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  • FIRST POST
    • Marine_life
    • By Marine_life 5th Nov 10, 10:46 AM
    • 847Posts
    • 1,533Thanks
    Marine_life
    Early-retirement wannabe
    • #1
    • 5th Nov 10, 10:46 AM
    Early-retirement wannabe 5th Nov 10 at 10:46 AM
    I would like to create a topic (don't see it at the moment - other than the NUMBER thread).

    Who is aiming for early retirement (or who has retired early already)?
    When did you begin planning and what drove the decision?
    What is the strategy for getting there?
    How much of a relative decline in income are you prepared to take / did you take?
    What are your main concerns?
    For those already in early retirement - how is it progressing? What have been the good and bad surprises (financial and otherwise)?

    I will post my strategy but wanted to get some thoughts
Page 186
    • gadgetmind
    • By gadgetmind 24th Dec 17, 12:37 PM
    • 10,795 Posts
    • 8,668 Thanks
    gadgetmind
    I feel sorry for my immediate managers as it is not their fault but they are the ones who will have to pick up the slack.
    Originally posted by enthusiasticsaver
    My immediate manager and myself have been advised not to talk to each other until this is sorted! I feel sorry for the layer of managers beneath me who'll now be reporting direct.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • gallygirl
    • By gallygirl 25th Dec 17, 6:33 AM
    • 16,605 Posts
    • 109,630 Thanks
    gallygirl
    I innocently thought that the New Year would bring like gadgetmind a smooth transitional handover of what I already was managing! Silly me!
    Originally posted by crv1963
    Another one here who was deluded . I only had to give three months notice and gave it a few days before Christmas, thinking it would give my boss plenty time to mull over what to do while we were off. (Nothing at all to do with thinking I might as well have the ten days we had off at Christmas as part of my notice period. Deary me, no, not at all ). Obviously he finally woke up to the reality around a week before I went. Bit too late old chap, I'm outta here .

    GM I've a friend who also ended a 30 year career in somewhat acrimonious circumstances. A year down the line he's managed to forget that and remember the good times - here's hoping you can do the same.
    A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort
    Mortgage Balance = £0
    "Do what others won't early in life so you can do what others can't later in life"
    • atush
    • By atush 25th Dec 17, 7:43 AM
    • 16,806 Posts
    • 10,488 Thanks
    atush
    My immediate manager and myself have been advised not to talk to each other until this is sorted! I feel sorry for the layer of managers beneath me who'll now be reporting direct.
    Originally posted by gadgetmind
    How can you run a company effectively w/o talking to each other? Madness.
    • gadgetmind
    • By gadgetmind 25th Dec 17, 1:22 PM
    • 10,795 Posts
    • 8,668 Thanks
    gadgetmind
    How can you run a company effectively w/o talking to each other? Madness.
    Originally posted by atush
    Well, we're on different continents, so weren't exactly working together in close quarters anyway. Oh, and advice is from a lawyer!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • Bimbly
    • By Bimbly 2nd Jan 18, 7:54 AM
    • 70 Posts
    • 57 Thanks
    Bimbly
    What a fun week reading all 186 pages!

    You know, work is a funny thing. There was a spell at my job when I hated going in because of the way I was treated by management. I wanted to get out then, but I was too young.

    Fast forward and things have changed. I love my job now. They finally put me in the role that I said I am best at which means they are happy with my work and I'm happy doing it. Because I have mastered what I do, the work is easy (other people say it isn't, but It's easy for me), the hours are good and I most of all enjoy the banter and team spirit of the office. I worked Christmas day this year (as I do every year, as I volunteer to do it) and work was the best part of the day.

    So I'm happy to stay up in my job for the foreseeable (I'm 49) but I am also aware that things can change rather rapidly. Which is why I am concentrating on saving into my pension. I'll be ready to go (financially) at 60, but if things should go horrible from 55, I'll have options.
    • gadgetmind
    • By gadgetmind 2nd Jan 18, 9:25 AM
    • 10,795 Posts
    • 8,668 Thanks
    gadgetmind
    if things should go horrible from 55, I'll have options.
    Originally posted by Bimbly
    That's by far the best attitude!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • OldMusicGuy
    • By OldMusicGuy 2nd Jan 18, 1:52 PM
    • 396 Posts
    • 780 Thanks
    OldMusicGuy
    So I'm happy to stay up in my job for the foreseeable (I'm 49) but I am also aware that things can change rather rapidly. Which is why I am concentrating on saving into my pension. I'll be ready to go (financially) at 60, but if things should go horrible from 55, I'll have options.
    Originally posted by Bimbly
    Like gadgetmind said, an excellent plan. I think having the option to go after 55 makes sense, I would not want to work past 60 because the years become more precious the fewer of them you have left.
    • OldMusicGuy
    • By OldMusicGuy 3rd Jan 18, 9:08 AM
    • 396 Posts
    • 780 Thanks
    OldMusicGuy
    Well, back into work today after using up all my remaining 2017 holiday and it's exactly 8 weeks to go until retirement. Been running the numbers on my spreadsheet and it's hard to see how we would face major issues unless the world goes to hell in a handbasket, but after 40 continuous years of well-paid work it is a bit nerve-wracking facing the reality of not having a big paycheque coming in every month. Just two pay days left to go.....

