Retirement, would you if you could?

[postman]

I was lucky to go at 56,we got a tax free lump sum and pension straight away.Mrs P then returned to work full time as a police officer,her wage was far more than mine I then looked after the young children,which was BRILLIANT.We have a really special bond,which is stronger because I was in their lives better.

 

[bikingdad90]

I’ll be retiring when I turn 61 as that is when my mortgage ends. We are fortunate to have young parents who have plenty of years left in them and can enjoy their grandchildren so it’s unlikely we will inherit any considerable amounts anytime soon to accelerate paying off the mortgage.

We’ve already sorted the property out should they find themselves in need of a care home or incapable of making decisions with the trade off it exposes me to a capital gain if property values rise considerably.

Bikingmam and I have also ensured our kids are provided for with sufficient illness cover should the worse happen, along with death in service cover; we are worth more dead than alive. Ha ha!! We were both savvy with our pensions and started paying in the moment we started working life and hoping this accrues into decent pension pots when we retire. We should probs top the DB scheme up with AVC’s but we can’t afford to at the moment.

 

[derrick]

Still loving retirement, but still do a few odd jobs for people. Enjoy the company. You need to keep busy.

 

[mikeIow]

<snip>
I would like to hear others plans or even people who had the same concerns and their experience of how those concerns balanced out with the reality of retirement?

In answer to the title question "Retirement, would you if you could?" - yes!
Although at 56, I hesitate to call it 'retirement': stepping away from work is how I think of it - having an sabbatical (with no planned return )
It is quite possible I may do another paid job in the future, but I doubt that would be in the IT sector I have lived in for the past 35 years!

You're a long time dead, as they say.
I've been to rather too many funerals in recent years to want my days to bumble along being defined by work until I follow.....& now have only 25 working days left at the coalface. Or in my case, multiple screens/zooms, etc

I had originally considered going a year ago, then...well, Covid - didn't make much sense, so I carried on another year.
I will certainly miss many people I work with, but then again, many will be kept in touch with, some perhaps visited and beers shared. A small number have already retired themselves, and are setting a decent example for me to follow......& all of them tell me they don't know how they had time to work!

Plans?
Well, I was planning a "gentle LEJoG", but with the Government slipping dates for B&Bs etc, and me aiming to catch pals who are doing Edin-JoG early in June, it is turning into a bit of a rather more pressured Pandemic Pedal: I am not the sort to nip out for 100 mile jaunts regularly, so am currently in a little bit of training for a couple of months....either way, the ride will hurt me, so I am not overly stressing

Beyond that....we have a very wide range of things we want to do, before we even get to any travelling (which for us will not be abroad this year, I suspect)..... our 'youngsters' are carving their way now, so we hope to be able to help them along too. We are lucky enough to own a cottage on the IOW we let out, and have neglected that for some time, so a bit of part time holiday living + gardening + decorating might be in order. If anyone wants details, let me know (not sure how mods like 'advertising' on forums!).

Will I get bored? Very possibly!

OP, you mentioned "I do have a few other concerns as well as a few ideas on how to mitigate issues that could arise" - what are your concerns? Maybe some of us have mentally addressed them in our own way?

 

[Slick]

In answer to the title question "Retirement, would you if you could?" - yes!
Although at 56, I hesitate to call it 'retirement': stepping away from work is how I think of it - having an sabbatical (with no planned return )
It is quite possible I may do another paid job in the future, but I doubt that would be in the IT sector I have lived in for the past 35 years!

You're a long time dead, as they say.
I've been to rather too many funerals in recent years to want my days to bumble along being defined by work until I follow.....& now have only 25 working days left at the coalface. Or in my case, multiple screens/zooms, etc

I had originally considered going a year ago, then...well, Covid - didn't make much sense, so I carried on another year.
I will certainly miss many people I work with, but then again, many will be kept in touch with, some perhaps visited and beers shared. A small number have already retired themselves, and are setting a decent example for me to follow......& all of them tell me they don't know how they had time to work!

Plans?
Well, I was planning a "gentle LEJoG", but with the Government slipping dates for B&Bs etc, and me aiming to catch pals who are doing Edin-JoG early in June, it is turning into a bit of a rather more pressured Pandemic Pedal: I am not the sort to nip out for 100 mile jaunts regularly, so am currently in a little bit of training for a couple of months....either way, the ride will hurt me, so I am not overly stressing

Beyond that....we have a very wide range of things we want to do, before we even get to any travelling (which for us will not be abroad this year, I suspect)..... our 'youngsters' are carving their way now, so we hope to be able to help them along too. We are lucky enough to own a cottage on the IOW we let out, and have neglected that for some time, so a bit of part time holiday living + gardening + decorating might be in order. If anyone wants details, let me know (not sure how mods like 'advertising' on forums!).

Will I get bored? Very possibly!

OP, you mentioned "I do have a few other concerns as well as a few ideas on how to mitigate issues that could arise" - what are your concerns? Maybe some of us have mentally addressed them in our own way?

To be honest, I have for some reason, always found this subject interesting. Part of me thinks that's because I don't think I'd be any good at it and as I think I already said, I did watch a number of old boys come into a group of retirees with varying degrees of success and I always wondered why that was. I've found this thread quite insightful, but despite the number of excellent suggestions and thought processes, my concerns pretty much centre around feeling useful or productive as well as the obvious financial concerns like exactly how much is enough?

