early retirement survive on 1.5k a month yes of no?

StanleyAccrington

stratman3142 said:

You don't mention in the OP whether you have a partner that agrees with your plans.

Also, have you been tracking your outgoings over a period of time and, based on that, do you have a forward projection of what you'll need based on how you want to live? It's scary how the little essentials add up.

Forward projection of monetary needs may be skewed if and when Brexit happens. Retire anyway. Manage the (monetary) situation post Brexit as your individual requirements require. May need a part time job. Maybe not.

hollywoodrox

Do it. My uncle died at 59 before he retired so all he was looking forward to doing he never got to do

Fishboy7

Depends how much you hate your job

Philly_Q

I've no advice to offer, but I'm 55, working longer hours than ever before and feeling increasingly detached from my younger colleagues.  I'm just starting to think do I really want to do this for another 12 - or even 5 - years?  I've no real plans for retirement but I'd like a bit more leisure time before I'm too decrepit to do anything new.

Reading this thread with interest.

RandallFlagg

Interesting thread, I am a few months off 53 and looking to get out as soon as affordable and mortgage/debt free. I would say do it. I've had 2 people fairly close to me die suddenly and unexpectedly in the last couple of years, both before they retired, one at 56 and one at 66. You never know what's around the corner or where the end destination sign is on the sat nav of life.

I have 2 pensions, one final salary which will give a nice tax free lump sum at age 55 of £35K to do the house up and buy some guitars etc and then an income of around £6K a year index linked that will inflate each year. The 2nd pension is a defined contribution that I have recently adjusted the investment portfolio into higher risk funds and it's growing nicely, I plan to take that as drawdown. Don't forget your drawdown pot will still remain invested and make gains (and potentially losses) via the stock market, have you projected a sensible growth vs drawdown each year? I've plotted mine out to last until I'm 80 if I take the full amount, longer if I don't assuming a long term growth of 5% pa. Minimum I would even consider is £25K after tax for me & the wife when 100% debt free and I can get that at 55, each year I work beyond 55 will see me load up as much of my salary as I can into the pension within the tax free annual limit of £40K and so make that annual drawdown higher, it goes up quite quickly, especially with the investment gains projections on the funds I'm in. My wife works part time and she will stop at 52 to manage the house improvement works we have planned from my lump sum and then probably go back part time until she has had enough, she has a smallish pension pot that we will take out as a lump sum in one go when she is 55 so we have another £30K boost when I'm 58 to top up savings etc.

As soon as I have enough savings and the drawdown it at a level where I can be comfortable then I am retiring, it will be between 55 and 60, not sure exactly when yet, the simple fact is the longer you work the more money you will have but less time, it's a balancing act.

I plan to take a year out and then we will both look for for part time work to try and get 10-12K a year to cover living expenses so all or most of my pension is disposable income for us to travel, holidays, hobbies, etc. I'm also considering becoming a magistrate when I retire, it's not paid but after training you get around 16 days a year and I sure it would be very interesting work and give a sense of service and giving back to the community. This interests me a lot. I am also going to look at other voluntary opportunities.

I am already making a bucket list of simple retirement goals, places to see, books to read, animals to see in the wild, voluntary interests etc. I can't wait to be free!

jonnyburgo

£1500 is roughly what you'd take home if you were earning 24k a year, I'd say go for it. Piece of piece to live on that much if no debts. If you've worked all your life, Not sure how it will affect state pension which is currently around £700 a month fully paid up.

RandallFlagg

jonnyburgo said:

£1500 is roughly what you'd take home if you were earning 24k a year, I'd say go for it. Piece of piece to live on that much if no debts. If you've worked all your life, Not sure how it will affect state pension which is currently around £700 a month fully paid up.

If you have 35 years full NIC contributions then you get full state pension, you can check this on the government website here https://www.gov.uk/check-national-insurance-record

spark240

I’ll be doing a similar thing at some point, maybe a little over 55 , you need to factor in other expenses such as house repairs, maybe a new boiler, roof, then any holidays, cars etc ...plus I would need a part time job to keep me active 

GoldenEraGuitars

I work a minimum 70 hour week and don’t make £1500 a month! You’ll be fine

Legionreturns

Just saying... £1.5k a month is more than I earn for my work with youth offenders and extreme behaviour kids. 

paulnb57

I retired at 55 (with pension) and then went back part time, average 3 days a week..I have no idea how I found the time to work full time!
Was prety skint for a few years overpaying the mortgage so it was cleared at 55, totally worth it, whatever happens the house is ours....
We bought four and a bit acres of Woodland which keeps us busy....
Daytime TV is not for us!
Life is too short to work to death.
If you can afford it, do it!

p90fool

That's way more than I earn, but bear in mind a couple of hidden costs, you will spend more on heating your house because you're at home more, and you also have far more opportunities to spend money, either by travelling more or sitting around in your pants on eBay. 

