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

mark123

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 ?

phil_b

I work full time with wife and kid. after the rent is paid we have less than £1500 to live off

Dominic

retire early - get old quickly

phil_b

Dominic said:

retire early - get old quickly

only if you have no imagination

paulnb57

Dominic said:

retire early - get old quickly

Utter bollocks, chance to enjoy life while still young enough....

tone1

Dominic said:

retire early - get old quickly

This happened to my Parents.... retired at 50&51.....don’t do it, get a part time job to keep you interesting and flexing your social skills... 

Kittyfrisk

A lot depends on your pension scheme. I was in the LGPS & was made redundant, so due to my length of service etc. I could access my pension rights early.
About a grand a month is just fine for me as my circumstances are very similar to yours (no mortgage, cars & guitars paid for, no debt, no kids, no partner...sadly, but not through choice). 
I would suggest it would be highly advisable to have a reasonable emergency cash contingency buffer, just in case.
Apart from that, from what you describe it's a no brainer, retire... but only if you want to 

fastonebaz

I cannot wait to retire.  Only 20 years to go...

Musicwolf

Ask me again in a couple of months, I’m going in just over 4 weeks time aged 56.  Slightly different circumstances (teenage child) and our combined income will be higher as my wife will also have a pension coming in.  The key is how much are you living off now (i.e. what is the percentage drop)?  You can survive on 1.5k per month, some people only have that to live off when they’re working, but if that’s how much you are currently spending on cocaine and hookers each month then you’re going to have to make some changes.

I’m expecting to be drawing down on savings at 1k per month on top of my pension for the next 10 years until my state pension kicks in - it’s quite frightening.

steveledzep

Dominic said:

retire early - get old quickly

That's bollocks!  I retired last Christmas at 63, so just 3 years early.  I've worked harder this year than any time before.  Major project has been installing a linear drain (30 metres) across the front of my house and re-doing the paving.  I've lost 9kgs in weight but have discovered a lack of flexibility in my lower body due to sitting on my arse for the last 40 or so years.  I now attend the local gym and am flexing all those unused muscles again.  If you can retire early, do it.....but don't just sit reading the newspaper and watching daytime telly.  Be active.....I'm loving it !

Kittyfrisk

Don't forget Micawber's advice   "Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."   
If it's good enough for Keef Richards   

fretmeister

“Survive” is not the same as living. 

EricTheWeary

Dominic said:

retire early - get old quickly

My father retired at 55 and it seemed to be a good period of his life. He did some part time work, some voluntary work, sorted the garden, learned bridge, took me and my sister to California, completed an Open University degree and kept his interests until he became too ill to do so in his late seventies. My father in law retired at 65 and went straight to daytime TV and seeing how far he could get on his free bus pass ( Coventry, by the way). 

Anyway, £1500 per month is more than you’d earn in minimum wage and as you haven’t got any significant outgoings I’m sure you’d be fine. Most people have some costs associated with having to go to work so you instantly save that cost as well. Become a magistrate, do voluntary work, learn to dance...

lovestrat74

What about GAS? Have you factored in GAS?  

Kittyfrisk

fretmeister said:

“Survive” is not the same as living. 

OP said " Not into designer stuff or flash holidays just steady away"
Having an income of more than your outgoings & time that is your own, is not just surviving   

Another thing is to factor in all the small things that most people don't consider day to day, such as lowered travelling expenses, lower insurance premiums etc. It adds up significantly.

boogieman

Can’t say I agree with Dominic. I took early retirement at 58. I’m 65 now and honestly busier now than when I was working. Retirement is what you make it: treat it as another job and there’s no reason to just end up sitting in your underpants watching Bargain Hunt. You need to develop interests to keep your mind and body active, most importantly you need to keep your social life going. 

£1500 could well be enough to live on, but as others have said it depends on your outgoings though. Just make sure you’ve got enough for treats like meals out, holidays etc and the unexpected things like the car needing work, the boiler going pop.  

StanleyAccrington

Retire retire retire. If you have no mortgage or property rental payments then 1.5k a month is doable without a 'flash or designer' lifestyle. If you want a second home in the South of France....then maybe not. Yo may not get your state pensh until 65-67 depending on how long you've  paid stamp. Part time job maybe if finances pinch a bit. Leave the Rat Race asap... I did a 55......and managing ok.

Dominic

my friends father is 92 and still goes into the office every day for about 4 hours although I think that in the last 2 or 3 years things run a bit more smoothly without him

Blueingreen

An important thing to bear in mind is inflation and how well you're protected against it.  Will your £1500 go up with the cost of living?  If not you may find an amount you can live on comfortably now isn't enough in 10 or 15 years time.

We've had pretty low inflation in this country for a long time, but there's no guarantee that will continue.

StanleyAccrington

Plus (at the moment) free eye tests and prescriptions from age 60.

stratman3142

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.