Bold leap into retirement

pterri

nicknameless said:

Hey folks - thread resurrection.

Currently contemplating our bold leap which is a real possibility next year.  Comments and suggestions very welcome.

Situation I am 53 and my long term partner is 54.  We've been planning towards financial independence for quite some time.  She would leave work tomorrow if able to and is insistent that there would be no negatives for her in doing so.  I am a little more hesitant about pulling the plug - partly financially, but partly because I think some of my identity is tied up in work and wonder if I will be successful in the transition mentally.  However, presently I am just drifting in my job and doing the bare minimum to get by in it.  That in itself is indicative and not a great place to be in for me tbh.  Have had dips in motivation over the years, but presently it is a longer term thing.

Planning wise I have spreadsheets, a legacy test account with timeline planning, and have just been using the voyant planning free month trial to check everything in triplicate.  Voyant is telling me we have all spending at current levels covered going forward and running monte carlo simulations in both voyant and timeline estimates our overall probability of success without the need for plan adjustments of between 85% and 95% depending on timing of retirement next year (summer for both, or me continuing till the end of the year) and whether we take into account a likely very small inheritance.

Don't have major plans for what we would be doing in retirement.  We are both really into health and fitness and it would release more time to focus there and perhaps achieve a few things.  I also expect to volunteer at something, but don't yet know what.

Have already suggested partner plan to go at end of June next year and I'll make up my mind in the meantime.  Got to say the thought of a June finish has given me a pang of excitement a couple of times ........... or is it trepidation?

Would really welcome thoughts.

Should I stay or should I go?  Happy to divulge any more info.

For me it’s all about the ££. Work is at best boring and often stressful AND boring. I’ll be 57 next year, I’ve rediscovered cycling and really want to do a lot more of that. Relatively inexpensive to do multi day adventures. I’m a ‘professional’ so can get paid work if I need it. I’m very lucky to have a DB which I can access although will delay that until I’m 60. Three years of ISA/SIPP to bridge the gap

if the sums work for you then I’d go for it. Colleague, 59 and no obvious health defects, had a minor stroke the other day. One thing you are limited to is healthy years. 

Some people love their work, all power to them. For me it’s a means to an end so fairly sure I’ll be leaping but I expect I’ll have nerves before handing in my notice. 57 is very young these days, seems wrong, although there were lots going at 55 when I. Was starting work 35 years ago. 

Sorry for the ramble…

Smudgeismydog

Hello nicknameless, and welcome to the thread.

I think you’ve probably answered your own question if you admit you are just doing the ‘bare minimum’ to get by, and you also acknowledge you have lost your motivation. This is how I felt, I knew my heart wasn’t in it any more. 

I also retired young, and remain completely open to the idea of undertaking a part-time or regular voluntary role at some point, but this will only be if I feel I want some more routine or structure, so only on my terms.

I don’t feel you necessarily need major plans for retirement, there is so much out there, that for many people it’s more about being selective in terms of what and how much you choose to get involved with and not overcommitting. 

Are you happy to run through your figures? Your target income and accumulated pots would be helpful. I appreciate you mentioned you’ve run your figures through spreadsheets etc, but I found it very helpful to have someone else sense check. There are plenty of people on here who would be happy to take a look.
Bearing in mind your ages, a couple of things worth checking are how you plan to fund the period until you reach your respective State Pension Ages, and your National Insurance records.

Looking forward to hearing more about your bold leap!

ex-pat_scot

Notice handed in yesterday and today
End of employment 31/12.
Straight into consulting, with a mix of work for my old firm and direct clients.
I've been discussing since Easter, and they have asked / begged for me to stay on until end of the year.
It's only today that it has become "real" for them - until now, I had been a problem on the large pile of things to be addressed, and whilst some half-hearted recruitment interviews had taken place, there has been noone remotely suitable internally or externally. Yet.

I'm planning to remain busy for a while yet - another couple of years at full steam - then gradually wind back.
I'm a professional with a great contacts list across my niche industry, so I'm confident of a reliable pipeline of well paid work, and that I can scale back (or up) whenever I desire.

nicknameless

pterri said:

nicknameless said:

Hey folks - thread resurrection.

