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

LV_426

Scrudgy said:

ajfielden said:

Surprised at your Dad's portfolio diminishing to that extent. Why do you think that happened? Of course he might have been drawing on it.

He will only deal in single shares, doesn't understand funds, IT's, ETF's etc. I tried and tried but he won't even look at them. Anyway, had some good successes building it up, but also had some spectacular losses. Didn't have a plan, didn't have a walk away price in mind, and was the victim of significant downward volatility. Got a little too sure of himself when the pot got to £370k, but less that a year later it was £150k. Its now back to about £180k.

I see. Well there's a lesson for all of us really. A very risky strategy when you're into retirement.

mlv-1967

mat1964 said:

I posted on this previously, but things have moved on.  I have a choice to either retire at the end of May 2022 (a month before I turn 58) or the company have offered me 3 days a week as an alternative.  The problem is my health is not great and I have seen from others who do 3 days, that it often ends up as 5.  I could get some occasional part time work if I do resign completely.

Finances are okish but not great:

Cash £70k (but will need to finance a car as have to return company one)
DB in payment £8500 (index linked to RPI) plus another £1400 from another DB in 2 years which will also give £9k lump sum..
DC pots around £310k

We are debt free.  Largest fixed costs are Council tax £3500 a year, estate charge £1000 a year and Electric/gas/Water/Broadband/TV around £3000 a year.

Partner has no pension provision but we will both get full SP at 67 (she will get hers 2 years before me).

I think we will need around £25k a year.  It seems we will just about have enough and I would be very happy to stop work after 40 years.  However, just can't decide - given the new offer of 3 days a week and only have until end of this month to make a decision.......

Your finances seem OK to me.  You have a lot in cash and have paid off your mortgage.  I have the impression you live in a big and very expensive house - have you considered downsizing?  I am in a band E property and pay £2,100 a year in council tax and £120 a year in estate charge.  It would make sense and free up a lot of cash.
I would suggest working until 60 if you possibly can and then going for the downsizing route.

mlv-1967

Fu_Man_Chu said:

Obviously I have no idea what your job is like but I can tell the tale of a friend and ex colleague of mine. He was in a very similar position and after some negotiation agreed with our employer that he would drop to a 3 day week. Tuesday, Wednesday and Thursday.
It sounded like the dream. A long weekend every week but still keeping busy in a job he enjoyed and still earning.
In reality he lasted 10 weeks.
He found that when he came in on the Tuesday he had 4 days work built up. 100's of emails, frantic enquiries and he would then spent the next few days frantically chasing his tail only for the same to happen the following week.
In essence he wasn't working 3 days a week, he was squeezing 5 days work into 3 days.
He didn't last long and has now fully retired. Last time I saw him he looked 10 years younger and was the happiest he's been since his kids were young.

I tend to agree.  Unless you are in a basic admin job working three or four days a week is basically working five days compressed.  The expectations from bosses are still high and you will be appraised as if you had been working full time.  My former boss chose to work four days a week and ended up doing ten hours a day for 20% less money!! 

mlv-1967

This is what I think could happen.  I work very long hours now 5 days a week just to keep up.

What industry are you in?  One of the professions?  IT/tech?  

mlv-1967

Linton said:

I retired at 55 without any qualms.  The deciding factors were:
1) I desparately wanted to leave the job and did not want the hassle of finding another.
2) We had been thinking about it for the previous 10 years.
3) I had made a detailed year by year stress-tested spreadsheet financial plan based on very pessimistic asumptions showing where the money was coming from and where it was going. for the rest of our lives
4) We knew what we wanted to do in retirement.

So it was just a matter of waiting a few months for the next round of voluntary redundancies and then standing up shouting "me! me!".  EVerything had been considered and we were satisfied there were no major risks.

Good idea if you have paid off your mortgage and have a big pot.  Unfortunately impossible for me.

mlv-1967

mat1964 said:

uss_tish said:

I think it depends how stressful your job is and whether or not you can truly switch off enough after your three days to enjoy your free time. 

Yes this is an issue for me.  I find it hard to switch off - I am working at my desk from 8am every morning and with an average of 3 days a week I suspect I might be up and checking emails on the non working days.

This has been a very interesting thread and has given me a lot to think about.  I really don't know what I am going to do - it may come down to what the IFA has to say.  

How serious are your ill health issues?  I have type 2 diabetes and high blood pressure but both are controlled with medication and I don't feel particularly unwell.  If you can work until at least 60, I would suggest doing so.

mat1964

mlv-1967 said:

Your finances seem OK to me.  You have a lot in cash and have paid off your mortgage.  I have the impression you live in a big and very expensive house - have you considered downsizing?  I am in a band E property and pay £2,100 a year in council tax and £120 a year in estate charge.  It would make sense and free up a lot of cash.
I would suggest working until 60 if you possibly can and then going for the downsizing route.

`yes the house is fairly big but we've only recently moved here and intend to stay for a while and then downsize in a few years.  

Decision is now made - I am resigning 31 November.  Going to look at doing some occasional contract work for a couple of years up to age 60.

LV_426

mat1964 said:

mlv-1967 said:

Your finances seem OK to me.  You have a lot in cash and have paid off your mortgage.  I have the impression you live in a big and very expensive house - have you considered downsizing?  I am in a band E property and pay £2,100 a year in council tax and £120 a year in estate charge.  It would make sense and free up a lot of cash.
I would suggest working until 60 if you possibly can and then going for the downsizing route.

`yes the house is fairly big but we've only recently moved here and intend to stay for a while and then downsize in a few years.  

Decision is now made - I am resigning 31 November.  Going to look at doing some occasional contract work for a couple of years up to age 60.

Congratulations! Enjoy your retirement.

AlwaysLearnin

31st November....?

Enjoy

mat1964

AlwaysLearnin said:

31st November....?

Enjoy

oops - good point :-)