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Early retirement


Brick Tamland

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Brick Tamland

I know there was a topic on here about retirement but I can't find it since the system has been upgraded, so apologies for starting a fresh one.

 

I should be in a position to retire in 6 years (age 60) with a pension worth about £26k per year, and with no mortgage I think I can live off that fairly well.  The alternative is retiring at 66 and having a pension way more than double that.

For those that are retired what expenses were you not expecting when you did retire? What did you not account for? I think I've accounted for everything but it would be good to hear of things I may have not accounted for and then I can do my sums again.

As far as wanting to retire and being ready to retire I am absolutely 100% convinced that I will be ready, I have an extensive list of places and things I want to see and do and my health is excellent and I'd rather retire early in good health than to chase the ££'s and lose some of the health and vitality I have.

 

 

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Joey J J Jr Shabadoo
58 minutes ago, Brick Tamland said:

I know there was a topic on here about retirement but I can't find it since the system has been upgraded, so apologies for starting a fresh one.

 

I should be in a position to retire in 6 years (age 60) with a pension worth about £26k per year, and with no mortgage I think I can live off that fairly well.  The alternative is retiring at 66 and having a pension way more than double that.

For those that are retired what expenses were you not expecting when you did retire? What did you not account for? I think I've accounted for everything but it would be good to hear of things I may have not accounted for and then I can do my sums again.

As far as wanting to retire and being ready to retire I am absolutely 100% convinced that I will be ready, I have an extensive list of places and things I want to see and do and my health is excellent and I'd rather retire early in good health than to chase the ££'s and lose some of the health and vitality I have.

 

 

I'm nowhere near retirement, but my dad died 7 years after retiring. So I'd say retire as soon as you can afford to. 

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Will you pay income tax on your pension income until your 66th birthday?

26k doesn't sound a lot even with the mortgage settled.

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1 minute ago, jb102 said:

Will you pay income tax on your pension income until your 66th birthday?

26k doesn't sound a lot even with the mortgage settled.

That’s a pretty good pension in my mind. 

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1 hour ago, Joey J J Jr Shabadoo said:

I'm nowhere near retirement, but my dad died 7 years after retiring. So I'd say retire as soon as you can afford to. 

My dad died 8 months before his retirement date, ironically it was at the wheel of his car as he was driving to a pre-retirement seminar.

 

In other words, I echo Mr Shabadoos advice.

 

 

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Francis Albert

I think only two things strike me from 9 years of retirement. When I retired I expected to earn about 5% on my savings nest egg - the 2008 finance collapse put paid to that ... now it is 1% or 2% if I am lucky. (You can do better if you can take risks, but you have to be rich enogh tp be able to afford to lose money). But at current interest rates anyone retiring now with savings has only upside.

And the other is that you have a lot more time to spend money. Like the OP I had lots things I wanted to do and places to visit, which is great, but you need to be fairly disciplined in budgeting for your expenditure.

But I haven't regretted retiring early for a moment. They say your schooldays are the best days of your life but I think retirement beats them.

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Joey J J Jr Shabadoo
15 minutes ago, Morgan said:

My dad died 8 months before his retirement date, ironically it was at the wheel of his car as he was driving to a pre-retirement seminar.

 

In other words, I echo Mr Shabadoos advice.

 

 

Yeah, I know my mum and dad had loads of plans, but hardly managed any of them. 

 

ETA My mum was still working, actually, and didn't need the money. I know she regrets that, now. 

Edited by Joey J J Jr Shabadoo
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2 minutes ago, Joey J J Jr Shabadoo said:

Yeah, I know my mum and dad had loads of plans, but hardly managed any of them. 

It was with this in mind that my wife and I stopped working 10 and a half years ago and moved abroad when we still realistically had about another 20 years to wait until we were 'meant' to retire officially.

 

It's been brilliant :thumb:

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3 minutes ago, Sarah O said:

£26k to spunk on nothing but good food, good booze and great bursds?

 

Where do I sign?

 

This, sounds like a dream. :lol:

 

I wouldn't even hesitate to retire. 

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£26k a year is more than enough to do what you want to do.

 

Enjoy it. I wont get to retire and will no doubt be carried out the wood in a box. They should just leave me in there on second thoughts! 

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33 minutes ago, Jefferson Davis Hogg said:

 

Sounds like a fantastic pension. 

That’s what I was going to say, but I tempered it. Most folk like myself won’t get anywhere near that when we retire in 20 or 30 years time. 