Currently contemplating our bold leap which is a real possibility next year.  Comments and suggestions very welcome.

Situation I am 53 and my long term partner is 54.  We've been planning towards financial independence for quite some time.  She would leave work tomorrow if able to and is insistent that there would be no negatives for her in doing so.  I am a little more hesitant about pulling the plug - partly financially, but partly because I think some of my identity is tied up in work and wonder if I will be successful in the transition mentally.  However, presently I am just drifting in my job and doing the bare minimum to get by in it.  That in itself is indicative and not a great place to be in for me tbh.  Have had dips in motivation over the years, but presently it is a longer term thing.

Planning wise I have spreadsheets, a legacy test account with timeline planning, and have just been using the voyant planning free month trial to check everything in triplicate.  Voyant is telling me we have all spending at current levels covered going forward and running monte carlo simulations in both voyant and timeline estimates our overall probability of success without the need for plan adjustments of between 85% and 95% depending on timing of retirement next year (summer for both, or me continuing till the end of the year) and whether we take into account a likely very small inheritance.

Don't have major plans for what we would be doing in retirement.  We are both really into health and fitness and it would release more time to focus there and perhaps achieve a few things.  I also expect to volunteer at something, but don't yet know what.

Have already suggested partner plan to go at end of June next year and I'll make up my mind in the meantime.  Got to say the thought of a June finish has given me a pang of excitement a couple of times ........... or is it trepidation?

Would really welcome thoughts.

Should I stay or should I go?  Happy to divulge any more info.

For me it’s all about the ££. Work is at best boring and often stressful AND boring. I’ll be 57 next year, I’ve rediscovered cycling and really want to do a lot more of that. Relatively inexpensive to do multi day adventures. I’m a ‘professional’ so can get paid work if I need it. I’m very lucky to have a DB which I can access although will delay that until I’m 60. Three years of ISA/SIPP to bridge the gap

if the sums work for you then I’d go for it. Colleague, 59 and no obvious health defects, had a minor stroke the other day. One thing you are limited to is healthy years. 

Some people love their work, all power to them. For me it’s a means to an end so fairly sure I’ll be leaping but I expect I’ll have nerves before handing in my notice. 57 is very young these days, seems wrong, although there were lots going at 55 when I. Was starting work 35 years ago. 

Sorry for the ramble…

Not a ramble - many thanks.  I'm a cyclist too - bike replacements every 3 years for £xK (too embarassed to say) in the planning lol!

pterri

nicknameless said:

pterri said:

nicknameless said:

Hey folks - thread resurrection.

Currently contemplating our bold leap which is a real possibility next year.  Comments and suggestions very welcome.

Situation I am 53 and my long term partner is 54.  We've been planning towards financial independence for quite some time.  She would leave work tomorrow if able to and is insistent that there would be no negatives for her in doing so.  I am a little more hesitant about pulling the plug - partly financially, but partly because I think some of my identity is tied up in work and wonder if I will be successful in the transition mentally.  However, presently I am just drifting in my job and doing the bare minimum to get by in it.  That in itself is indicative and not a great place to be in for me tbh.  Have had dips in motivation over the years, but presently it is a longer term thing.

Planning wise I have spreadsheets, a legacy test account with timeline planning, and have just been using the voyant planning free month trial to check everything in triplicate.  Voyant is telling me we have all spending at current levels covered going forward and running monte carlo simulations in both voyant and timeline estimates our overall probability of success without the need for plan adjustments of between 85% and 95% depending on timing of retirement next year (summer for both, or me continuing till the end of the year) and whether we take into account a likely very small inheritance.

Don't have major plans for what we would be doing in retirement.  We are both really into health and fitness and it would release more time to focus there and perhaps achieve a few things.  I also expect to volunteer at something, but don't yet know what.

Have already suggested partner plan to go at end of June next year and I'll make up my mind in the meantime.  Got to say the thought of a June finish has given me a pang of excitement a couple of times ........... or is it trepidation?

Would really welcome thoughts.

Should I stay or should I go?  Happy to divulge any more info.

