Should I retire - help me debate

MetaPhysical

Brenster said:

Just do it, why not.
The only issue i see is going from quite a regimented structure to no structure, so you may wish to pre plan your newly found free time, or alternatively reduce to part time hours for an interim period.
But the main thing is to Enjoy it ! None of are guaranteed our health or tomorrow !

Agreed.  it is a nice position to be in.

I must admit I am not fully certain exactly how I will fill up 5 days per week and I need to feel my way a bit.  I have some ideas; more regular group cycling which I struggle to do with work, group walking in the dales, holidays as and when we want, return to golf and sailing, more piano and guitar practise, I can work on my website more.  As I say, a nice problem to have.

lisyloo

ali_bear said:

Pick a date and go for it. Or request a gradual retirement by reducing days worked each week over a set period. Sounds like you have plenty to keep you occupied. 

But is there a chance you would change your mind and go back into work? 

I think it’s very unlikely. DH is retired and it restricts things we want to do.

HedgehogRulez

lisyloo said:

ali_bear said:

Pick a date and go for it. Or request a gradual retirement by reducing days worked each week over a set period. Sounds like you have plenty to keep you occupied. 

But is there a chance you would change your mind and go back into work? 

I think it’s very unlikely. DH is retired and it restricts things we want to do.

If DH restricts things you want to do: time to reconsider that relationship. Divorce in early retirement is always interesting!

ali_bear

I think she means that working restricts things they can do? But I could be wrong 

Mr_Benn

Just go for it.  What you have to remember is your not signing a contract that means you cant ever go back to work.  If it doesnt work out Im sure you can always find another job doing something you may enjoy more. 

grassmarket

Reckon there’s a lot reading this who would envy your financial security & can’t understand why you’d even need to ask the question! No one I know who retired early ever regretted it. All those who worried they’d need a 2nd job never did. 

That’s assuming people have made reasonable provisions & don’t feel defined by their job, of course.

Suzycoll

lisyloo said:

Would appreciate some thoughts on my thinking.

I’m 57 in good health, married, no kids.
DH is financially independent.
my job is ok but there are things I’d rather be doing (and some like spending time with my 80 year old mum who won’t be around forever).
I’m disincentivised to pay 40% tax in retirement so feel I’m getting close to “too much” money. Some might say there is no much thing, but we’re not here for long.

I Don’t care about IHT which is only an issue on second death (and I think IHt changes may get repealed anyway).
I have more than I need in my SIPP (by about 26% compared to my “extravagant” budget) plus some other savings/investments.

We’ve had historical 7% returns after fees, so I plan 4% drawdown (no need for anything left).
A 5.1 annuity rate was suggested by my IFA in January (I’m checking what the current figure is).
I’m tempted to go 50% annuity as it seems very attractive especially when equities are “toppy” and annuity rates are high. That would still leave me with flexibility on the drawdown.

I’m expecting a bonus in December from my employer and we are currently using the company health insurance.

I pay basic rate tax as I salary sacrifice to my SIPP so I don’t think the tax year makes any difference.
winter may not be an ideal time to retire ???

Is there anything I’ve forgotten about?

Great post 

I can't help you on any financials

My opinion is retire AS SOON as you are able too 

Work is vastly overrated 🙂

feynman33

Sounds like you've really got your s**t in order. Congrats, enjoy your retirement! 

Shimrod

lisyloo said:

Would appreciate some thoughts on my thinking.

I’m expecting a bonus in December from my employer and we are currently using the company health insurance.

I pay basic rate tax as I salary sacrifice to my SIPP so I don’t think the tax year makes any difference.
winter may not be an ideal time to retire ???

Is there anything I’ve forgotten about?

It seems to me the question is more what is stopping you retiring. It can feel quite uncertain and certainly unnerving (not mentioning names but one poster on this forum seems to struggle with this jump despite having more than enough for retirement).

As others have said retirement does not need to be permanent. I finished work the first time back in 2021, but after a break realised I wasn't quite ready. I took another job about six months later and enjoyed that for 2.5 years. I'm about to go back to work for a third and definitely final time. This time around I'd have been quite happy staying retired, but a friend asked for a bit of help at his company, and so it's a hassle free way to get a bit of hassle free fun money.

As for when to retire, I left winter last year which I initially thought was a bad choice, but the poor weather forced me to take some downtime and I hadn't realised how tired I was.

First time around, we went in a holiday four days after finishing and it was exhausting. Definitely give yourself some breathing space after finishing. Best bit about retirement is turning off the alarm clock!