Enjoying Retirement
Discussion
RDMcG said:
One thing worth planning for is inflation.
10% inflation halves your income in seven years. While I do not depend on pension for most of my income, what was an excellent pension in 2008 when I left my permanent job is now noticeably more modest.
As it happens I continued to work so this was not too important, but in recent years the impact on pension has been significant. I do not have any inflation protection on most of it.
I think this is what stops many from quitting work .10% inflation halves your income in seven years. While I do not depend on pension for most of my income, what was an excellent pension in 2008 when I left my permanent job is now noticeably more modest.
As it happens I continued to work so this was not too important, but in recent years the impact on pension has been significant. I do not have any inflation protection on most of it.
The last few years of turbulence has made people stay until they get told to go.
I know of a few that could retire but stay on the hamster wheel even though they don’t enjoy it .
MR2 Steve said:
Has anyone retired without relying on pension income and savings? I’m thinking more along the lines of having income from properties that kick out more income than your living expenses so you didn’t need the job and retired.
For sure . I have a mate that does exactly this.
He got booted from his job at 48 but had built up a portfolio of 6 properties that he now manages as a business and his job & income.
Covid was a tricky time with some tenants having no income but he gave them a grace period .
Sounds like you might be in a similar situation?
Just to add - we met with a couple today for lunch that retired at 55. Naturally I asked him how he’d found it now being 60.
They wound their business down gradually and finally stopped answering any calls last year .
He was fearful of waking up on a Monday morning knowing he was all of a sudden retired as opposed to taking a slow step .
I do see this
Edited by GT3Manthey on Wednesday 22 March 19:58
OldSkoolRS said:
I generally agree with you Skeeterm5, as I've mentioned before I've been getting by on a shoestring budget this year, but still managing to do what I want within reason. However, I can empathise that some might consider my choices and lifestyle depressing having to keep an eye on finances and not just splash out when they feel like it. I accept that I live modestly day to day if it means I'm able to have the occasional holidays and other treats, but others might find that abhorrent as we've seen on here or other (less friendly) threads.
I do feel a bit like a fake though as at least I've always known that I would have my DC pension to start at end of this year latest, plus that Probate would come through at some point too. I guess it's easier to live on a tight budget if you know more is coming at some point, even if I still won't be rushing off to buy a new Rolls Royce or yacht.
I sometimes wonder if I would have tried to stick it out another year had I known how long the DC pension and Probate would take to come through. Then I realise that I'm looking back with the relaxed mindset of retired OldskoolRS and not the stressed/ill one I had a year ago. Remembering also that this time last year I was attending my friend/colleague's funeral and he was a year younger than me and never got to see retirement.
Tl;dr I'm glad I was able to retire early and live on a budget, but I can appreciate that it might not be enough for some.
I also get this as i have a mate at 56 who's thrown the towel in ( same business as me) .I do feel a bit like a fake though as at least I've always known that I would have my DC pension to start at end of this year latest, plus that Probate would come through at some point too. I guess it's easier to live on a tight budget if you know more is coming at some point, even if I still won't be rushing off to buy a new Rolls Royce or yacht.
I sometimes wonder if I would have tried to stick it out another year had I known how long the DC pension and Probate would take to come through. Then I realise that I'm looking back with the relaxed mindset of retired OldskoolRS and not the stressed/ill one I had a year ago. Remembering also that this time last year I was attending my friend/colleague's funeral and he was a year younger than me and never got to see retirement.
Tl;dr I'm glad I was able to retire early and live on a budget, but I can appreciate that it might not be enough for some.
He and his wife will work on circa £1800 a month all in and they are mega happy with this which will include holidays.
Mentally he's destroyed so its time for him to quit. He's done the lumpy things like school fees and now wants to embrace quality simple life .
I guiding him to this thread which i think formed part of the decision making process.
I'm all on board and i have a notice period but i also have a good female friend at 52 who wont see 54 so like you, i'll not be making the same mistakes
MR2 Steve said:
GT3Manthey said:
For sure .
I have a mate that does exactly this.
He got booted from his job at 48 but had built up a portfolio of 6 properties that he now manages as a business and his job & income.
Covid was a tricky time with some tenants having no income but he gave them a grace period .
Sounds like you might be in a similar situation?
