Enjoying Retirement
Discussion
Gary C said:
Well
Just this very minute applied for my figures for 2024 & 2025, the results will decide when I join the PH retirement club
One thing worth planning for is inflation. Just this very minute applied for my figures for 2024 & 2025, the results will decide when I join the PH retirement club
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.
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 worked for a car manufacturer from age 21 to 25 - so it's 40 yrs ago that I left - and was given a pension projection which I recall thinking at the time seemed an insanely large amount for the time I'd been there and the salary I got. They've just started paying it - around £5000 per year gross, and it's fixed at that level, it'll never increase.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.
Even a couple of year ago I was thinking "it'll cover the utility bills". Now it doesn't.
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 .
GT3Manthey said:
I think this is what stops many from quitting work .
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 .
You’re probably right but that’s not healthy at all. 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 .
Far better to retire and perhaps cut the cloth a bit differently rather than being the richest man in the graveyard that was still working.
Planning for inflation is the one bit I never really wanted to do and didn’t - this year for instance at 10% with the suggestion that next year is 3% - so average at 6.50% in the spreadsheet ?
I think my spreadsheet has probably got sufficient give and take to ignore this.
Otherwise always a danger that there will be another excuse along not to retire.
How’s the house preparation going ?
My opinion, which may be different from everybody else, and isn’t meant to be deliberately provocative.
The fallacy of this argument about detailed financial planning is that people generally fall into the trap of assuming that you will need to spend the same amount of money both pre and post retirement. And then they convince themselves that they can’t afford to retire and so don’t.
However if you honestly think about just how much of your current earnings go towards funding a lifestyle that your peers expect you to have then you might be surprised how much cheaper retirement can be.
This isn’t meant to be judgemental at all, but do you really need that new car? The new kitchen? Latest iPhone? And so on…. Maybe you think you do but if I said you could trade that for quality time with you family or doing something else that you enjoy them wouldn’t that be a good trade?
As pointed out on this thread a few times none of us know how much time we have, and I think it would be a real shame to be remembered for great and detailed financial planning and then keeping on working to fund some “tomorrow” dream of retirement.
Time is the one thing that money can’t buy and ultimately is the great equaliser. It is amazing how much you can cut your cloth if you put (what I believe to be) the really important things at the top of the priority list.
It is very easy to find a lot of reasons not to do something and then to convince yourself not to. But look beyond this and try find the one reason to do it.
I appreciate that everybody is in a different position, both financially and mentally and early retirement is only ever going to be a pipe dream for some. However, if you have even a smidgen of an opportunity to retire then I would say pursue with the same vigour that you pursue you career.
Anyway, off my soapbox now and off for a nice stroll around the fields in the sunshine and wind.
The fallacy of this argument about detailed financial planning is that people generally fall into the trap of assuming that you will need to spend the same amount of money both pre and post retirement. And then they convince themselves that they can’t afford to retire and so don’t.
However if you honestly think about just how much of your current earnings go towards funding a lifestyle that your peers expect you to have then you might be surprised how much cheaper retirement can be.
This isn’t meant to be judgemental at all, but do you really need that new car? The new kitchen? Latest iPhone? And so on…. Maybe you think you do but if I said you could trade that for quality time with you family or doing something else that you enjoy them wouldn’t that be a good trade?
As pointed out on this thread a few times none of us know how much time we have, and I think it would be a real shame to be remembered for great and detailed financial planning and then keeping on working to fund some “tomorrow” dream of retirement.
Time is the one thing that money can’t buy and ultimately is the great equaliser. It is amazing how much you can cut your cloth if you put (what I believe to be) the really important things at the top of the priority list.
It is very easy to find a lot of reasons not to do something and then to convince yourself not to. But look beyond this and try find the one reason to do it.
I appreciate that everybody is in a different position, both financially and mentally and early retirement is only ever going to be a pipe dream for some. However, if you have even a smidgen of an opportunity to retire then I would say pursue with the same vigour that you pursue you career.
Anyway, off my soapbox now and off for a nice stroll around the fields in the sunshine and wind.
GT3Manthey said:
I think this is what stops many from quitting work .
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 .
That’s kind of the position I was in in 2021/2 until I came to realise that it wasn’t doing my mental health any favours and that I could afford to retire so made the decision towards the end of 2022 and was lucky enough to negotiate a way out from my company. Two months in and I have no regrets 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 .
skeeterm5 said:
I appreciate that everybody is in a different position, both financially and mentally and early retirement is only ever going to be a pipe dream for some. However, if you have even a smidgen of an opportunity to retire then I would say pursue with the same vigour that you pursue you career.
