So many people I know are taking early retirement

[North London Rent Girl]

11 hours ago, longgone said:

better than ageist 

no it's not

[sideysid]

In these days of debt fuelled economy, and the forthcoming financial shitstorm, I often wonder if I’ll my retirement plan will still be relevant in 20 years time.

Sometimes I feel I may as well take on the system and join the tax credit masses. I have a DC pot, LISA and DB (that I can take from 55 reduced). I could reduce my savings below £6k, pay 100% of my salary into my DC pension (up to £40k limit p/a), then rent out my flat (own outright so no s24) so my earnings are £12k a year, claim max tax credits (two children) and rent a 3 bed up to the LHA for housing benefit. Then by doing all that I should be able to retire 10 years early.

[winkie]

27 minutes ago, sideysid said:

In these days of debt fuelled economy, and the forthcoming financial shitstorm, I often wonder if I’ll my retirement plan will still be relevant in 20 years time.

Sometimes I feel I may as well take on the system and join the tax credit masses. I have a DC pot, LISA and DB (that I can take from 55 reduced). I could reduce my savings below £6k, pay 100% of my salary into my DC pension (up to £40k limit p/a), then rent out my flat (own outright so no s24) so my earnings are £12k a year, claim max tax credits (two children) and rent a 3 bed up to the LHA for housing benefit. Then by doing all that I should be able to retire 10 years early.

At least some people have a plan.....well done.?

[dugsbody]

16 hours ago, pathfinder said:

I have been doing 3 days a week (as has the wife) for 4 and a half years. We do a lot of dancing and jamming events (long weekends). Once you talk to the 60+ year old's you make sure you enjoy life while you can! Plenty of people I know have been screwed over by strokes, heart attacks, body giving up.

Not sure I would straight out retire in my 50's. Got to sit down, rest, and have a cup of coffee sometime. May as well get paid drinking it, next to a laptop.

What do you do? That is one of my goals, 3 day week before retiring early.

14 hours ago, MarkG said:

Why wouldn't you? I'm seriously looking into it myself, though retiring the wilds of Alberta rather than a third-world nation. Once I have enough income from side projects to pay the bills, I'll be building a self-sufficient house and heading off there to live like a fat-cat moving to their bunker in New Zealand.

I just don't see any reason to believe the retirement money people have been promised will still be there in ten or twenty years, and cities look likely to become death zones as jobs are automated away and the welfare state goes bye-bye. There ain't going to be no 'basic income' for the 99% unless the fat-cats decide it's cheaper to pay them than to kill them.

The 99% vote. 

[Simhadri]

13 hours ago, longgone said:

Indeed i regret ever finding this website 13 years ago.  how my life would have turned out different with all that Free HPI. 

such is life. 

???

yes me too waited 7 years before jumping in. Now doing ok with my first house let fir 900 pcm and living in my own flat up north. Life'snever been easy but taking that risk is paying off. So no hard feelings. 

[Simhadri]

9 hours ago, longgone said:

I don`t disagree with that however HTB was like having a turbo charger fitted to prices near me when it was brought in.  

i will never vote tory just for that policy ever again. 

Come to Scotland. Less house prices and you could buy one for uoursekf and buy anotherto ket oug for all theFree HPI you missedin the past. ?

[winkie]

14 hours ago, longgone said:

Indeed i regret ever finding this website 13 years ago.  how my life would have turned out different with all that Free HPI. 

such is life. 

Life is long-term hopefully.......buying and paying for a home to live in is not an investment, you buy it for what it does for you like providing a save roof over your head.......the reason why many choose not to do that is not because they think it may go down in value so what if it does, it is because it means taking on a long-term commitment along with working to pay for that commitment and responsibilities that go with it.....buy or rent still got rent to pay.....buy hopefully one day have no rent to pay....then can do other things with the money.?

[wish I could afford one]

I've just taken early retirement at age 46.  Way back in 2007 I just wanted to buy a home to live in and when I went looking it didn't look right.  I joined HPC at about the same time.

Luckily while waiting for the crash that didn't happen (but in hindsight did happen for anyone who didn't have GBP savings or earnings) I started a Plan B.  That Plan B crudely was figuring out how to earn more, spend less, invest the difference in diversified by type and country asset classes while minimising investment expenses and taxes.

Unfortunately Plan A, buy a UK home to live in, didn't work out but fortunately Plan B did.  We're now living in the Med and have just managed to get ourselves registered pre-Brexit which should secure all our current UK and EU rights based on current guidance.

When I started it was quite a lonely online existence (I've been blogging on the topic since 2009 and wrote a book covering the tools and techniques I used in 2016) but these days the FIRE (financially independent, retired early) movement is reasonably visible online.  I'd recommend anyone pursue FI as that gives options.  The RE bit is a personal choice and one I'm still learning about as I move through my decompression phase.

[happyguy]

18 hours ago, prozac said:

They are putting their house out to rent and going to live in a third world country

I would never live in 3rd world nation cannot think of anything more hideous. 

