When did you feel financially secure?

Eldi_Dos

QrizB said:

Eldi_Dos said:

Workerdrone said:

 Im just interested to hear from others, was there a point where you looked at your pension pot, looked at your age and thought, you know what, I could tell work to do a running jump if I wanted to now?

That is a dangerous train of thought ... if that attitude shows through.

You say that's though it's a bad thing

Glad it worked out for your colleague and indeed many others who have had similar results.

But for the OP who is looking to be employed gainfully for the next 7 / 10 years it is something to take account of.

MarlowMallard

Eldi_Dos said:

Workerdrone said:

 

Im just interested to hear from others, was there a point where you looked at your pension pot, looked at your age and thought, you know what, I could tell work to do a running jump if I wanted to now?

That is a dangerous train of thought for someone of your age who expects to be in gainful employment for the foreseeable.
It is not that unusual for guys, and it is predominately guys, in their fifties who have been in position for a good few years to find themselves under the tutelage of a younger manager who has a brief to change things.Not always a receipe for success and it is surprising how many find themselves cut adrift when any restructuring is carried out if that attitude shows through.

Depends where you are in your 50s though.  At 52 with talk of redundancies I was pretty nervous, but at 58 having seen a couple of colleagues drop dead, I'd have grabbed the £80k redundancy payout and gone, had it been offered.  (Didn't actually happen, dropped to 2 days a week at 60 ). 

cfw1994

It is an interesting point.
Perhaps the question could be phrased: “do you feel financially insecure?”

Aside from my childhood, when my mum said money just slipped through my fingers (first job aged 10….all the Saturday wages - £3, iirc - frittered away in the arcade machines!), I don’t think I have ever “worried” about money.  

Take time to understand it, borrow when needed, & perhaps been fortunate to have never been laid off, despite a career in tech, where RIFs (“reduction in force”) was almost a bi-annual thing.  Live a good life, grow your friendship group, enjoy cost effective fun (camping, walking, cycling).  Lawks, this is a well-being rant 😂

QrizB said:

Eldi_Dos said:

Workerdrone said:

 Im just interested to hear from others, was there a point where you looked at your pension pot, looked at your age and thought, you know what, I could tell work to do a running jump if I wanted to now?

That is a dangerous train of thought ... if that attitude shows through.

You say that's though it's a bad thing

I had a colleague in his mid-50s who was really not happy at work but hadn't realised that he could afford to retire. Over a period of weeks we discussed his pensions and wider financial position and he realised he genuinely could tell them where to stick their job.

I met up with him again recently (about 5 years on) and it's all working out. He's a much happier person and his wife's retired too.

It is a powerful thing when you realise you can jump ship.  

My moment was around 18 months before I did step away, but that was because Covid made it faintly pointless to retire 🤷‍♂️

Watch a bit of James Shack on YouTube….how many summers, etc….or (as I did) attend 4 funerals in 13 months aged about 50: two pals my age, it makes you realise that taking the leap into an unemployable role makes a lot of sense 😳   Certainly focussed me.

JoeCrystal

Workerdrone said:

Ok so I'm 49. Recently had an unexpected windfall and paid off the mortgage. I thought I would feel different, but nothing. I have probably about 7-10 years left at work. I don't really enjoy my job but it's secure and trying to match my current wage at nearly 50 is unlikely. Pension currently growing nicely with about 400k in it. Some money in ISA's and savings, (not massive, probably around 50k). The wife and myself are just below the 40% tax bracket and intend to stay there. 

Im just interested to hear from others, was there a point where you looked at your pension pot, looked at your age and thought, you know what, I could tell work to do a running jump if I wanted to now?

No. As someone who will be forty years old next year, I don't feel financially secure. Every time I look at the pension pot, I think I could do with a bit of this cash to clear my debts! Indeed, I never felt so financially insecure! 

leosayer

I felt insecure during the 2008 financial crisis when I had a combination of (relatively) large mortgage, an ISA invested in 100% equity, share options in my employer (UBS), in a job that suddenly felt quite precarious.

However I don't think I had a real grasp of financial security or independence  as a concept. Instead I just lurched from one target to the next such as saving for a house deposit, paying the mortgage, paying off the mortgage, saving for retirement etc.

Now that I am retired and financially secure I can sum up what my definition of financial secure as the following:

• Not needing to work for money
• Guaranteed income with inflation protection (eg. DB / State / Annuity) that covers all my basic living expenses eg. groceries, council tax, utilities, insurance, home maintenance
• A fully owned property
• No debt other than what might be required for tactical reasons
• Having a deep understanding of all aspects of personal finance
• Unexpected expenses (boiler replacement etc.) don't cause any stress

Looking back, my wife and I probably reached that level 5 years ago but we kept working for another 4 years which took us from 'secure' to comfortable'.
I suppose it can best be characterised as level 6 on the chart below, however everyone will differ depending on the stage of life they are in. 

https://www.cnbc.com/2022/05/10/the-7-levels-of-financial-freedom-according-to-a-millionaire-50percent-of-us-workers-are-at-level-2.html

QrizB

That's an interesting chart.

In my case I was probably at level 3 in 1994, 4 before 2000, but didn't reach 5 until ~2020 and the final years of my mortgage. Now close to 6 - which is handy, as I'm hoping to retire in the next couple of years!

ali_bear

I reached level 5 twenty years ago   

I'd like to see a similar graphic displaying the seven levels of financial servitude .. 

Cobbler_tone

I’m in quite a fortunate but tricky stage. My OH retires next year at 54 due to a severance offer. I’ll be 57. She is ready to finish working. The financial situation is pretty clear cut and we have secured the guaranteed income we comfortably live off today for life. I don’t love/hate my job and with a new dog have a simple life. We have no fancy plans and are doing the big projects on the house this year. We do plenty of UK breaks. I could go to 3 days but after suffering with back issues from a young age should probably call it a day. Work could not be less stressful but I’ve kind of run out of ideas after a successful career and it’s more routine than being fulfilling. I guess my concern is missing that routine and filling the days outside of three dog walks a day. I’m sure it’s something millions wrestle with.
I’m hoping for that clarity next summer.

Johnnyboy11

Bostonerimus1 said:

BridgetTheCat said:

DB pensions help a lot.

I think I felt totally secure when my DB pension started paying out, but it came in phases. Paying off the mortgage was a big event and then realizing that I had enough DB, annuity and rental income to easily cover my expenses and "FU" amounts of money in DC and general investments.

FU money, from The Gambler, 2014? Sound advice given by Frank to Jim, IMHO.

GazzaBloom

I started to feel financially secure when I became completely debt free and my cashflow projections on my own spreadsheet, FiCalc and Timeline all aligned and showed 100% success rate when back tested against the worst case historical data, with the retirement date I had chosen.

That's when I gave my employer 12 months notice and felt the power shift from employer to employee.