Anyway, off my soapbox now and off for a nice stroll around the fields in the sunshine and wind.
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. Anyway, off my soapbox now and off for a nice stroll around the fields in the sunshine and wind.
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.
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 so retired.
Leveraged property can be a good thing when inflation is high and the property prices increase (currently) but the loan amount stays the same. Therefore, the debt is eroded by inflation creating more equity.
Leveraged property can be a good thing when inflation is high and the property prices increase (currently) but the loan amount stays the same. Therefore, the debt is eroded by inflation creating more equity.
Edited by MR2 Steve on Wednesday 22 March 19:59
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
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.
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.
Surely retirement for many is an aspirational time of life and is to a degree true for myself.
Yes we can cut our cloth to suit and yes it still gives you the extra family time and so forth but is that what I want after 30 or 40 years of work?
Retirement for me was to try and have a frivolous relaxing time indulging. Now this for some people may mean champagne daily on the poop deck sunning oneself in the sun and for others it could be wild camping in Scotland being eaten alive by midges but either way I wanted to.just have choices that weren't always governed by spreadsheets, value or common sense.
If it was a choice of retirement today but having to cut my cloth so to speak, I would prefer to work a few more years and have the choice of not having to cut my cloth.
Only my opinion of course and I'm sure many others would prioritise very differently to myself.
My attitude could also come from seeing the demise of so many people who were careful and sensible to then die young and in the early years of their retirements.
Go forth and drink beer, eat cheese and make some rash purposes
Yes we can cut our cloth to suit and yes it still gives you the extra family time and so forth but is that what I want after 30 or 40 years of work?
Retirement for me was to try and have a frivolous relaxing time indulging. Now this for some people may mean champagne daily on the poop deck sunning oneself in the sun and for others it could be wild camping in Scotland being eaten alive by midges but either way I wanted to.just have choices that weren't always governed by spreadsheets, value or common sense.
If it was a choice of retirement today but having to cut my cloth so to speak, I would prefer to work a few more years and have the choice of not having to cut my cloth.
Only my opinion of course and I'm sure many others would prioritise very differently to myself.
My attitude could also come from seeing the demise of so many people who were careful and sensible to then die young and in the early years of their retirements.
Go forth and drink beer, eat cheese and make some rash purposes
Longy00000 said:
Go forth and drink beer, eat cheese and make some rash purposes
I'm sure I could use that as a line in a song. 
Of course there are so many ways to do it as we've each shown in this thread. I guess I've traded one year of cutting my cloth for finishing early, mostly using savings and a very small pension, but things are slowly coming on stream. By the end of this year I should be close to the same DI as I was when I was working, sadly also thanks to my MiL and also my Dad which has meant our mortgage was cleared last summer. Plus those inheritances have/will be invested in various ways to give us extra income/reduce bills (eg solar install next month).
I think it was worth it, though I could understand others might end up climbing the walls if they felt restricted in their spending.
I think it helped using some of last year to catch up on various DIY projects and general jobs I'd been wanting to get done that largely were time, rather than cost limited.
Longy00000 said:
My attitude could also come from seeing the demise of so many people who were careful and sensible to then die young and in the early years of their retirements.
Go forth and drink beer, eat cheese and make some rash purposes
My view precisely. Go forth and drink beer, eat cheese and make some rash purposes
From the youngest age I knew that time cannot be changed, so the way you spend it every day is critical. Retirement never held either magic or dread for me as I always tried to have new experiences my whole life. You can accumulate stuff of course but the real value is being able to have new adventures, old friends, good times and not get stuck in a rut. At my age I am very clear that there is more past than future. Have never waited to do things in old age but continue to enjoy life.
Now I have geared down to being mainly retired and will travel as usual, do car stuff as usual and am clear that there will be a time when this will be to longer possible. As you said we are all different, and we make our own choices. It is very good that so many people here are very positive about their decisions
skeeterm5 said:
My opinion, which may be different from everybody else, and isn’t meant to be deliberately provocative.
The fallacy of this argument about detailed financial planning is that people generally fall into the trap of assuming that you will need to spend the same amount of money both pre and post retirement. And then they convince themselves that they can’t afford to retire and so don’t.
However if you honestly think about just how much of your current earnings go towards funding a lifestyle that your peers expect you to have then you might be surprised how much cheaper retirement can be.