17 hours ago, pathfinder said:

Once you talk to the 60+ year old's you make sure you enjoy life while you can! Plenty of people I know have been screwed over by strokes, heart attacks, body giving up.

True 100%

[scottbeard]

15 hours ago, winkie said:

Fair comment, once being claimed it is safe, sometimes pensions linked to inflation have been increasing more than pay rises.....so the retired sometimes get better pay rises than the working do.?

Be careful - the rules around DB pensions changed in 2005.  This is not true any more.

Before that pensions in payment were 100% saved, and those not yet in payment could be reduced substantially, even to zero.

However, from 2005 schemes that go bust typically end up in the pension protection fund, where everyone gets less than they were promised - future pension increases links to inflation are cut back, and those under normal retirement age (where drawing their pension or not) get a further 10% haircut.

This 2005 change was done precisely to avoid the "cliff edge" of people retiring early being saved at the expense of those not retired.

 

[happyguy]

14 hours ago, longgone said:

Indeed i regret ever finding this website 13 years ago.  how my life would have turned out different with all that Free HPI. 

such is life. 

:( 

[scottbeard]

1 hour ago, sideysid said:

In these days of debt fuelled economy, and the forthcoming financial shitstorm, I often wonder if I’ll my retirement plan will still be relevant in 20 years time.

Sometimes I feel I may as well take on the system and join the tax credit masses. I have a DC pot, LISA and DB (that I can take from 55 reduced). I could reduce my savings below £6k, pay 100% of my salary into my DC pension (up to £40k limit p/a), then rent out my flat (own outright so no s24) so my earnings are £12k a year, claim max tax credits (two children) and rent a 3 bed up to the LHA for housing benefit. Then by doing all that I should be able to retire 10 years early.

You need to look into the pension rules carefully.  Once you start drawing pensions, the limit can fall to £10k pa.

[simvastatin]

19 minutes ago, happyguy said:

I would never live in 3rd world nation cannot think of anything more hideous. 

True 100%

If you have £1500 per month income you would live like royalty in a third world country 

think about living in a beach in Thailand with fresh fish and food and lots of alcohol and a massage by your favourite ladyboy everyday/night

that would make you happyguy 

[regprentice]

I work for a bank and i've seen whole levels of many people get early retirement over the last 10 years. All these people were on final salary schemes, where the employer could say, here leave at 55 but we will pay you 3/4 of your final salary pension from the day you leave. But my generation aren't on final salary they are on defined benefit schemes, there is no way i am aware of that would allow the same to happen with a defined benefit scheme.

I pay exactly the same into my pension as the 50 year old i do the same job as (15% of my salary) , but on my last fund projection i calculate he will take home almost 4 times what i will in retirement.He'll take home £30-£35k a year at 35/60th while my projected fund of £250K will probably pay out around £9K a year. 

I understand that some people can and do FIRE, but this is a small minority of motivated individuals, but for the boomers as a cohort a material proportion of them will casually fall into early retirement with a big wad of cash in a way their kids will never have the chance to do.... very similar to HPI.

[PeanutButter]

Wow it's almost as if boomers have gamed every aspect of the system to benefit themselves and no one else, not even their progeny. 

 

[Locke]

4 minutes ago, regprentice said:

I pay exactly the same into my pension as the 50 year old i do the same job as (15% of my salary) , but on my last fund projection i calculate he will take home almost 4 times what i will in retirement.He'll take home £30-£35k a year at 35/60th while my projected fund of £250K will probably pay out around £9K a year.

This is assuming some critical points

1. The pension provider still exists
2. The stock market doesn't get wiped
3. The £ still exists

Any one of which would destroy their retirement, while I find all 3 to be extremely spurious.

Their best hope is to die before it hits.

[simvastatin]

6 minutes ago, regprentice said:

I work for a bank and i've seen whole levels of many people get early retirement over the last 10 years. All these people were on final salary schemes, where the employer could say, here leave at 55 but we will pay you 3/4 of your final salary pension from the day you leave. But my generation aren't on final salary they are on defined benefit schemes, there is no way i am aware of that would allow the same to happen with a defined benefit scheme.

I pay exactly the same into my pension as the 50 year old i do the same job as (15% of my salary) , but on my last fund projection i calculate he will take home almost 4 times what i will in retirement.He'lle home £30-£35k a year at 35/60th while my projected fund of £250K will probably pay out around £9K a year. 

I understand that some people can and do FIRE, but this is a small minority of motivated individuals, but for the boomers as a cohort a material proportion of them will casually fall into early retirement with a big wad of cash in a way their kids will never have the chance to do.... very similar to HPI.

I can’t see where the money is coming from, I understand why they let so many immigrants in so the Ponzi scheme just keeps going, until ....

[spyguy]

22 minutes ago, prozac said:

If you have £1500 per month income you would live like royalty in a third world country 

think about living in a beach in Thailand with fresh fish and food and lots of alcohol and a massage by your favourite ladyboy everyday/night

that would make you happyguy 

Until you get murdered by your younger GFs family, for the 1500/m income.

Id be very wary out retiring to countries where a hitman can be hired for under 10k.

