To retire. Or not to retire. That is the question?

[C8RKH]

So, next January I will be 55.  I have the opportunity to retire on a similar standard of living to what I have now (without the bonuses and obviously not building my pot further) and whilst it is really tempting, I'm not sure what to do to be honest.  Is 55 too young to retire?  

So for those of you who have retired early, how has it gone for you?  Have you ever looked back and asked yourself why you retired so early? Or did you miss work? Or........   

It's a big decision and one I really don't have a clue about.  I've worked since I was 15 (part time till I was 18) then non stop, and pretty full on, for the 36+ years since then. I love my job. I work hard and long hours and don't resent it. But.......

So fella's (are there any women on here?) is early retirement a great new start, or, endless days wondering what to do today?

Thanks in advance for your thoughts.

[windymiller]

DO NOT RETIRE !!! ive watched my inlaws just become vegatables beacuse they dont need to do anything so DO NOT RETIRE, take it easy by all means but ffs dont retire bud

[Bazza 907]

Retire, too many people carry on working and peg out very shortly after they stop working which seems such a waste.

I had a full on City job which meant leaving home at 5am and returning 9pm on a good day. I was well paid and really enjoyed my job but it wasn't a healthy existence.   

Two years ago I was in your position and decided to take a break. I had a 3 month sabbatical and went back to work two days a week. I'm now down to 1 day a week as a consultant which gives me the opportunity to work on other projects as/when I fancy it. Although it's been a bit of a strange year with Covid I don't regret stepping off the hamster wheel one bit.  

Could you go part time as a half way house to stopping completely?

[Sparky]

Retired a month before my 55th birthday because the company had become intolerable.  Was in discussions with a similar company, but quickly realised I was done with it all.  Much lower pension, but richer in every other sense.  I've had four fantastic years of doing what the hell I want.  Tracy followed me only a few months later at the tender age of 53.  We both have hobbies coming out of our ears, and plenty of family and friends.  Couldn't get bored if we tried!  Doesn't matter how much money you have, you can't buy more time. 

[C8RKH]

6 minutes ago, Sparky said:

Retired a month before my 55th birthday because the company had become intolerable.  Was in discussions with a similar company, but quickly realised I was done with it all.  Much lower pension, but richer in every other sense.  I've had four fantastic years of doing what the hell I want.  Tracy followed me only a few months later at the tender age of 53.  We both have hobbies coming out of our ears, and plenty of family and friends.  Couldn't get bored if we tried!  Doesn't matter how much money you have, you can't buy more time. 

Hmmm. But you retired to become a full time mechanic. I mean those JPS Esprits need some fettling to keep on the road don't they and at Watford Exotic prices you're top end mate!

So far 2 - 1 in favour of retiring. Damn, I should have set this up as a poll, but I don't have @Kimbers skills!

[Sparky]

Nope, had no intention of doing the motors!  But I'm just a boy who can't say no.  In fact cars (not just Lotus) have significantly impacted my leisure pursuits over the last 2 years, so I am in the process of shutting a lot of it down.  Approaching 60, the emphasis is very much on time instead of money.  A lot of leisure travel to shoehorn in before I forget where I haven't been!

[andydclements]

Watching what has happened for my brother who retired (but not very early, 62), you need to be careful not to end up doing as much work in the form of hobbies as you would have done whilst employed. Admittedly it will probably be different activities than employment was, and that can be good, but you can easily do s much as to not really give yourself enough time to enjoy life.

55, I'm envious, if I could retire now at a similar income level to my current salary (I'm 50 and the pension pot isn't funded well enough to do it), I'd jump at the chance. 

[windymiller]

ease back and if you feel inclined do some charity work but dont become a vegatable bud

[cweeden]

What do you do for a living? That would influence my advice, International man of mystery or traffic warden for example... 🙂 

[Toeside]

I retired just before Xmas @ 59 years of age. I had planned to retire at 58 but I was offered 3 days a week by my employer doing a project that was a change to previous and I wanted too tackle.

6 months after starting the 3 day a week my health deteriorated out of the blue. It resulted in life changing operation. I returned to work to help with my recovery and to prove that I could It also added a positive focus to distract me.

I realised that you cannot rely on staying well and that the important thing is quality time whilst being healthy. 

Take that into consideration on your decision.

I also noticed I felt less inclined to retire as I got older which started to kick in at 57 yrs . Can't explain why

Good luck with your decisions and explore all options. Don't take your continued health being a given 👍👍

[C8RKH]

@andydclements  it's not just about the pension pot. I haven't worked and paid into my pension just to see what I draw down get taxed - my simple view is I got taxed on my salary, my pension savings was part of my salary (I know, tax relief applies) but I'll be damned if I'll be giving the taxman much when retired.

So, you build your pension pot for two reasons - the cash you can draw down (without paying higher rate tax) and the 25% tax free you extract from your pot and invest (as opposed to buying a Ferrari!) whilst you siphon of c.£44k a year of that tax free lump sum (you and the partner/wife/whatever) into your stocks and shares ISA each year until the tax free draw down pot is exhausted. You can then take an income from the ISA tax free! At the same time you pay into your pension you need to building your ISA (tax free income when retired!).

So, pension pot, ISA savings, and enough to tide you over whilst you re-invest your tax free lump sum. Do it right, and assume a 5% annual investment return across the lot and in my case, retire at 55 on the same cash per month (minus the ISA monthly deposits, pension payments, savings) as I get now but without having to work 60+ hours, with a huge amount of stress, for the same disposable income equivalent per month. Of course, I'll be "earning" half what I was earning before BUT, will be paying no tax so the impact on the cash at hand each month is a small difference. Gross to gross, the difference is massive. Net to net, it's negligible but we all like to boast about the top line!

