Bold leap into retirement

barnstar2077

pterri said:

MetaPhysical said:

I am starting to write down a plan of what I am going to do after I retire in January.  My last day is New Year's Eve!  I am retiring because I just can't face the world of sales and work and the constant stress and hustle any longer at 58 and constantly reinventing myself and being in hock to an ever changing agenda and priorities.  I have many hobbies and interests, some with others and some on my own, but I have no doubt that at times I might get a bit bored, especially in winter.  Maybe retiring in winter is not the best of times but I just cannot stand it another month even.   I may also do some charitable work for the Canal Trust and some other things.  How long this "plan" survives reality will remain to be seen but I know I need to get out there a bit more once the social aspect of work has gone.  I'm a very sociable and happy person but sometimes like time by myself too.

Speaking to other retired people, I have come to realise that I have to get out of the mindset that watching a TV series or a boxed set, or tinkering around with my guitar, bike or piano in the daytime is "wasting time" and that if that's what I want to do on a particular day then that's fine.   We've got plenty of time when retired!  That mindset is a hangover from the world of work where I wouldn't think of "wasting" a Saturday or Sunday doing that but when retired it's different.  Ever since five years old, maybe earlier in some cases, your day is run to a calendar set by others. all through school and the world of work.  For 54 years I have been subject to that calendar.  From January I wont be.  Yeah, it scares me a bit if I am honest.  I'm going to cycle with others more and go walking in the dales more with others and find some groups.

Very much this, I’ve been retired since April. I quite often get up at 7:30, have a leisurely breakfast then cycle to my fav cafe in Victoria park from south London via the Woolwich ferry. It’s quite peaceful bobing across the Thames. Then cycle back home via Tower Bridge. A bit of reading then it’s t9me for dinner. Not wasted at all.

 Friend visited Vietnam this year, looked good so just booked flights and hotels for two weeks in January. Fly into Hanoi, then to Da Nang, Ho Chi Minh then home. I shall mainly be eating. 

You are living the dream my friend, savour every moment!

kipsterno1

One of my plans for retirement was to catch up on all the films I had missed out on. Working shifts and then having family responsibility I just didn't have time to go to the cinema so made the decision that I wouldn't watch any films but save them for retirement. Well I retired in May 2017 and to date have watch four films, three of which I had previously seen. I just don't have the time.

katejo

I have only reduced to working 3 days a week so far but, on my free days, still feel that I must use them purposefully. Daytime TV /film watching still makes me feel guilty that I am time wasting. 

cfw1994

pterri said:

MetaPhysical said:

I am starting to write down a plan of what I am going to do after I retire in January.  My last day is New Year's Eve!  I am retiring because I just can't face the world of sales and work and the constant stress and hustle any longer at 58 and constantly reinventing myself and being in hock to an ever changing agenda and priorities.  I have many hobbies and interests, some with others and some on my own, but I have no doubt that at times I might get a bit bored, especially in winter.  Maybe retiring in winter is not the best of times but I just cannot stand it another month even.   I may also do some charitable work for the Canal Trust and some other things.  How long this "plan" survives reality will remain to be seen but I know I need to get out there a bit more once the social aspect of work has gone.  I'm a very sociable and happy person but sometimes like time by myself too.

Speaking to other retired people, I have come to realise that I have to get out of the mindset that watching a TV series or a boxed set, or tinkering around with my guitar, bike or piano in the daytime is "wasting time" and that if that's what I want to do on a particular day then that's fine.   We've got plenty of time when retired!  That mindset is a hangover from the world of work where I wouldn't think of "wasting" a Saturday or Sunday doing that but when retired it's different.  Ever since five years old, maybe earlier in some cases, your day is run to a calendar set by others. all through school and the world of work.  For 54 years I have been subject to that calendar.  From January I wont be.  Yeah, it scares me a bit if I am honest.  I'm going to cycle with others more and go walking in the dales more with others and find some groups.

…also, more midweek cycling. Mind you I’m a bit of a fair weather cyclist so will pick and choose over the winter. 

