Enjoying Retirement
Discussion
DT1975 said:
I retired early on a DB pension eight years ago and that's giving me £3k a month take home, mortgage and cars paid for etc. My wife continued part time but has now decided to hang up her keyboard for good. One reason is that I had an old DB pension that I cashed in last year, so I'm drawing this down to compensate for her loss of wages until she can access two pensions aged 60 in 5 years time. I should still have half that pot left by then, still a decent amount.
We've helped two kids get on the mortgage merry go round, just helping the last. In an average month we spend about £2k plus on bills / food / entertainment etc, however we do like travel and expensive holidays, have a wedding to pay for and a new kitchen to fund. Cash / Investment pot is £170k (not including the pension being drawn down) so have some to fall back on or use in a future house move.
I love early retirement, that said I've a few interests, hobbies, dogs to walk, oldies to look after etc but I try and do something 'useful' or constructive every day. I rarely sit in front of the TV during daytime hours for example. So we're now both retired and life's good.
Great post Tks for sharing . We've helped two kids get on the mortgage merry go round, just helping the last. In an average month we spend about £2k plus on bills / food / entertainment etc, however we do like travel and expensive holidays, have a wedding to pay for and a new kitchen to fund. Cash / Investment pot is £170k (not including the pension being drawn down) so have some to fall back on or use in a future house move.
I love early retirement, that said I've a few interests, hobbies, dogs to walk, oldies to look after etc but I try and do something 'useful' or constructive every day. I rarely sit in front of the TV during daytime hours for example. So we're now both retired and life's good.
The only thing you never mentioned is what age you retired ? I’m assuming 55?
Essentially just 12 months left or me
DT1975 said:
I retired at 48. I had 5 years in a DB scheme from age 16-21 and another much larger up until I retired at 48 (albeit I retired a few years earlier than intended).
The smaller DB pension had an amazing transfer value of £111k, so that was transferred out at 55 and is being drawn down as a kind of replacement for my wifes wages and will also part fund my daughters house deposit.
I appreciate I'm fortunate in both regards pension wise. What I would say is that we got married young, moved up the property ladder at every opportunity we could (which has paid off big time) and our sole intention was to pay the mortgage off. We still managed some decent holidays with the kids but it wasn't easy. I guess I was quite frugal in the car buying stakes for example. So it was buy newish but I was in it for the long term so learnt the financial benefits of spannering, which is still paying off for the kiddos.
The joys of early retirement aside I wish I was more savvy in relation to Investing back in the day. I've kind of joined the party late on (as since retirement) but its also paid off nicely.
So tomorrow I'll wake up with my body clock having stayed up late as is the norm. The big decision of the day will be to turn left or right outside the gate when walking the dog. We may go out for lunch then ill probably hit the indoor cycling machine followed by a beer, cook dinner and have a glass or two of wine.
Today I went to the tip having dismantled our insanely dangerous tumble dryer, popped around my daughters, went shopping for my elderly mum then took her to her GP for a jab. The better half is on a jolly with a friend in Suffolk.
Your daily routine ( or lack of it) sounds perfect. The smaller DB pension had an amazing transfer value of £111k, so that was transferred out at 55 and is being drawn down as a kind of replacement for my wifes wages and will also part fund my daughters house deposit.
I appreciate I'm fortunate in both regards pension wise. What I would say is that we got married young, moved up the property ladder at every opportunity we could (which has paid off big time) and our sole intention was to pay the mortgage off. We still managed some decent holidays with the kids but it wasn't easy. I guess I was quite frugal in the car buying stakes for example. So it was buy newish but I was in it for the long term so learnt the financial benefits of spannering, which is still paying off for the kiddos.
The joys of early retirement aside I wish I was more savvy in relation to Investing back in the day. I've kind of joined the party late on (as since retirement) but its also paid off nicely.
So tomorrow I'll wake up with my body clock having stayed up late as is the norm. The big decision of the day will be to turn left or right outside the gate when walking the dog. We may go out for lunch then ill probably hit the indoor cycling machine followed by a beer, cook dinner and have a glass or two of wine.
