few years ago my OH talked about possibly retiring so I crunched the figures and came up with a pessimistic monthly figure which inc ‘discretionary’ spending. I also included within that plan options if the worst case scenarios started to occur - with  SWR it assumes you take no action, not IMO, a reality - which inc. reducing discretionary expenditure, p/t work, down sizing etc. Maybe having been self employed for many years adjusting to fluctuating circumstances is easier? By the by OH is still working as she enjoys it!

Good luck, you are in a fantastic 

It also felt, to some extent, being a deck jockey and not an essential worker, a bit like a practice for retirement.   

Definitely thinking of retirement as a ‘deck(chair) jockey’?😀

cfw1994

DT2001 said:

cfw1994 said:

DT2001 said:

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

DT2001 said:

SouthCoastBoy said:

cfw1994 said:

SouthCoastBoy said:

I have slipped into n more years syndrome, as all my pension is based on savings and dc pension I am at the vagaries of the stock market, and being a fairly anxious person, I just dont have the confidence to go. If I had access to a db pension I think that would have given me more confidence, unfortunately I dont so think I will be going to at least 60

That old OMY Syndrome is a very real challenge/puzzle 👀
  
We are luck to have 3 *small* DB pensions that kick in over the next 1/3/8 years, but they are not the bulk of our income. 
We also have a 'likely' inheritance at some point (which we haven't included in our number/expectations) which could provide some buffer at some point in the next 1-10 years (or so...).  The main chunk of that will likely be passed on down, so no chickens counted here.

Everyone has their own circumstances to consider, and their own aspirations for the years ahead of them.
My only suggestion would be to try to live off YOUR 'Number' over the next 12 months.  Start today! 

If you find it a struggle, then maybe OMY or even TMYs are right for you 🤷🏼‍♂️

If, in 12 months, you found it 'easy', maybe you will be more confident about taking that step.   Maybe markets will have steadied (although I firmly believe we will never have that perfect crystal ball, only an approximation, subject to change).
It's one small step for man, one giant leap for SCB 🤣

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

What % is the £2.5k p.m. of your pot?
How long until SPA when presumably circa £750-800 p.m. will be from the Govt?

Just under 3%, currently 56, 57 first quarter next year and yes due a full state pension at 67

I thought I saw on a previous post you had £1.4m? £30k is just over 2% and you wisely IMO had roughly 50% is ISAs so can avoid paying any tax. 10 years on SP.

I am sure some of the wise heads on here could suggest a plan or two to allow a minimally stressed retirement. I’d either look at using part of the pot to buy index linked gilts with maturity in 10/15 years (knowing I’d lose some quantifiable ‘real’ value of my money) and then an annuity ( It would give you certainty) or create a naturally income producing portfolio 

Yes that's correct, I make the just under 3% statement as Iike to be pessimistic in my planning, hence allowing buffer.

Oh!

£30k p.a. is 2.14% of £1.4m
£30k p.a. is 2.22% of £1.34m (taking £60k out for Uni costs)
Oh!, again, as you only need this rate for 10 years before SPA when with one SP the rate is below 1.5%.

SWR (as a guide), admittedly based on the past, would suggest you have a 50% margin on the worst case scenario. If the worst happens, I’ll paraphrase a comment I’ve seen on other threads, we’ll all be in the ****!

What does OMY achieve?

I do not know how you change your mindset. A few years ago my OH talked about possibly retiring so I crunched the figures and came up with a pessimistic monthly figure which inc ‘discretionary’ spending. I also included within that plan options if the worst case scenarios started to occur - with  SWR it assumes you take no action, not IMO, a reality - which inc. reducing discretionary expenditure, p/t work, down sizing etc. Maybe having been self employed for many years adjusting to fluctuating circumstances is easier? By the by OH is still working as she enjoys it!

Good luck, you are in a fantastic 

It also felt, to some extent, being a deck jockey and not an essential worker, a bit like a practice for retirement.   

Definitely thinking of retirement as a ‘deck(chair) jockey’?😀

Freudian slip, eh 🤣

rough cycle plans (perhaps Compostela or Europe end to end or Trans Continental, rather than LeJOG)

Some pals bought me RIDE: Cycle the World.  Some fascinating possibilities in there.   A slight issue I have is that my better half does NOT do cycling 👀  So whilst a UK trip is easy to sort....abroad would be a bit trickier. 
I also like the idea of wild-camping a trip of some sort, which again would have to be me alone!!

Compostela?  Is that part of Camino Del Santiago?  Really enjoyed the Martin Sheen film "The Way".   Cycling it would be a helluva lot easier than walking looked 🤣

Dazza1902

t0rt0ise said:

Dazza1902 said:

She's looking hot and Marlot, have had a phased retirement. Anybody retired, then taken part time work and not with their former employer? Something completely different. A change is as good as a rest scenario, a clear distinction from their previous working life ?

