Early retirement? Scary? anyone else done it?

Mr Bump

Mr Bump

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Sophia aka Paul
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So technically and on paper I have retired this week (ish) at 54 my wife will work for another 8 months just to get another year NI stamp and a few more coins in the jar?
Anyone else made the early leap?
 
I have, sort of. I'm 61 but last had a "proper job" over 5 years ago. Wife works in a care home now, I pick up a bit of work here and there being self employed, but since we moved to Wiltshire 4 years ago haven't had anything regular. Our plan was to take 6 months off when we got down here then find regular work but of course, Covid hit and threw everything up in the air for 2 years, and I suffered a couple of unrelated health problems.

My cooking has got a lot better as the wife is working :LOL: and I'm lucky that my other hobby is amateur radio, so I can generally find something to do during the day.
 
We both retired together I was 54 and wife 53.
More hobbies. Perhaps a little voluntary work.
Bigger garden, more holidays.
You can soon fill a day without trying too hard.
If you have young grandchildren your child minding services will be in demand.

My advice is not to commit to anything for 6 months. One of the joys of being retired is that you can get up most mornings and choose what you want to do that day without prior planning.
 
No, though during the last 10 years up to retirement/state pension age......I wish I could have.

Everyone's situation is individual and when I was made redundant in 2016 I decided to keep working to ensure I got my full years (47 years of NI in my case) to get my full state pension.

I did stop working in 2018 which was 18 months before SP entitlement...... okay that means I retired early but 18 months did feel like early!!!

So, stating the obvious.......

Have you enough funds to carry you through until your SP age?

Can afford and justify paying AVC to 'buy years' to get closer to a a full SP when due to claim & receive it?

If you are currently paying into defined contributions pension savings plan (could be a work based one that you could personally take over (key is to speak to an IFA sooner rather than later!)

Lots to consider & think about and get independent advice!
 
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I packed it in two months shy of 55 which was always my target.
Early retirement package on offer made it even more attractive.
Coincidentally it was the same month we made our final mortgage payment.
Not regretted it for a minute, it will be ten years of freedom come the end of October.
As many people will tell you not sure how anyone fits in going to work.
Never worked out why some said to me "you can find a little job" are you mad?
Paid in the requisite 35 years to get a full state pension when i'm 66
Hope it works out well for you.
 
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Funnily enough, I'm on the opposite side of this. I've been getting my SP for a year now plus a state pension from Germany and a small civil service one, in total amounting to possibly enough to get by on but nothing more, but I'm still working full time albeit based at home. The client wants me so it would be churlish to refuse, and the money means I can keep building, rather than taking, my private pension - thankfully because the stock market has been pretty rubbish for the last year or so, with some exceptions. I think this works for me because I need to be busy, eg my bits of work for TP, doing several volunteer roles for my amateur radio hobby (for those in the hobby, I'm an RSGB QSL sub-manager, the awards manager, and editor of the ISWL monthly journal); I also write and have published occasional amateur radio articles. Admittedly I don't have much time to actually do radio nor photography, which is a pain, but when I reduce to part time next year, that will come.
So my question is, what do all you retired folk actually do with your plentiful time? What I've noticed with my old school friends is mainly holidays and days out, but not actually "doing" anything. I realise it may be different if there are children or grandchildren though. Hence why I've responded to this thread - I didn't want to derail it, but rather am curious to hear more of peoples retirement activities (keep it clean!)
 
I'm coming towards the possible end of my second temporary retirement, basically I've had two 4/5 month breaks in the last 3 years starting off unsure of whether I'd go back. After the first one I started working 7 day fortnights, and if I do go back Octoberish this year it will only be 3 days a week WFH until spring next year when I will almost certainly stop.

Long term plan was to retire 10 years before SP age, if I retire next spring it will be 1 year later than planned, which I'm OK with.

As to what I'll do with my time, basically whatever the hell I want (subject to ratification by the household higher power)
 
Went at 58, four years later I don’t regret anything.
More holidays and 3 or 4 days a week voluntary stuff keeps me busy enough.
Wont quite get a full state pension despite 42 years contributions so plan on paying a lump sum nearer the time.
 
My final day of full time work was just before my 48th birthday (2010). I got a long service award and a redundancy - happy birthday!

I worked part-time at what had been a side-hustle (as they call it these days) until just after my 57th birthday. I got a nice meal and no redundancy - happy birthday!

My days are filled with several hobbies and I rarely feel I haven't got enough to do. The gradual winding nature of the part-time work was good for developing a range of activities and a mindset to allow myself to do them.

I put a lot of time into the finances before and immediately after "retirement". This has mostly gone according to plan, but Ukraine / fuel crisis / inflation / Trussenomics was not in my script - perhaps it/they should have been.
 
I retired at 58 after having a large workshop erected in the garden to play in. Amongst other things it had a a phone so my wife who retired two years later could check on me. The idea was I'd catch up with all the 'hobbies' I'd stored away in the loft. Many years later most of them are still there as I just collected new ones. Best move I ever made.
 