But yes, if you've grown out of acquiring pointless clutter it's easily enough to have an enjoyable life on. 

GoldenEraGuitars

p90fool said:

That's way more than I earn, but bear in mind a couple of hidden costs, you will spend more on heating your house because you're at home more, and you also have far more opportunities to spend money, either by travelling more or sitting around in your pants on eBay. 

But yes, if you've grown out of acquiring pointless clutter it's easily enough to have an enjoyable life on. 

Or if like me who works from home anyway I can assure you that there are perks to sitting in your boxers eating a jar of Tesco white chocolate spread while perusing eBay for a Victorian candelabra

And no, I’m definitely not doing that right now

FastEddie

As a former wealth manager, I'd say that you need to understand that you may be capping your lifestyle if you don't work part-time, invest, do something, to increase your income over time. 

Retirement is more expensive than people think. You need money to do something with your time each day. Everything we do has a cost. 

Don't underestimate the cost of doing nowt.
If you spend all the time playing the guitar your fingers and ears will be shot!!!!

I took a few years off after I sold a business at 30. It cost me twice what you have pcm plus I needed capital for other things. I wasn't doing huge amounts.

Take some time off and then look at doing something more rewarding. My wife and I work for charities. LEss money but so much more flexibility and rewarding. 

Have fun and enjoy.

TheBigDipper

Retire. I retired at 55 (I'm 62 now) and it isn't easy to adapt (still isn't), but it's better than working for someone else - either as an employee or running a business and working for your customers. Once I get a state pension at 66, I'll be able to stop drawing on savings. 

And if you want to watch daytime TV and veg out, so what? It's your life and your choice. 

octatonic

I left corporate life at 32 to be a musician and a landlord.
Having unearned income is the most freeing thing because it allows you to make choices about what to do with your time.
I have no regrets, but then I hated working in IT.

Personally I don’t think £1500 a month is enough to live on, I’d want double that, or £100k in savings.
Consider inflation, in 20 years time that £1500 a month won’t go that far.
What do you do if you need to reroof you’re house, or a new boiler?
Have you really done all the travel you want to do?

Alternatively pick up something 2-3 days a week to give you more time for yourself.

BRISTOL86

I’m 33 and I’m counting down the days!!.... if you have the opportunity and you can live a lifestyle you’ll enjoy on that sum then go for it and don’t look back.

Rocker

OP you will more than get by with that monthly income.  Use the time to do things.  Like voluntary work (a day or two each week) in a charity shop.  Or a day or two in a music shop.  Or teaching guitar.  Become the local lawn maintenance contractor.  Play golf once or twice a week.  The list is endless.  Don't spend time looking at stupid daytime TV shows.

Jetsam1

Conversely, I don't intend to be getting much past 60 in any case. Not sure I actually want to to be honest. Long enough self employed and now the next 30 years look like it is just going to be one long, awful, protracted pile of poo poo.

At least I do have an employer actually paying pension contributions though. 20 years to go for eligibility, 30 to 40 (or maybe never) until retirement.

I still don't expect to see a pension in the end. Certainly nothing from the UK. Even though I did pay plenty.

Snap

Jetsam1 said:

Conversely, I don't intend to be getting much past 60 in any case. Not sure I actually want to to be honest. Long enough self employed and now the next 30 years look like it is just going to be one long, awful, protracted pile of poo poo.

At least I do have an employer actually paying pension contributions though. 20 years to go for eligibility, 30 to 40 (or maybe never) until retirement.

I still don't expect to see a pension in the end. Certainly nothing from the UK. Even though I did pay plenty.

Believe me mate, when I was 30, being 60 years old didn't seem like reality. Now, in a blink of an eye I am 50, feel 25 and want to live as long and as well as I possibly can.