 

[mikeIow]

Understood.
I also wonder how I will feel in that ‘useful or productive enough’ department.....but it isn’t like I am a brain surgeon, depriving The World of a great talent

What I do know is that I had a bunch of fun & adventures before having my career....& I hope to have a bunch more ahead!

Financial concerns is another entirely different matter, & would need a very large reply....for my part, I like spreadsheets, so have done as much as I feel is needed to ensure our ‘number’ is achievable.
More on The Number here - it’s a very very long thread, maybe read a page or two either end

 

[cougie uk]

Some interesting stuff on that thread. People needing almost as much as their pre retirement income before leaving work.

But assuming you've cleared your mortgage and you don't need to save for your retirement - you should be quids in.

 

[mikeIow]

Some interesting stuff on that thread. People needing almost as much as their pre retirement income before leaving work.

But assuming you've cleared your mortgage and you don't need to save for your retirement - you should be quids in.

Indeed.
I guess it is often suggested you would need ⅔ of your salary....but I read that really only applies at low wage jobs (where there isn’t much ‘fat to be cut’ post-retirement). For higher earners, I recall reading somewhere that under ½ is plenty....& TheNumber thread puts real-world numbers in there.

Clearly exotic world travel, exotic cars or extensive renovations (etc) could absorb as much money as you want, but it strikes me that most people live retirements very well on substantially less.

Clearly everyone is different, but if the mortgage is done and any offspring are (mostly!) making their way, plus any savings+investments are now optional.....as you suggest, living comfortably should need far less money!
Just have to know your own Number

 

[delb0y]

Had a quick look at that thread - boy is it long! Amazing difference in people's numbers though. And perhaps most of all (on the posts I've looked at so far) around anticipated holiday spend. This is one of the things I've noticed with folks at work - Covid aside, many of them will have three holidays a year. Whereas SWMBO and I probably have a holiday every three years, if that. Although we do like weekends away a few times a year. If I wanted three holidays a year I'd have to work a lot more years than I'd like to in order to build the pension pot up.

 

[cougie uk]

Yes I guess holiday preferences would change things. A pal of mine somehow spends 8 grand on their two week holiday. In Spain. I can't fathom that.

I was lucky in that my employer provided retirement courses - I don't think most places do - and people do worry thinking that they need their full salary in retirement.
That seems hopeless so they don't bother at all. Crazy.

 

[mikeIow]

Yes I guess holiday preferences would change things. A pal of mine somehow spends 8 grand on their two week holiday. In Spain. I can't fathom that.

I was lucky in that my employer provided retirement courses - I don't think most places do - and people do worry thinking that they need their full salary in retirement.
That seems hopeless so they don't bother at all. Crazy.

I recall my Dad going on a 'retirement course' back in the 70s (was 'invalided' out of the Army) - he learned all sorts of DIY skills that he then made me help with!
A shame they are not more widely done. What where the best things you learned, if you don't mind sharing?

On holidays - you need to define the type, I guess. We have never been 'sit on the beach' sorts, and are still very happy camping (taller tent though - room to stand up and have undercover dining!), so I envisage some UK tours (& maybe beyond) at relatively low cost....
Of course a 'blow-out' world tour will hopefully be on the cards one day...but not this calendar year, for sure!

 

[delb0y]

Yes, I've been on many retirement seminars,too. It's always interesting to see how much of our pay goes on things that we won't have to pay in retirement - tax will be lower, no NI no pension contributions or AVCs, no union fees, no mortgage, etc. It turns out, for me at least, I will only need 50 per cent of what I currently earn to "bring home" the same as I am now. Plus I used to spend a tenner a day on food and coffee in the office pre-covid!

 

[lane]

Big savings for me are mortgage, national insurance and pension contributions, and costs associated with going to work and will be children when they are no longer dependent on me Never been one for very expensive holidays.


If you earn less you also pay less tax. With tax, NI and pension contributions I was taking home only 50% of what I earned at the margin and it is this income I have lost so the difference is less than it might appear when comparing gross income pre and post retirement. So compare what you are taking home before and after retirement not top line.

Going early I have under half what I had top line when working but take home has reduced a lot less. Still intend to do some part time work, at least while children are dependent on me. If I keep any part time jobs below the NI threshold I still won't be liable to pay any NI.

Plus with regard to holidays I can go out of peak season so that will be a lot cheaper. Previously both my children and job dictated I go in school holiday time.

I don't have a particularly expensive lifestyle so that helps and I don't particularly want to work just to help the taxman.

 

[fossyant]

We've had over 250 staff apply for Voluntary Severance at work. We're supporting most of it as it generally pays back in 12 months and were going to save £5m year on year. There was no 'pressure' - it was offered to staff a few months ago due to covid and people wanting to change their lives. We've also opened up flexible working as well - that's taking some working out as we need replacements.

It's been very attractive to the over 55's and those with 10 years service or more - they walk out with over a years salary in their pockets, ans some can access their pensions.

 

[Landsurfer]

I’ve dropped to 20 hours a week and frankly can fit 90% of my workload into that ... I have the occasional night on business / day on track in amongst it all but enjoy being on track so i don’t count it as work ....
Not quite semi retired but damm close ...