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Looking to cut down my working week. Money is low but i get by. Finding it hard to work these days....bulging discs so not nice....
 
Boots said:
I put a lot of time into the finances before and immediately after "retirement". This has mostly gone according to plan, but Ukraine / fuel crisis / inflation / Trussenomics was not in my script - perhaps it/they should have been.
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Exactly this, it was the Ukraine/Truss effect which effectively curtailed my first temporary retirement
 
I went at 58 years old and was the best thing I ever did, wife also went early
has been great it finally means that I can spend proper time doing photography was always difficult finding time when I was working
we aren’t well off or anything but am lucky enough to be able to pay bills and run the car so I can get out with my camera
 
I hope you lot realise that we're all admitting to being "selfish old farts", and "state spongers" for retiring when our pensions fell due instead of slogging on.

Anyone fancy a cube of Soylent Green? :naughty:

Older people outside Sidmouth Market GH2 P1320250.JPG
 
Health problems sort of forced me to retire at 52, nearly 10 years ago now and I now don't know were I found the time to work. Up until my resent move I did a little voluntary work locally and spent a lot more time on my hobbies (not that I've got any better at them). Yes monies a bit tighter but I'm better of than many and have enough to enjoy life. My health hasn't deteriorated as quickly as it would if I had carried on working. In the beginning I did wonder how I would cope but I have to admit I've not missed it and enjoy being able to do what I want when I want. Just get out there and enjoy the freedom.
 
Another one forced into semi-retirement by ill health. If only I could have retired or cut down my hours before chronic illness hit me. Not that I could have known in the before-times. Now everything is a struggle even on the good days.

I'd say go for it whilst you have the choice and health. Change is scary - but make the most of it, feel the fear and do it anyway!
 
OH is looking to retire in 2 years time, I am 7 years younger than she. I have 12 years until SP age. I don't intend on working until 67, so I will either retire or cut down my hours significantly after my 62nd birthday. Voluntary work appeals to me - don't mind cleaning out dog kennels on a daily basis...
 
I retired at 49.

I liked some aspects of my last job but not others and when the balance of enjoyment v PITA tilted too much I left. I've never regretted it for a single second. At first I thought I'd volunteer for something but that never happened.

Mrs WW retired early too. She had a very good career and at first she did miss it and did have problems adjusting to both life in a different country and not being a boss in a busy corporate world. She's said before that she couldn't go back to work now and yesterday she made quite a little impassioned speech about it so I'm glad that it was the right decision for her.

I could have left the working world earlier as when I was in computers I was a workaholic and the money just tended to stay in the bank as I was never away from work to spend it but I left that industry and did another 12 years in something else which was much more 9-5 and that maybe helped me step back a bit rather than going from workaholic to not working at all in one step, maybe that would have been too much of a change of pace.

Good luck with it Paul. I hope that you both come to see this change in your lives as a very good one :D
 
Glad to see a few people gone early and some interesting comments on filling time up :)
financially we should be good i am a director of my own (one man) IT company so I might pick up some add-hoc work for the next 6 months but i don't need it.
and also will be leaving my company open for a few years as there is sufficient funds in it to pay a small salary for a few more years just as a top up.

main reason I have to stop tho is wife has a poor work life balance and can't really switch out her role at the moment so i have timed it around her also she
has had carpel tunnel surgery once and its coming back so time to give those hands some rest.
 
tarric said:
Health problems sort of forced me to retire at 52, nearly 10 years ago now and I now don't know were I found the time to work. Up until my resent move I did a little voluntary work locally and spent a lot more time on my hobbies (not that I've got any better at them). Yes monies a bit tighter but I'm better of than many and have enough to enjoy life. My health hasn't deteriorated as quickly as it would if I had carried on working. In the beginning I did wonder how I would cope but I have to admit I've not missed it and enjoy being able to do what I want when I want. Just get out there and enjoy the freedom.
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I think you've hit the nail fairly, and squarely on the head. I know that I couldn't have continued in a high pressure sales job in the city for much longer. I didn't like the person I was becoming, short tempered and intolerant. I've mellowed so much in the years since I stopped working....
 
Mr Bump said:
Glad to see a few people gone early and some interesting comments on filling time up :)
financially we should be good i am a director of my own (one man) IT company so I might pick up some add-hoc work for the next 6 months but i don't need it.
and also will be leaving my company open for a few years as there is sufficient funds in it to pay a small salary for a few more years just as a top up.

main reason I have to stop tho is wife has a poor work life balance and can't really switch out her role at the moment so i have timed it around her also she
has had carpel tunnel surgery once and its coming back so time to give those hands some rest.
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Be careful with this, I'm in a similar position (Engineer not IT) and my accountant has advised HMRC take a dim view on prolonged payment of salary with no income to the company. As I said above I will have done 2 such stints in the last 3 years, and as the company has still made a profit in those years I've had no comeback. Worth checking on the actual situation with your accountant before going this route
 
