More WIRE than FIRE, simplifying, saving and savvy spending

ShyAndRetiring

 HI    

I've been around the boards for years - I learn so much from other MSE-ers and find having a diary truly helps me keep track of what I'm doing £££-wise! However, I neglected my last diary and life has moved on since then, so it seems sensible to start over. 

My overall goal has been to retire early (FIRE - Financial Independence, Retire Early) but illness has always thwarted me. In my 40s I had to quit a suitably well-paid career I loved, which was supporting my FIRE goals. Sadly I became ill with a life-long condition that was not compatible with the role.

Since then, through my 50s, I've managed by taking on freelance and short-term contract employment, to help balance both health and income needs, plus get my NI paid up, as I'll definitely need my state pension 

However, my last two fixed term roles have involved hideous management practices so have been less than ideal for supporting the job, let alone health and well-being. The current role is very poorly paid, considering the workload, flexibility and expectations required, none of which was made clear when I accepted the role (in fact the job description bears no resemblance). Following another flare up of my condition and a new, associated illness which has a prolonged recovery time of its own, I handed in my notice and am due to finish at the end of December, as it's clear my health and well-being have to be a priority now. This seems to be my WIRE light-bulb moment (Well-Being Impact, Retire Early) 

Looking ahead to 2025, I have lots of thoughts about maybe simplifying life so I don't have to seek out another role where I'm trading my health as well as my time for an income. FIRE just isn't going to happen but I need to do what I can to retire-ish, early-ish and safeguard my health and well-being. I'm also very much of the 'sandwich' generation and am a family carer, so taking a step back if possible might support my sanity and availability for my family a bit too!

So, this is where I'm at. I'll come back later to brain-dump my financial thinking! 

ShyAndRetiring

Brain-dump of what I'm thinking for the £££ side of things:

  Short-term: 2025

I'll be 60 in 2026 and will be able to access 2 occupational pensions then, without penalty. Between them, they will pay what I've been earning from my current role. But I have to do the year first!

However, all the time I've been earning, I've also been saving as much as possible (my FIRE-mentality)! So across 2025, I could draw down some of my savings to cover what I would have been earning.

I may also be able to go back to being self-employed and do small projects, working from home, to help income and support mid-mid-term savings, whilst also managing my health and supporting my Older Ones!

  Mid-term: across 2026, 2027, 2028

The occupational pensions + drawing down a smaller amount from the TFLS that will come with each pension, aiming to make the TFLS last 3 years. 

  Long term: 2029, 2030, 2031, 2032

Occupational pensions + access NEST pension funds, probably take the whole lot as last time I spoke to them the amount saved would only give a tiny annual / monthly sum but total falls under 'small pot' allowances. Invest this in as tax-friendly way as possible and drawdown at similar rate to TFLS, again hoping it will last the 4 years.

And beyond

All being well, access State Pension in 2033. Current SP Forecast is that I should get the maximum, so this with the occupational pensions means a careful but comfortable full retirement.

OH is already retired, with occupational pension and state pension. His state pension isn't the max due to the life he had before we met, but it's adequate.

So, the sums aren't huge, but they're adequate for a simple lifestyle which, to be honest, we'd be quite happy with. I've no doubt I'll add a post later on about how living simply might look for us.

The big thing which is a fall-back for us is that we are mortgage-free, thanks to many years with the good people on the MFW boards. Although our place is tiny, it's in an area hugely popular with second homers, so we could downsize back to the less desirable area I was born in   if we needed to release funds.

Although OH and I have discussed all this, I feel calmer for having laid down an outline of how to manage those in-between years if I do step back to help recover myself a bit, so having a diary is already helping.

S&R x

Clowance

Good luck with all you plan. Reading the other threads on this board may help inspire you with healthy eating/home cooking/simple pleasures to enhance your time off. Being self employed as you have done it before sounds like a good plan in your circumstances.

ShyAndRetiring

Clowance said:

Good luck with all you plan. Reading the other threads on this board may help inspire you with healthy eating/home cooking/simple pleasures to enhance your time off. Being self employed as you have done it before sounds like a good plan in your circumstances.

Thank you @Clowance ... the MSE boards and threads are a wealth of inspiration and information, and certainly have supported us in becoming mortgage free.  Appreciate your good luck wishes too, thank you

ShyAndRetiring

 Time away from work is helping to focus me on the finances a little bit, in those moments when the brain fog lifts sufficiently

Productive in a small in-roads kind of way: 

Saving:

• I've logged into a regular saver that has matured (saver 1) - I was ignoring it to be used for emergency purposes only. I also have a 2nd one which matured in October, which I set up thinking it would be timely for Christmas 24. 
• Decided to limit Christmas spends to saver 2 (should be sufficient to enjoy festivities with family and some extras) and will use saver 1 to 'pay my way' for a month in 25, to save me drawing down from my larger SHTF workpot just yet. Feel confident about paying my way till at least March and allow a bit of recovery time.

Savvy spending:

• Purchased OH Xmas present with a stacked deal - reduced price plus 20% off deal for today only, so happy about that, as it's something he'll like and won't expect.

