Bold leap into retirement

katejo

older_and_no_wiser said:

Great discussion! 

I'm 55 and have just handed in my resignation at work. I'll drop to 3 days a week from the start of June and then quitting completely on my 56th birthday at the beginning of Sept. 

I've given over 30 years to the same company. It started as a small family ethos style business but got acquired by a massive US company 4 years ago and it's not been the same since. 

Life is short and I want to start a new chapter of more travel, learning new skills, hobbies and just appreciating things while I'm young enough. Can't wait! 

I have also given over 30 years to the same employer and have just been given a length of service award! I want to pluck up courage to make the break. I have already dropped to 4 days. I want to try new things but I am also apprehensive about being entirely solo. I now work hybrid but wouldn't want to work at home every day. 

Sarahspangles

katejo said:

MetaPhysical said:

@Smudgeismydog Yes, I am very aware of the "one year syndrome".  I am not falling for that, rest assured.  It has always been in my plans to pull the chute at 58, which is still 16 months away.  I need to drop my pension contributions for this month (I can adjust on a monthly basis) in order to pay for some big stuff in May, but will up them again in June.

What is the "1 year syndrome" please? 

OMY or One More Year (at work)

Or you could see it as ‘One Less Year Retired’

zagubov

I retired but returned to full-time work  then dropped to four days and years later to three days. I've got to say, four days was practical but unsatisfying in that it starts to feel like a full week after a while.
It's not till you drop to three days that you start to really feel you're properly part-time.
We're only stuck with a 40-hour week because it suited car manufacturing companies. It would be an astounding coincidence if turned out to be optimal for all other sectors of the ceonomy.

Smudgeismydog

At the end of last year, my partner and I opened a joint account. Up until this point, all the bills were in my name and he paid me monthly housekeeping (basically half the household bills). We then generally split the bills for holidays, meals out etc.

When we opened the joint account, we both rounded up the amount we pay in (to £1,000 pm each), mainly to qualify for a better interest rate, but we figured this would also allow us to fund our joint discretionary costs, instead of taking it in turns.

Interestingly, this has resulted in a change to both our behaviours. My partner seems more aware of the household costs, probably as it’s more visible to him, and as a natural born saver, I have found I am more relaxed in terms of spending some of the surplus, and not trying to siphon it off into a savings account, perhaps as I don’t view it as ‘my money’.

In the run up to giving notice, he has spent time calculating what he thinks he’ll need for personal spends in addition to the joint account funding, and we’ve talked through how he will fund this, the pecking order of which pots, how long they will each last etc. We have also factored in money he needs to purchase a car, as he currently has a company car, and also our moving costs. (I had already gone through extensive cashflow planning for myself!)

He isn’t a spendthrift by any means, but does take a view that we work hard so should enjoy treats too. 

I have decided the best method for me when my salary finishes, is to pay myself a monthly income from my accumulated assets. I know that if I take a lump sum, my instinct will be to preserve it. Instead I’m going to pay a monthly amount in to my current account, pay my share into the joint account and give myself permission to spend the rest. This has been really positive for me, as my instinct is to save, but I know this needs to change as I move from accumulating to decumulating. 

We have both agreed to continue to hold cash as emergency funds individually, so I’m not anxious about building a large surplus in the joint account, that isn’t the purpose of it. Instead this approach will allow us to look at the joint account, understand the balance, what payments are due and then plan regular trips, holidays, meals out etc to spend the surplus.

It’s all starting to feel quite close now, and honestly, I can’t wait

SouthCoastBoy

My wife and I use a joint account to finance everything (e.g.household costs, holidays, eating out etc.), other than personal spending (about £150 each per month). I have found it works really well. I contribute 2k per mth, my wife £650 per mth. I find this runs a slight surplus, so we know our number. When we get to retirement, my wife has db pensions and a state pension (total of about 24k in today's money) so when I hit 70, wife 67 we will both contribute about £1300 each, so I just need to do the heavy lifting for another 10 years.

katejo

I wonder how many contributors to this discussion are, as I am,  solo so basing their retirement income just on their own earnings/savings? Interested to know. A colleague of mine thinks that our situation is completely different and doesn't think we can retire as early because of this. I sense that I am in a slightly better position than she is (even though she is more senior/earns more) but can't be sure. 

SouthCoastBoy

katejo said:

I wonder how many contributors to this discussion are, as I am,  solo so basing their retirement income just on their own earnings/savings? Interested to know. A colleague of mine thinks that our situation is completely different and doesn't think we can retire as early because of this. I sense that I am in a slightly better position than she is (even though she is more senior/earns more) but can't be sure. 

I don't think there is one size fits all. If I was single I would have been retired years ago, I'm very frugal, and live on the bare minimum, simply because i dont want anything. My wife and kids are the spenders.

Not interested in clothes, cars, gadgets etc

Sarahspangles

katejo said:

I wonder how many contributors to this discussion are, as I am,  solo so basing their retirement income just on their own earnings/savings? Interested to know. A colleague of mine thinks that our situation is completely different and doesn't think we can retire as early because of this. I sense that I am in a slightly better position than she is (even though she is more senior/earns more) but can't be sure. 

I think I’m retiring a bit earlier than if I’d remained single, but more because OH has recently retired and I’m jealous!

We’ll have similar pension incomes, but not all couples are in that position, say if one took a career break around children. One of the pensions has to pay for more of the retired household’s expenses.

Florafauna

I am rapidly zipping towards my retirement date of 23rd July. I'm only 57 and am also planning to pay myself monthly spends after paying bills. I am married and my husband has always earned a lot more than me. We are paying a proportionate amount each. I have pensions I can access from 60 if need be but do have savings to keep me going for at least 5 years.
I can't wait to drop my stress levels and am having to gee myself up to remain motivated at work. If I wasn't retiring from education, I would be leaving and looking for a less pressured job. 
I'm quite low maintenance financially so all should be good

jackieblack

katejo said:

I wonder how many contributors to this discussion are, as I am,  solo so basing their retirement income just on their own earnings/savings? Interested to know. A colleague of mine thinks that our situation is completely different and doesn't think we can retire as early because of this. I sense that I am in a slightly better position than she is (even though she is more senior/earns more) but can't be sure. 

I’m single, having divorced in my late 40s after 24 years of marriage. I worked part time for many years, around childcare/school hours (there were no breakfast/after school/holiday clubs back then) so my pension is not going to be anything close to numbers mentioned by others here. Fortunately, I am frugal by habit (my ex husband never earned a big, or even ‘average’ salary and left all finances to me, so I have always had to stretch every £) so with some careful planning I am hopeful of being able to retire before SP age, even if I have to supplement with a small part time job. I have elderly parents who need a lot of help as well as a toddler granddaughter and it’s getting harder to juggle those responsibilities/commitments with working.