High risk, high reward: A pauper's dream of early retirement.

QrizB

Of course, I'm 49, and would like to retire by 55 at the latest.

I think you're well on track to achieve 55.

kempiejon

Of course, I'm 49, and would like to retire by 55 at the latest. I am very flexible on when I retire, and how much I drawdown once retired. I can live on £12k no problem, but am aiming for 16k+. I am willing to change spending habits on the fly if need be.

@barnstar2077 I made a 15 year plan in my mid 30s to be out of the permanent employment treadmill in my 50s. Like you I could live on less than an average salary in retirement. Whcih of course meant I could live on that with an above average salary in employment. I guess that's relevant, I sacrificed quite a lot early in the plan to fill ISAs and GIA and I'm pleasantly surprised to see I'm on track to well exceed my employment income in retirement.

With any employment income the nearer one gets to SIPP access time the more attractive popping all your income in to a SIPP and spending your other assets becomes.

HedgehogRulez

I also hit a milestone this last couple of weeks:

officially a millionaire, I guess! (though can’t access it for 12 years 🤣)

QrizB

Congratulations @HedgehogRulez !

barnstar2077

https://forums.moneysavingexpert.com/discussion/comment/81992786#Comment_81992786

Wow, congratulations mate!

barnstar2077

https://forums.moneysavingexpert.com/discussion/comment/81992684#Comment_81992684

I have been living on two thirds of my salary for years now, and investing the rest. So, in the most simplistic terms, every two months I gain a month of freedom.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81992786#Comment_81992786

Only a Million, I think you are on the wrong forum 😁

cfw1994

https://forums.moneysavingexpert.com/discussion/comment/81992786#Comment_81992786

Congrats!

12 years from accessing it?

Obviously I don’t know your situation, but I would be only putting in enough for matched contributions now, and stuffing ISAs hard - they are the “easy access” cash that can bridge to pension access, or indeed easy access tax-free top-up when you are drawing down.

SpeedSouth

https://forums.moneysavingexpert.com/discussion/comment/81994063#Comment_81994063

We're similar (ish) across our combined pots to Hedgehog and couple of years younger I suspect.

So not to miss out on the 40% relief still plugging all that into the pensions.

ISAs are being pumped as well but not as much as they could be. The one thought I currently have is I'd look to extend my mortgage for the bridge pot. Risky granted but if the pension is larger enough, think it could be a tax efficient route when the time comes.

Put the amount in cash inside the pension to offset it, suck up some percentage point costs that reduce the previous tax relief.

cfw1994

https://forums.moneysavingexpert.com/discussion/comment/81995865#Comment_81995865

That’s fair enough, although I would suggest that if you have massive pension pots by the time you can access them, you may well find you will be paying 40% when you can withdraw.

At least the ISA money should be tax-free on withdrawal, and of course more flexible from an earlier age.

This isn’t a precise science, but I feel that those who have what look like relatively huge pensions building up would find Future-You thanking Today-You for stuffing ISAs to the maximum 🤷‍♂️

#IamNotAnAdvisorJustaHumanwithExperience🤣