Also a bit of a fair weather cyclist nowadays 👀

Force myself out yesterday, managed 32 miles under threatening skies, but realised I was a layer short - a bit chilly 😱
Have a couple of pals who like a ride, but I kind of want to pick the dry, warm days rather than have a regular weekly day.  Sometimes get them out, which is always nice, but yesterday was a solo pedal.

kipsterno1 said:

One of my plans for retirement was to catch up on all the films I had missed out on. Working shifts and then having family responsibility I just didn't have time to go to the cinema so made the decision that I wouldn't watch any films but save them for retirement. Well I retired in May 2017 and to date have watch four films, three of which I had previously seen. I just don't have the time.

A very decent plan, especially for darker winter months 💪  
I do, however, have something of an aversion to cinemas - they always seem to have a bright light shining down on me, or noisy eaters/whisperers nearby - but we enjoy films at home.  & books: I need to “waste” more time reading books!

MallyGirl

It has taken me a while, now 4 months out, to not feel like I need to justify how I have spent my day when OH comes home from office based days. He is planning to work until he gets his March bonus and then have a good think about the future. He already knows that the finances would support him stopping whenever he wants to. 

If he does carry on I will start to go off on my own - at the moment I am not doing anything significant that I know he would like to do too. I have been exercising more, gardening, sorting out the house, picking off one-off tasks that have never reached the top of the to do list and am slowly making my way through a kids book in French to get an idea of where I am at and how much I have forgotten since my o level 42 years ago. I have not turned on the TV during the day as yet but we'll have to see how the days go in midwinter.

WYSPECIAL

MallyGirl said:

and am slowly making my way through a kids book in French to get an idea of where I am at and how much I have forgotten since my o level 42 years ago. 

I'm trying to see how much French I can remember from O'level all those years ago too! I've tried watching cartoons but a kids book sounds like a good idea.

MallyGirl

WYSPECIAL said:

MallyGirl said:

and am slowly making my way through a kids book in French to get an idea of where I am at and how much I have forgotten since my o level 42 years ago. 

I'm trying to see how much French I can remember from O'level all those years ago too! I've tried watching cartoons but a kids book sounds like a good idea.

I borrowed a couple of books from a French neighbour but for now I have bought one (aimed at age 9-10) for the kindle and installed a French-English dictionary so that I can easily translate individual words. She also lent me an Asterix DVD for a point when I am less rusty.

bjorn_toby_wilde

pterri said:

MetaPhysical said:

I am starting to write down a plan of what I am going to do after I retire in January.  My last day is New Year's Eve!  I am retiring because I just can't face the world of sales and work and the constant stress and hustle any longer at 58 and constantly reinventing myself and being in hock to an ever changing agenda and priorities.  I have many hobbies and interests, some with others and some on my own, but I have no doubt that at times I might get a bit bored, especially in winter.  Maybe retiring in winter is not the best of times but I just cannot stand it another month even.   I may also do some charitable work for the Canal Trust and some other things.  How long this "plan" survives reality will remain to be seen but I know I need to get out there a bit more once the social aspect of work has gone.  I'm a very sociable and happy person but sometimes like time by myself too.

Speaking to other retired people, I have come to realise that I have to get out of the mindset that watching a TV series or a boxed set, or tinkering around with my guitar, bike or piano in the daytime is "wasting time" and that if that's what I want to do on a particular day then that's fine.   We've got plenty of time when retired!  That mindset is a hangover from the world of work where I wouldn't think of "wasting" a Saturday or Sunday doing that but when retired it's different.  Ever since five years old, maybe earlier in some cases, your day is run to a calendar set by others. all through school and the world of work.  For 54 years I have been subject to that calendar.  From January I wont be.  Yeah, it scares me a bit if I am honest.  I'm going to cycle with others more and go walking in the dales more with others and find some groups.

…also, more midweek cycling. Mind you I’m a bit of a fair weather cyclist so will pick and choose over the winter. 

That’s one of the beauties of retirement; being able to pick and choose your days rather than being confined to weekends.

Last Thursday was a pleasant day so I headed to the Peaks and walked through Lathkill and Bradford Dales. A very pleasant walk with a pub lunch in the middle and hardly anyone around. So peaceful 

GenX0212

GenX0212 said:

I started thinking seriously about retirement maybe 18months ago as I was coming towards the 55 marker. Did some maths and worked out that I could probably retire on or about the same amount of money as my current take home pay. In August last year I successfully applied for a small reduction in working hours from 37 to 34 per week and a reduction from 5 days to 4. That meant that as well as having more free time the dial on matching my current take home pay actually became slightly closer.

