Early retirement? Scary? anyone else done it?

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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Yes I'm sure there is no issue with drawing a salary for a time when not making income, but when it goes on for a longer period (ie years as the poster mentioned) then it may be it is treated as tax avoidance/evasion? Dunno, thats why I suggested Mr Bump speak to his accountant, which it seems he's already done, so job's a good un :)
 
Yes well I sort of retired at age 64 . I worked for an international firm of consulting engineers. That kind of profession has to have clients . After 15 years with them development of the iron ore industry slowed down so my time was over . Super pay out from both the parent UK branch of the firm and the Australian office was generous .So my wife and I spent a couple of years touring Europe and a year living in the UK. My wife being a teacher picked up a teaching position in Hampshire , because she loved teaching and was a dedicated professional I was a ''House Husband'' .When We arrived home in Australia I was contacted with two offers for casual contract work............suited me fine. So I feel that I was fortunate ,part work and part retirement. It is a matter of the circumstances at the time and to have the right one, early retirement would not have been good for me. Sadly I find that many of my former work mates who retired early are dead .On the other hand some who continued to carry on well past the retirement age dropped dead whilst still working.
 
First time in 2001, ill health* at 44yo, managed 4 months then a wee job popped up, it then grew back to full time, but at least I could now swop employers as suited, fast forward lots of years and several blue light trips with chest pains** decided it, enough. Pension in payment from job1 + returns from sensible investments make life comfy, now we just do as we please, plenty holidays, abroad and UK, lunch out whenever we like, drives out to follow the sun, great times.

* Arthritis in my knees and hips, not good for a coal mine engineer underground. Worked 80-90 hour weeks due to low manning level in a 24/7 job.

** New cardiac consultant took one look and 4 weeks later one stent fitted, and advice how on to avoid needing the double by-pass that is the next step.

Not enough hours in the day to do as much, or as little as we please, firm financial planning is the key?
 
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I retired on time, 2 things spring to mind.
1) How the hell did I ever find time to go to work?
2) The only down side is, I never get a day off,
inc. Bank holidays :(
 
Cobra said:
I retired on time, 2 things spring to mind.
1) How the hell did I ever find time to go to work?
2) The only down side is, I never get a day off,
inc. Bank holidays :(
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You deserve a day off , Just tell them I said so ;)
 
I retired 2 years ago , I think it is great, NO demands on my time now , Do what I like if and when I want to, Still enjoying it other than the old man medical issues :(
 
Cobra said:
Thank you that is so kind of you :D
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I surmise there may be some who would like you take off as much time as possible;) :exit:
 
lindsay said:
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.
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For some, the point is NOT to do anything.

I had some rellies where he had been a postman with lots of very early mornings and some overtime. When He retired he wanted to do NOTHING and his wife was completely indignant about it. He died in his 90s, a few years back, having mostly succeeded.

My brother had been working 60 hour weeks since 18 or 19 (he was someone who was always determined to do his best, and married to a 'highly motivated' wife) By the time he reached 55 he couldn't do it anymore and was able to stop early, so did. He does voluntary work, developed substantial ability with wood turning etc and finds it fulfilling, plus they provide FOC childcare to his son's rugrat. After 5 years he's beginning to be lured by consultancy, as he should be since he was damned good at what he did.

I hope to retire at 65, 3 years from now. a lot will depend on health - until last year I was still pretty good, but this year has been difficult culminating in an ambulance ride to hospital (gallstones) 1 week ago and feeling a bit wobbly ever since. There's other health issues I manage so they don't intrude, that could become problematic too. It would be nice to live here in France several months of the year, but a pension that's lean in the UK would be flattened by French food prices - c'est tres chere !
 
@ancient_mariner but remember that in France, if you became tax-resident, they tax on household income not individually. In the UK (if I were just on pensions) I would pay tax on my various pensions, but in France, we would pay none because the income is divided by two. Far more sensible - albeit maybe the saving would be consumed by paying into a mutuel for health insurance...
I'm becoming convinced of the argument for at least semi-retirement to ease myself in. I'll take alternate Fridays off starting next month, moving towards 3 days a week in the new year. I'm not a sitting-around sort of person, though by no means energetic. I am fortunate to be in pretty decent health still though, so want to maintain and take advantage of it.
 
