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

Jetsam1

Snap said:

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.

Pretty much get the kids into adulthood and then see what energy I have left. Both my parents died when I was in my late 20s so I am very aware of mortality and time.

I just see the direction of travel in the world and limited futures for those who are not already very well off financially.

rolls1392

I was very lucky and retired in 2004, aged 49.
You have to have things that you want to do.
Don't make the weekly shop to Tesco the highlight of the week.
OH and I are both on works pensions, no mortgage,kids etc.
We are comfortable but major expenses take a bit of talking about.
GAS? You have to be more inventive in your dealing.
Go for it and enjoy.

boogieman

RandallFlagg said:

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

Just because you’ve contributed 35 years of NI there’s no guarantee that you’ll still get a full state pension. There are a few factors that affect the final amount: a) if you’ve ever had your work pension contracted out and b) how early you take retirement (unless you do part time work you’ll end up with empty NI contribution years which ultimately reduce your pension). I’ve got 42 years of NI in but still only qualify for a reduced amount due to a & b. Also don’t forget that state pension is taxable. Keep checking the gov website: the closer you get to pensionable age the more accurate the forecast, but please don’t rely on getting the full whack just because you’ve paid 35 years in.  

Roland

mark123 said:

Anyone been in the same boat ? and what did you do ?

My bass player has done exactly that. Retired, took his pension, then went back to work part time. 

Think of retirement as another form of self employment. I work 9 to 5, with at least an hour for lunch. Last week I was a carpenter. This week I’m a gardener. Then I do overtime moderating a guitar forum.

sw67

I am on track to retire at 57 ( 52 now ) I think 1.5k per month is too low and you would be better doing a few more years. I work continental shifts that are too long and the nights are taking their toll. I am lucky that I started my pension at 20 paying in 10% so have options. I should have 30k per year for 10 years then top up the state pension for me and the wife by 10k until at least 80 assuming zero growth. Savings can take care of the stuff like house repairs and cars. 

I work with guys that seem scared to retire as they don't have anything else in life - Only working 3 days per week has probably equipped me for retirement as I am used to filling my time during the week. ( mostly on here ;-) )

Jalapeno

Think it is fear that is stopping me drawing my pension (61 yrs, Gov pension at 66) - mainly fear of unexpected big-ticket expenditure for roof, car, boiler (just had to spend £5k on new boiler and pipework), carpets, curtains etc - these can eat through a nest egg really quickly - then you're f*cked.

My late Dad lived ok on £16k/yr (from pensions), saved money every month in fact - had he lived long in care his savings would've been eaten up as would the equity in his house. His monthly pension was £400-£500 less than care home costs.

GAS, I'm ok with these days, got all I need by far with the occasional indulgence.

ThePrettyDamned

That's more than I earn and I have a mortgage.

That doesn't mean the answer is a "yes" though. It sounds like a very personal decision. If you don't live in London and you can't survive on £1500 per month you may want to sell up and downsize to release some cash?

skunkwerx

Same here £1500 is more than I take home after tax and its do-able.. would mean downgrades if I was living alone.. but this is London area so alone it would be a struggle.

ESBlonde

I've just turned 61, decided August last year I could afford to retire, but the 'B' question hangs in my mind. Statisticly people born at the end of the 50s will live to average of 82. I'd be lucky to make that but I have enough income to do 20 years and leave something to the taxman/children. So I can afford to go now but my assistant broke her leg and had 13 weeks off work (now returned part time). I'd like to settle her and hand the job over neatly. In any event 2020 is the year so this will be my last working Christmas. I will possibly go part time for some of next year, I can't keep making up excuses to hang around this place. Also Ms. Blonde has retired and is starting to mention politly that I should join her, she is much older than me thought by 8 months ;-)

I've got interests set up allotment/gardening, a hobby woodworking workshop ready equiped, currently playing in several bands which I would step up with more time, plus we intend to travel. I have the ability to do some part time bookkeeping or consultancy if I want to but thats not the plan.

Mr Flagg makes some very pertinant points. Also you need to expect the unexpected, inflation might make your investments grow, but will the expense be in step. Also when you say £1500 PCM have you taken the tax liability into account. Straight £1500 PCM would have a tax liability in the order of £100 PCM for the average person.