Simple pleasures:

• Trying to get back into reading but illness means concentration is shot. Am enjoying having time to just watch the birds visit garden feeder though - we appear to have a Coal Tit as a regular visitor!
• Hot water bottle!
• Starting a notebook of random lists, so I have a plan for later on.

S&R x

Humboldt

Hello @ShyAndRetiring so lovely of you to join us over here on the Over 50's Money Saving thread.

I too found myself in a similar situation to yourself.  Whilst I am still adjusting to this next chapter in my life, I am slowly developing a sense of new found freedom. Like you, over many years I have also sought advice and information from others on the various forums, and the skills and knowledge that I have developed continue to serve me well.

I love your simple pleasures.  Who doesn't love a hot water bottle these days! Great quote too.

I look forward to reading your updates and wish you well.  

ShyAndRetiring

@Humboldt thank you for the lovely welcome and kind comments. I’m enjoying having something to focus on rather than being anxious about work and finances and recording my plans and ponderings definitely helps. It’s also useful for checking back.

I’ve subscribed to your thread and will go back and read from the start as it sounds like your similar experience will make useful and very relevant reading. Thanks for stopping by, S&R x

louby40

Hi, nice to read your plans for retirement. I enjoy reading how people are going to manage their lives.

i think my main issue will be not focusing on saving as much. I'm retiring from teaching next year on a pension of about £18k,I'll be 56. I'm planning on getting a part time job for a few years too. 

Ive also got a SIPP that I'm drip feeding money into. My thoughts are to totally retire at 61-62 (depending on the job I get & my health)  and use my SIPP and any other savings to bridge the gap between retiring and getting my state pension. 

ShyAndRetiring

 Thanks @[Deleted User] and @louby40 for stopping by, good to hear your thoughts and your own situations in relation to stepping off the treadmill. 

Sounds like you paced yourself into retirement well Lord Mattenly and I’m pleased it’s working out well   

Ans you’re now counting months rather than years Louby40, that’s exciting! Good luck with the planning … being open to part time work is a good contingency, I think   

.

ShyAndRetiring

As @[Deleted User] kindly suggested, I’ll start off today with a few numbers, as it makes sense to share what I mean by ‘comfortable’. I’ve lurked on the How Much to Live On thread for a long while now, along with The Number thread in the pensions forum so I’m very aware that ‘comfortable’ is subjective.   I also know that what OH and I require for a lifestyle we’re comfortable with is nothing like the Retirement Living Standards definition of comfortable.

 Short-term: 2025 - a stretched year!

Without my wages but supplementing through my SHTF savings our income will be £18k net approx. This is doable for us (the budget is drawn up) and is probably at the hey-it’s-only-for-a-year end of comfortable! 

However we value the time way more than the fiscal benefits vs cost of stress and health impact from the job I’m leaving, so I’m confident we’ll gain more in other ways. As mentioned, when my health improves I’ll hope to boost our income with small freelance projects, working from home.

   Mid & long across 2026 - 2032

Once I’m accessing occupational pensions + drawing down a smaller amount from the TFLS and then accessing NEST later on, we’ll be on a much more comfortable £24k net approx.

The great thing about this is we’ll have more flexibility (and fun) in the budget BUT if we need a money-saving couple of months, we can drop back to the 2025 budget without too much hassle. Obviously the cost of living will affect this too, but I always run two budget options - preferred budget and a bare bones (contingency) budget which I review every 6 months, so we’ll always have a frugal fall-back if we need it.

  Beyond

Once we have both State Pensions and as well as occupational pensions, we should have approx £28k net.

In the background for our future finances we also have a fairly healthy emergency fund and, as we’re thankfully mortgage-free, we have the capacity to sell up and downsize to free up additional funds.

Importantly also, we’ve run the numbers so that if something happens to either of us sooner or later, the other will have enough to live on, again in a way that’s comfortable for us on a lower income.

I'll leave this post as-is, so I can refer back to it. 

S&R x

ShyAndRetiring

And so to today …

Savvy Spending:

• A couple of Xmas presents bought online, budgeted for in Xmas pot. Had to pay postage for one which is annoying and not exactly savvy spending, but I can’t really go shopping at the mo. Counting that one as stress-free rather than savvy! 
• Payday pot shuffle and bills paid, all within budget.

Saving

• Small win on Premium Bonds (part of our emergency fund held in PB) so this has been reinvested, easy boost to fund, happy with that!

Sorting

• Organising some MSE-options for entertaining family over Xmas.
• Revived my old Prolific account, had more £££ in there than I remembered so jumped onto a few surveys. Used to do well with this and now up to £16 so hope to get to £20 by end of next week to cash out before Xmas.

Simple pleasures 

• OH took dog for long walk this morning but I managed to tag along for shorter walk around nearby field this pm. I’ve not been out for several weeks due to illness so it was great to be out in the fresh air! And it was very fresh! 😊
• Fab female Kestrel hunting in field, wonderful to watch.
• Roast garlic hot from the oven - and the fact it’s only us indoors and we both like to eat it, so not too antisocial! 

Hope everyone has had a good day, S&R x