Can I quit work yet?

NorthernMonkey1

Hi there, 

I'm thinking of quitting work, it bores me silly, I'd just like someone to check my numbers before I go for it.

Im almost 45 (or will be by the time i serve my 3 months notice) and live with my long term partner who is the same age. We have 2 kids, age 1 and 3. My partner works 2 days a week. 

I currently earn £87k, of which I pay 40%+10% EC into a pension. My pension stands at 517k, plus 17k in another older pension. I can draw on the larger pension at 55.  I have 2 Isas, the first with 20k, the second with 197k, and I have 25k in cash. I have no other savings. I have a work save and share scheme which is due to pay out on the 1st August, to the tune of about 15k

Have a small 3 bed semi in the north, which has no mortgage, all my debts/liabilities are in 2 cars The first, a nissan leaf EV, which is 24mo into a 36mo PCP, with a 13k balloon payment, the second is another EV leased through a work EV scheme, which costs me £640 a month, (£390 after tax) and this is only 8mo into a 36mo term

My expenses are £1600 a month, excluding the work lease EV as this comes off gross. 

I think I can quit work effective the 2nd August and live off my savings until I 'retire' at 55. 

Based on these numbers, I think this is possible, does anyone think this is a terrible plan?

43722

I do. Two young children will be costly for the next 20 years.

MorningcoffeeIV

Me too.

A modest amount of savings to last you a decade with a growing family and a bunch of debt - bonkers.

JoeCrystal

I am sorry if your work bores you so. There are always other different jobs that may interest you at a much lower salary—the other thing to bear in mind is that it might as well affect your relationship with your partner if you are now around 100% of the time plus maintaining the same expenses (and much higher living and holiday costs as well as you will have a lot more free time). Inflation is going to devalue your savings over the next 20 years.

And that is even before we take the cost of children and other factors into account as well!

FIREDreamer

No chance, not with those figures, too tight for comfort.

I have more than that and am only just coming up to retirement at 60 - never earned as much as £87k either - try another 5 years and it might be doable if you get close to maximising your pension and the tailwinds being favourable.

FrankRizzo

You have £257,000 in cash = £25,700 per year, until 55 - the kids will consume a lot of that, so its tight,  personally I would try and make it work due to the benefits of not having to work - do you think it will be do able?

How much does your partner make a month?

Emmia

If your job bores you, I'd think about finding another that you find more interesting and stimulating.

Perhaps take a couple of years as a career break to study for a different profession (you have the savings for that).

Early retirement means you've got more time to fill, but you don't have the money for extensive travel - and walking round the park daily will get dull after a few weeks.

Bobinyorkshire

Wow, not even got to the really expensive bit with kids yet. You’ve done well to have so much savings at your age and you could have some great holidays with the kids in the future 

dunstonh

I currently earn £87k, of which I pay 40%+10% EC into a pension. My pension stands at 517k, plus 17k in another older pension. I can draw on the larger pension at 55. 

Have you had it confirmed that it has a protected scheme age of 55?  If not, you are looking at 57/58

Based on these numbers, I think this is possible, does anyone think this is a terrible plan?

Those numbers don't have a chance of working unless you are planning to move your spending closer to the breadline.      You probably need another 5 years.

VXman

FrankRizzo said:

You have £257,000 in cash = £25,700 per year, until 55 - the kids will consume a lot of that, so its tight,  personally I would try and make it work due to the benefits of not having to work - do you think it will be do able?

How much does your partner make a month?

I brought up 2 kids successfully and it didn't cost anywhere near 'al lot' of 25K. Would have been broke if it had.

When it comes down to it, it is about lifestyle. the OP doesn't have a mortgage. That's the biggest part of most families out goings.

If that is the only income in the house it will be tight but be aware there will be no tax payable on that, no pension contributions, no National insurance, - plus no mortgage - that is the bulk of most peoples monthly outgoings.

OP would need to jack the cars in but you could by a perfectly reliable car outright for £5000. 

Is there a need to 2 cars. Who does the childcare? That might be a saving?

Probably be better to find a job, even part time, that might bring in some income. Keep it below £12570 and no tax to pay either.

Careful looking round at ISA's could mean getting interest that keeps up with inflation.

There are still a few unknowns here but it's doable but would probably mean quite frugal lifestyle.

If the only problem with the current job is boredom I'd look for a job that was less boring - what ever the salary. Personally I could cope with boredom for 87K a year.

Grumpy_chap

NorthernMonkey1 said:

Hi there, 

I'm thinking of quitting work, it bores me silly, I'd just like someone to check my numbers before I go for it.

Im almost 45 (or will be by the time i serve my 3 months notice) and live with my long term partner who is the same age. We have 2 kids, age 1 and 3. My partner works 2 days a week. 

I currently earn £87k, of which I pay 40%+10% EC into a pension. My pension stands at 517k, plus 17k in another older pension. I can draw on the larger pension at 55.  I have 2 Isas, the first with 20k, the second with 197k, and I have 25k in cash. I have no other savings. I have a work save and share scheme which is due to pay out on the 1st August, to the tune of about 15k

Have a small 3 bed semi in the north, which has no mortgage, all my debts/liabilities are in 2 cars The first, a nissan leaf EV, which is 24mo into a 36mo PCP, with a 13k balloon payment, the second is another EV leased through a work EV scheme, which costs me £640 a month, (£390 after tax) and this is only 8mo into a 36mo term

My expenses are £1600 a month, excluding the work lease EV as this comes off gross. 

I think I can quit work effective the 2nd August and live off my savings until I 'retire' at 55. 

Based on these numbers, I think this is possible, does anyone think this is a terrible plan?

How much will you need to fund the children through university in 15-odd years time?