Semi retirement at 46

Mr_EDATD

Hi

It has been just over 7 years since I posted on here with my plan to retire at 50. A lot has happened since then, the most dramatic was me having a cardiac arrest at the age of 39 in 2020 (not sure what caused it but I was with people that knew cpr and was incredibly lucky to survive), we have moved house to one worth double what our previous one was worth (c£560k) and I am in the process of taking voluntary redundancy. I'm fully fit and have a handy defib implanted in case my heart decides it needs a rest again but I now value time with family and friends more than ever so the opportunity for VR was too good to miss (plus the culture at work has become very toxic).

The redundancy money comes through just before the mortgage deal is up and with what is left after tax, plus the savings / investments that we have built up, we will be mortgage free and have c£250k in the bank.

We currently have our savings in a mixture of S&S ISAs, fixed rate ISAs and premium bonds.....we have been generating interest / growth at about £14k a year and i don't factor that into income calculations (it isn't guaranteed and i don't factor in cost inflation either)

I have got a job lined up for 3 days a week on a lot less money, but should be a lot less stress, plus ill have a lot more time to do the things I enjoy - although the list of jobs thay my other half has asigned to me is ever growing.

My take-home pay will go down from £5.5k to £2.3k per month, proportionately a much smaller drop than the reduction in total salary because i will be paying so much less tax 😁. Based on our current living expenses plus my wife's salary we should both be able to fully retire in 5 years with enough in savings to last us the 7 years until our public sector pensions start to kick in. If all else fails, we can always downsize. We could still get a nice house for £200k less than this one is worth (it was a bit of a lockdown / I'm still alive purchase rather than a sensible / retire as early as i can decision. It is expensive to run and a lot of work to maintain but it is nice to have and we enjoy the space - there are only the 2 of us in a 4/5 bed house).

My new job is in the same field as my current one but a different aspect, so im looking forward to learning new things. I have been told that if I wanted to do more hours or a more senior role that is definitely an option. I have also been offered the opportunity for some contracting work with another company. It is nice to know that the option is there but I think I want to stick to the semi retirement plan for now and see how that goes.

NormalNorman

Wow, sorry to hear about your illness and wish you well for the future. I guess there is only so much you can plan and the rest will fall into place.

Aylesbury_Duck

Have you done a spreadsheet to plan it all? I've done one and it's very reassuring to have it all mapped out. I started with what I think my income needs will be for each year from planned retirement age until 100 (an arbitrary age, but I have genetics on my side and everything is based on prudence! Mine is u-shaped - higher expenditure in the first 10 years of retirement, dipping down to a lower level for the next phase, then up again as care/help costs will be inevitable. I worked on today's values for everything, so have ignored inflation and have therefore assumed zero growth in pension funds, savings and investments. Doing something similar will help you forecast whether downsizing is likely to be needed or not.

It sounds like a sensible plan if you can make it work, and it sounds like you're skilled in an area where you can up your hours and seniority if your living costs rise and/or there are market reductions that change your plans to access your money.

Mistermeaner

Hi

A number of parallels with myself.

I am also 46, also itching to retire having become utterly disillusioned with corporate life.

I also experienced cardiac issues at age 39 - out of nowhere collapsed in the night and was blue lighted to hospital. Long story (very long story) i went to hell and back mentally and physically doing much better now but still have to manage my health and it is this that has shaped my thinking and attitude to work in general

You can probably find my threads on here but financially i believe we have the pension 'sorted' with enough put away to cover retirement and i am currently focussing on building pre pension access funds in ISA's.

Im not sure yet exactly what my plan is but I am kind of waiting to get fired from my corporate job which will give me the shove i need to go and do something different and ideally more fulfilling. The challenge i have (nice problem) is that I am paid very well for what I do and corporate bull aside its pretty easy so im minded to keep banking the easy cash, each month i work here i am saving enough to pay for a month of early retirement…. so if i can survive 4 more years in this job I will be able to fully retire age 50…

If they get rid of me sooner I will likely look for something like yours, part time and fulfilling in which case i could probably happily work for longer

YOLO

HedgehogRulez

https://forums.moneysavingexpert.com/discussion/comment/82020001#Comment_82020001

Same here: age, pay, attitude to corporate BS, and (suspected) heart issues.

Represent ✊

Mistermeaner

https://forums.moneysavingexpert.com/discussion/comment/82020052#Comment_82020052

sent you a private message pls read

Mr_EDATD

Quick update - mortgage paid off today, £250k in savings as planned and loving working part time. I have so much more time to do DIY projects and my golf handicap has come down 2 shots already (to 13) 🏌‍♂️

I plugged my plan for full retirement for me and my other half into Gemini the other day and it said it was "highly robust and secure strategy" and that was based on us retiring in 4 years rather than 5 (I'm sticking with 5 for now though)

artyboy

https://forums.moneysavingexpert.com/discussion/comment/82020052#Comment_82020052

Ditto. Alright, well except that my first attempt at retirement was at 42, and the current one at 50, so I'll split the difference with the OP.

Life's too short to spend climbing the greasy pole. Even if you win the rat race, you're still a rat. Etc etc.

Triumph13

https://forums.moneysavingexpert.com/discussion/comment/82120990#Comment_82120990

For many people, a part time job they enjoy is actually the perfect lifestyle, especially if the job is only for extra jam because your core lifestyle is already covered. If you're still loving it in four or five years, then there's a lot to be said for continuing. A bridge to be crossed when you get there.

Yorkie1

Congratulations on paying off the mortgage @Mr_EDATD