Retiring at 50?

MEL1981

I'm in the position where I can easily see myself retired at 50 (will be 44 this year and partner similar). Not through ill health but moreso just to get out of the rat race, give myself the freedom to choose what I want to do and when I want to do it. Has anyone else chosen through their own accord to bow out around this age? I hear allot of "but you'll get bored, you still have a good X years of work in you etc". I'm contempt dossing about doing my own thing!

Between us we have just over £1MM pension, £180k shares (ETFs ISAs etc) and in cash accounts approx £570k (feels like cash weighting is too high). Both earn around the same and still building the savings and plan to do so for another 7 years to max out yearly ISAs and lump into pension etc. couple rental properties bring in approx £1400/month also.

Has anyone been on a similar journey? Am I mad to contemplate this with current finances? Feel very fortunate to even be considering retiring early and who knows what the next few years bring regards to wealth and health but this is a snapshot of the current status and feelings. 

Mel

theblueflash

I think the consensus tends to be, if you can do it, do it! 

On immediate reading, you have done brilliantly well with your partner to be in that position, however, just like those thinking of retiring early on much less amounts - financially it depends what you envisage your spending requirements to be, simple as that. If you have thought about future budgeting and have a realistic view on life expectancy, legacy, care etc and have modelled it on your own risk profile - then you can fling the briefcase in the skip and head for a pint! (Name the advert ;-) ) 

kempiejon

With financial independence comes the freedom to do as you wish with your time. There's not much better than that. So what's so special about hanging on till 50? Have you done a lot of planning to convince the plan is viable.
I'd concur about holding more equities, less cash. unless it's earmarked for a specific job but that's individual biases.

Kernowshep

If I were in your position I think I'd be gone now, assuming you have a mortgage free house that meets your needs.

The key factor for you is how much will you want to spend in retirement/how much do you spend now (and yes that looks like a lot to have in cash).

You could consider reducing hours or doing something else lower paid but less in the rate race.

MEL1981

kempiejon said:

With financial independence comes the freedom to do as you wish with your time. There's not much better than that. So what's so special about hanging on till 50? Have you done a lot of planning to convince the plan is viable.
I'd concur about holding more equities, less cash. unless it's earmarked for a specific job but that's individual biases.

Thanks! Maybe it's the psychology of turning 50, anything less just doesn't sit right with me for some odd reason? Also younger kids so need to keep in the grind until they are mid teens! 

artyboy

There's quite a few of these threads popping up at the moment, and I can only reiterate that as a 'sort of/almost' retired 51 year old, I'm regretting nothing.

If you have the wherewithal and a plan of action, why spend another year making someone else's business richer...

Bostonerimus1

I retired at 52 and was having a perfectly happy time until an old colleague asked me to do some part time consulting. Seriously I could have continued as I was, but doing a few hours a week to help him out hardly seems like work and the vast majority of my earnings goes into a self employed DC pension plan. The key difference between what I do now and my past work is I have zero pressure and can stop whenever I like without any consequences. However, I might be a bit more nervous about retiring early with a DC pension now than I was a decade ago and I'm happy I have low outgoings and DB pensions and rent for income.

KeiserSoze

I'm in a similar position with quite a bit less financially (I posted my financial details in a post earlier today), am semi retired and looking to fully retire by 54, in a couple of years. I won't offer thoughts on the money side as there are people here much better informed than myself, but a few thoughts on retiring early. 

My biggest concern was the additional time I'd have and I cannot recommend enough to go part time first if that's a viable option. Cut your hours to a three then two day week nearer the time, that way you ease yourself into retirement rather than it be a sudden stop. 

Then I planned ahead re free time. It sounds great at first being able to do what you like when you like, and certainly easier as part of a couple I'd have thought. But you don't want to live in each other's pocket 24/7. 

I already have hobbies so it was a case of expanding on them and adding a couple more. The biggest help was volunteering which I do a couple of days a week in a local charity shop. Bizarrely, I enjoy (and look forward to) my days there where I get zero pay, compared to my previous job that I got a decent wage for. 

There's something very zen about working in a charity shop; it's not like 'normal' retail,  customers are more laid back, more chatty and in less of a rush. There's a ton of volunteering opportunities in pretty much most sectors.

And finally, absolutely retire at 50 if you can unless you actively enjoy your work. At that age you still have at least a couple of active decades ahead of you 

Bostonerimus1

KeiserSoze said:

I'm in a similar position with quite a bit less financially (I posted my financial details in a post earlier today), am semi retired and looking to fully retire by 54, in a couple of years. I won't offer thoughts on the money side as there are people here much better informed than myself, but a few thoughts on retiring early. 

My biggest concern was the additional time I'd have and I cannot recommend enough to go part time first if that's a viable option. Cut your hours to a three then two day week nearer the time, that way you ease yourself into retirement rather than it be a sudden stop. 

Then I planned ahead re free time. It sounds great at first being able to do what you like when you like, and certainly easier as part of a couple I'd have thought. But you don't want to live in each other's pocket 24/7. 

I already have hobbies so it was a case of expanding on them and adding a couple more. The biggest help was volunteering which I do a couple of days a week in a local charity shop. Bizarrely, I enjoy (and look forward to) my days there where I get zero pay, compared to my previous job that I got a decent wage for. 

There's something very zen about working in a charity shop; it's not like 'normal' retail,  customers are more laid back, more chatty and in less of a rush. There's a ton of volunteering opportunities in pretty much most sectors.

And finally, absolutely retire at 50 if you can unless you actively enjoy your work. At that age you still have at least a couple of active decades ahead of you 

Hobbies and friends are very important whether you have a partner or are single. 

Smudgeismydog

I retired ant the end of June last year at 50 and have absolutely no regrets.

It has helped that my partner retired at the same time, and we moved to a house needing work. We started volunteering with a local landscape group who run monthly activities, and I’ve also made a concerted effort to meet up with friends regularly. 

I do receive a dependents pension which provides a baseline level of security, but you may find the move from accumulation to decumulation psychologically challenging, particularly as you can’t access your pension for a few years. 

If you can do it, then I would thoroughly recommend it.

Cobbler_tone

Smudgeismydog said:

but you may find the move from accumulation to decumulation psychologically challenging

That is exactly what we are wrestling with. A joint income of £120k a year will drop to £35k (in our 50's) but we would be absolutely fine and comfortable. It must be extremely natural and something most people experience.
My mother-in-law recently passed away and despite never earning much and only getting about £90 a week in state pension she managed to leave over £100k. We had no idea and she must have saved all her life.

It is so easy to do "one more month/year". My partner is taking voluntary redundancy next summer at 53, so that is one part of the equation. I just need a few bad weeks at work and that'll probably be enough for me to pull the trigger.