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Joey J J Jr Shabadoo
7 minutes ago, Morgan said:

It was with this in mind that my wife and I stopped working 10 and a half years ago and moved abroad when we still realistically had about another 20 years to wait until we were 'meant' to retire officially.

 

It's been brilliant :thumb:

I can believe it. I'm get back on Saturday, but the European lifestyle is immense. So relaxed and cultured. No drunks being sick in the street, or international captains lying comatose outside a chippy with a doner on their laps. 

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1 minute ago, Joey J J Jr Shabadoo said:

I can believe it. I'm get back on Saturday, but the European lifestyle is immense. So relaxed and cultured. No drunks being sick in the street, or international captains lying comatose outside a chippy with a doner on their laps. 

Where are you until Saturday?

 

Holiday or work?

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1 hour ago, jb102 said:

Will you pay income tax on your pension income until your 66th birthday?

26k doesn't sound a lot even with the mortgage settled.

You only pay income tax on your pension, there is no NI contributions. 

 

After the annual tax free allowance (currently £11600 I think) he will be left with around £1900 a month clear to live on and being mortgage free it should be plenty to have a comfortable retirement. Don’t forget the state pension will also kick in when he reaches state retirement age which will bring in another £155 per week less 20% tax

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£1900 a month!!!

 

:sob:

 

I wish I got that in pay NOW while paying rent and making my monthly pish saving for a deposit. 

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Mauricio Pinilla
2 hours ago, jb102 said:

Will you pay income tax on your pension income until your 66th birthday?

26k doesn't sound a lot even with the mortgage settled.

 

I don't know if it's just me being a poor lazy millennial but £26k a year without having to work and having no mortgage sounds absolutely phenomenal.

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Brick Tamland

Thanks for the replies all confirming with my own thoughts that the earlier the better. 

To those that lost their parents so sad and sorry to hear that and thanks for sharing as  that has also confirmed my desire to retire earlier and enjoy it for as long and as much as I can. 

Re my question on what I've not taken into account, any retirees out there with some unexpected or forgotten to take into account expenditure that they never saw coming?

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Joey J J Jr Shabadoo
1 hour ago, Morgan said:

Where are you until Saturday?

 

Holiday or work?

 

Holiday in valldemossa, Mallorca. Beautiful and the local food, wine and real ales have been superb.

 

I love Mallorca (away from the south west, anyway).

Edited by Joey J J Jr Shabadoo
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Just now, Joey J J Jr Shabadoo said:

 

In valldemossa, Mallorca. Beautiful and the local food, wine and real ales have been superb.

 

I love Mallorca (away from the south west, anyway).

Excellent.

 

Enjoy your last two nights and have fun, that's what life's all about :thumb:

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Joey J J Jr Shabadoo
Just now, Morgan said:

Excellent.

 

Enjoy your last two nights and have fun, that's what life's all about :thumb:

 

Thanks, I will savour every last minute. First time I've spent any real time in the mountain region, but I will definitely be back. The views are stunning.

 

I envy you in the Côte d'Azur.

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Samuel Camazzola
4 hours ago, Brick Tamland said:

I know there was a topic on here about retirement but I can't find it since the system has been upgraded, so apologies for starting a fresh one.

 

I should be in a position to retire in 6 years (age 60) with a pension worth about £26k per year, and with no mortgage I think I can live off that fairly well.  The alternative is retiring at 66 and having a pension way more than double that.

For those that are retired what expenses were you not expecting when you did retire? What did you not account for? I think I've accounted for everything but it would be good to hear of things I may have not accounted for and then I can do my sums again.

As far as wanting to retire and being ready to retire I am absolutely 100% convinced that I will be ready, I have an extensive list of places and things I want to see and do and my health is excellent and I'd rather retire early in good health than to chase the ££'s and lose some of the health and vitality I have.

 

 

I'd say go for it. But only if you revive the Online Dating thread. B)

 

 

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26 minutes ago, Brick Tamland said:

Thanks for the replies all confirming with my own thoughts that the earlier the better. 

To those that lost their parents so sad and sorry to hear that and thanks for sharing as  that has also confirmed my desire to retire earlier and enjoy it for as long and as much as I can. 

Re my question on what I've not taken into account, any retirees out there with some unexpected or forgotten to take into account expenditure that they never saw coming?

Just make sure you use protection if you’re still in the online dating game. A baby falls under something you never saw coming.

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Furious Styles
20 minutes ago, H2 said:

£26k a year is excellent, that is a lot more than many people actually earm.

 

 

I earn 30k but I reckon my pension will be pitiful in comparison to bricks. 

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4 minutes ago, fabienleclerq said:

I don't know whether to laugh or cry at brick worrying about only having £26k a year to live on mortgage free!

