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What made you 'pull the trigger'?
in Pensions, annuities & retirement planning
289 replies 71.1K views
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And when that pot drops to a certain amount and recovers less and less because there is less and less in it, boy will you have to make changes that income drying up.
I worked 100+hours a week as a junior dr then 25 years as a GP - extreme time poverty meant that I always spent less than I earned.
The retirement decision became much easier after COVID crisis. The economic hit / inflation would punish a 30 + year pot through huge LTA penalties. That alongside even more crushing workload within a crumbling health service decided things.
Not being able to book a week's leave, during a spot of nice weather, because others were already off.
That was the final straw, and the trigger to put the plan into action 😎
I think a good cash buffer can help, even if it only helps you sleep at night.
Historically I have quite a bit of cash, around 40%,but currently this is being eroded in real terms. I have bought more equities when the market was lower than it is now so most probably I have about 35%cash now, I want to get to a 80:20 equities:cash ratio before I reach retirement.
1) My mum died at 57. Thankfully she and my dad retired about 7 years before, so at least she had a wonderful retirement while she was still well. This taught me that the future is by no means guaranteed, so I need to retire as early as possible to make sure I can enjoy it.
2) both kids will have finished high school which will be the trigger for us to downsize, whilst knowing that we can afford to support them at Uni.
3) during covid my work went crazy busy. I was working 12 hour days and weekends for about a year. That was as close to burnout as I've ever been. I may even have been there. It was knife edge stuff. I don’t think I've recovered from it even now, and have gone from loving my job, to hating it, even though my hours are more sensible and nothing else has changed.
4) triggered by 3) I started looking seriously at my finances to see what retirement age was possible. In doing so I discovered that even retiring at 53, I'm likely to exceed the LTA. Working later than this will see me breach it by some margin.
With 4.5 years to go, I hope that my financial position will allow it to happen (my very detailed forecast spreadsheet says it will) and that I live long enough to actually get there.
2. The final lockdown ended and my employer started talking about returning to normal … I thought “not bloody likely, thank you very much”
3. A voluntary severance scheme opened up … I thought “that’s my bus!”
You wait ages for a bus, then three turn up at once (hopefully!)