Bold leap into retirement

NormalNorman

@Smudgeismydog brilliant reading, cheers!

Brenster

@Smudgeismydog great post, we hear alot of info about saving for retirement ahead of retiring, but not many posts about financial movement after retiirement. Your post is a perfect example of how your pot does not necessarily need to reduce once draw down commences if left invested.

Storcko14

Time for a one year on update with the side benefit of giving this great thread a bump. I retired fully in June 2025 (partly in 2023) so to celebrate the anniversary I've had a look back on the numbers and a general reflection. First up a summary of the numbers:

Annual spend = 78% of pre-retirement forecast:
- Spent 37.5% more than forecast on: work on house (planned not due to unforeseens)
- Spent 10% more: time on the bike (including 3* multi-day bikepacking trips (11 days total)
- Spent 30% less on: travel. For family reasons had to stay closer to home - likely to continue for the next year or two. Equated to 2* overseas holidays (15 days), 3* UK holidays (17 days total) and 4* UK short breaks (5 days total). I budgeted over 25% of total annual spend on travel.
- Spent 12.5% less on: eating out

Drawdown rate = 3.1% vs forecast 3.6%

Invested portfolio is up 14% in the year so overall NW ex PPR is comfortably ahead but clearly this is due to a good year for equities.

Asset allocation is unchanged at 50% equities, 28% bonds and 22% cash & others (most of this is in STMM, about 15% of it's an emergency fund).

Non-financials:

-Volunteering - I took on another 1d/wk role that I can switch on and off as required. My other role (1d/wk) has offered me some paid sessional work which was unexpected. My OH has also found a way to monetise an interest so between us we have ways of earning pin money if we need to.

-Learning - I signed up for a 12 week online uni course last autumn which was interesting but much less interactive than i expected. It was an ideal winter activity though as there was tons to read around.

-New skills projects - built a new bike from scratch, started to do pilates more seriously and regularly.

-Gigs - 7 including 5 previously unseen bands.

-Got back in touch with 2 old acquaintances one of who has also retired this year.

Overall best things about retirement - 1) spontaneity. E.g., we had 2 holidays in Scotland which we booked one day and travelled the next to take advantage of out of season weather windows, 2) going out midweek - everything about that is nicer especially the last train home, 3) being able to watch the Tour de France on the main telly instead of slightly guiltily on screen 3 in the office.

Worst thing - feeling out of the loop about tech developments like AI. Two years ago I was probably ahead of the curve but now not so much.

Biggest surprise - 1) finding it much less hard than expected to switch to a spend not save mentality. That might be a lot to do with rising markets; next year might be different. 2) some people are very (and openly) jealous of early retirees.

Regrets? Not one.

frankfish

Slight change of plan, was thinking about reducing my hours, but instead I have taken a new role in the same company with less responsibility and hopefully less stress (felt if I reduced my hours I would still worry about the job on the days off) , it is a job I did years ago and am often called upon to help out.

The drop in salary equates to going part time and despite still having to work 37 hours, I feel long term I will be mentally and financially better off, get to keep my benefits and slightly better chance of redundancy in my new role.

This is the final step towards retirement (I hope)

MarzipanCrumble

@Storcko14

"Worst thing - feeling out of the loop about tech developments like AI. Two years ago I was probably ahead of the curve but now not so much."

u3a website might be worth investigating - you can join up to Online Interest Groups for about £12 pa which will give you acces to all of them. These connect via Eventbrite.

https://www.u3a.org.uk/what-we-do/learning/interest-groups-online/interest-groups-online-groups

https://www.u3a.org.uk/what-we-do/learning/interest-groups-online/interest-groups-online-groups/ai-for-u3a-ai-agitators

https://www.u3a.org.uk/what-we-do/learning/interest-groups-online/interest-groups-online-groups

The third one I searched on technology. There is a Linux Group.

What I have found with u3a (both my local one and the UK one) is that you will find people who are both experts in their subject and very willing to teach/help/encourage.

I learnt how to do cryptic crosswords through u3a (and Bridge). I started a Cryptics Group in my local and found expert cryptic crossword experts who were willing to help me with teaching material. One was a parser for a well respected solutions site, the other was just very experienced crossword doer. Also the u3a Expert helped in advising me.

Love u3a because it is cheap and flexible and you meet such interesting people.

Smudgeismydog

https://forums.moneysavingexpert.com/discussion/comment/82077797#Comment_82077797

Thanks for the update, and I’m so glad to hear you have no regrets

Sounds like you have done really well in the shift from accumulating to decumulating, that’s normally quite a tough mental transition

MallyGirl

just over 1 year on for me and things are progressing. Our daughter has qualified as a vet and lined up a job for the end of the summer. Till then we are back to being a 3 person household. We are just back from the first big holiday in my go-go years (although OH is still working till maybe next June). I have chosen to not pay tax this year, and maximise use of the personal savings allowance, so numbers are up so far due the stock market gains. Next year we will both start drawing down up to 20% threshold.

cfw1994

This thread is always a positive read! Congrats to all who are enjoying their retirements or winding down.

Our second festival just done - ended Latitude with a drive into Southwold for a dip in the North Sea to clean the dust & grime: very refreshing….& a brilliant festival 😎

More plotting & planning for our big Down Under trip from early Oct to Christmas. So much to book….but I find the planning part of the fun of any adventure!

HedgehogRulez

planning holidays is always more fun than going on them

MeteredOut

https://forums.moneysavingexpert.com/discussion/comment/82083860#Comment_82083860

If you truly believe that, then I'd suggest you need to up your planning skills.