Today I went to the tip having dismantled our insanely dangerous tumble dryer, popped around my daughters, went shopping for my elderly mum then took her to her GP for a jab. The better half is on a jolly with a friend in Suffolk.
Not in the least bit interested in flash expensive restaurants and big nights out just the freedom to decide what I want to do.
Well , the wife will decide of course but you know what I mean .
I sometimes wonder if I need as much as I’m allowing when I read what you achieve from your monthly draw
ARHarh said:
I also have no wish for expensive nights out, flash holidays etc. In fact if I ever see the inside another airport I will probably not be responsible for my actions. I have wasted so much of my life just sitting in airports waiting to fly to another bland beige hotel room. Who ever thinks travel with work is glamorous needs their head testing.
This morning off to get the MX5 suspension aligned, then out on my bike this afternoon if its not raining. Rest of the day will no doubt involve drinking tea and an evening watching TV. Not glamorous but it will all be stuff I decided to do, not stuff I had been told to do.
Sounds absolutely perfect with the exception that it might rain but hey, you have the luxury of waiting for it to stop. This morning off to get the MX5 suspension aligned, then out on my bike this afternoon if its not raining. Rest of the day will no doubt involve drinking tea and an evening watching TV. Not glamorous but it will all be stuff I decided to do, not stuff I had been told to do.
Airports - I feel the same . Much rather now plan a trip round the British isles and onto the Scottish islands.
MX5 - real fan of those and I’d say a great fun car to own when retired as not the horrendous running costs associated with other brands
Stu-nph26 said:
Interesting thread it's great to see so many loving their retirement.
I'm 37 and working towards retirement at 45. I invest 30-40% of my salary today with a plan of taking 4% from my investments which should cover me until my private pension is available at 57 or whatever age it's likely to be when I get there.
It's a retirement/financial independence plan I may well do some part-time work but not my current high-pressure job.
What do you do for a living ? I'm 37 and working towards retirement at 45. I invest 30-40% of my salary today with a plan of taking 4% from my investments which should cover me until my private pension is available at 57 or whatever age it's likely to be when I get there.
It's a retirement/financial independence plan I may well do some part-time work but not my current high-pressure job.
Do you have kids etc ? They are Damn expensive!
okgo said:
They are if you want to send them all to private school and pay for their university, yes. My brother will raise two children probably to the age of the vote and pay less than I will for 3 years of private London nursery, they don't HAVE to be expensive.
Well no but at some stage you make that call on education. We’ve done it , no regrets but my Christ it’s expensive!
5pen said:
My story is not too dissimilar to DT1975. I retired at 50 somewhat accidentally. By accidentally, I mean that at the time I left a job and wanted some time off, but not with the express intention of never working again, but 18 months later and I've decided that I rather like the idea of doing whatever I want and that I can make it work financially.
There are two factors that have helped me do this that will not be the same for everyone: I don't have children and the bulk of my pension is a DB scheme that gives me some certainty to a lifetime income.
My wife (who still works and is younger than me) and I need around £2k per month to cover the essentials and our basic hobbies and entertainment. This wouldn't cover big-ticket items for the house or fancy holidays (remember those!?), but we can live on this comfortably enough. We do (well, did pre-COVID) enjoy travelling, so we will save for this and intend to do as much as we can in the earlier years.
My tip would be to really understand your finances. I don't go overboard in detail, but every month I record the following values;
- investments (S&S ISA)
- pensions (SIPP and the DB scheme which I value conservatively at the amount of LTA is consumes, not its transfer value which is higher, but I don't intend to transfer it)
- cash savings (I keep about a years money for essentials as cash)
- current account
- debt (credit cards which are paid monthly without incurring interest).
An appreciation of your outgoings over a decent period of time should help you understand when you have 'enough'. This will also help you to decide how to balance the split of ISA v SIPP - I upped my pension contributions to 50% of my salary towards to end of my last job as I was confident I didn't need so much money in the short-term so took advantage of the tax relief.
Right now, I'm using savings to fund my lifestyle, S&S ISA will be next, at 55 I'll commence drawdown on my SIPP which should see me to 60, when my DB scheme can commence without penalty (I can take this early with a 3.5% penalty for each year pre-60). State pension at 67 will be a bonus (not that I quite have enough NI years for the full amount, but I'm comfortable with that).