For me it’s all about the ££. Work is at best boring and often stressful AND boring. I’ll be 57 next year, I’ve rediscovered cycling and really want to do a lot more of that. Relatively inexpensive to do multi day adventures. I’m a ‘professional’ so can get paid work if I need it. I’m very lucky to have a DB which I can access although will delay that until I’m 60. Three years of ISA/SIPP to bridge the gap

if the sums work for you then I’d go for it. Colleague, 59 and no obvious health defects, had a minor stroke the other day. One thing you are limited to is healthy years. 

Some people love their work, all power to them. For me it’s a means to an end so fairly sure I’ll be leaping but I expect I’ll have nerves before handing in my notice. 57 is very young these days, seems wrong, although there were lots going at 55 when I. Was starting work 35 years ago. 

Sorry for the ramble…

Not a ramble - many thanks.  I'm a cyclist too - bike replacements every 3 years for £xK (too embarassed to say) in the planning lol!

I’ll miss the ‘cycle to work’ scheme. Seriously, may be good to use that to get a decent bike at a discount while you can? 

nicknameless

Smudgeismydog said:

Hello nicknameless, and welcome to the thread.

I think you’ve probably answered your own question if you admit you are just doing the ‘bare minimum’ to get by, and you also acknowledge you have lost your motivation. This is how I felt, I knew my heart wasn’t in it any more. 

I also retired young, and remain completely open to the idea of undertaking a part-time or regular voluntary role at some point, but this will only be if I feel I want some more routine or structure, so only on my terms.

I don’t feel you necessarily need major plans for retirement, there is so much out there, that for many people it’s more about being selective in terms of what and how much you choose to get involved with and not overcommitting. 

Are you happy to run through your figures? Your target income and accumulated pots would be helpful. I appreciate you mentioned you’ve run your figures through spreadsheets etc, but I found it very helpful to have someone else sense check. There are plenty of people on here who would be happy to take a look.
Bearing in mind your ages, a couple of things worth checking are how you plan to fund the period until you reach your respective State Pension Ages, and your National Insurance records.

Looking forward to hearing more about your bold leap!

Thankyou.  Re figures that's what I've been using timeline and voyant (financial planning tools for).  Happy to give the basics of course;

Me;
DB pension which I'll take early @55 to reduce sequence of return risk - £16k per annum plus £54kish lump sum
DB pension @60 of approx. £3k
SIPP standing at £142k
ISA will be around £35k next June
Full state pension

Partner;
DB pension @60 of approx. £2.5k
DB pension @65 of approx. £6k with £18kish lump sum
AVC pot which will be around £22K (should be able to take with cash free lump sum tax free)
SIPP standing at £228K
ISA will be around £25k next June
Full state pension

Current yearly spending inc. mortgage which runs till my partner is 75 is £51-52K
We estimate this will rise to £53-54k with increase in mortgage rate (have modelled steps in this) in 3 years time
and then drop to about £38k when we are 74 and 75 respectively (have assumed level spend throughout life as have no idea if and when this would drop).

Very happy to take on something part-time at some point if need be but the planning software is suggesting that need is unlikely.

Edited to add:  plan also includes replacements cars (and bikes!!) budgeted separately to that total spend and the total spend has all other budgets in there inc. hols, house maintenance etc.

And edited further to add we have life cover for me - mortgage paid if I pop off early and 50% of DB to partner.

LHW99

50% of DB to partner

Is that civil partner / spouse? Otherwise it may depend on the DB, not all are up to date with non-official partnerships.

nicknameless

LHW99 said:

50% of DB to partner

Is that civil partner / spouse? Otherwise it may depend on the DB, not all are up to date with non-official partnerships.

We plan on marrying next year for simplicity's sake.  I'd pop to the registry office but she wants something else but not in a church lol as we're both atheist and allergic to churches.  Probably in Scotland but that's another thread.

33scott

My target date for leaving is 31 March 2025, so its now less than 6 months away and beginning to feel real.

Sarahspangles

nicknameless said:

I'm a cyclist too - bike replacements every 3 years for £xK (too embarassed to say) in the planning lol!

Laughing at this - since he retired OH has had a net increase of two bikes per year. Buns of steel, mind.