It is also possible that with all that free time Miss/Mr wright may appear in your life and a re-evaluation is needed.

Ultimately only you know what makes you happy, just don't store up misery for your future.

ToneControl

Dominic said:

retire early - get old quickly

completely alien idea to me, I've seen enough friends retire in their 30s
if you have no life outside work, fair enough

Ossyrocks

Go for it!

I'm in a similar position and have been weighing up the options too.

I took severance from my last job in January 2016. Since then I have been working three days a week for a charity on a decent hourly rate, my wife works for the same charity. We have no mortgage and some savings.

Next year I'm 55 and have the option of taking my very modest workplace pension and lump sum, this will give us a combined income of £12k in pensions. With the lump sum plus our savings we're planning to buy a flat (outright) by the sea. We'll keep our existing three bed semi and rent it out (£650 pcm). I'm already talking to a letting agent. 

With our pensions and rental income from our existing house we reckon we'll be able to go down to one day a week in work, we're lucky to have this flexibility I suppose. This feels like a great wok/life balance. We can spend 6 days a week doing just what we please and have just one day a week focused on work doing something we both believe in. If the charity work needs a bit more of my time occasionally I'll do it, and get paid for it.

We can't bloody wait!

Long walks, pursuing our interests and hobbies, travel, socialising, having the kids come and stay, spending time with grandchildren. I feel lucky to have these options at 55 years old. 

My Dad worked hard all his life, planned to retire early, but cancer beat him at just 47 and he never got to do it. Life's too short. At the end of life, no one ever says "I wished I'd worked harder."

Rob.

ToneControl

mark123 said:

I have the chance of earlyish retirement
 I'm 54 no mortgage, car paid for, no debt, no kids ,pension adviser said i would easily have 1.5k a month to live off ,basic outgoings inc food fuel gas leccy poll tax water £800 .

Not into designer stuff or flash holidays just steady away ,worried about running out of my drawdown pension ,got full serps in so at 67 get the full pension ,Im 99.9% ready to go ,my pension adviser said i will be ok with no probs.

Anyone been in the same boat ? and what did you do ?

biggest risk is your pension investments
Many (including me) are expecting a crash in the near future, you should read up on this and form an opinion, don't just leave your funds where the advisor says, they have a very basic training and are not experts

Are you going to take this as 25% tax free then drawdown?

If so, also consider taking UFPLS instead https://www.youinvest.co.uk/faq/what-uncrystallised-funds-pension-lump-sum-ufpls

If you have no mortgage, you don't need the lump sum, so leave it in the pension fund, then take 4% or 5% every year.
First 25% each year is tax free, then you have your £1100 or so annual tax free allowance. No NI. 
This spreads the tax benefits over longer, and leaves more in the fund - which reduces the chances of running out if markets are flat for a while. i.e. why take £100k+ out now unless you need it?

TTony

All this talk of early retirement.


That was my plan too.  Even got as far as partly enacting it.

Yay!


Then we moved house and I’m now back working full-time until we run out of things to spend money on on the house.  With luck, I may still make it in my 50s, but late rather than early.

And I’ve got a huge list of things I’m planning on doing once my time is my own ... 

We’re all different, with different lifestyles and costs thereof.  If you’ve got enough of a financial cushion to make you feel comfortable, then do it, and enjoy.

boogieman

The thing I’d add is “do it while you can”. My ancient mum has money in the bank but neither the energy to use it nor opportunity to spend it. She is forever moaning about how she wished she’d travelled more and done things before it was all too late. There’s no pockets in a shroud as they say. 

beed84

I’m pretty sure no one says on their deathbed “I wish I’d done more work.” For me, it’s not about the money so much, but rather time. Sounds like you’ve got your shit together and live a no nonsense life; being gifted an extra 10 years to explore all the things that actually interest and mean something to you, while being able to live comfortably, is a no brainier to me. Life is over in the blink of an eye. I know what I’d do. 