'Planning' on retiring next year at 57 but although I'm convinced it's what I want do, no longer really enjoying work, it still feels more of a conceptual than a physical aim and the time seems to be flying by so soon it will become a very real decision 

My current take home pay after significant payments into my pension pot is £3.8k per month. I will have a (reduced) DB income of £15k with currently £630k accumulated in DC pots which I am hoping will be closer to £700k by retirement (expecting to add ~£50k from salary, AVC and bonus sacrifice in the next 12 months).
My better half takes home about £1400 per month but for the last year or two a hefty chunk of which has been going straight into savings and being paid into a SIPP DC pension pot. She will have a (reduced) DB pension of £4K plus a DC pot of about £40k.

Analysing our current spending, we have no mortgage, 2 decent cars, and our only real financial commitment is to see out the very last year of our youngest's university costs (about £8.5k for rent and living expenses). Putting our 3 children through university has probably cost us somewhere in the region of £60-70k across the last 7 years. Our biggest remaining outlay is undoubtedly holidays having to suffer the ridiculous school holiday price hikes due to my wife working in a school 

So the plan is to retire early spending from the DC pots up until SP age. No more university costs, cheaper (but likely more frequent ) holidays. I firmly believe our spending will reduce as we get older. By state pension age our worst case is that the DC pots run out but we will have the £15k DB (me) £4k (wife) plus 2* full state pensions (already earned). So give or take £42k guaranteed income as a couple with hopefully money still available from the DC pot. In the event of a significant market crash then we would have to tighten belts but that's true whatever the plan.

My every instinct tells me this is absolutely doable and that we can carry on with no real impact to our current standard of living but as the 57 mark comes ever closer I do find myself second guessing our plans.


Sorry, long winded post I know! 

It's time for a significant update:  

Mrs GenX has handed in her notice to retire!    meaning it now my turn   Both of us will be age 57.

So my plan is to retire in June of next year, since my previous post above the finances have changed quite a bit due to an inheritance, increasing my AVCs significantly and also my DC pot continuing to perform well.
At retirement the expected position is:

• Cash: £170k
• S&S ISA: £70k
• SIPP (Mrs GenX): £40k
• DB Pension (Mrs GenX): £4.5k RPI linked; £5k lump sum
• DC Pot (Mr GenX): £680k
• Index Linked Gilts (Mr GenX): £115k; paying approximately £14k per each year from 2027 through to 2035
• DB pension (Mr GenX): £13.5k RPI linked; £35k lump sum

• Full SP starting 2036 (Mrs GenX)
• Full SP starting 2036 (Mr GenX)

So in summary once we commence the DB's:

• Guaranteed joint pre-tax income of £32k before SP age
• Guaranteed joint pre-tax income of £43k after SP age
• £280k held outside of pension wrappers
• £720k SIPP/DC pot

The Plan:

• Between now and SP age Mrs GenX flies below basic rate tax threshold and empties her SIPP and takes full advantage of the starter rate for savings to avoid paying any tax on savings interest; after SP age she will be paying tax on her combined pension and SP.
• Between now and SP age Mr GenX withdraws the max from the SIPP combined with pension and IL Gilts maturity to fly just below higher rate tax threshold.  Any excess income is paid into S&S ISA. This is to mitigate the fiscal drag of tax thresholds being further frozen until 2031.
• Both pay £2880 into SIPP at the start of each tax year.
• Until SP age Mr GenX transfers Mrs GenX's Married persons allowance.
• SIPP remains invested in current funds 60/40 Diversified growth/Equities.
• If the SIPP performs well then I may consider moving some more over to increase the IL Gilts guaranteed income each year to SP and then possibly beyond that as well.

The target each year is £55-60k per year after tax, flexible depending upon market performance.

I need to give a minimum 3 months notice but intending to let my boss know earlier as they have been good with me.
Feeling very nervous now tell me my plan is solid? Is there anything I have missed or should be considering?

QrizB

Congratulations to GenX and Mrs GenX!

My bold leap is likely to come next year; somewhat smaller stacks of squirreled nuts than yours, but still big enough