    However, I won't be backtracking. Still going to retire (aged 60) on Feb 28th. Anyone else get twitchy in the run up to retirement?
    • westv
    • By westv 3rd Jan 18, 10:17 AM
    • 4,542 Posts
    • 2,138 Thanks
    westv
    Current estimates for my total pot size (assuming no crash in the mean time) are:-

    £410k this year - 55
    £415k 2019
    £440k 2020

    The current year also includes a figure for potential redundancy. I'd only consider going this year if I was actually made redundant

    o/s mortgage as at 2020 £79k - when fixed rate expires.

    DB Pensions:-

    Me
    60 £5k index linked up until payment starts
    67 £8k SP

    Wife - 48 this year
    60 £9k index linked
    67 £5k index linked
    67 £8k SP

    She is currently working, has no plans for leaving yet, but would like to drop a day (currently 5 days a week).
    Net take home £1,500 a month.

    Throwing these figures into various calculators and spreadsheets give us a starting income from my pension from around £20k up to £30k.
    • Deneb
    • By Deneb 3rd Jan 18, 12:24 PM
    • 309 Posts
    • 240 Thanks
    Deneb
    However, I won't be backtracking. Still going to retire (aged 60) on Feb 28th. Anyone else get twitchy in the run up to retirement?
    Originally posted by OldMusicGuy
    Yes. It's a big step giving up that income. I procrastinated about it for a good couple of years, running numbers through numerous spreadsheets. I realised I was falling into JOMY syndrome!

    7 months in now, no regrets. Still saving and investing small amounts each month, and so far our net worth has increased rather than the opposite. Early days, I know, but I have no regrets and as I said to one of my ex-colleagues just before Christmas, "I wouldn't go back now if they offered to double my salary".
    • Reue
    • By Reue 5th Jan 18, 4:29 PM
    • 549 Posts
    • 446 Thanks
    Reue
    Fast forward and things have changed. I love my job now. They finally put me in the role that I said I am best at which means they are happy with my work and I'm happy doing it. Because I have mastered what I do, the work is easy (other people say it isn't, but It's easy for me), the hours are good and I most of all enjoy the banter and team spirit of the office. I worked Christmas day this year (as I do every year, as I volunteer to do it) and work was the best part of the day.

    So I'm happy to stay up in my job for the foreseeable (I'm 49) but I am also aware that things can change rather rapidly. Which is why I am concentrating on saving into my pension. I'll be ready to go (financially) at 60, but if things should go horrible from 55, I'll have options.
    Originally posted by Bimbly
    I'm in a very similar position to you. Really enjoy my job, work with a great team in an office environment where people regularly stroll up to each-other's desks just for a chat and its totally accepted (and practiced!) by management. I find my work easy to do even though it is considered very technical and specialist by others.

    Right now I'm happy to stay, so much so that just this afternoon I declined even hearing more details from a recruiter who contacted offering a higher salary. However for me the important thing is to have a plan and the option to leave should I wish to in the future rather than knowing I'll be stuck working right up until (or beyond) state pension age. You never know when your company might crash or a new manager you hate comes along forcing you to endure rather than enjoying work.
    • MallyGirl
    • By MallyGirl 5th Jan 18, 4:53 PM
    • 2,736 Posts
    • 7,745 Thanks
    MallyGirl
    Right now I'm happy to stay, so much so that just this afternoon I declined even hearing more details from a recruiter who contacted offering a higher salary. However for me the important thing is to have a plan and the option to leave should I wish to in the future rather than knowing I'll be stuck working right up until (or beyond) state pension age. You never know when your company might crash or a new manager you hate comes along forcing you to endure rather than enjoying work.
    Originally posted by Reue
    Same here. As a result of all that I have learned on this forum, plus other sources, in the last year or so I now know where I stand and what early retirement could mean in terms of future income. I am planning to carry on for another 9/10 years but that might change. I am now aiming for something, in terms of pension and investments, rather than just drifting along.
    • stoozie1
    • By stoozie1 6th Jan 18, 1:48 PM
    • 555 Posts
    • 497 Thanks
    stoozie1
    Could anyone help with a future projection for early retirement?

