Bold leap into retirement

HUSKYPAL

Now into my second week back at work and genuinely feeling soooo fed up with it. I've reworked my plan and looking to go at the end of this year, barring some crazy new world order that completely messes up financial markets!

Did anyone move their investments into safe havens on the run up to retirement or just leave where they are and hope for the best?? I have taken some precautions, moved most out of tech (with heavy AI focus), some into bonds/gilts/gold/cash and geographically diverse. Any suggestions on best way to avoid a huge market change upsetting my plans? Wisdom of this group would be much appreciated. Can't stand the idea of the plan being derailed by DJT.

Storcko14

Yes - and along the lines that you're thinking.  Into index-linked gilts and STMM and for the equity element, reduced US exposure.  For me a big risk this year is the forthcoming replacement of Powell at the Fed and the potential for political interference in rate setting.  Globally everything is based off US treasury rates so that could create instability, freak the bond markets and have an impact on equities.

@HUSKYPAL - do you think you have enough?  If I lose say 10-20% upside then it's not going to change much if anything.  If I suffer a 40-50% portfolio drawdown then it would, even if mainly psychologically.

HUSKYPAL

Storcko14 said:

Yes - and along the lines that you're thinking.  Into index-linked gilts and STMM and for the equity element, reduced US exposure.  For me a big risk this year is the forthcoming replacement of Powell at the Fed and the potential for political interference in rate setting.  Globally everything is based off US treasury rates so that could create instability, freak the bond markets and have an impact on equities.

@HUSKYPAL - do you think you have enough?  If I lose say 10-20% upside then it's not going to change much if anything.  If I suffer a 40-50% portfolio drawdown then it would, even if mainly psychologically.

I agree, the loss of potential, i.e something I didn't have would be significantly easier to swallow than a hit to my current number! It could derail my planning. I'm going to have another good look at where i'm invested and take appropriate action.

Smudgeismydog

I moved my SS ISA to Cash ISAs, which along with my dependents pension is more than enough to cover the next 4 and a half years, until age 57.

I have also de-risked my SIPP to @ 2/3rds equity.

cfw1994

HUSKYPAL said:

Now into my second week back at work and genuinely feeling soooo fed up with it. I've reworked my plan and looking to go at the end of this year, barring some crazy new world order that completely messes up financial markets!

Did anyone move their investments into safe havens on the run up to retirement or just leave where they are and hope for the best?? I have taken some precautions, moved most out of tech (with heavy AI focus), some into bonds/gilts/gold/cash and geographically diverse. Any suggestions on best way to avoid a huge market change upsetting my plans? Wisdom of this group would be much appreciated. Can't stand the idea of the plan being derailed by DJT.

My suggestion would be to try to ensure you have enough in cash assets to weather a multi-year* downturn on stocks.  Prepare alternatives to draw on in the event of markets taking a plummet just as you would draw on them.
might be easier said than done, but you want to avoid being forced to drawdown on depleted equity-based assets.

My plan was to pause pension draw if value dropped 20% or more….& sure enough, within 4 months of starting my draw, it happened 🫣
Paused the pension draw, lived off cash (mostly stashed in PBs) for about 20 months.
Then resumed normal service, whilst building the cash back up reason for any similar event.

No easy answers, sadly…


* define your own level of risk…mine was having cash to survive 2-4 years, perhaps with some belt-tightening if needed

DT2001

HUSKYPAL said:

Now into my second week back at work and genuinely feeling soooo fed up with it. I've reworked my plan and looking to go at the end of this year, barring some crazy new world order that completely messes up financial markets!

Did anyone move their investments into safe havens on the run up to retirement or just leave where they are and hope for the best?? I have taken some precautions, moved most out of tech (with heavy AI focus), some into bonds/gilts/gold/cash and geographically diverse. Any suggestions on best way to avoid a huge market change upsetting my plans? Wisdom of this group would be much appreciated. Can't stand the idea of the plan being derailed by DJT.

My OH has a number of sources of income as self employed and at the moment enjoys her work so I am guessing when she will retire.
We parted company from our IFA at the beginning of last year and I followed their proposed plan of using a global fund. I tweaked the plan after a few months as I had seen a 10/12% gain and I was about 85%+ in equities. I’m now 60% global fund, 20% investment trusts (income biased) and 20% cash (which includes 5 years of SP gap filling). If markets drop say 40% I now have guaranteed income of 2 x SP(or equivalent), 3 small DBs and an IT portfolio that includes dividend heroes. I am also flexible in terms of discretionary spending. 