I went at 58 when I discovered my private pension was more than I was earning working full time in a very stressful job.
Two weeks after finishing I got a little part time job with an estate agent, that lasted until 65 when I got offered redundancy (not a lot) or reduced hours so I took the money and ran, got my SP and live quite comfortably
 
I'm not an accountant but I'd tend to agree that keeping it open but not trading, unless you file Dormant accounts, is not the ideal option. I would try to take the money out over the current and next company years, closing it in the next year but whacking any remaining funds into your pension. Indeed if you don't particularly need the salary, put the lot into the pension as a lump sum employers contribution payment, and then in the next tax year take your 25% tax free lump sum out of the pension. If you don't have a private pension, start one to do this with it.
 
lindsay said:
I'm not an accountant but I'd tend to agree that keeping it open but not trading, unless you file Dormant accounts, is not the ideal option. I would try to take the money out over the current and next company years, closing it in the next year but whacking any remaining funds into your pension. Indeed if you don't particularly need the salary, put the lot into the pension as a lump sum employers contribution payment, and then in the next tax year take your 25% tax free lump sum out of the pension. If you don't have a private pension, start one to do this with it.
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My experience/situation may not apply to all.....

Apart from a very very modest NHS pension which was in effect a final salary type. All my working life was defined contributions with more than one provider.

My IFA after retirement advised transfering all to a single platform. NB as I recall correctly more cost efficient. (Fees and management charges plus the IFA fees)

To get the 25% tax free, which I did you need to crystallise the RIA (Retirement Investment Account) however in my case I only crystallised a portion......this allows for me taking up to 25% later on if needed once I crystallise the remainder.

Having said that the war in Ukraine totally screwed up " the market" and I saw a marked drop in value of the funds......I won't be drawing a pension from my RIA any time soon perhaps another 10 years (close to 80 yo :LOL: o_O :headbang:) ......if I hope to see a reversal of the losses I have seen in value. NB of course the fact that I have seen losses does not preclude drawing a pension, just that the size of the fund has shrunk :(
 
flook999 said:
Be careful with this, I'm in a similar position (Engineer not IT) and my accountant has advised HMRC take a dim view on prolonged payment of salary with no income to the company.
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I wonder why he would say that?

It can't be IR35, because no income, no concealment. I often had periods where the company wasn't receiving income but we continued to draw salaries. That can happen to any business where feast and famine characterise the trading position.
 
lindsay said:
I'm not an accountant but I'd tend to agree that keeping it open but not trading, unless you file Dormant accounts, is not the ideal option. I would try to take the money out over the current and next company years, closing it in the next year but whacking any remaining funds into your pension. Indeed if you don't particularly need the salary, put the lot into the pension as a lump sum employers contribution payment, and then in the next tax year take your 25% tax free lump sum out of the pension. If you don't have a private pension, start one to do this with it.
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chatted with the accountant on this and there is no issue with HMRC providing all taxes are paid on the amount/profits which will be 17% as a small company, he knows of no issues as above, if a company chooses not to create income by not trading that is there choice as a limited company. however i will be still posting full accounts for the company it will not be dormant at all.
 
AndrewFlannigan said:
I wonder why he would say that?

It can't be IR35, because no income, no concealment. I often had periods where the company wasn't receiving income but we continued to draw salaries. That can happen to any business where feast and famine characterise the trading position.
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exactly over the 21 years of my limited company i have had two instances of over a year of the company creating no income due to taking large amounts of time out , back in 2009 i took 16 months out of work and not an issue providing all accounts are presented to companies house and all relevent taxes are paid. I have allways paid myself the minimum salary of currently £758/month.
 
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Actually you've just reminded me that I kept my company open for 2 years while I took a short term PAYE contract, so indeed it's not an issue in reality.
 
lindsay said:
Actually you've just reminded me that I kept my company open for 2 years while I took a short term PAYE contract, so indeed it's not an issue in reality.
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to be honest its not an open/shut thing i don't intend shutting my company for a good two years and i will also be paying my accountant to do my pretty basic accounts.
all that is happening is i will be leaving a large tax paid sum in the company to pay a basic salary for approx two years and fully declared all above board :)
 
AndrewFlannigan said:
I think not! :LOL:
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Actually Peter sort of has a point. Lots of my friends have retired and started to relax, one by one I'm out buying a wreath (and it's an expensive hobby) for them. Even the fit guys, walk ten miles a day, they stop and a few months later it's goodnight vienna. :( Makes a bloke think.
 
swanseamale47 said:
Actually Peter sort of has a point. Lots of my friends have retired and started to relax, one by one I'm out buying a wreath (and it's an expensive hobby) for them. Even the fit guys, walk ten miles a day, they stop and a few months later it's goodnight vienna. :( Makes a bloke think.
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i think there is defo a group of people where retirement seems to be sit arround on the beer watching telly, hate to say my father is like that and at 81 he is close to the end of his days
 
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