Retire at 51?

badmemory

Also remember that you can add years to your state pension without actually being in employment.

caeler

Thanks @DRS1 @Fink_Nottle @JayRichie I’m starting to realise there is quite a bit in cash. Not sure why. After I repaid the mortgage I just started saving and I worry I don’t understand investing enough to try it! 40% of the cash is in an ISA and I have the cash ready for my 25/26 allowance. 

From March I’m upping my pension contributions which will total £54Kpa inc my employer contribution. I’m not expecting a bonus this year but if I did get one I could still sacrifice as I have unused allowance from the last 3 years. 

@JayRichie I didn’t know about protected rights. I only have two pots, one started in 2004 and the other in 2017 so maybe? I guess I’d have to check with my scheme provider(s). 

@marcon very insightful. Thank you. I think I’m driven by the worry my successful career will stop overnight so save what you can whilst it’s available which helps me ignore my unhappiness (or boredom).  

MEL1981

Hi @caeler I'm in the same position. I would love to retire just after 50 and am pouring in what I can to the pension and then building savings to bridge from retirement to taking the private pension.

I'm investing my ISAs in stocks and shares through roboadvisors (nutmeg, Moneyfarm etc). I realise they charge a fee but for me I like the security of them managing it in ETFs etc. 

Good luck!

Triumph13

I'm with Marcon on trying to sort things out so that you are happier now, but apart from that you are more than on course for 51.
Even without any investment growth you are on course for £700k + in the pension when you can access it at 58. Drawdown at 3% with 25% tax free gives you your £20k pa post tax. State pension is a bonus on top of that.
You need £140k of non pension savings to give you £20k pa from 51 to pension access and you already have more than that with plans to save more.
I'd say you need to plan for an earlier retirement or a higher spend:)

SouthCoastBoy

Marcon said:

caeler said:

II just mean my job is hard and stressful and I can’t see me managing it long term. 

I’m not convinced I will actually retire at 51 but I think it will enable me to leave my current job and/or full time working. Maybe work part time or self employed or even volunteering. I need people and structure so I’ll need something to do. I crave less pressure and stress. 

It seems a real shame that you are struggling so much with your current job that you might want to retire after what is likely to be little more than 30 years in the workplace, with a potential 50 years in retirement (plenty of people hitting their century!). You've got the insight to recognise that you need people and structure, and quitting so young might mean you find yourself short on both.

Instead of apparently focussing so heavily on retiring, isn't there anything you could do now to reduce both the pressure and the stress you are obviously finding difficult to cope with?

Just to put into context about plenty of people hitting their century, using the ons calculator the chance of a 43 year old male getting to a hundred is currently given as 4.6% so the vast majority won't, I feel sometimes we are encouraged to save/plan for events that most probably won't happen which may impact decisions about retiring, it certainly has me. So much so I have decided I won't retire, until on my plan, I have at least 1million in today's money when I reach 100, ridiculous isn't it, but its the just in case scenario which totally contradicts what I have just written.

Also I imagine a lot of 100 year olds are in care homes, ive no evidence to support this, so if you are single and a home owner the home could be used to help cover care costs.

artyboy

No specific advice beyond what has already been provided, other than to say that 51 is a darn good age to 'retire'! The most important thing is to have both the financial plan, and the plan of what you are going to do.

It sounds like the OP is pretty well set.

kempiejon

caeler said:
I’m aiming to have an income of £20k pa in retirement. The first 6 years (age 51-57) at £20k pa funded with cash, then the next 11 years (age 57-68) at £20k pa funded using cash and pension and finally 17 years (age 68-85) topping up state pension by £8.5k pa funded by cash and pension. No idea how long I’ll live but that’s where I’ve guessed at. Plus a few extra quid tucked away for a rainy day (holidays, house repairs, car, etc) 

I think I need £700k. Is this plan sound? What have I missed in terms of financial planning? 

I’m not convinced I will actually retire at 51 but I think it will enable me to leave my current job and/or full time working. Maybe work part time or self employed or even volunteering. I need people and structure so I’ll need something to do. I crave less pressure and stress. 

FU money. I chose a mix that included some income producing assets and spent a few years living off my investment income, supplementing with my wages, saving the balance, not harvesting unsheltered capital. When my investments were enough to fund a subsistance basic living standard I realised I didn't have to stick at any job if it was unpleasant. Setting a capital amount, your £700k and its increasing value is another metric, I like seeing the income match my expenditure. 
Retirement isn't the only exit that financial independance could bring as it takes the wage pressue and stress away. 

penners324

Any debt? Including mortgage?

Don't you need a holiday?

caeler

penners324 said:

Any debt? Including mortgage?

Don't you need a holiday?

 No debt, no mortgage it has been repaid and my number includes holidays. 

caeler

A few of you have mentioned capital that gets an income. Thanks @kempiejon @DRS1  I hadn’t thought about that before. I’ll have a think about that.