My wife is happy enough working for now, but is also intent on retiring early in a few years time.
As for enjoying yourself, this will depend on the individual of course, but if you don't have particularly fancy tastes it can be done without huge amounts of money. The best feeling for me is that Sunday night one knowing I'm not going to work on Monday - you can't put a value on that!
Great post . There are two factors that have helped me do this that will not be the same for everyone: I don't have children and the bulk of my pension is a DB scheme that gives me some certainty to a lifetime income.
My wife (who still works and is younger than me) and I need around £2k per month to cover the essentials and our basic hobbies and entertainment. This wouldn't cover big-ticket items for the house or fancy holidays (remember those!?), but we can live on this comfortably enough. We do (well, did pre-COVID) enjoy travelling, so we will save for this and intend to do as much as we can in the earlier years.
My tip would be to really understand your finances. I don't go overboard in detail, but every month I record the following values;
- investments (S&S ISA)
- pensions (SIPP and the DB scheme which I value conservatively at the amount of LTA is consumes, not its transfer value which is higher, but I don't intend to transfer it)
- cash savings (I keep about a years money for essentials as cash)
- current account
- debt (credit cards which are paid monthly without incurring interest).
An appreciation of your outgoings over a decent period of time should help you understand when you have 'enough'. This will also help you to decide how to balance the split of ISA v SIPP - I upped my pension contributions to 50% of my salary towards to end of my last job as I was confident I didn't need so much money in the short-term so took advantage of the tax relief.
Right now, I'm using savings to fund my lifestyle, S&S ISA will be next, at 55 I'll commence drawdown on my SIPP which should see me to 60, when my DB scheme can commence without penalty (I can take this early with a 3.5% penalty for each year pre-60). State pension at 67 will be a bonus (not that I quite have enough NI years for the full amount, but I'm comfortable with that).
My wife is happy enough working for now, but is also intent on retiring early in a few years time.
As for enjoying yourself, this will depend on the individual of course, but if you don't have particularly fancy tastes it can be done without huge amounts of money. The best feeling for me is that Sunday night one knowing I'm not going to work on Monday - you can't put a value on that!
Have to say that Sunday night feeling must be priceless .
I tend to mope around sundays knowing that Monday blues feeling is coming.
We are determined to make this work for us in 12 months when I’m 55. My wife hasn’t worked for 22 years so I’ve supported her and the kids which has also included a private education so I feel no guilt at returning at 55 when it happens.
Like most on here the quiet life is for me…..
Carbon Sasquatch said:
For anyone still on the fence about retiring early - Shane Warne dies at 52
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Makes you stop and shiver when you hear things like this . https://www.pistonheads.com/gassing/topic.asp?h=0&...
Know he had a coke habit some years back but seemed more than sensible now doing great of sky sports and looking like he was going to run the England team.
Ukraine situation has no doubt hurt my pension but the wife and I are both agreed I’m retiring in a year
Phil. said:
A good move. My pension/savings have fallen by around 12% in recent weeks. I don’t need to access them presently so am leaving them to recover.
On a positive note, the £ to Euro rate is above 1.2, so holidays in Europe are cheaper
Hoping mkt recovers over the next 12 months although this situation of world tension is likely to be a rollercoaster for some time On a positive note, the £ to Euro rate is above 1.2, so holidays in Europe are cheaper
tighnamara said:
GT3Manthey said:
Hoping mkt recovers over the next 12 months although this situation of world tension is likely to be a rollercoaster for some time
Understand your concerns but I am sure there will be good few more ups and downs in retirement years. For me it is getting used to dipping into something you have been trying to build up over your working years. It’s a big change to the mind set but I’m sure once in that mode and used to managing the money fir retire the things get more comfortable.
54 now and planned for 57 but feeling a need to go a bit earlier but can’t really make the numbers work.
I’m determined to make the numbers work or when ever do you stop !
mikeiow said:
Yup....same day as that I heard of a great former boss who passed away....about my age. Very sad.
There are absolutely zero guarantees.
If you love your job: crack on!