Just to add - we met with a couple today for lunch that retired at 55. Naturally I asked him how he’d found it now being 60.
They wound their business down gradually and finally stopped answering any calls last year .
He was fearful of waking up on a Monday morning knowing he was all of a sudden retired as opposed to taking a slow step .
I do see this
6 sounds a pretty low number unless they are high rents the south or owned mortgage free? I have a mate that does exactly this.
He got booted from his job at 48 but had built up a portfolio of 6 properties that he now manages as a business and his job & income.
Covid was a tricky time with some tenants having no income but he gave them a grace period .
Sounds like you might be in a similar situation?
Just to add - we met with a couple today for lunch that retired at 55. Naturally I asked him how he’d found it now being 60.
They wound their business down gradually and finally stopped answering any calls last year .
He was fearful of waking up on a Monday morning knowing he was all of a sudden retired as opposed to taking a slow step .
I do see this
Edited by GT3Manthey on Wednesday 22 March 19:58
A friend seemed to retire in his early 30s with this strategy.
Well scotland was a welcomed break and we even got lucky with the weather !
Long drive for us and some decent touring around but so much more enjoyable than airport queues and the associated hassles.
Have to say it wasn’t cheap so going forward more planning to reduce costs would be needed but I’m more convinced than ever about seeing more of the UK.
Anyhow , Monday morning on the rattler back into work on the hamster wheel
Long drive for us and some decent touring around but so much more enjoyable than airport queues and the associated hassles.
Have to say it wasn’t cheap so going forward more planning to reduce costs would be needed but I’m more convinced than ever about seeing more of the UK.
Anyhow , Monday morning on the rattler back into work on the hamster wheel
mikeiow said:
Ah, holidaying in the UK can cost a little….especially with fuel. We still enjoy camping (good quality sleeping gear and a tent you can stand up in makes a big difference, so that can keep costs down a bit!)
New hound looked very happy!
On our own ‘rattler’ today….on a train to St Pancras, then Eurostar for 2 months around Europe….a proper adventure, & a beautiful sunny day to start
Lovely Mike enjoy your adventure and keep us posted. New hound looked very happy!
On our own ‘rattler’ today….on a train to St Pancras, then Eurostar for 2 months around Europe….a proper adventure, & a beautiful sunny day to start
I’m sure with time I can cheapen down the little trips we do and maybe get to use up the airmiles I’ve accumulated over the years
OldSkoolRS said:
Sounds like a great trip GT3. 
Enjoy yours too Mike; sounds like a bit of an adventure.
We're planning a brief trip into Scotland in May to scatter my late MiL's ashes at the same place as my late FiL was done. Then a return leg via my family in the North East for a few days. I know what you mean about UK holiday prices too since we don't stay at my parent's place these days as I feel it's too much for them (as much as they try to insist we do each time!). It's great to see family and friends in the area though.
Slightly dull head this morning due to post gig drinks: We did our end of term Rock Project performance last night at a club. There was a decent crowd and it seemed to go down well. Corny (and as high!!!) as it is, Smoke on the water was fun to sing and get the audience joining in too. I also made a tit of myself doing the two tone dancing and backing vocals to Gangsters, so we covered a few genres this term.
Now waiting for the last bank to pay in our inheritance so I can distribute it and hope to catch a decent interest rate for some of it. One bit I haven't been able to wing, so I've gone over everything carefully to make sure I do the executor job correctly and also to make the best of this extra sum in a way my Dad would approve of.
Another coffee and an Paracetamol required yet though...
Sounds like you’ve had a monster weekend mate ! Good on you. Enjoy yours too Mike; sounds like a bit of an adventure.
We're planning a brief trip into Scotland in May to scatter my late MiL's ashes at the same place as my late FiL was done. Then a return leg via my family in the North East for a few days. I know what you mean about UK holiday prices too since we don't stay at my parent's place these days as I feel it's too much for them (as much as they try to insist we do each time!). It's great to see family and friends in the area though.
Slightly dull head this morning due to post gig drinks: We did our end of term Rock Project performance last night at a club. There was a decent crowd and it seemed to go down well. Corny (and as high!!!) as it is, Smoke on the water was fun to sing and get the audience joining in too. I also made a tit of myself doing the two tone dancing and backing vocals to Gangsters, so we covered a few genres this term.