Paul7926

I would consider this decision to be made of many smaller elements not just the 'can I afford it' one.  In the end only the OP can decide but from the information they have shared then with no kids to leave the house to it could always be an option to free equity from it should a large financial problem occur.

On top of the pure money side I'd also be considering other things.

Large amounts of 'free' time can be a curse as well as a blessing.  If you have a list of things that you wish to do with that time that's one thing.  If your just going to get up at lunchtime, sit in your pants at a keyboard for a few hours before the pizza delivery arrives then doze off in-front of late night TV after a few cans of beer that's something else.  Fantastic for a week or two but not, in my opinion, a lifestyle choice.  You need to realistically plan how you want to fill the time you are going to free up and that also factors into the money you will need.

Social interaction is also important.  A lot of us get that from our working environment.  If you are not going to work then you may miss that more than you might think.  I've left a few jobs (for other jobs) where I was really happy to leave the company I worked for and the work I was doing but missed people that I'd been working with.

Planning for the future is important but none of us actually know how much future we have.  I know from experience that all of a sudden you can have much less than you thought you did.  Putting things off because you 'can do them in the future' can be a mistake.  Deteriorating health may make them impossible and then your chance is gone.

I think if you are a pro-active person and can honestly figure out what you want to do with the time you would gain by retiring then factor that into your real financial needs so that it all adds up there is no reason not to retire.  

Looking at this another way.  If you were to retire and after a while hated it or had money worries could you salvage the situation with part time work/equity release/moving to a cheaper part of the country/some other idea?  If you have a viable fall back plan then it's not the 'all or nothing' decision that it might appear to be.

EricTheWeary

Jalapeno said:

Think it is fear that is stopping me drawing my pension (61 yrs, Gov pension at 66) - mainly fear of unexpected big-ticket expenditure for roof, car, boiler (just had to spend £5k on new boiler and pipework), carpets, curtains etc - these can eat through a nest egg really quickly - then you're f*cked.

My late Dad lived ok on £16k/yr (from pensions), saved money every month in fact - had he lived long in care his savings would've been eaten up as would the equity in his house. His monthly pension was £400-£500 less than care home costs.

GAS, I'm ok with these days, got all I need by far with the occasional indulgence.

I have a lot of similar fears. MrsTheWeary is retiring at 55 and I could do so on a limited pension ( LGP, not a draw down. The longer I leave it the more it is worth, I could be quite a well off 67 year old if work didn't kill me first) but there are a lot of what ifs. I'm going to reduce my hours instead which will pay me a bit more than a pension would now and give me the flexibility to go back full time of needed/ possible or still retire. And hopefully enjoy work more. I have what seems like a reasonably long week ( minus pratting about on here) so I'm hopeful I can have more energy for a shortened working week. 

KrisGee

Go for it. But make sure you're busy enough if it makes sense.

ewal

I'd certainly explore other avenues. Maybe do a job because it interests me rather than one with sufficient pay.

Jalapeno

EricTheWeary said:

Jalapeno said:

Think it is fear that is stopping me drawing my pension (61 yrs, Gov pension at 66) - mainly fear of unexpected big-ticket expenditure for roof, car, boiler (just had to spend £5k on new boiler and pipework), carpets, curtains etc - these can eat through a nest egg really quickly - then you're f*cked.

My late Dad lived ok on £16k/yr (from pensions), saved money every month in fact - had he lived long in care his savings would've been eaten up as would the equity in his house. His monthly pension was £400-£500 less than care home costs.

GAS, I'm ok with these days, got all I need by far with the occasional indulgence.

I have a lot of similar fears. MrsTheWeary is retiring at 55 and I could do so on a limited pension ( LGP, not a draw down. The longer I leave it the more it is worth, I could be quite a well off 67 year old if work didn't kill me first) but there are a lot of what ifs. I'm going to reduce my hours instead which will pay me a bit more than a pension would now and give me the flexibility to go back full time of needed/ possible or still retire. And hopefully enjoy work more. I have what seems like a reasonably long week ( minus pratting about on here) so I'm hopeful I can have more energy for a shortened working week. 

Did exactly that last year - dropped to 32 hrs/week (for a propotional pay cut).  I get Fridays off now !