What made you 'pull the trigger'?

Albermarle

SouthCoastBoy said:

I have exactly the same issue of worrying if I have enough. 

To Albermarle's point I have built considerable saving, currently between 1.4 to 1.5m of which 50% is tax free, however this still doesn't free me from the worry if I have enough, because nobody really knows. What if inflation stays at 10%+ for 10 years or there is a stock market crash that last years, or govt change taxation, isa or sipp rules, my list of worries/anxiety just goes on and on... It is a big problem for me and one I don't seem to be able to overcome

If I remember correctly, part of the problem is you having a rather free spending family . So what seems a big fund to the generally controlled spenders on the forum, would be always under pressure from a high family annual expenditure. Maybe that is where the anxiety comes from, not just worrying about inflation etc 

Albermarle

Except that you might croke it earlier by working harder and longer to try and get that huge war chest

I think it depends on you and your your job.
If it is long hours with plenty of physical/mental stress, then probably best to get out early and worry about the money later. On the other hand if you like/are ambivalent about your job, then staying on longer can lead to a more relaxing retirement, especially if you are the type to worry about money. ( I am sure we have had this discussion before  )

Plasticman

NedS said:

Albermarle said:

segovia1 said:

This is a great thread.  I'm 47 and trying to target 55 (when my wife will be 54).  I'm lucky in that I have a high income so able to save and invest.

The one thing I worry about a bit is the mindset switch that will be required on retirement.  I'll have spent 35 years being cautious with money, being a saver not a spender and accumulating wealth.  The idea of decumulating with DC pensions and investments is scary even at this remove.  How will I cope with the idea of my wealth reducing over time??  Will I end up worrying in retirement?  This is almost unconnected to the amount of money I have at retirement - it's more of a philosophy or way of thinking that I just don't know how I'm going to be prepared for!

One way to help solve this conundrum, is to accumulate a big enough war chest.
Big enough that it could easily fund your planned retirement spending , with say a safety margin of 50%. In other words if you plan to spend £40K pa, make sure you have enough to spend £60K pa, if you wanted to. Hopefully then you might relax about it !
Bit of a blunt instrument, but might work. 

I've tried to address this by constructing an income portfolio whereby we can live off the income alone between early retirement and state pension age, at which point we have sufficient guaranteed income from DB/SP to be fine.

Maybe look to split your portfolio into two buckets - one large enough to produce the income you require and the second invested for long term growth knowing your immediate income needs are covered.

In the same way, I should be fine at state pension age with DB + SP.  I won't have enough to fill the gap from income though so I'll have to use some of my capital and that's the bit that leaves me nervous. I have the opportunity to still to some work (part time) and I think I've allowed plenty to headroom in my calculations but it still leaves me quite nervous about the risk of the money running out!

chubsta

For me, the only real issue is the years between 57, when I retire, and 67, when I get the SP - once that kicks in as I have a DB pension I will be on more take home, per month, than I have been during my working years.

And during those years I have bought a house, raised children, and had all of the associated expenses involved in living a life between 18 and 57, and yet I have never built up any debt - so if I didn't ever need more than my wages then, I hopefully won't in the future. Plus, of course, I have been saving approximately 1/3 of my wages since I paid the mortgage off to put towards my retirement so have actually been living on substantially less than I will be getting.

My current 'worry' has been echoed a few posts back - will I be able to start spending when I retire, or will I still be in the mindset of needing to be overly cautious all the time? At the moment most expenditure is tempered by 'do I really need that or would I be better off saving the money, after all it will be useful when I retire' - I can't imagine a time when I actually stop saving and just use all the money I have and enjoy it, with a nice 'warchest' that isn't really increasing just sitting there for emergencies.

As the OP of this thread I thank you all for your contributions, it has been a great read over the last few weeks, lots of interesting stories and opinions. I have currently booked in all my leave from work for the next year (I have set a date of April 28th 2024 for retirement), and booked a lovely holiday starting on the Friday after I am due to leave, so I guess I have 'pulled the trigger' even though I have a little while to go - my employer asks for 6 months notice of retirement in order to sort all the pension stuff out so at least that will come a lot sooner. It feels a little strange committing myself like this but I guess having worked for the same organisation all my life that is only natural to feel some nerves on entering such a new stage in my life, but the next year can't go quickly enough!

Sea_Shell

My biggest worries are more around mistakes with huge financial consequences.

Like forgetting to renew an insurance.
Getting sued.

