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  • FIRST POST
    • scotty_does
    • By scotty_does 13th Apr 18, 5:16 PM
    • 12Posts
    • 15Thanks
    scotty_does
    Can I retire at 55?
    • #1
    • 13th Apr 18, 5:16 PM
    Can I retire at 55? 13th Apr 18 at 5:16 PM
    Hi,

    I have 3 pension pots that total roughly £520,000. I will be 55 in a few months. Its only recently dawned on me that I MIGHT be in a position to retire much sooner than I had always thought. I.E. at age 55. However...
    £350,000 of the pot is in a Fidelity pension that I can keep an eye on daily. Iíve been alarmed that in the last 12 months it has hardly grown (less than 1% growth). I know that things go up and down, but its making me depressed!

    I have no mortgage or any other debts and live a fairly frugal life. Iím a couple of years short of full state pension, but I can easily top that up.

    So my plan is to drawdown £20,000 a year (inflation adjusted) and then reduce that accordingly when my state pension kicks in, and probably reduce it gradually sometime after that as I get Ďproperí old. In my spreadsheets I'm putting in an inflation figure of 2.5% and a growth rate of 2%.

    Can I ask if this seems like a do-able plan, or am I just dreaming and need to keep on working for a few years yet. After working continually since I was a teenager I am REALLY REALLY wanting to be done!

    Thanks a lot in advance.
Page 3
    • Terron
    • By Terron 13th Apr 18, 9:23 PM
    • 199 Posts
    • 183 Thanks
    Terron
    1 other piece of info that I neglected to mention is that despite the decent amount of my pension pot, I actually am currently earning a poor salary. After years of working in IT and earning well, I was made redundant when 50. I found it impossible to get a well paid job after that. My current earning do pay the bills, but I have to say I don't enjoy it and can't wait to finish.

    I'm not expecting any sympathy by the way, I know that most people don't enjoy their jobs.
    Originally posted by scotty_does
    You have my sympathy. I lost my job in IT when I was 54 and didn't fancy any of tje jobs available..
    • Joey Soap
    • By Joey Soap 14th Apr 18, 7:24 AM
    • 141 Posts
    • 47 Thanks
    Joey Soap
    I think you can do this. One thing I would say is that you need to keep three years income in cash or near cash that is accessible. The reason I suggest this is that if there is a big drop in the market (there will be) then you will need that pot of money to draw from otherwise you run the risk of permanently damaging your pension portfolio. I suggest three years because most bear markets in recent times have recovered their original value within that timescale. HTH.
    • marlot
    • By marlot 14th Apr 18, 7:31 AM
    • 3,372 Posts
    • 2,498 Thanks
    marlot
    ...After years of working in IT and earning well, I was made redundant when 50. I found it impossible to get a well paid job after that.....
    Originally posted by scotty_does
    Yes, IT is a brutal world for older people - especially if you've moved into management or consultancy positions, so may have neglected your technical skills.

    I was very fortunate that one of my public sector clients gave me a job straight away. Their maximum was only 50% of my previous package though the pension is good.
    Last edited by marlot; 14-04-2018 at 7:34 AM.
    • cobson
    • By cobson 14th Apr 18, 9:31 AM
    • 10 Posts
    • 0 Thanks
    cobson
    As you seem to have a frugal outlook have you looked at the mrmoneymustache.com website ? The ethos on there is to live as frugally as possible whilst building a stash of money in order to retire as early as possible - the folks on there would consider 55 a very late age to go. It is a US site but if you look in their forum there are a number of UK posters who hang about in the UK Tax Discussion subforum, including links to several who keep online journals. The latest post is from a couple who live in the SE on £12k a year. Might be useful for moral support.
    Last edited by cobson; 14-04-2018 at 9:53 AM.
    • jerrysimon
    • By jerrysimon 14th Apr 18, 10:29 AM
    • 278 Posts
    • 212 Thanks
    jerrysimon
    I retired last year (at 56) on 20K, no mortage, debt free and also have a small 40K pot. So far its going well. As I now pay no pension, NI and little tax this goes a lot further than when those bills came to over 10K/year!

    As such I think its better to look at your monthly income rather than annual salary.

    Although 20K is slightly less than half my pre retirement income the monthly figure is considerably more than half my monthly income when I was working.

    PS I live in the East of England and worked in IT management albeit Public Sector.
    Last edited by jerrysimon; 14-04-2018 at 10:38 AM.
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