Retire early (living off savings)
Discussion
mikeiow said:
Tried switching to M$money but things didn't transfer well....wish there was a modern equivalent of Quicken!)
I used to use Quicken, but had to give up a few years ago when I no longer had a workable Windows XP VM... I switched to using a tool called "You Need a Budget", and find that it's as good as Quicken for recording your spending & categorising. YNAB makes a big selling point of it's budget management capability, debt management and savings planning, but I don't need to use that stuff, I just use it for recording spending.
davek_964 said:
Robbo 27 said:
Really interesting thread.
What has surprised me is the widespread will to retire before the regular retirement date, it is something that the previous generation might have liked but it simply wasnt possible.
I'm not sure that's really true - in fact if you had a 'decent' job, I think it was easier - far more final salary pensions available then.What has surprised me is the widespread will to retire before the regular retirement date, it is something that the previous generation might have liked but it simply wasnt possible.
One of my ex's dad worked for BT. Given a golden handshake early retirement in his early 50s - now mid 80s and very comfortable.
I think if there is a widespread will to retire early it is because the workplace has become a s
ttier place to be.If one is in the fortunate minority who actually enjoys work then I'd say that's the best of all worlds and early retirement wouldn't even be on the radar screen.
Hang On said:
I agree. I don't think it is any easier nowadays to retire early especially with the demise of db pensions.
I think if there is a widespread will to retire early it is because the workplace has become a sttier place to be.
.
I'd agree with this. Technically it's more difficult to retire early. What has changed in addition to the above is that the internet and the proliferation of early retirement forums and even threads like this, has opened people's eyes to possibilities they may not have previously considered and also in some way de-stigmatised the idea of retiring early.I think if there is a widespread will to retire early it is because the workplace has become a s
ttier place to be..
Friend of ours informed 2 months ago he had lung cancer , was aged 60. Was due to retire later this year. Started chemo just around Christmas, found dead (lived alone) in his bed on Monday. No kids or family, retirement fund keeps the lot. Had paid in 30 plus years towards his pension.
200Plus Club said:
Friend of ours informed 2 months ago he had lung cancer , was aged 60. Was due to retire later this year. Started chemo just around Christmas, found dead (lived alone) in his bed on Monday. No kids or family, retirement fund keeps the lot. Had paid in 30 plus years towards his pension.
Not a nice story, sincere condolences. Given he had no kids or wife it’s a shame he didn’t retire early but maybe his pension didn’t kick in till 60.
Real shame
I just checked my state pension eligibility.
So - I can receive the pension in 2036 acccording to the current rules (which I knew) - but what I didn't know is that - although I have 32 years of contributions (not sure how - it shows full year contributions since 1985 and I was 16 then), I need to work for another 4 years to get the max available pension (if I didn't work another 4 years, it makes a difference of ~£15 a week).
I will hit 49 in a couple of months which means that if I want a full pension at retirement age, I need to work until I'm 53. Four years doesn't seem so long.....
Whether my savings could actually support me for 14 years is a different issue though. Even if they could, I don't think I'd like to live on a state pension + whatever my private pensions pay out without some backup cash in the bank. I am thinking that perhaps I should be aiming for 55 though - 6 years in the future.
What matters now I guess is how seriously I take this. If my circumstances don't change (i.e. stay in the same job, which these days is far from guaranteed) - and I decided to focus on saving for an early retirement (and hence sold cars, avoided very expensive holidays etc) I could certainly add enough savings to support myself for the same number of years (i.e. in 6 years I could save enough for 6 years off assuming £15k a year).
Realistically though, I bet that doesn't happen. But I am going to start giving this some serious thought. If I really want to - I reckon I could take steps to retire at 55 and that does sound very tempting. And seems an awful lot closer than 67.
So - I can receive the pension in 2036 acccording to the current rules (which I knew) - but what I didn't know is that - although I have 32 years of contributions (not sure how - it shows full year contributions since 1985 and I was 16 then), I need to work for another 4 years to get the max available pension (if I didn't work another 4 years, it makes a difference of ~£15 a week).
I will hit 49 in a couple of months which means that if I want a full pension at retirement age, I need to work until I'm 53. Four years doesn't seem so long.....
Whether my savings could actually support me for 14 years is a different issue though. Even if they could, I don't think I'd like to live on a state pension + whatever my private pensions pay out without some backup cash in the bank. I am thinking that perhaps I should be aiming for 55 though - 6 years in the future.
What matters now I guess is how seriously I take this. If my circumstances don't change (i.e. stay in the same job, which these days is far from guaranteed) - and I decided to focus on saving for an early retirement (and hence sold cars, avoided very expensive holidays etc) I could certainly add enough savings to support myself for the same number of years (i.e. in 6 years I could save enough for 6 years off assuming £15k a year).
