Can I retire at 55?

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  • wary
    wary Posts: 789 Forumite
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    I'd say that you have plenty to retire on, especially if you're planning on maintaining a frugal lifestyle. I have a slightly smaller pot than you (although do have a S32), and I'm hoping to retire soon on a higher projected annual expenditure.

    Are you likely to get an inheritance at some point? ... another factor to consider.
  • JoeCrystal
    JoeCrystal Posts: 3,013 Forumite
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    edited 13 April 2018 at 7:23PM
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    John-K wrote: »
    £20k per year sounds like a very small amount to live on.

    £20k is actually pretty good income for a retired household, even more so if it is a single person. Bear in mind that median retired household income is £22,300 according to ONS. If I had £520,000 in pension pot and I only need £16,000 per year t spend along with £8,000 or so from state pension when reaching there, I would retire straight away. 55 is nice and early.
  • wary
    wary Posts: 789 Forumite
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    justme111 wrote: »
    I do not see why not. Time is precious . The purpose of money is to enjoy those years you have and at the moment it is wasted as it does not fulfil that purpose. You have an excellent combination of low expense and high funds but you are deriving no benefit of it which is a shame. I would quit your present job in a heartbeat at this combination .

    Couldn't have put it better myself!
  • scotty_does
    scotty_does Posts: 12 Forumite
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    Thanks everyone for all the advice. I really appreciate it.
  • westv
    westv Posts: 6,084 Forumite
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    justme111 wrote: »
    I do not see why not. Time is precious . The purpose of money is to enjoy those years you have and at the moment it is wasted as it does not fulfil that purpose. You have an excellent combination of low expense and high funds but you are deriving no benefit of it which is a shame. I would quit your present job in a heartbeat at this combination .

    Not just me that thinks that then. :D
  • GSP
    GSP Posts: 887 Forumite
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    Really Sorry to hear of your loss.
    My advice would be go for it, enjoy yourself.
    Some on here think they can take the money with them.
  • zolablue25
    zolablue25 Posts: 1,652 Forumite
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    GSP wrote: »
    Really Sorry to hear of your loss.
    My advice would be go for it, enjoy yourself.
    Some on here think they can take the money with them.

    In addition, I think there are many on here that live a much more extravagant lifestyle than others and assume everyone needs the same amount of money to live as they do.

    Personally, I reckon £20K as a single person with little overhead will be plenty, especially if you are not enjoying your life at the moment. Add in the SP when you get there and I can't honestly see why you can't do it.

    Why prolong the hell now on the off-chance you might live to 110!
  • tacpot12
    tacpot12 Posts: 7,969 Forumite
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    Yes, quit asap. I did, at age 53. I now have a pension portfolio worth £345K and expect to be able to take £14K pa (adjusted for inflation) more or indefinitely. The portfolio was worth £360K about eight weeks ago, but I'm investing for the next 40 years so I'm not bothered about short term volatility.

    My plan is the same as yours; take out more before the state pension kicks in and then reduce the amount withdrawn. I'm a few years shy of the full state pension, but will be topping it up in the next year or so. My current outgoings are £14K pa, but I also have about £6k of income from two rental properties, so I don't need to take all £14K from the pension if the market is low. The portfolio is invested mainly in investment trusts and other income producing assets. The natural yield is about £12K pa and should rise every year (but not perhaps at the rate of inflation).

    Your pot of £520K should be able to produce a natural yeild of £19K without withdrawing any capital, and the capital can remain invested in assets that will grow in line with stock market growth. Yes, it is a bit of a risk, but I felt I could manage this risk down to a comfortable level.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • scotty_does
    scotty_does Posts: 12 Forumite
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    zolablue25 wrote: »
    Why prolong the hell now on the off-chance you might live to 110!

    Cheers. Everyone I speak to is telling me to go for it. My daughters are all for it, although I should probably bear in mind that their enthusiasm might partly be due to the thought of a full-time baby sitter on tap!
  • runninglea
    runninglea Posts: 907 Forumite
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    What do you plan on doing with all your time when you retire?

    Having all that time on your hands especially whilst you are so young could become expensive or dare I say it boring. Finding new things to do often costs money - petrol, entrance fees, holidays
    Year 2019 (1,700/£17000mortgage repayment)Overall mortgage (71,400/165568) (44
    .1%) (42/100) payments made. Total paid 2019 year £1,700
    Total paid 2017 year £15,300Total paid 2018 year £13,600
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