 

Me too. I don't have £26k a year now and I work full time. Where did I go wrong in life? 

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Joey J J Jr Shabadoo
3 minutes ago, fabienleclerq said:

I don't know whether to laugh or cry at brick worrying about only having £26k a year to live on mortgage free!

I know, I see projected quotes to retirement at work all the time. People putting in not unsubstantial amounts getting annual pensions of £500 a year. Unless you're putting in about £200 a month from a (fairly) young age, you'll not get much to live on.

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11 minutes ago, fabienleclerq said:

I don't know whether to laugh or cry at brick worrying about only having £26k a year to live on mortgage free!

 

I was thinking the same i’d retire tomorrow if i was mortgage free and £26k in my sky ? 

 

my projections are £13k and i pay in a fair amount.

Edited by Jamboelite
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1 hour ago, Joey J J Jr Shabadoo said:

 

Thanks, I will savour every last minute. First time I've spent any real time in the mountain region, but I will definitely be back. The views are stunning.

 

I envy you in the Côte d'Azur.

:2thumbsup:

 

Take care.

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I'm lucky enough to have retired early in near identical circumstances you have described a couple of years ago (early/mid 50s). I LOVE it. It's like being on holiday every day. No commute. No work stresses. 2 and a half years have just flown by. I have absolutely zero regrets especially when meeting up with former work colleagues to hear the moans and groans of office life. It's a truism but nobody says on their deathbed "I wish I spent more time in the office"

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26 years ago this month I worked my last shift.  Iwas 56, had paid off my mortgage some years earlier.  Had some money in the bank, good pensions, kids both grown and out of the house, all was well. Sold my house, bought it in 1971 for $23,000 sold it in 1991 for over $300, 000.  Built a new house in what was basically a retirement, vacation type area, new house twice as big as the old one,  beautiful views of the lake, mountains and 2 minute golf cart ride from the golf course.

 

Have had no regrets, better off financialy than I thought I would be, have travelled, helped the kids occasionally, and were able to be generous grandparents. Have stayed active, a wee bit less now, have never wanted the work experience again, and have not kept up with past life at all, made new friends,enjoyed new experiences.

 

From my experience I would suggest that a well planned, prepared retirement is the best thing life can offer.

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2 hours ago, Brick Tamland said:

 

Re my question on what I've not taken into account, any retirees out there with some unexpected or forgotten to take into account expenditure that they never saw coming?

 

Some things work out cheaper. Minus the commute I fill up the car much less often. We've had more holidays but, because of the flexibility we have, they can be cheaper. You don't have to travel at peak times, can take advantage of cheap flights and take opportunities at short notice. Bills like council tax, gas/elec, insurance, sky sub, mobiles/broadband, food , insurance make up the bulk of your regular expenditure and (for me) they haven't changed.

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King Of The Cat Cafe

I'm a bit like RobboM.  I walked away 18 months ago with a severance package to keep me going until I get Civil Service pension.

 

Sadly, when it comes it will not be 26k :(

 

When people ask if I regret stopping work, it takes about a nano second to say "no".

 

I don't do a lot, but I am never bored, and the time is my own.

 

It also means being able to get to Hearts midweek games more easily. :) 

 

My advice is: if you have a chance to go early, and you can afford it - take it.

 

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jonnothejambo

If you have a final salary pension, it could be worth your while getting a transfer value and transfer it out and  invest in  SIPP.  

 

You get 25% tax free cash and the remainder is invested. 

 

Plus it becomes part of your estate and can be passed on to dependants.

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16 minutes ago, jonnothejambo said:

If you have a final salary pension, it could be worth your while getting a transfer value and transfer it out and  invest in  SIPP.  

 

You get 25% tax free cash and the remainder is invested. 

 

Plus it becomes part of your estate and can be passed on to dependants.

This x 100

have you looked into what your pot would be ? 

I’ve looked into it and it’s staggering and I’m 47 but like posted above I’ve a final salary pension and paid into it since I was 18 and worked for the same company from then.

Definitely take serious financial advice , but this is definitely an option and if done properly (if your pots enough) can be very lucrative. The fact it’s there for your dependents if the unfortunate happens is very important also. I’m intending in jacking in on my 55th birthday .

you need to watch once your pot reaches a certain limit though as there is tax implications after it reaches £x amount

Edited by 1971fozzy
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19 minutes ago, 1971fozzy said:

This x 100

have you looked into what your pot would be ? 

I’ve looked into it and it’s staggering and I’m 47 but like posted above I’ve a final salary pension and paid into it since I was 18 and worked for the same company from then.

