Would it be foolish to stop work at 52?

Albermarle

robatwork said:

To get back on track... just a general comment about this particular forum. As well as being one of the most useful and realistic resources for UK (pre) pensioners, it tends to err on the side of financial surety. I've seen threads where £30k or even £40k wasn't seen as enough to live comfortably in retirement.

Obviously it depends on your lifestyle, but just bear it in mind. In your position I'd be leaving my detested job as soon as I could. 

In the unlikely worst case there are still jobs available to people in their 50s. 

The retirement surveys indicate that a couple need around £45K - £50K after tax to have a comfortable retirement with some luxuries . 

Retirement living standards | Loughborough University (lboro.ac.uk)

That would not be a proper luxury retirement, as that would cost triple that probably .

Thrugelmir

Kim1965 said:

robatwork said:

To get back on track... just a general comment about this particular forum. As well as being one of the most useful and realistic resources for UK (pre) pensioners, it tends to err on the side of financial surety. I've seen threads where £30k or even £40k wasn't seen as enough to live comfortably in retirement.

Obviously it depends on your lifestyle, but just bear it in mind. In your position I'd be leaving my detested job as soon as I could. 

In the unlikely worst case there are still jobs available to people in their 50s. 

It depends very much on what your income is during your working life. The forum tends to have high earners, the levels of pension provision is way higher than the average. The size of dc pots to pension income errs on the side of caution and most want to pass it on as inheritance. 
 30 k as a couple at state retirement age is  fairly easily attainable, retiring at 52 is trickier. 

Caution comes from experience of finance and investment over many decades. Rather than just the past 10 years. Complacency and lack of risk awareness has grown. Follow the forum and you’ll see same topics come to the fore then disappear again. When playing musical chairs, someone is always left without a seat when the music stops. 

ex-pat_scot

Thrugelmir said:

Kim1965 said:

robatwork said:

To get back on track... just a general comment about this particular forum. As well as being one of the most useful and realistic resources for UK (pre) pensioners, it tends to err on the side of financial surety. I've seen threads where £30k or even £40k wasn't seen as enough to live comfortably in retirement.

Obviously it depends on your lifestyle, but just bear it in mind. In your position I'd be leaving my detested job as soon as I could. 

In the unlikely worst case there are still jobs available to people in their 50s. 

It depends very much on what your income is during your working life. The forum tends to have high earners, the levels of pension provision is way higher than the average. The size of dc pots to pension income errs on the side of caution and most want to pass it on as inheritance. 
 30 k as a couple at state retirement age is  fairly easily attainable, retiring at 52 is trickier. 

Caution comes from experience of finance and investment over many decades. Rather than just the past 10 years. Complacency and lack of risk awareness has grown. Follow the forum and you’ll see same topics come to the fore then disappear again. When playing musical chairs, someone is always left without a seat when the music stops. 

Agree - much of what I spout is risk awareness, at least in my own imaginings.
I do worry about the lack of financial (and emotional) resilience.
I abhor subscriptions and loans, mortgage excepted (and that under duress!)
I've never had a fixed monthly finance payment for a car; only basic SIM GiffGaff deals for family phones.
It would be incredibly easy to follow my colleagues on the PCP schemes.
It's nothing to do with overall wealth / high earning, but more 

I love the Warren Buffet quote, of seeing who is wearing the bathing costume when the tide goes out!

anonmoose

I would say life is too short go for it! I have recently lost a couple of people in my life who didn't get any sort of retirement before they passed. 

I am in slightly worse financial position than you but I will be retiring at 55 in 10 yrs and am throwing as much money into my pot for the next 10yrs. 

I want to take a senior gap Yr as its something I regret not doing when I graduated. So that is my plan at 55. But I do intend on re-starting part of my business on a part time basis when I get back. I am different in that I love my job but it is physically exhausting and can't see more than 10yrs full time in it. 

So I think if you are open to part time if necessary then you are in a good position. Also working part time and throwing all your earnings into the pension would be a good move. No point being miserable. But I do agree it's worth being cautious about stock market forecasts going forward. 

Albermarle

I am in slightly worse financial position than you but I will be retiring at 55 in 10 yrs and am throwing as much money into my pot for the next 10yrs.

Presume you are aware that you will not be able to access your pension pot(s) until age 57 ?

anonmoose

Yep, in similar position that my husband will be still working and I am saving some aside. I intend to access my pot at 57 though. Although I am aware the govt could change the goalpost on access age again.

RetSol

I don’t like work.  I spend far too much time thinking about pensions and getting out.

Hello @ChocolateWombat. 

I think that you are wise to be assessing your likely financial position at retirement and it seems like you are in good shape.

I wonder whether you really need to retire or whether you simply need a change?  You probably have more options than simply giving up work but you may find it difficult to appreciate and consider them while you are ground down by your current job.

Rather than thinking only about the financial side of things, how about investing in yourself by, for example, stepping away from your current job, having a break and taking a look round at how else you might use your skills and experience? 

I have done something similar myself, having taken my civil service pension at 55, not with the intention of "retiring" but with the intention of having a break and then starting work again but doing less. 

I have to say that the regulars on this board would be shocked to the core of their beings by my approach to retirement planning. I have been guided mainly by gut instinct. I took the pension and then did the "planning"! 

anonmoose

A lot to be said for following your gut instinct!

So long as you are prepared to be flexible if life and financial markets throw you a curve ball then following your heart can't be wrong!  

Even when you take retirement you can keep working in future so you have complete flexibility. Why not think of it as a sabbatical for now..

The only thing you need to consider is your pension contributions I think then get restricted once you start accessing your pot.

jim8888

Albermarle said:

robatwork said:

To get back on track... just a general comment about this particular forum. As well as being one of the most useful and realistic resources for UK (pre) pensioners, it tends to err on the side of financial surety. I've seen threads where £30k or even £40k wasn't seen as enough to live comfortably in retirement.

Obviously it depends on your lifestyle, but just bear it in mind. In your position I'd be leaving my detested job as soon as I could. 

In the unlikely worst case there are still jobs available to people in their 50s. 

The retirement surveys indicate that a couple need around £45K - £50K after tax to have a comfortable retirement with some luxuries . 

Retirement living standards | Loughborough University (lboro.ac.uk)

That would not be a proper luxury retirement, as that would cost triple that probably .

This reminds me of a headhunter I know, who told me the number of people approaching their fifties who have suddenly lost their management roles and are back on the job market, casually say to him, "I only need to earn maybe 40k or 50k a year". As if those jobs were growing on trees! I think many middle class people are going to be shocked to their core about maintaining their standard of living in retirement. 

AlanMC_2

Hi, I haven't read all the responses, so apologies if someone else has mentioned this but...

If you have £60k to give to your child towards a house deposit in, say, 10 years from now, then have you considered giving them £4k a year to save into a Lifetime ISA. My understanding is that the government adds £1k for each £4k (annual maximum) they save - provided it is used as a deposit on a first home.

So £40k of that £60K put into such an ISA over the next 10 years would become £50k, if it was used to buy a first home, saving you £10k, which could come in handy for your retirement.