We are in a very good position as we have more than we need (by luck) but I still have an eye on helping my children so remain invested in equities for the long term.

CaptainSkeptical

That’s me now been retired for about 9 months.

 

I’d been in full time positions for about 48 years, the last 5 or so as a member of the senior leadership team in a company.  Due to a few things going on in my life, for the last 18 months of work, I dropped down to 3 days a week.  I didn’t think my company would go for the reduced hours, but when I broached the subject they bit my hand off.  However, as time wore on, I found that unfortunately (and probably predictably) I was drifting towards doing the equivalent of over 4 days work for 3 days pay, and that along with lots of work related BS made me decide to call it a day last spring. I had to work 3 months notice which was a real slog, and I found it difficult to hide my lack of enthusiasm from my team.

 

Since retiring I’ve not missed work one jot.  Yes, I miss the daily banter, but not the work and all its associated guff. I keep in touch with a few old work mates and spend most of my time on a couple of interests I’ve got and also what the better half and I fancy doing on the spur of the moment, which is sometimes just loafing around.  There’s no rush to do anything anymore.  And even with the winter weather reducing the amount of time I spend outside, I’m not yet bored.  In the coming months, if I do become bored, then I’ve thought of a few things I might get involved in. In addition, I’m now into a far better routine resulting in losing some weight and an improvement in my sleep. 

 

The finances are working out fine - many threads on this forum were very helpful in getting me financially ready for retirement, so a big thank you to all the contributors.  The only slight glitch was a couple of my pension providers were pretty poor when I was trying to merge some pensions and it took over 4 months.  Other than that, it’s been a breeze and I highly recommend it.  

And in hindsight, I wish I’d retired a couple of years earlier.  

Good luck to all who have still to take the plunge !!

Smudgeismydog

Lovely post, thank you @CaptainSkeptical
It does sound like you are loving the relaxed, spontaneity of your new life

I do wonder how many people remaining in work in stressful positions, or just where they are no longer really enjoying it, thinking the last few years are needed to ‘shore up’ retirement plans, will look back and also wish they had gone earlier.

NormalNorman

Reading this thread is tough mentally.

The day job is... well I'm just not interested anymore but on the other hand it's permanent [who knows just how permanent] WFH which allows a local evening job, which I enjoy, to max savings/pension/more disposable income. Wife feels the same, bored out her tree with the 9-5. It feels like a slow motion march in a straight jacket to the finish line.

Still got a couple of years getting daughter through uni in Scotland. We pay rent and utilities etc which is still a fair chunk but at least no student debt is being built up. She also earns a good PT wage.

The car is only a couple of years old and owned outright, no mortgage on the house and zero debt of any kind.

Should feel happier eh? But I don't...

Need something new in life like some sort of challenge or another snorkelling holiday. Something more than just the motions of everyday stuff and hobbies. I already volunteer and is great but only a couple of times a month. Already have nothing in the loft, paperwork filed immaculately, wills prepared etc

Part of me thinks I should make a target to remove myself from the 21% tax rate until I quite work in a few years? Already got myself out the 40% tax rate. Max out on sal sac whilst it's still here? Bonus will go into pension too.

We'd like to go to the Maldives again as not been there since 2024 but costs about £6k plus £1k just to get out the country. Cattery, travel insurance, car parking, transit hotel in Dubai etc. However, mum is terminally ill and have to help dad weekly so can't risk being far from home.

Anyway, I suppose this post isn't about money, more about the mental anguish with the endless noise of what ifs going on in my brain resulting in paralysis to make any decisions...

Until I sort myself out it's great to read everyone's posts here. Cheers!

Archerychick

This is a fantastic thread! I have just caught up with the 50 odd pages I’ve missed. 

I’m 46, single no dependents. Own my house, with no debts. No need to downsize or move locations, I’m well connected where I am.

I earn more than I need day to day, but it’s allowed me to build up pension and I’ll continue paying in just under £60k for the next three years.

I’m lucky in that I love my job, but I intend to retire as soon as I am sure I have enough to be able to go. 

The spreadsheets model this to around 5 years time, but it’ll depend on performance of investments outside of pension wrapper as well as pension performance. 

What I want to be able to do is have the freedom to do today what I feel like doing, rather than only being able to do those things at a weekend, when ultimately it’s probably raining at that point. 😆