If not, then be sure to do your best with your numbers & live your best life!
The excitement of retirement never ends. Fixed a fence panel this week & just painted a couple. Living the dream!
Sounds heaven mike There are absolutely zero guarantees.
If you love your job: crack on!
If not, then be sure to do your best with your numbers & live your best life!
The excitement of retirement never ends. Fixed a fence panel this week & just painted a couple. Living the dream!
mikeiow said:
Yup....same day as that I heard of a great former boss who passed away....about my age. Very sad.
There are absolutely zero guarantees.
If you love your job: crack on!
If not, then be sure to do your best with your numbers & live your best life!
The excitement of retirement never ends. Fixed a fence panel this week & just painted a couple. Living the dream!
Sounds heaven mike There are absolutely zero guarantees.
If you love your job: crack on!
If not, then be sure to do your best with your numbers & live your best life!
The excitement of retirement never ends. Fixed a fence panel this week & just painted a couple. Living the dream!
Carbon Sasquatch said:
Covid lockdowns provided that realisation for me. I'd never really appreciated the cost of working, particularly when it involved an expensive commute.
My commute is £400 per month without add ons although since Covid we got into making a packed lunch Having done monthly expenses and of course taking out the general cost of work travel I’m still concerned about the rising costs of energy bills
tighnamara said:
Agreed, hope all works out for your 12 month plan 
Mikeiow kindly passed on his spreadsheet a while back, using that along with information from Nik at IM to plan my stop date.
Good to hear keep working on it . Mikeiow kindly passed on his spreadsheet a while back, using that along with information from Nik at IM to plan my stop date.
I may have to have a review of cars come retirement but barring a total disaster it’s happening!
Carbon Sasquatch said:
Well, I've been talking about it for long enough - end of June - I'm finishing work and retiring.
With markets where they are it's making me feel a little nervous, but I have the first 2 years already in cash, so hopefully things will have recovered by then.
15 weeks & counting
Many congrats and good for you . We can all make many excuses for delaying but have to make a leap at some stage . With markets where they are it's making me feel a little nervous, but I have the first 2 years already in cash, so hopefully things will have recovered by then.
15 weeks & counting
May I ask are you retiring early ?
Carbon Sasquatch said:
Yep - I will be 55
Life is too short - I'd have liked more money, but knew 1 more year would turn into 2 or 3. We decided that we'd rather but back a little than lose the years to working.
Totally agree life is too short . Life is too short - I'd have liked more money, but knew 1 more year would turn into 2 or 3. We decided that we'd rather but back a little than lose the years to working.
I’m a year behind you.
I’m work with a guy thats just turned 60 and does a 3 weekly commute to Portugal. At 60 I’d be devastated having to do that
TwigtheWonderkid said:
Got up, spent an hour on the computer, cycled to gym, spent 2 hours there. Cycled to my weekly Spanish class, 2 hours there, then to the local Weatherspoons for some cups tea and to do my Spanish homework, just got home.
Tomorrow, cycling to meet a friend , about 14 mile round trip. Then going to another mates house in the afternoon, picking up some stuff he needs and taking it to him in hospital in Central London. Will then have an hour or so walking around town before heading home.
Thursday, me and the wife are meeting friends in London for lunch, which will no doubt turn into a boozy afternoon.
It's a tough life.
This is my dream retirement . Tomorrow, cycling to meet a friend , about 14 mile round trip. Then going to another mates house in the afternoon, picking up some stuff he needs and taking it to him in hospital in Central London. Will then have an hour or so walking around town before heading home.
Thursday, me and the wife are meeting friends in London for lunch, which will no doubt turn into a boozy afternoon.
It's a tough life.
Living where we plan to means cycling lots followed by a beach walk and golf . Love the idea of getting home absolutely shattered just by exercising without going to the gym so I’d class it as ‘free exercise’.
Can’t see that costing a lot either .
Also I need to learn to cook as my wife is a brilliant and does all the cooking.
Plan to keep one fun car just to ‘ tinker’ with whilst I can afford it but if that goes so be it.
Just gotta hold it together work wise or another 12 months although I might have a part time job after that in the offering in a totally different field .
Great reading all these posts
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