Now waiting for the last bank to pay in our inheritance so I can distribute it and hope to catch a decent interest rate for some of it. One bit I haven't been able to wing, so I've gone over everything carefully to make sure I do the executor job correctly and also to make the best of this extra sum in a way my Dad would approve of.
Another coffee and an Paracetamol required yet though...
Now, Gangsters is a real favourite of mine so I’m all in on that .
In fact I’ve been reliving my youth listening to the specials over this last week .
Real shame at the loss of Terry Hall and only 63 i think .
We have an EA coming to the house this week to discuss listing/pricing so feels like we are very much moving in the right direction.
Some trepidation in that this will be ( if it all falls into place) a big move and not reversible but I guess that’s because I seem to have been planning this for so long now it’s seeming real and not a dream !
I’m now beginning to understand the nerves/emotions of retiring although I can’t help but feel excited about waking up Monday mornings knowing the weeks my own.
Some trepidation in that this will be ( if it all falls into place) a big move and not reversible but I guess that’s because I seem to have been planning this for so long now it’s seeming real and not a dream !
I’m now beginning to understand the nerves/emotions of retiring although I can’t help but feel excited about waking up Monday mornings knowing the weeks my own.
Kickstart said:
GT3 Manthey,
Don't wish to be nosy so feel free to ignore, but you have mentioned 911's a few times so I would love to know which models you have owned and what you think of them as I plan to buy one that I can keep for the long term
That’s a big question :-)Don't wish to be nosy so feel free to ignore, but you have mentioned 911's a few times so I would love to know which models you have owned and what you think of them as I plan to buy one that I can keep for the long term
I’ve owned over 10 and I very much depends on your preference and intended use. Some will only buy the air cooled cars and some want the more modern cars . Also you need to ask yourself if you want manual or auto/PDK.
I’ve had just about everything from a 930 turbo to GT cars to regular convertibles.
I say right now as a car for keeps and if like me you are of a certain age I’d look at a 991 model 911 with PDK.
AdamV12V said:
Don't worry, its all gravy once you have retired I can assure you! I spent 34yrs trudging through the endless rat race and gave it all up on 31st Dec 2020, so 28months ago for early retirement at the age of 52!
I had spent the prior 12years pumping the most I could into my pension, aiming for an early retirement, tracking my pension funds DAILY into a spreadsheet - yes every single day, that's how focussed I was on it! lol I had originally planned to go at 55, but the pandemic made we review my whole outlook on life, big time!
Sure, working through the last 6months of serving my notice at work did feel a little odd, especially given how long I had been there, but the final day came, a bit sad to say goodbye to people, but after that I can honestly say there hasn't been one single day when I have regretted the decision! I do miss some of the people and the daily office banter, but that's it
The stress and sleepless nights related to the endless deadlines and corporate objectives are all gone, as is the stress related Alopecia I was increasingly suffering from over recent years, and I now only focus on the good things in life that I enjoy.
Just do it... Honestly its life changing. If anything I probably wish I'd given up a couple of years earlier now.
Tks Adam very reassuring and I’m glad it’s all worked out well for you. I had spent the prior 12years pumping the most I could into my pension, aiming for an early retirement, tracking my pension funds DAILY into a spreadsheet - yes every single day, that's how focussed I was on it! lol I had originally planned to go at 55, but the pandemic made we review my whole outlook on life, big time!
Sure, working through the last 6months of serving my notice at work did feel a little odd, especially given how long I had been there, but the final day came, a bit sad to say goodbye to people, but after that I can honestly say there hasn't been one single day when I have regretted the decision! I do miss some of the people and the daily office banter, but that's it
The stress and sleepless nights related to the endless deadlines and corporate objectives are all gone, as is the stress related Alopecia I was increasingly suffering from over recent years, and I now only focus on the good things in life that I enjoy.
Just do it... Honestly its life changing. If anything I probably wish I'd given up a couple of years earlier now.
May I ask how you’ve found things financially speaking . IE have you spent more or less than you’d budgeted for ?
The financial side is the most worrying part knowing there isn’t the monthly wage/bonus to always fall back on .
I guess that’s all part of the conditioning
Edited by GT3Manthey on Monday 27th March 11:48
Gary C said:
as you say, worth a check.