    Our NUMBER: £28k/annum in today's money

    OHs DB pensions:
    1x fs linked 80ths pension deferred, currently worth 10k/annum plus 3x LS, NRD 60
    1x CARE pension, estimated value 18k if taken at SRA, no further contribution allowed after age 60

    OHs SIPP currently worth £26k

    My DB pension worth 2.5k/annum, NRD 65

    SIPP worth 8k

    Joint savings of 70k

    Enough time for us to both earn full new state pension, even though we were both contracted out.

    I'm 43 and OH is 42.

    Where would we have to get to for DH to retire at say, 57?
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- £560 April £2670
    • atush
    • By atush 6th Jan 18, 3:37 PM
    • 16,806 Posts
    • 10,488 Thanks
    atush
    Obviously you need to up your DC pensions both of you. Beyween you, you only have 34k. I would want to see 200k.
    • stoozie1
    • By stoozie1 6th Jan 18, 5:02 PM
    • 555 Posts
    • 497 Thanks
    stoozie1
    thanks atush, so 200k plus inflation (shall I go for 3% annual?) in 15 years?
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- £560 April £2670
    • stoozie1
    • By stoozie1 6th Jan 18, 5:05 PM
    • 555 Posts
    • 497 Thanks
    stoozie1
    Maths done. So £335000 (rounding up a bit). That's fine. I was guestimating at us having almost double that by then, so that's reassuring, thanks.
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- £560 April £2670
    • hugheskevi
    • By hugheskevi 6th Jan 18, 5:43 PM
    • 1,989 Posts
    • 2,481 Thanks
    hugheskevi
    Our NUMBER: £28k/annum in today's money
    You are aged 43. UK median full-time earnings are £28,600. Your State Pension age is likely to be age 68. Your number is roughly the same as current full-time median earnings.

    Based on Office for Budgetary Responsbility forecasts, long-term earnings growth is expected to be 4.3% and CPI 2%.

    That will mean when you reach State Pension age, average full-time earnings are expected to be £49,942/annum in today's money.

    If you target £28K/annum in today's money at age 68, your income will be less than 60% of average earnings at that time, compared to the c100% it is currently. That may mean your standard of living is lower than you expect.
    • stoozie1
    • By stoozie1 6th Jan 18, 5:51 PM
    • 555 Posts
    • 497 Thanks
    stoozie1
    Thanks.

    I think I have mis-worded.

    I meant that I want to target the amount then, that will be equivalent to £28k now.
    Save 12 k in 2018 challenge member #79
    Target 2018: 24k Jan 2018- £560 April £2670
    • justme111
    • By justme111 6th Jan 18, 6:08 PM
    • 3,000 Posts
    • 2,899 Thanks
    justme111
    but if they make allowance for inflation and are on tarhet to take it in todays money the increase of the "number" will be irrelevant since they made already provisions for it. They can check 5 yearly for example to fine tune it as well. Besides I personally have little faith in what "office for budget responsibility " says - the very name is telling that it is made to produce snoke and mirror lies convenient for government
    • hugheskevi
    • By hugheskevi 6th Jan 18, 7:45 PM
    • 1,989 Posts
    • 2,481 Thanks
    hugheskevi
    I meant that I want to target the amount then, that will be equivalent to £28k now.
    Indeed, but the question what is what amount will be equivalent to £28K now, it isn't as simple as it seems.

    but if they make allowance for inflation and are on tarhet to take it in todays money the increase of the "number" will be irrelevant since they made already provisions for it.
    The difference is between today's money terms and today's earnings terms - there is a significant difference between the measures over extended time periods. Planning for a number in today's money terms over a long period will mean a significant deterioration in the purchasing power of that amount relative to average earnings over time.

    Traditionally planning was simple due to final salary schemes - you automatically ended up with half or two thirds of whatever your earnings at retirement may be. Taking the example here, 28K in today's price terms is pretty much 100% of average earnings currently, but will only be about 57% of average earnings in 25 years time. In constant earnings terms, that £28K in today's price terms will have the purchasing power of about £16,000 at age 68 (in constant earnings terms).

    Or to put it another way, that £28K in today's terms will roughly be what you would expect a full-time minimum wage earner to receive when the OP is aged 68. The question is whether someone planning a lifestyle based on current average earnings now will be happy to live on an a minimum-wage level lifestyle in the future.

    Constant price terms and constant earnings terms both have their place, it is important to appreciate which is appropriate to use for different planning assumptions. Personally my household after-tax number based on current expenditure is slightly under £28K (aged 40). I plan to have a household income of £52,000 (in today's price terms) at age 68, which is £28K today in constant earnings terms at age 68.
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