It's surprising how you can fill your time. I love wildlife, so we generally visit one of a number of local wildlife havens about once a week. Have regular "sched" on the radio a couple of times a week, last year I got hold of a load of pallets which I am slowly turning into planters. Do a bit of fishing, spend some lunches with the Mrs in one of the many coffee shops around here. Every other weekend my lad & his family visit so we get to spend time with the grandkids. There's even a bit of time for a spot of gardening (which I detest but it has to be done).
 
lindsay said:
@ancient_mariner but remember that in France, if you became tax-resident, they tax on household income not individually. In the UK (if I were just on pensions) I would pay tax on my various pensions, but in France, we would pay none because the income is divided by two. Far more sensible - albeit maybe the saving would be consumed by paying into a mutuel for health insurance...
I'm becoming convinced of the argument for at least semi-retirement to ease myself in. I'll take alternate Fridays off starting next month, moving towards 3 days a week in the new year. I'm not a sitting-around sort of person, though by no means energetic. I am fortunate to be in pretty decent health still though, so want to maintain and take advantage of it.
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in Greece where i have a house if you become tax resident (over 6 months technically) its 7% of all income including pensions they also have no tax free allowance.
 
Gave up work last year at 59. Had been aiming, all my working life, for 60, but having been able to work from home during the pandemic I just didn't fancy getting back into the 5:00 am starts and a 70 mile drive to work again, which the bosses were wanting. So it was retirement a year earlier than planned and eight years earlier than state pension age.

It's brilliant. Best move ever. So nice to actually "own" one's life again. Like many others on here I struggle to work out how I ever fitted work in because my time is filled very easily. I can't imagine why anyone wouldn't want to retire once they can afford to.

And, actually, that's a point worth mentioning. It's been considerably more expensive than anticipated. Partly cost of living crisis, partly fuel bills tripling, partly more mid-week pub lunches with my wife, and partly more holidays. But you can't take it with you, so it has to be spent, and no-one knows when their time is up. Indeed, just six months into my retirement my heart stopped and I was almost one of those folks you hear about who do forty years at work, retire, and don't last six months... Hence the holidays and meals out and making the most of life whilst we can.

Timewise, I thought I'd fill my days with writing more novels, fishing a lot more, cycling a lot more, getting my photography to a better level, becoming proficient at drawing, and playing the guitar. When working, I did all of these things and fitted in full time employment. Since retirement the only one I've had time for is the guitar playing. I don't know how this can be, it's totally illogical, but there it is. I think I've simply taken the opportunity that I've never had before to put in some serious hours on the guitar in an effort to get good.

Anyway, it's highly recommended, the retirement that is, not the guitar playing.

Derek
 
I retired in 2017 when I hit 64. The retirement age here in Norway is 67, but there is a scheme whereby you can retire on full pension early. I also have my state pension from the UK, which I continued to pay for after moving here in '88, and in addition have two works pensions, one from here and one from the UK. All in all, I am financially quite comfortable and manage to save something every month.
Able to devote a lot more time to photography and take lots of short 2-3 day breaks rather than taking one main holiday every year. Do a bit of 'on-call' voluntary work for the church mission who pick up and help homeless people in the city (Oslo). I'm not religious but it is good to be able to help those in need...
I really enjoy the freedom to get up and go to bed when I feel like it, and to put off things to tomorrow if I'm not in the mood to do it today...
 
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On a side though related note.

The 'new' state pension when broken down to wages per hour based on a 40 hour week is £5.09 obviously significantly below minimum wage.

Granted those who have that as their sole income can claim benefits but, in effect, the contract of "we pay for decades for a pension" but the actual pension is inadequate to live off of......seems broken.
 
saltireblue said:
I really enjoy the freedom to get up and go to bed when I feel like it, and to put off things to tomorrow if I'm not in the mood to do it today...
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Absolutely (y)
 
Voluntary redundancy at 54 with immediate occupational pension paid. I am now 75 so that's 21 years if I survive to the end of the month! My wife stopped at 60 and got her occupational pension but had to wait a bit for the state pension.
My brother stopped at 55-he is nearly 77, my sister at 55-she is just 72.
People ask "What do you do?" but it is more about what you do not have to do.
I found that budgeting was crucial at the beginning as our income did drop, but not as much as you might think once you consider disposable income
 
Box Brownie said:
On a side though related note.