For me its a 10% cap though its applied at Company discretion (and there are less of us each year !)
This is on the old nationalised company DB pension. The new ones are 5% and even 2.5% which is quite shocking given that 'natural' long term (ie over the last 100 years) inflation runs at about 3% to 4% so many will see their pensions decrease even in normal times.
Looking at it, the difference in my pension retiring next feb at 57 against when I wanted to go at 58 is 0.04% so here I come
You clearly have a very good pension and worry free with increases with inflation. For me its a 10% cap though its applied at Company discretion (and there are less of us each year !)
This is on the old nationalised company DB pension. The new ones are 5% and even 2.5% which is quite shocking given that 'natural' long term (ie over the last 100 years) inflation runs at about 3% to 4% so many will see their pensions decrease even in normal times.
Looking at it, the difference in my pension retiring next feb at 57 against when I wanted to go at 58 is 0.04% so here I come
Good for you
AdamV12V said:
Well I had a rough plan on what I might need to spend, especially in the short term between retiring and hitting 55 and starting drawdown from my DC pension, which I will do at the end of this year. I have a DB pension too, which kicks in with the state pension at 67 so a long way off yet so not factored that into anything really. In terms of the last 28 months, I have pretty much hit my annual spend expectation on the head, but that wasn't a deliberate act of living to a set means, more a result of accurately knowing what I spent on everything, and on the whole just continuing to live to the same standard, and rounding up for unexpected extras.
The biggest unplanned additional extra has been electrical heating. My place has a LOT of glass and being up North it gets a tad nippy between Nov-Feb, so the electricity bills have been fruity. Annual heating jumped from £2500 a year to over £5000, and that's even after having cut down the thermostat a lot and wrapping up when I'm home alone! A cost which no-one could have forecast really, but hopefully next winter it will come down a little again.
Lifestyle, well we still eat out once or twice every weekend, although with all the free time I have become an even better home cook, so largely have become somewhat more critical of where to eat as I get grumpy paying for food that isn't as good as I can cook myself now! lol
Still run two very nice cars, live in the same home, have 3 holidays a year, totalling 4-5 weeks away. Last year we did a week in St Lucia in April, a week in Lake Garda in Sept and 3 weeks diving in remotest part of Indonesia over xmas and new year. This year, Miami last week for a week, planning a week in the Azores around Sept and then a couple of weeks diving in the Maldives over winter all being well.
I guess moving cash out of, rather than into savings each month to pay bills felt a bit disconcerting at first, but I've got used to it now. I don't feel like we've cut back, but I guess if I'm honest I am less impulsive with big purchases now. Before I might have bought a new TV, or new HiFi component or a new jacket in HN largely on a whim cos I fell in love with it and knew I could afford it anyway, whereas now I consider big purchases more carefully and usually decide I don't need whatever it is and let the urge pass. That said we just had a major overhaul of the master bathroom which was an expense that could have been avoided, but its one of those things that we derive pleasure out of at least twice every day, so no regrets on that side yet. Once I start drawdown at 55 that will nip in the bud the monthly dip into savings from then onwards.
I think the key is to just keep your head screwed on, and balance the need to live for today and enjoy life whilst you can (as it can all turn at a moments notice when you least expect it), vs ensuring that you have enough to keep on enjoying yourself for a fair while yet on the assumption that there will very likely be a several tomorrows too!
Wise words many tks The biggest unplanned additional extra has been electrical heating. My place has a LOT of glass and being up North it gets a tad nippy between Nov-Feb, so the electricity bills have been fruity. Annual heating jumped from £2500 a year to over £5000, and that's even after having cut down the thermostat a lot and wrapping up when I'm home alone! A cost which no-one could have forecast really, but hopefully next winter it will come down a little again.
Lifestyle, well we still eat out once or twice every weekend, although with all the free time I have become an even better home cook, so largely have become somewhat more critical of where to eat as I get grumpy paying for food that isn't as good as I can cook myself now! lol
Still run two very nice cars, live in the same home, have 3 holidays a year, totalling 4-5 weeks away. Last year we did a week in St Lucia in April, a week in Lake Garda in Sept and 3 weeks diving in remotest part of Indonesia over xmas and new year. This year, Miami last week for a week, planning a week in the Azores around Sept and then a couple of weeks diving in the Maldives over winter all being well.
