Retirement?

[IanM]

OK, I am only 56, 57 in November. I've been freelancing for much of the the past 10 years after doing reasonably well in large organisations.

Been contracting for current organisation for nearly 5 years.... they keep renewing every 6 months, so I've been really lucky. Current contract runs out at end of September, boss says "good news, to save admin, we are going to offer you 12 months!"

My immediate thought was "do I really want to work another 12 months?"

Mortgage paid off, no kids no loans! My wife was offered voluntary redundancy and goes with a package at Christmas. (She is 54 - so, that's her finished work I bet!!) Wouldn't say we are Gareth Bale rich, but there are plenty worse off.

I'd thought initially I might work the winter and pack in the Spring. Especially if half the world is still under Covid restrictions.... my boss always said he wants me to see the Programme out till it completes in 2023. I've always laughed at him when he said it!

I also struggle to know what sort of monthly income I need... I know what the house/food and bills cost a month. I read various figures about what you need for new-shinys, beer and loafing about!!

When did you lot retire? Maybe I should take the 12 months but ask to drop to 3 or 4 days a week.... there's golf to be played!!

 

[Ethan]

I think there are various sorts of retirees. Those who are desperate to get to the age where they can do it, and then they will retire full and never look back, and those who are not so sure and probably do better with a gradual phasing out from work. If you are in the latter category, I would consider looking at doing something less than full time, where you can pick and choose a bit more and which interests you more, if possible, and where you can set aside time for golf or the family or a new interest. It isn't just about monthly income, it is also about keeping your mind and body active and having a routine.

 

[Grant85]

Hi Ian,

I am a financial adviser / financial planner.

I see a lot of people in your age bracket doing retirement planning and realising they can 'stop' work. But I see a surprisingly high number of people work on beyond when they financially could stop working. Some in a similar role on a P/T basis, some in their normal role. Also a small number in a complete change to a simpler role.

When you get to your age and have worked the past 40 years, you build up a huge amount of expertise and knowledge and most good managers will know that cannot be easily replicated with one individual.

There's also the culture of having worked for so long, been used to earning a living and saving - it's tough to flick the switch from saving to spending a %age of your savings every month. There's definitely a worry that they'll run out of money.

I would say at 56, you're potentially a long time retired and once you've stopped for a year or two it would / could be a very hard road back if you decided you missed the money, missed being useful, missed the work etc. I'm only in my mid-30s, but already I can imagine myself working on with reduced hours, keeping sharp and still having more time for leisure / pleasure.

In terms of what you need... that's a tougher question. If you want to DM me some basic finances (outgoings, pension fund etc) I'm happy to have a quick look and give a short response as to where you may be at and (hopefully) give you some comfort.

 

[Bunkermagnet]

I can only wish I had your dilemma, although from what you say I would probably finish that project you are on, then retire then.Im 54, and would have been retiring next year but since Mr Brown decided to hammer the pension companies years back, my private pension pot is now worth almost a third less so retirement now isn’t an option until 67 now, unless my next chapter in my working life works out and then I’m hoping 10 more years and then retire.

 

[GB72]

OK, I am only 56, 57 in November. I've been freelancing for much of the the past 10 years after doing reasonably well in large organisations.

Been contracting for current organisation for nearly 5 years.... they keep renewing every 6 months, so I've been really lucky. Current contract runs out at end of September, boss says "good news, to save admin, we are going to offer you 12 months!"

My immediate thought was "do I really want to work another 12 months?"

Mortgage paid off, no kids no loans! My wife was offered voluntary redundancy and goes with a package at Christmas. (She is 54 - so, that's her finished work I bet!!) Wouldn't say we are Gareth Bale rich, but there are plenty worse off.

I'd thought initially I might work the winter and pack in the Spring. Especially if half the world is still under Covid restrictions.... my boss always said he wants me to see the Programme out till it completes in 2023. I've always laughed at him when he said it!

I also struggle to know what sort of monthly income I need... I know what the house/food and bills cost a month. I read various figures about what you need for new-shinys, beer and loafing about!!

When did you lot retire? Maybe I should take the 12 months but ask to drop to 3 or 4 days a week.... there's golf to be played!!

Any chance that you can ask that they keep it at 6 month contracts, work through another 6 months whilst you mull over your options, get winter out the way and then make a final decision at the beginning of next year. Any chance that the changes to IR35 are going to help make the decision for you when they are back on the table next year. No expert at all (it is my wife who is the contractor) but 5 years in one role seems like a potential target for the changes (though it sounds like it is on one very specific project so may fall outside).