The 'new' state pension when broken down to wages per hour based on a 40 hour week is £5.09 obviously significantly below minimum wage.

Granted those who have that as their sole income can claim benefits but, in effect, the contract of "we pay for decades for a pension" but the actual pension is inadequate to live off of......seems broken.
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Not only that but it looks like the triple lock is on its way out.
 
flook999 said:
source?

Political suicide if true, Tories rely on the grey vote
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google "pension triple lock under threat" and you will get over 3million results. It was dumped when covid was about for 1 year and the youngsters don't like it, just like the interest rates going up.
 
seaodyssey said:
google "pension triple lock under threat" and you will get over 3million results. It was dumped when covid was about for 1 year and the youngsters don't like it, just like the interest rates going up.
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yes i'm aware it was paused for covid. There have been stories about it being under threat pretty much every year since it was introduced. it will probably go or be watered down at some point, just can't see that happening before the next election
 
The time for it to have been watered down was when wages and inflation were sub-2%, so they could have reduced it to 1.5% and modified the other parameters, but they didn't because most Brexit and Tory voters are pensioners (we are led to believe). Now it will likely be Labour that have to deal with it, and they want the former Red Wall back, so maybe they'll keep it to avoid a self-inflicted would (and the unions wouldn't like it reduced either)
I think it's a very good point about the minimum wage comparison. Maybe they should peg it to that instead, gradually increasing it to that level as a way out of the triple lock? That might conceivably be considered fair.
 
lindsay said:
I think it's a very good point about the minimum wage comparison. Maybe they should peg it to that instead
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The minimum wage as of April this year for 23 year olds and over is
£10.42 / hr
I always worked around 40 hrs a week sometimes a little less, and a few times a month a hell of a a lot more.

at 40hrs a week hrs that's around £1667 / month.
I'd vote for it.



 
Cobra said:
The minimum wage as of April this year for 23 year olds and over is
£10.42 / hr
I always worked around 40 hrs a week sometimes a little less, and a few times a month a hell of a a lot more.

at 40hrs a week hrs that's around £1667 / month.
I'd vote for it.



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I sincerely doubt you'll ever have the chance to vote for it :ROFLMAO: :ROFLMAO:
 
lindsay said:
The time for it to have been watered down was when wages and inflation were sub-2%, so they could have reduced it to 1.5% and modified the other parameters, but they didn't because most Brexit and Tory voters are pensioners (we are led to believe). Now it will likely be Labour that have to deal with it, and they want the former Red Wall back, so maybe they'll keep it to avoid a self-inflicted would (and the unions wouldn't like it reduced either)
I think it's a very good point about the minimum wage comparison. Maybe they should peg it to that instead, gradually increasing it to that level as a way out of the triple lock? That might conceivably be considered fair.
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When those conditions existed, there was no pressure to water it down, assuming that the government (any government, I'm completely apolitical) would have the foresight to act then is giving far too much credit in my opinion
 
lindsay said:
I think it's a very good point about the minimum wage comparison. Maybe they should peg it to that instead, gradually increasing it to that level as a way out of the triple lock? That might conceivably be considered fair.
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That broadly was my point re min wage parity of the pension.

As you say a phased change to something more like that level could be the way to get there.
Cobra said:
The minimum wage as of April this year for 23 year olds and over is
£10.42 / hr
I always worked around 40 hrs a week sometimes a little less, and a few times a month a hell of a a lot more.

at 40hrs a week hrs that's around £1667 / month.
I'd vote for it.



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Yup, and as the argument that pensioners have lower outgoings though does not apply to all of that age group, a min wage based pension does make sense.

More so because as I said in post #56 many SP only income pensioners need further state aid which can be seen as demeaning by those that need it.