Or family getting in such a pickle they need a bailout.   "Sorry, the Bank of Seashell is closed" 😉

fizio

Was quite happy with my IT job but a combination of covid/mortality, exceeding lta, wanting the freedom to do what I want when I want and having a BTL portfolio that needed my time/attention. I had requested retirement at the start of 2020 but once covid/lockdown hit and it was all 'working from home' then it made no financial sense to not tick along for another year as it seemed a 'exit package' of some sort would be inevitable.. All worked out well in my situation and zero regrets

scrooge2008

Thanks for the very interesting, inspirational posts.  I realise that I am a quiet quitter too, 56 years old, with a couple of smallish defined benefit pensions and three rental properties, bought with an inheritance.   I have my own business and have been quietly saying no to any new business and pruning any difficult clients, over the last two years, to the point that it takes no more than a couple of days a week, of my time now.  I nolonger get emotionally involved in any dramas, see the triggers and hooks coming and practice non-attachment, rarely taking myself seriously, so few things in life really matIter and life is a precious gift.

I have been enjoying following Joseph Campbell's advice to 'Follow your bliss and don’t be afraid, and doors will open where you didn’t know they were going to be.” I am pursuing my art, travelling more and getting to know my garden. Next year I am going on a month's pilgrimage around India and walking in the himalayas, a lifelong dream.

I will officially retire, when I get my state pension at 68, but mentally I am retired and pursing the good life now.  This thread has made me realise you don't need to retire to have a retired mindset.  Thanks

pensionpawn

Albermarle said:

Except that you might croke it earlier by working harder and longer to try and get that huge war chest

I think it depends on you and your your job.
If it is long hours with plenty of physical/mental stress, then probably best to get out early and worry about the money later. On the other hand if you like/are ambivalent about your job, then staying on longer can lead to a more relaxing retirement, especially if you are the type to worry about money. ( I am sure we have had this discussion before  )

I agree entirely as there's a difference between being financially independent and retiring. Reducing hours, like I have, can also reduce stress and keep you in a job that you mostly like, because you can jettison the undesirable aspects of it. However I firmly believe that we shouldn't encourage those who really hate / are stressed by their job to stay at it longer in order to accumulate more wealth than they need / will spend. For some, just not having to go to "the office" ever again is all they need / want from their pension pot, anything else is a bonus.

chubsta

pensionpawn said:

I agree entirely as there's a difference between being financially independent and retiring.

Thats it!

 I have been struggling to explain to people (and myself) how I am retiring but will probably get a small part time job for two days a week if i can just to keep busy in the small amount of time I am not busy.

I am not 'retiring' I am becoming 'financially independent' - a guaranteed income from a pension is no different from a guaranteed income from a Trust Fund etc. I can work if I want to, but don't need to, and if I was ever working and for any reason not enjoying it I could just up and leave - there will be no pressure any more.

I guess I am retiring because I want to be able to 'relax', but relaxing takes the form of never having to worry about money again, which is odd when you think about it - I will be on less money, at least until the SP kicks in, but there is absolutely no stress involved in getting that money. Despite being in the same job for almost 40 years and never having any issues there is always the nagging voice at the back of your mind - 'what if I mess up and lose my job, or they just decide to get rid of us, how would I cope' - that will be totally negated. All I will be doing is waiting for the next guaranteed payment each month.

So, officially, I am no longer looking forward to retiring, I am just looking forward to being 'financially independent'!

Simon11

chubsta said:

pensionpawn said:

I agree entirely as there's a difference between being financially independent and retiring.

Thats it!

 I have been struggling to explain to people (and myself) how I am retiring but will probably get a small part time job for two days a week if i can just to keep busy in the small amount of time I am not busy.

I am not 'retiring' I am becoming 'financially independent' - a guaranteed income from a pension is no different from a guaranteed income from a Trust Fund etc. I can work if I want to, but don't need to, and if I was ever working and for any reason not enjoying it I could just up and leave - there will be no pressure any more.

I guess I am retiring because I want to be able to 'relax', but relaxing takes the form of never having to worry about money again, which is odd when you think about it - I will be on less money, at least until the SP kicks in, but there is absolutely no stress involved in getting that money. Despite being in the same job for almost 40 years and never having any issues there is always the nagging voice at the back of your mind - 'what if I mess up and lose my job, or they just decide to get rid of us, how would I cope' - that will be totally negated. All I will be doing is waiting for the next guaranteed payment each month.

So, officially, I am no longer looking forward to retiring, I am just looking forward to being 'financially independent'!

At the age of 34, I have quite an ambitious plan to retire by 50 and having had 12 months to thinking about my plan, I think my actual aim is to become financially independent by 50.

I had always intended to do lots of volunteering but I am also thinking about my options to take on a summer minimum wage type job where I have a keen passion/ love the role/ job but couldn't possible afford to do that type of job now.