This isn’t meant to be judgemental at all, but do you really need that new car? The new kitchen? Latest iPhone? And so on…. Maybe you think you do but if I said you could trade that for quality time with you family or doing something else that you enjoy them wouldn’t that be a good trade?
As pointed out on this thread a few times none of us know how much time we have, and I think it would be a real shame to be remembered for great and detailed financial planning and then keeping on working to fund some “tomorrow” dream of retirement.
Time is the one thing that money can’t buy and ultimately is the great equaliser. It is amazing how much you can cut your cloth if you put (what I believe to be) the really important things at the top of the priority list.
It is very easy to find a lot of reasons not to do something and then to convince yourself not to. But look beyond this and try find the one reason to do it.
I appreciate that everybody is in a different position, both financially and mentally and early retirement is only ever going to be a pipe dream for some. However, if you have even a smidgen of an opportunity to retire then I would say pursue with the same vigour that you pursue you career.
Anyway, off my soapbox now and off for a nice stroll around the fields in the sunshine and wind.
I’m 100% with you on all of that.The fallacy of this argument about detailed financial planning is that people generally fall into the trap of assuming that you will need to spend the same amount of money both pre and post retirement. And then they convince themselves that they can’t afford to retire and so don’t.
However if you honestly think about just how much of your current earnings go towards funding a lifestyle that your peers expect you to have then you might be surprised how much cheaper retirement can be.
This isn’t meant to be judgemental at all, but do you really need that new car? The new kitchen? Latest iPhone? And so on…. Maybe you think you do but if I said you could trade that for quality time with you family or doing something else that you enjoy them wouldn’t that be a good trade?
As pointed out on this thread a few times none of us know how much time we have, and I think it would be a real shame to be remembered for great and detailed financial planning and then keeping on working to fund some “tomorrow” dream of retirement.
Time is the one thing that money can’t buy and ultimately is the great equaliser. It is amazing how much you can cut your cloth if you put (what I believe to be) the really important things at the top of the priority list.
It is very easy to find a lot of reasons not to do something and then to convince yourself not to. But look beyond this and try find the one reason to do it.
I appreciate that everybody is in a different position, both financially and mentally and early retirement is only ever going to be a pipe dream for some. However, if you have even a smidgen of an opportunity to retire then I would say pursue with the same vigour that you pursue you career.
Anyway, off my soapbox now and off for a nice stroll around the fields in the sunshine and wind.
It feels to me like much of it is in the planning.
Not especially financial planning: as you intimate, there can be many things in a retirement that can lower the cash needs…..but figuring out how they will spend their times, how will they feel their ‘worth’ when they might have had 30 years or more feeling it more from their career.
Who to spend time with: not just a partner or family, but extended friendships - retirement can give you more time to do goofy things - when our crazy interrail adventure ends, I will be cycle camping from Chepstow to Holyhead with an old friend whom I rarely now see but when we do it is super easy times!
Many people spend less time planning for a retirement that might hopefully last 20/30/40 years than they did for their last replacement company car
Pre retirement for me was never about endless spreadsheets and endless financial planning and forecasts about how much I needed to live on and maintaining any particular lifestyle.
I had a choice to make between working or retiring and decided I was going to retire at 62 which is what I did.
I then adjusted my lifestyle and spending around my income and have enjoyed it ever since.
This is one of the better threads on PH but I think many of you are pontificating far too much in the pre retirement planning stage and just need to make the decision and do it.
You will then look back on all the spreadsheets etc and think what a waste of time that was
The danger is that you will go into far too much detail then convince yourselves that you can't afford to do it when in reality everything you have budgeted for and planned to spend will bare no resemblance to what you actually spend.
You need to JGOWI, there is a certain pleasure and freedom to be had by just "winging it" as I have done.
I had a choice to make between working or retiring and decided I was going to retire at 62 which is what I did.
I then adjusted my lifestyle and spending around my income and have enjoyed it ever since.
This is one of the better threads on PH but I think many of you are pontificating far too much in the pre retirement planning stage and just need to make the decision and do it.
You will then look back on all the spreadsheets etc and think what a waste of time that was
The danger is that you will go into far too much detail then convince yourselves that you can't afford to do it when in reality everything you have budgeted for and planned to spend will bare no resemblance to what you actually spend.
You need to JGOWI, there is a certain pleasure and freedom to be had by just "winging it" as I have done.
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