Should I retire - help me debate

lisyloo

Shimrod said:

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!

The main reason for not retiring is concern about running out of money - I could live 30 years, more if I’m really unlucky (yea I did mean that)

going back to my current profession wouldn’t be easy after a break. In IT it’s super important to keep up to date, it’s quite competitive at the moment and it will be a challenge to convince anyone I’m enthusiastic which is something employers want.
i could go for something else but will be on a lower salary so I’d rather do a little more now than 3 times as much later on.
so not impossible but I’d say probably undesireable.
its much easier for me to earn good money now and also my pension is earning more than me !
If I delay 1 month then I benefit doubly from putting in AND not withdrawing, so it’s peak earning time.
its just judging it correctly bearing in mind tomorrow isn’t promised and even healthy people can seriously ill quite suddenly.

jackieblack

As someone who's lost both parents in the last 16 months, 8 1/2 months apart, my thinking is that you can always get more money, if necessary (but from what you've said you're in a good position) but you can never get time back

Tomorrow is never guaranteed for anyone

I have a friend whose Dad did the 'one more year' thing for a few years and then died on his way home from his retirement 'do' - they never got to do the things they'd planned to do after retirement

If you have 'enough' - do it
And with regard to whether winter is a good tome to retire, just imagine not having to get up and out on dark, cold frosty/icy mornings while workers are scraping ice off their cars or battling with heavy sleet/rain on their way to their public transport

Albermarle

lisyloo said:

Shimrod said:

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!

The main reason for not retiring is concern about running out of money - I could live 30 years, more if I’m really unlucky (yea I did mean that)

going back to my current profession wouldn’t be easy after a break. In IT it’s super important to keep up to date, it’s quite competitive at the moment and it will be a challenge to convince anyone I’m enthusiastic which is something employers want.
i could go for something else but will be on a lower salary so I’d rather do a little more now than 3 times as much later on.
so not impossible but I’d say probably undesireable.
its much easier for me to earn good money now and also my pension is earning more than me !
If I delay 1 month then I benefit doubly from putting in AND not withdrawing, so it’s peak earning time.
its just judging it correctly bearing in mind tomorrow isn’t promised and even healthy people can seriously ill quite suddenly.

This was my thinking before I retired.
I was earning good money, adding to my pension from savings as well as monthly contributions, all with 40% tax relief. So I was wary about stopping that nice income coming in, and as you say the longer you work, the later you need to start taking from the pension. A double benefit as I saw it.
The end result is I have ended up with more than I need ( a common problem on this forum !) which could be worse.
So with hindsight, and maybe better planning, I could have retired maybe 3? years earlier without any significant impact on retirement income or financial security ( and less worry about how much IHT I might pay !)
On the other hand due to Covid, I had most part of a year 'working' from home, and I would have missed a rather unique period in my job from late 2020 into 2021 caused by post Covid material shortages/supply chain issues.
So no regrets really that I did not go earlier. For some reason 62, seemed the right sort of age.

SouthCoastBoy

I'm about 4 years into one more year syndrome for the reasons you outlined above, it's tricky isn't it!

lisyloo

It’s not so much running out of money, it’s more that I want to be able to
 
get my hair done without worrying
have a massage without worrying
have some physio privately if I want to skip the queue without worrying 
or whatever I want to do without worry

So it’s about peace of mind.

DH retired at the start of a bad time (ukraine war) and worried daily about money not helped by a risk averse IFA.
as a result of this I’ve split my SIpp and have a safer pot that I can switch to if there’s a downturn.

i totally get comments about examples of lives cut short or serious life changing illness (like cancer). My dad had cancer and the regular chemo treatment and resulting shielding is life changing and for some people treatment is ongoing.
however i have to consider the more likely scenario that at 57 I have some healthy years ahead of me.

i am thinking of 9 more months when I’ll be 58, so won’t be doing “just one more year”……… unless there’s a massive stock market issue.

SouthCoastBoy

lisyloo said:

i am thinking of 9 more months when I’ll be 58, so won’t be doing “just one more year”……… unless there’s a massive stock market issue.

if you are having those doubts now there is every possibility the same nagging doubt will exist in 9 months time, it's exactly where I am. Hence not retired yet.

BrilliantButScary

So, from what you have written your husband has been retired 3 years. Is there a large age gap? Have you factored this into your retirement planning, both from the financial aspect and being at different stages in retirement?

I retired a number of years after my husband, this limited our opportunities, as regards holidays and getting projects completed on the house together. My husband doesn't miss defrosting the car on cold Winter mornings for me!

Saying goodbye to a long career and the benefits (and challenges) of a working life can be an uneasy period of adjustment.

I'm still in the 'Honeymoon' phase of retirement- 'I'm Free!', after 2 years.

You may find that you have different priorities when you retire, those things that you do now, to 'treat yourself' as you work hard, may not be needed then, or seem less important.

kempiejon

 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. 

Close to "too much money" sounds like enough money to me and "Things I'd rather be doing," rather than going to work I guess?
So you have enough money and something better to do with your time. Either you're nor quite certain of those thoughts or are not ready to stop.

leosayer

There's an acronym that got used a lot when I worked in IT Dev - JFDI.

OP you haven't given any reason to stay working other than earning and saving more however that seems unecessary given you are facing 40% income tax on drawdowns. This tells me you have more than enough to stop work based on any reasonable measure such as the PLSA 'Comfortable' standard. 

The fact that your DH is already retired and financially independent means that you are double comfortable. What is his opinion on you retiring? I discussed this a lot with my DW in recent years and her main requirement was that I don't stop before her. In the end I did but only by a few days at the end of last year.

We don't have one regret even though our investments were stress tested by the market dips earlier this year.

GunJack

Albermarle said:

 For some reason 62, seemed the right sort of age.

That's my planned age to go, clean break, no going back!!