Every year I work, just makes it a little bit more comfortable.  

BUT, I have spent the past 22 years (minus last year through COVID) working 60+ hours a week and travelling extensively and even when on holiday spending on average 2 hours a day working remotely on a laptop. Leaving home on Sunday afternoons / Monday mornings at 0400 to get an 0610 first flight and getting home at midnight on a Thursday or Friday night to do it all over again. Sometimes three continents and 5 countries in 6 days!   It takes it's toll on you and anyone who has met me recently would not believe I raced a push bike till in my mid 20's and could do, back then, a 25 mile time trial in under the hour!  Now, i think it would take it me 2 hours! I am literally twice the man I was then!

So, hence my dilemma. I am blessed in that I absolutely love what I do for a living. it has NEVER been a chore. But it has taken a toll! So should I go or should I stay?

 

[C8RKH]

16 minutes ago, windymiller said:

ease back and if you feel inclined do some charity work but dont become a vegatable bud

I'm deputy chair (was chair and trustee for 5 years) of a social innovation and social enterprise charity and do pro-bono advisory for a charitable organisation that supports social enterprises. have done this for the past 7/8 years on top of the day job! And was a pro-bono hands on trustee of the first public/private charitable enterprise in the Uk based on the famous Wall Street welfare to work programme where we helped the 2% "unemployable" in the region (physical/mental health issues, addiction issues etc) to get sustainable long term employment contracts so have lots of stuff I can do there @windymiller  and know how rewarding it can be.

[Barrykearley]

I’d say go. Don’t just work - there’s no quality of life in that.

My lad is just doing his A levels - once it becomes clear what he wants or doesn’t want to do - then I will make my decision at that point. I’d have sacked the whole lot in by now had it not been for the possibility he might wish to carry on my gig.

[pete]

Hmm

[Sparky]

5 minutes ago, pete said:

Hmm

You'll be putting up hab modules on Mars.

[pete]

Pricing it now

[C8RKH]

2 minutes ago, pete said:

Pricing it now

Space travel rolls back your age. You'll get a gig for ever!

[Colin P]

@C8RKH for me, retire or at least gain a work/life balance if you enjoy your job. Sounds a long way out of whack to me, but whatever you do make sure you are busy. I’ve Seen too many people retire, have nothing to get up for and very soon never get up again. 
 

You have 6 years on me, but if I got made redundant (ideally in 6 years) I doubt I’d work a full time job again. I joke about driving a Tesco delivery van. Unfortunately at under 55 my final salary pension reductions are a bit too steep for me to draw it till then. 

[pete]

Each to their own as far as retirement is concerned. Tried it twice but not for me. A lot depends on whether you enjoy what you are doing,how much it has taken out of you getting to where you are,how healthy you are or think you are going to be. Retirement isn't for everyone and nor is carrying on working, so only you know what will suit you .

[Colin P]

Ps. We share a history of cycling too. IIRC I never quite got under an hour, but was more a sprinter.

ps I somehow doubt you’d do it in under 2 now 

[Sparky]

3 minutes ago, pete said:

A lot depends on whether you enjoy what you are doing,how much it has taken out of you getting to where you are,how healthy you are or think you are going to be.

I know a butcher's dog that has a poster of you on his wall.

[C8RKH]

You mean you're younger than me @Colin P - no way!   

I've thought about the "tesco van" - my thoughts were "B&Q shelf stacker!"

I'm glad I have started this discussion as for me, it's not something I have really thought about before. I have ALWAYS loved working and my jobs - I am, and have been very fortunate to love what I do.  Never really thought about what comes after work until now. In fact, always had a view that I would never retire!

 

 

5 minutes ago, Colin P said:

ps I somehow doubt you’d do it in under 2 now 

You'd be surprised! But I suspect you are right!

I did LeJog in 10 days (1100 miles) with 3 weeks training for my 40th and after not being on a bike for 10 years after that I went out for a 20 mile ride with NO training. Bloody arse was sore though afterwards and that took me just under 2 hours! JUST, for 20 miles!

 

[C8RKH]

12 minutes ago, pete said:

how much it has taken out of you getting to where you are,how healthy you are or think you are going to be.

This is insightful Pete.  Work has taken a lot out of me. I'm healthy now but don't look it lol.  My "healthier" colleagues are always off, I never am. I do however worry how long my health will last as 30 years of long hours, travelling, and partying hard with colleagues and clients (oh my god we had some wild times) has taken a toll that is probably yet to truly show itself lol.  But I would not change a thing! 

 

[Colin P]

13 minutes ago, C8RKH said:

I've thought about the "tesco van" - my thoughts were "B&Q shelf stacker

You dreamer Andy. Now you is talking. Staff discount and old geezer Wednesday !!

[C8RKH]

Just now, Colin P said:

You dreamer Andy. Now you is talking. Staff discount and old geezer Wednesday !!

Colin, I am so sad, in the past 2 years I have been building my "workshop" - bench saw. Table saw. Planer. Jointer. Drill press. Router. I've been watching you tube videos on how to make chopping boards and other stuff.  My thinking is to retire, build my skills, and create "wooden gifts" to sell.  Not to make me real money, but to cover costs and provide some pocket money and to keep me busy doing something I enjoy, find rewarding, and keeps me active - which I know is really important. A part time job in B&Q would be ideal with the staff discounts etc...