I guess moving cash out of, rather than into savings each month to pay bills felt a bit disconcerting at first, but I've got used to it now. I don't feel like we've cut back, but I guess if I'm honest I am less impulsive with big purchases now. Before I might have bought a new TV, or new HiFi component or a new jacket in HN largely on a whim cos I fell in love with it and knew I could afford it anyway, whereas now I consider big purchases more carefully and usually decide I don't need whatever it is and let the urge pass. That said we just had a major overhaul of the master bathroom which was an expense that could have been avoided, but its one of those things that we derive pleasure out of at least twice every day, so no regrets on that side yet. Once I start drawdown at 55 that will nip in the bud the monthly dip into savings from then onwards.
I think the key is to just keep your head screwed on, and balance the need to live for today and enjoy life whilst you can (as it can all turn at a moments notice when you least expect it), vs ensuring that you have enough to keep on enjoying yourself for a fair while yet on the assumption that there will very likely be a several tomorrows too!
Edited by AdamV12V on Monday 27th March 16:21
Jaguar steve said:
Our downsize to a cottage out in the sticks had been part of the dream for decades and selling up and getting out of the family home near Chelmsford released enough cash for the final push into retirement.
Best thing we ever did.
Whenever we go back to urban Essex to visit friends neither of us can work out how on earth we put up with living there.
Evening Steve. Best thing we ever did.
Whenever we go back to urban Essex to visit friends neither of us can work out how on earth we put up with living there.
Chelmsford is now so busy and you know we live in a village not far away from there but it’s a nice area and we like it however, it was always a ‘stop gap’ home which we’ve vastly improved which was all part of the plan.
You know we are looking to go to the coast which will work for us as a family unit & take out a good deal of cash to add to the pension pot .
I’m with you in that I’m done with busy areas with one way systems!
What I’m seeing now is that the properties that went nuts over covid are now slipping back relative to commuter belt so we are hoping this works in our favour.
Let’s see but I’m quietly confident my planning will pay off
Phil. said:
GT3, have you published a date yet so we can all get ready for the celebrations? This is going to a momentous occasion
Well yes and no ! So come Sep I’m chucking the towel in but I’ll likely be required to work a period of notice plus we also have to have successfully relocated in that time too.
Momentous celebrations for sure knowing the dye has been cast
Wh00sher said:
I officially resigned on Sunday which was my last night shift. Due to holidays and swaps and the prior agreement of my team, that was also my last ever shift.
I had already booked Easter off as we're heading across to Spa and the ring for 4 days of trackdays next week. It meant I only needed 6 shifts off and I wouldn't need to go back.
It feels real, but also a little bit like paying off the mortgage. I somehow expected it to feel more momentous than it actually did.
Nice one matey . I had already booked Easter off as we're heading across to Spa and the ring for 4 days of trackdays next week. It meant I only needed 6 shifts off and I wouldn't need to go back.
It feels real, but also a little bit like paying off the mortgage. I somehow expected it to feel more momentous than it actually did.
May I ask at what age you’ll be retired ?
Track days I love and I’d like to do more .
Used to track my lotus at Spa some years back .
I know what you mean about how you feel actually retiring.
Guess we get so conditioned after so many years working you just expect to be doing it forever
Wh00sher said:
I'm 53, 54 next month.
I also completely agree with your post. I've had 37 years of getting a wage paid into my account. Something unexpected breaks, a few overtime shifts sorted that.
Knowing that I have a set fund that has to last me the rest of my life took quite a lot of getting my head around.
I budget anyway, but it's that subconscious 'this is all I have!' feeling I'm talking about.
I’ll be close to 56 by the time I’m totally free I think but like you that’s when the money stops. I also completely agree with your post. I've had 37 years of getting a wage paid into my account. Something unexpected breaks, a few overtime shifts sorted that.
Knowing that I have a set fund that has to last me the rest of my life took quite a lot of getting my head around.
I budget anyway, but it's that subconscious 'this is all I have!' feeling I'm talking about.
Yes the subconscious thing I totally get.
Knowing that there won’t be a bonus to prop the account up again or even the monthly wage
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