 

[spongebob59]

I went at 55, through redundancy, and although I missed the people, I didnt miss the commute and all the politics at work.
A year later was my first cancer diagnosis.
So in a way you never know whats round the corner and if you can live life how you want to without the stress of work, go for it.

 

[SwingsitlikeHogan]

Until 5months ago one plan we had was for me to be hanging up my boots in two weeks time. But that now isn't going to happen. Need to keep pulling in the pennies for another 6-9months we're thinking. But not much more than that. Maybe 12months tops.

Like OP - we are fortunate in now having no mortgage, and though we have a couple of loans we can pay them off immediately I finish. My wife has a P/T job that covers our monthly bills and that she'll want to keep doing. And though my pension fund has been a bit bashed of late it's still not too terrible when it's main role will be to fund our lifestyle - which is pretty unextravagant.

Would I want to work P/T? Possibly - but only if I was doing something I could enjoy rather than what I currently do - which is no more than a way to generate income

As my Mrs is in remission from BC and I have a cousin diagnosed with very serious cancers only months after retiring and now in palliative treatment - for who knows how long...we are fully aware that we do not know what is around the next corner...and so waiting until whatever or whenever is not always a great idea. And so if you can afford to retire - best to not dismiss it...

 

[Deleted Member 1156]

I was told a couple of weeks ago I'm being made redundant at the end of November, I'll be 60 next month. If I start drawing my pension straight away it will be worth about 13/14 grand a year. I am also mortgage free and we have a holiday property that we rent out which brings in a profit of about another 5k a year. If I really cut back I can make my redundancy last about 2 years. My dilemma is do I bite the bullet and retire albeit on a much lower standard of living or do I look for something else (part time?) to stretch out my redundancy money. My skillset is very niche so the likelyhood of finding another job in what I'm currently doing is extremely unlikely without travelling to London on a daily basis (2.5 hrs to Waterloo)
I could sell the holiday home and live off that money quite comfortably until my state pension kicks and also draw my employers pension at the same time which would then give me a decent standard of living.

 

[SwingsitlikeHogan]

I was told a couple of weeks ago I'm being made redundant at the end of November, I'll be 60 next month. If I start drawing my pension straight away it will be worth about 13/14 grand a year. I am also mortgage free and we have a holiday property that we rent out which brings in a profit of about another 5k a year. If I really cut back I can make my redundancy last about 2 years. My dilemma is do I bite the bullet and retire albeit on a much lower standard of living or do I look for something else (part time?) to stretch out my redundancy money. My skillset is very niche so the likelyhood of finding another job in what I'm currently doing is extremely unlikely without travelling to London on a daily basis (2.5 hrs to Waterloo)
I could sell the holiday home and live off that money quite comfortably until my state pension kicks and also draw my employers pension at the same time which would then give me a decent standard of living.

...of course as you say you are in the enviable position of having a significant asset (the holiday home) that could be sold in a few years time if you were finding that your pension income was not really sufficient for your needs. When I retire we have a nice house that we could sell, downsize, and stick £200k in our bank account - 20yrs of £10k a year pension top up - sorted. When I look at my depleted pension fund I sometimes forget that. We are very fortunate to have such choices - we recognise that.

 

[Doon frae Troon]

I accepted a very good early retirement package when i just turned 50.
Retired from full time work at 55.
I did not want to touch my retirement funds until I was 65 and my wife had an enjoyable part time job..
I decided to take up some no pressure bog standard jobs that I would enjoy.
So spent 9 years doing seasonal/part time/hobby jobs tailing off from F/T to two days a week I really enjoyed that time with the thought that I could walk away any time I felt like a change.
Throughout that time I also had 9 years additional state pension payments and bought an extra 2 years to allow me a full state pension. I payed off our mortgage when I was 56, and we gained quite a bit of housing equity when we moved from Scotland to England.

Never a good idea to just stop work to be doing nothing, I had two friends who worked very hard then popped their cloggs less than two years after retiring.
It is surprising how easy it is to live on a pension provided you live within your means. Don't go silly and buy a big house, flash holidays or a fancy car just because you seem to have a bit of money in the bank.
Keep busy, get an entirely new hobby/interest. eg I helped fund and set up our village community shop and started playing club golf seriously again.
Good luck and enjoy.

 

[Deleted Member 1156]

...of course as you say you are in the enviable position of having a significant asset (the holiday home) that could be sold in a few years time if you were finding that your pension income was not really sufficient for your needs. When I retire we have a nice house that we could sell, downsize, and stick £200k in our bank account - 20yrs of £10k a year pension top up - sorted. When I look at my depleted pension fund I sometimes forget that. We are very fortunate to have such choices - we recognise that.