Definitely take serious financial advice , but this is definitely an option and if done properly (if your pots enough) can be very lucrative. The fact it’s there for your dependents if the unfortunate happens is very important also. I’m intending in jacking in on my 55th birthday .

you need to watch once your pot reaches a certain limit though as there is tax implications after it reaches £x amount

Jonno is 98 years old and is therefore exempt from this advice.

 

He's also a great guy btw.

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jonnothejambo
3 hours ago, 1971fozzy said:

This x 100

have you looked into what your pot would be ? 

I’ve looked into it and it’s staggering and I’m 47 but like posted above I’ve a final salary pension and paid into it since I was 18 and worked for the same company from then.

Definitely take serious financial advice , but this is definitely an option and if done properly (if your pots enough) can be very lucrative. The fact it’s there for your dependents if the unfortunate happens is very important also. I’m intending in jacking in on my 55th birthday .

you need to watch once your pot reaches a certain limit though as there is tax implications after it reaches £x amount

 

I retired in July after doing this, Fozzy and I am currently over in the US with my wife to celebrate retirement. 

 

Many of my ex colleagues are doing the transfer or have already done it. 

 

You do not have access to the money until you are 55 bit you can transfer the pot before then.

 

Seek financial advice.

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AlphonseCapone

I'm presuming the poster saying 26k wasn't a lot thought it was in total and not per year. Otherwise I don't even want to know how much they expect to have!

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9 hours ago, RobboM said:

I'm lucky enough to have retired early in near identical circumstances you have described a couple of years ago (early/mid 50s). I LOVE it. It's like being on holiday every day. No commute. No work stresses. 2 and a half years have just flown by. I have absolutely zero regrets especially when meeting up with former work colleagues to hear the moans and groans of office life. It's a truism but nobody says on their deathbed "I wish I spent more time in the office"

That last sentence is exactly what I was going to post.

 

Seven years to go for me.  Been paying in a lot for 30 years and should get a decent lump sum and annual pension.  (Contribution has gone from 6% to 13.5% in the last few years though!)

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My Dad retired a 55, as he was with BP as a Chemical Engineer.

 

The days of comfy final salary pensions were coming to a finish soon there, and they asked, and he took it. 70 next year, & he’s loved every minute. Being on a frankly ridiculous amount of money every month has helped too he’d admit.

 

When my time comes, & I hope it’s 60 at the latest, I’m out of there. As above, heard to many tales of people just hanging on for the sake of it, & when they finally decide to go for it, they’re dead within 6 months.

 

That’s existing, not living, in my humble opinion. Carpé Diem, etc etc...

Edited by Barack
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Its now 10 years since I took early retirement from BT after 42 years with the company. Never regretted it one bit and have never gone back to the office. I have however kept in contact with a few friends and colleagues from work and  meet them occasionally. On the financial side I can't complain as I get my state pension in addition to my BT one. The only thing I miss is Public Holidays; they mean nothing now. I used to annoy guys in the pub on a Sunday by saying oh hell back to retirement tomorrow!

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scott herbertson
13 hours ago, Brick Tamland said:

Thanks for the replies all confirming with my own thoughts that the earlier the better. 

To those that lost their parents so sad and sorry to hear that and thanks for sharing as  that has also confirmed my desire to retire earlier and enjoy it for as long and as much as I can. 

Re my question on what I've not taken into account, any retirees out there with some unexpected or forgotten to take into account expenditure that they never saw coming?

 

 

Ill health can be expensive, even on the NHS if you need to buy extra equipment, adapt your home etc. Families can be unexpectedly expensive as well - there’s no guarantees they won’t expect you to help them, including financially.

 

my in laws are in their mid to late 70s and are starting to find holiday insurance hard to come by and expensive.

 

if you stay in the house a lot you will consume more electricity/ gas.

 

But overall, having been retired for a couple of years there are many more pluses than minuses on the financial front.

Edited by scott herbertson
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Retired a couple of months ago at 60, with a lot less than £26k and I am financially fine. I havery budgeted to have the same money coming in as I was earning before until I am 73. After that I might have to tighten my belt a bit but got a couple of tax free lump sums to fall back on. Anyway,  retire as soon as you can, you will never regret it

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Maroon Sailor

26k is a pretty hefty pension - think it's above the National average wage

 

In other words retire at 60

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I take it a 26k pension is £26,000 a year without any tax?

 

That's a hefty wedge, all things considered.  You'd be doing well to take £2200 a month home (after tax) if you were working.

 

Take it and run.

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