Note ~ most of the older impoverished pensioners living now will be on the 'old' state pension which is I think approx £3 per hour by wage comparison :thinking: sweat shop wages level:headbang:
 
Interesting thread. I ‘retired’ from my full time job 15 years ago. I wasn’t planning to get another job, but I evolved into making cakes, and catering services. As I had a work pension, I registered as self employed, and do all that HMRC stuff online. My firm had opted out of Serps, so as a result of Martin Lewis doing his thing, I began paying extra monthly contributions to up my state pension. Being self employed meant those contributions were less. The point about not working after finishing a full time job was one I used to have, but once I got there I understood that it was doing something you wanted to do when you wanted to do it. If I don’t fancy it, or can’t do it, I can say no. And the extra money helps fund the Photography!
 
Yvette Smith said:
Interesting thread. I ‘retired’ from my full time job 15 years ago. I wasn’t planning to get another job, but I evolved into making cakes, and catering services. As I had a work pension, I registered as self employed, and do all that HMRC stuff online. My firm had opted out of Serps, so as a result of Martin Lewis doing his thing, I began paying extra monthly contributions to up my state pension. Being self employed meant those contributions were less. The point about not working after finishing a full time job was one I used to have, but once I got there I understood that it was doing something you wanted to do when you wanted to do it. If I don’t fancy it, or can’t do it, I can say no. And the extra money helps fund the Photography!
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I'd love to do this, not make cakes per-se, but find something I enjoy doing that I can make a little extra cash at, and keep me busy at the same time. As it stands I guess I'm back to my day job for 5 or 6 months come the end of October, I think it's currently fashionable name is flexi-retired :rolleyes:
 
Box Brownie said:
Yup, and as the argument that pensioners have lower outgoings though does not apply to all of that age group,
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Yes, it makes no sense, whatsoever, we still have to eat, utility bills don't suddenly reduce at the point of retirement, if you live in a tiny village like me (:D)
we need a car to get around, as the public transport service is at best, atrocious.
 
Cobra said:
Yes, it makes no sense, whatsoever, we still have to eat, utility bills don't suddenly reduce at the point of retirement, if you live in a tiny village like me :)D)
we need a car to get around, as the public transport service is at best, atrocious.
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I see the difference as you don't have small children to feed, clothe, send to school etc, nor are your appetites for food and drink likely to be so large, and there are no costs travelling to work.

I like the idea of a pension matching minimum wage, but it would be hard to justify and likely impossible to finance.
 
ancient_mariner said:
I see the difference as you don't have small children to feed, clothe, send to school etc,
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I know but generally shall we say, middle aged folks, their kids have left home so no school runs or kids to feed either.
So that means their costs have gone down too.

ancient_mariner said:
and there are no costs travelling to work.
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I had a van, now that's gone I have to finance all my trips to where ever,
So you could say my costs have gone up in that respect.

ancient_mariner said:
or are your appetites for food and drink likely to be so large,
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Excuse me :p

And once the kids fly the nest, their food and drink costs go down too.
 
ancient_mariner said:
I see the difference as you don't have small children to feed, clothe, send to school etc, nor are your appetites for food and drink likely to be so large, and there are no costs travelling to work.

I like the idea of a pension matching minimum wage, but it would be hard to justify and likely impossible to finance.
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I have a youngster at school with all the expenses, and I still eat as much as before, the only part there that is correct is no expense of travelling to work :)
 
My own preference would be to get rid of pensions and all the paraphernalia of benefits.

I'd then pay every full citizen aged 18 or over a national income, calculated as enough to maintain a basic standard of living. That would be all that the state would pay. After that, every single pound received by every individual, other than their national income, would be taxed. With good will (obviously lacking in the greedy) such a simple system would solve many problems.

To make the system balance, I'd require every business to submit all accounts to a central audit office which would calculate business taxes, not at all difficult in the digital age and it would make fraud much more difficult. Again, I can already hear the howls of the selfish.

You either believe in a joined up society that cares for the weakest and encourages those with good ideas or you are like all too many members of the criminal conservative party and want a devil take the hindmost society. :thinking:
 
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