Indeed. I drew down on my pension a few years ago to fund the holiday house as I thought it would give better returns (so far so good).

 

[Swinglowandslow]

I was told a couple of weeks ago I'm being made redundant at the end of November, I'll be 60 next month. If I start drawing my pension straight away it will be worth about 13/14 grand a year. I am also mortgage free and we have a holiday property that we rent out which brings in a profit of about another 5k a year. If I really cut back I can make my redundancy last about 2 years. My dilemma is do I bite the bullet and retire albeit on a much lower standard of living or do I look for something else (part time?) to stretch out my redundancy money. My skillset is very niche so the likelyhood of finding another job in what I'm currently doing is extremely unlikely without travelling to London on a daily basis (2.5 hrs to Waterloo)
I could sell the holiday home and live off that money quite comfortably until my state pension kicks and also draw my employers pension at the same time which would then give me a decent standard of living.

Before you know it you'll be 70?. If you can , retire. Take it from me, you cannot do then what you can do now. And it won't come back. With luck you'll be healthy, but then, who is always lucky.
Whichever you do, best of luck.

 

[Deleted Member 1156]

Before you know it you'll be 70?. If you can , retire. Take it from me, you cannot do then what you can do now. And it won't come back. With luck you'll be healthy, but then, who is always lucky.
Whichever you do, best of luck.

I had a very interesting post round chat with a friend at the club on Sunday. He took early retirement. He now lives on 60% of what he had before but he said he is the happiest he has ever been. You can buy/acquire many things but never more time

 

[Deleted member 16999]

Retired at 52, best thing I ever did, the main reason was my wifes deteriorating health and enjoying time together now before (in her words) “I become her nurse” Unfortunately the m-in-law was diagnosed with terminal cancer and we’ve moved her in to look after her.

Medical side apart, life is so much easier, bills are covered and our schedule is our own, I would imagine it being difficult if only one of you retires, but as you’re suggesting, both of you could be retired come December, I’d say go for it, life is too short and you can’t take the money with you.

Enjoy it while you can.

 

[Swinglowandslow]

Depends on your make up really.
Do you work to live......or do you live to work?
I've known some of the latter, usually bosses who seemingly cannot give up the "power", or st least think they are indispensable.
i think- recognise which sort you are, give it some thought and imagination, and best of luck.

 

[SocketRocket]

I retired at 60 but after a couple of years missed the contact with people, I have worked part time since in completely different and less demanding work and really enjoy the mix.

 

[PJ87]

If you can afford to do so then retire. You will enjoy life to the full retiring younger .. my uncle retired in the mid 90s aged 55 and was 25 years retired before health issues started which was nicer for him as he had enjoyed life before that

Also on the flip side that's one more job available for someone else. We have a load of people hanging onto jobs because they simple can't afford to retire where as if we could get people in a position to afford retirement that's jobs for the next generation

Good luck in your decision

 

[pendodave]

I'm 56, and have the option to retire.
I've chosen not to, but have taken a job share where I work every other week. Both my other half and I are pretty happy with it so far.
Everyone is different, so I'll give you my reasoning and you can see any of it chimes with you :
- 24/7/52 is a lot of time to fill, and this way I can work out how good I am at it.
- Work has much to recommend it - meeting people, working in a team, problem solving, responsibility. It all keeps you young.
- Having (however illusionary) control of money coming in during uncertain (unprecedented) times
- The flexibility to work more or less in future if personal circumstances change.

Good luck, and i hope it works out

 

[Deleted member 21258]

You never know about your health, seen far to many taken to early.

Retire if you can or if you are worried about financial, go and talk to your contact and see if they will move to 6 months or part time or the like. What have you got to lose by asking, if it fits with you and the worse they can say is No and you don't want to stay anyway?......

 

[IanG]

I retire at 60 at the end of this month .

In preparation I've been piling a decent chunk of my salary into my pension fund for the tax relief for the past few years so my take home pay has recently been more or less the same as what my pension will be. Sort of a dry run for how much we need to sustain our current (not too extravagant) lifestyle. So far so good and that reassurance is helping with the decision.

I think the main thing is to be 'ready' to retire in your mind. If you are I doubt you'll regret it.

I have allowed myself the freedom not to make any plans about whether I'll pick up some part time work or not. Give it a few months and see if I'm climbing the walls or not then decide.

Good luck with your decision.

Ian