Realistically though, I bet that doesn't happen. But I am going to start giving this some serious thought. If I really want to - I reckon I could take steps to retire at 55 and that does sound very tempting. And seems an awful lot closer than 67.
zubzob said:
Over last year or so AI has decimated by business, sales are down 50% YoY. I knew this was coming, but figured I had 5 years at least. So looks like I'll be testing all this out sooner than anticipated.
But the problem with exponential curves, the increase is slow and imperceptible for a long time, then the rise is immensely steep and fast.
What business? I am sort of lucky, work in legacy IT so unlikely to be replaced until the systems are...But the problem with exponential curves, the increase is slow and imperceptible for a long time, then the rise is immensely steep and fast.
Edited by zubzob on Thursday 18th January 12:22
davek_964 said:
I just checked my state pension eligibility.
So - I can receive the pension in 2036 acccording to the current rules (which I knew) - but what I didn't know is that - although I have 32 years of contributions (not sure how - it shows full year contributions since 1985 and I was 16 then), I need to work for another 4 years to get the max available pension (if I didn't work another 4 years, it makes a difference of ~£15 a week).
Were you in full time education at 16? I've checked mine and I have it marked as full contributions on the website for me while I was studying for A Levels and my Degree, yet I have £ amounts for when I got my first job. I know I earned enough to pay NI when I was a student, so I should have had a £ amount but it seems being a full time student counted more. So - I can receive the pension in 2036 acccording to the current rules (which I knew) - but what I didn't know is that - although I have 32 years of contributions (not sure how - it shows full year contributions since 1985 and I was 16 then), I need to work for another 4 years to get the max available pension (if I didn't work another 4 years, it makes a difference of ~£15 a week).
I have another 7 years to go before full contributions, which would take me to 50, and I can draw my state pension at 67 currently. I'm not sure if I trust the government to actually give me my full state pension when I get there or not ~15 years out from claiming it.
davek_964 said:
Realistically though, I bet that doesn't happen. But I am going to start giving this some serious thought. If I really want to - I reckon I could take steps to retire at 55 and that does sound very tempting. And seems an awful lot closer than 67.
It will sound even more tempting the more you think about it - and the more your age catches up with you.Robertj21a said:
davek_964 said:
Realistically though, I bet that doesn't happen. But I am going to start giving this some serious thought. If I really want to - I reckon I could take steps to retire at 55 and that does sound very tempting. And seems an awful lot closer than 67.
It will sound even more tempting the more you think about it - and the more your age catches up with you.
Not sure if it has been mentioned but the amendments to the Private Pensions made a couple of years ago may help.
You can draw 25% out tax free and then invest the rest as you see fit rather than be forced into buying an annuity.
I did this and bought a place in France with it.
Our house here is sold and we exchange soon so will be moving over for good.
We have enough to take out £2k a month to live on which is plenty. Will reduce that when I get to 67 and draw my state pension and private pensions.
3 of my private pensions took out in 1989 have annuity rates of 7% 8% and one 10% which is rather good :-)
Done the maths on living expenses and should have 400 euros left over each month.
Apart from wine and beer the standard of living over there seems same as the UK. Some cheaper some more expensive.
You can draw 25% out tax free and then invest the rest as you see fit rather than be forced into buying an annuity.
I did this and bought a place in France with it.
Our house here is sold and we exchange soon so will be moving over for good.
We have enough to take out £2k a month to live on which is plenty. Will reduce that when I get to 67 and draw my state pension and private pensions.
3 of my private pensions took out in 1989 have annuity rates of 7% 8% and one 10% which is rather good :-)
Done the maths on living expenses and should have 400 euros left over each month.
Apart from wine and beer the standard of living over there seems same as the UK. Some cheaper some more expensive.
FocusRS3 said:
red_slr said:
£16.5k PA for a married couple. IIRC.
Ok Tks and being 49 and 50 this year I’m assuming we qualify for full ?FocusRS3 said:
What is the current (2017) weekly married state pension ?
Assuming we qualify , missus 49 this year and me 50
Get the quote as others have said. Assuming we qualify , missus 49 this year and me 50
Edited by FocusRS3 on Thursday 18th January 15:33
I'm assuming you are asking about the married state pension as one of you has big gaps in their national insurance record?
Worth reading this as I don't think you are old enough to qualify for the sharing of national insurance credits in this case as it is being removed for future claimants: http://www.thisismoney.co.uk/money/pensions/articl...
tankplanker said:
FocusRS3 said:
What is the current (2017) weekly married state pension ?
Assuming we qualify , missus 49 this year and me 50
Get the quote as others have said. Assuming we qualify , missus 49 this year and me 50
Edited by FocusRS3 on Thursday 18th January 15:33
I'm assuming you are asking about the married state pension as one of you has big gaps in their national insurance record?
Worth reading this as I don't think you are old enough to qualify for the sharing of national insurance credits in this case as it is being removed for future claimants: http://www.thisismoney.co.uk/money/pensions/articl...
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