I left a full time job in the NHS at 60 and took a weekend job as a Station Assistant at a tube station. Completely different and very well paid (and with seven weeks holiday a year). Love trains and station architecture and history. It was a great job which I have recently left after five years. Got a very small pension from it too.

I assume this job was to bridge finances until State Pension ?
I think the dilemma for many ( me included) is in order to accrue a DC pot to pass on as inheritance ( and drawdown at 4%)I would end up working many more years . In order to go "early" , it would be a combination of part time possibly or accepting my DC pot will be unsafely drawn down pre 67.

Albermarle

That's an interesting one!
Lockdown 2020 provided me with the reason to loiter around a bit longer - so effectively taking OMY, I guess.   

My job entailed regular travel, some abroad and a lot on the M1/M6.

I thought maybe I would miss it, but realised in lockdown that I wasn't missing it . So was another spur to hand my notice in .

ex-pat_scot

cfw1994 said:

rough cycle plans (perhaps Compostela or Europe end to end or Trans Continental, rather than LeJOG)

Some pals bought me RIDE: Cycle the World.  Some fascinating possibilities in there.   A slight issue I have is that my better half does NOT do cycling 👀  So whilst a UK trip is easy to sort....abroad would be a bit trickier. 
I also like the idea of wild-camping a trip of some sort, which again would have to be me alone!!

Compostela?  Is that part of Camino Del Santiago?  Really enjoyed the Martin Sheen film "The Way".   Cycling it would be a helluva lot easier than walking looked 🤣

Santiago de Compostela, yes. I quite fancy walking it, but would need a month or two. Cycling seems a decent compromise.
We tried once to do it on t'tandem, pre children. Didn't quite go to plan. Mrs XPS is most definitely in the "not cycling" camp now.

I do like the idea of UK based tours. Wake up and check the forecast. Strong Southerly? OK let's head north for a few days until the weather breaks, with a nice tailwind.  Life is full of possibilities if you don't have commitments. 

pensionpawn

ukdw said:

SouthCoastBoy said:

Appreciate the feedback. I have done the numbers wrt living off my number, for example the next 5 years is £3500 per mth due to daughter being at uni etc. Then I taper to £2500/mth and then £2000/mth. 

If inflation stayed at 2.5% and 60% of my pot grows at 3.5% and 40% (currently cash) grows at 0% I would be fine. The problem is we all know those projections are inaccurate and I'm afraid without actually knowing I will have to continue working. It is a conundrum I can't resolve, I have always worried about money and therefore prefer to be cautious although I would love to retire.

Unless your daughter isn't taking the full student loan available, £12k a year on university expenses sounds like quite a lot - when my kids went I actually found our monthly expenses reduced by a fair bit, which probably almost balanced out the parental contributions to accommodation etc.

I also base my projections on 2.5% inflation, but I project 4-5% growth on investments (real terms 1.5%-2.5%), with cash 1-1.5% (real terms -1.5% to -1%).

Re pulling the trigger I knew about 3 years ahead the exact day I would be in a position to have enough funds to leave (due to bonus cycles) and then planned to see how things went and to enjoy being in a position to leave whenever I liked.

As it worked out I happened to have a 1:1 meeting with my line manager the very day - and so my financial freedom before pulling the trigger only ended up lasting a few hours, rather than months or years.. 

That was just my daughters Halls fees, before eating, commuting on the tube etc! We were lucky to extract her from her contract after a couple of months studying from home last year and commuting to London (from Wiltshire) three times a week (still cheaper than living there) since September.

DT2001

Dazza1902 said:

t0rt0ise said:

Dazza1902 said:

She's looking hot and Marlot, have had a phased retirement. Anybody retired, then taken part time work and not with their former employer? Something completely different. A change is as good as a rest scenario, a clear distinction from their previous working life ?

I left a full time job in the NHS at 60 and took a weekend job as a Station Assistant at a tube station. Completely different and very well paid (and with seven weeks holiday a year). Love trains and station architecture and history. It was a great job which I have recently left after five years. Got a very small pension from it too.

I assume this job was to bridge finances until State Pension ?
I think the dilemma for many ( me included) is in order to accrue a DC pot to pass on as inheritance ( and drawdown at 4%)I would end up working many more years . In order to go "early" , it would be a combination of part time possibly or accepting my DC pot will be unsafely drawn down pre 67.

If you use Guyton-Klinger ‘safe’ rates you could start at 5%(?)+ especially in the knowledge that at 67 your requirement would drop to ?
The inheritance will then hopefully grow post 67. I admit that part of my plan is geared to inheritance but the primary aim was our retirement. Having seen how difficult it is for many savers to become spenders I expect to be able to provide help to our children’s pensions.