 

 

 

[wish I could afford one]

13 minutes ago, regprentice said:

I work for a bank and i've seen whole levels of many people get early retirement over the last 10 years. All these people were on final salary schemes, where the employer could say, here leave at 55 but we will pay you 3/4 of your final salary pension from the day you leave. But my generation aren't on final salary they are on defined benefit schemes, there is no way i am aware of that would allow the same to happen with a defined benefit scheme.

I pay exactly the same into my pension as the 50 year old i do the same job as (15% of my salary) , but on my last fund projection i calculate he will take home almost 4 times what i will in retirement.He'lle home £30-£35k a year at 35/60th while my projected fund of £250K will probably pay out around £9K a year. 

I understand that some people can and do FIRE, but this is a small minority of motivated individuals, but for the boomers as a cohort a material proportion of them will casually fall into early retirement with a big wad of cash in a way their kids will never have the chance to do.... very similar to HPI.

I also had no DB scheme.  With every role I've had it was the generation just in front of me who had those.  I did get a DC scheme though where I made contributions via salary sacrifice which in some cases included an employer match up to a certain %.  I periodically then moved the money from the employer scheme to a SIPP to save on expenses.  44% of my wealth is tied up in those SIPP's where I'm assuming the government  will move the goal posts to age 60 within the next 8 years.

13 minutes ago, PeanutButter said:

Wow it's almost as if boomers have gamed every aspect of the system to benefit themselves and no one else, not even their progeny. 

I've found it more helpful to not look at those around me but instead to do my own thing with the resources I have at my disposal.  Sure, the schemes are not as attractive as they once were, but there are still options out there for those that want to retire early.

In my models I even assume that I'll get no State Pension.  If I do then that's icing on the cake.

[simvastatin]

8 minutes ago, spyguy said:

Until you get murdered by your younger GFs family, for the 1500/m income.

Id be very wary out retiring to countries where a hitman can be hired for under 10k.

 

 

 

That is not going to happen to 98% of the brits that go to Thailand 

Their are millions of brits retired abroad how many are murdered 10/30 per year

The media loves lurid details 

 

Edited February 12, 2019 by prozac

[Riedquat]

15 hours ago, dpg50000 said:

This. My particular bugbears are 1) staffing levels (i.e. companies deliberately underemploying / making redundancies when there's clearly more work than can be handled by the staff left behind, and then expecting the remaining staff to pick up the slack) and 2) companies that want you to be in the office, often a lengthy commute, when the work can often be done better from home (less distractions, less tiredness from travel).

Less distractions? I'd never get anything done if I worked from home!

Lengthy commutes are an issue caused by overcentralisation of jobs, but I wouldn't want to not have some commute - I like to keep work and home separated, both in time and space. Working from home would mean the company using my house as free office space (even if they provide the equipment), result in less human contact, and tarnish home by associating it with work.

Jobs decentralising again, so most places have enough local employment, sadly won't happen. A slightly more plausible alternative would be local offices shared by various people from different jobs working from "home".

[wish I could afford one]

3 minutes ago, spyguy said:

Until you get murdered by your younger GFs family, for the 1500/m income.

Id be very wary out retiring to countries where a hitman can be hired for under 10k.

We're a positive bunch on here today ?

I've set myself a £2,000 a month upper limit for living in an EU Med country.  That includes rent of a house with pool plus sea views and some international travel.  It's early days but looks to be very achievable. 

[spyguy]

8 minutes ago, prozac said:

That is not going to happen to 98% of the brits that go to Thailand 

Their are millions of brits retired abroad how many are murdered 10/30 per year

The media loves lurid details 

 

Hmmm.

Your experience may differ.

Two people from my village were murdered in Thailand.

Both young people.

Id guess a lot of tose aging old fools who die of heartattacks in Thaland might not be caused by cardio vascular.

Ive been to Thaliland a vfew times with work. Land of smiles my ar5e.

[scottbeard]

22 minutes ago, Locke said:

This is assuming some critical points

1. The pension provider still exists
2. The stock market doesn't get wiped
3. The £ still exists

Any one of which would destroy their retirement, while I find all 3 to be extremely spurious.

Their best hope is to die before it hits.

1. Final salary pension schemes are separate trusts - there is no pension provider 

2. Most (but not all) final salary schemes now have very little invested in the stock market

3. If the £ is replaced by another currency that makes no odds, it would just be converted.  However, there is a genuine risk that the £ is hyperinflated - most final salary schemes pay pension increases of RPI up to a maximum of 5%pa.  If inflation is over 5%pa value will be lost.

[pathfinder]

It is also really important to understand how to use your free time before you get to retirement. It is fascinating how many people say they cannot learn something new (dancing I have 2 left feet, I am not musically inclined to learn an instrument). You spent 16 year at school learning for goodness sakes. Enjoy the gradual improvement in a skill, take it as part of the journey.

It is better to have a set of hobbies and skills way before retirement.

You do not have to spend time learning something alone.
You already have a social circle in place.
Any free time you have after that ... go learn something or take up a new activity.