My job was made redundant at Xmas 2020, and I did have a couple of lucrative job offers elsewhere, I made the decision at 64 to retire early (normally 66) with the encouragement of my wife and children, life’s been good to us so am easily able to support us until the state and private pensions kick in. My advice would be that if you are able to retire under similar circumstances do so! You won’t regret it, no more pressure, no more work related stress, ahh bliss!
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A few pointers based on anecdotes and knowledge.
Firstly, when retiring make sure you have something to do. Sounds obvious but as much as we may complain about our work without it you risk ending up watching too much daytime tv. (However good your hi-fi might be you cannot spend all day everyday listening to it.) I’ve heard stories of people who retired with plans to redecorate the house, fix the garden and tour the world. One year later they’ve done all of that and are wondering what next. You need something to keep you busy, but perhaps with less stress than full time employment. Part time work may provide the right balance for some, voluntary work might work for others. IMO it should be something fulfilling that makes you look forward to the next day. It should be something that makes the first few years of your retirement some of the best in your whole life.
Paying student fees or putting the kids/grandkids on the housing ladder is not what your pension is for. Your pension is there to provide a secure source of income for you and your partner for the rest of your lives (which may be longer than you think). Secure your own prosperity first, you’ve earned it by working hard your whole life.
Be aware than under UK law once you draw any part of your pension then your capacity to make further pension contributions is markedly reduced. If you retire and then find your pension is not enough then your options may be limited. Your IFA can advise further.
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The University thing is a challenge. Our boys took the full loans, for the fee element and the living cost part. The problem is that the living cost loan is insufficient to allow them to rent accommodation and eat. So we did as many parents do and paid for their accommodation, leaving the living cost loan for them to live on. The accommodation cost depends on location of course, but it’s probably £12,000 to £15,000 each for the three years. So it’s definitely something to factor in and maybe the lump sum would cover it.
Unless you are someone who finds listening to music, watching the telly or other leisure stuff enough, it’s likely you’ll need to do something where you feel you are being useful.
If you do want to travel, fix things when they go wrong, and change your car now and again, you need to look carefully at how much you think you need to live an enjoyable life. There is no point retiring early and not having the means to do the things that make life interesting.
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As someone who was pushed into taking early retirement due to health issues, I wouldn’t have chosen to go so early when the organisation was offering early retirement, but the realisation that I couldn’t function at the level I wanted to, changed my mind. Now that I have retired and on less pension, than I expected, I find that I didn’t need as much money as I thought I did. Others I know have found the opposite and this all depends on personal circumstances. I was in the fortunate position of having no mortgage (well after a year when I paid off the last of my small mortgage). I also had no outstanding loans or credit card debt, no dependents to fund through uni etc. If I had to pay rent, then I would be living hand to mouth. Whilst I am not saving at the moment (well pre-covid I wasn’t, I am not eating into my lump sum as fast as I thought I would in the gap between taking early retirement and getting my state pension. My initial plan had been to get a part-time job once health allowed. And whilst I don’t need to, I might at some point, if something interesting came along.
As others have said, having something to do is important, I got involved in doing some voluntary work and took longer holidays in Turkey. I also found that I made new friends by joining a couple of groups and now have a new group of friends who like me are retired or working part-time to meet during the week and my old friends who are still working to see at weekends, well until Covid disrupted this. My view is that factoring in the changes in social life is as important as the financial changes.
For me, I think being flexible and open-minded to making changes to plans is essential in making the transition to retirement go smoothly. Much of what I expected is different to how it is in a myriad of small ways and a few bigger ones.
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I think the thread @davidhendon refers to is the one I started…I think that as we get older, and hopefully become more financially secure, we become less tolerant of work stresses because we no longer need to put up with it.
At the start of the summer I thought I’d work a few days a week, but I found that to be as stressful as a more full-time commitment particularly planning how to do what I needed to in the time I had available for work. It didn’t work for me so I decided to pack in the position at the start of this month (I’m nearly 59). My wife works at a school and is off work too.
I see myself doing bits and pieces from time to time. I certainly don’t think that I’ll go back to a more full time commitment for the sake of something to do.
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I find my volunteer role with our community interest company hugely satisfying, even though it can be trying at times, particularly with dealing with Companies House! The upsides more than outweigh the downsides. Last week we booked the Unthanks and next week I’m checking out beers for our beer festival at the end of September. Someone has got to do it. A volunteer role that aligns with one’s interests, while not bringing in any money, can be just what you need.
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That’s very true, I’m no longer tolerant of many things and don’t care who knows it!
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That’s something I am considering. My wife started voluntary work at a school for children with learning disabilities and loved it.
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Lots of volunteer options out there, some require considerable training and commitment. I have one role now that is flexible, unpaid, properly challenging and very satisfying, and that has introduced me to a whole new group of colleagues.
I won’t repeat what I contributed to that previous retirement thread, not least as the thread starter was asking about those thinking of retiring early in the future. Mind you having been reinstated as a medic for pandemic purposes I am about to retire again. Twice before the age of 56 might count as some sort of record?
Bruce
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A question I really need to satisfy is if my annoyance with work is primarily due to it, or just symptomatic of other life challenges I need time to sort out.
I’ve not worked full-time for several years since my parents were quite unwell (only child) and decided that working less would help - it does and doesn’t as theer are many things you still need to squeeze in as though you were a full time employee.
A couple of half-days allow me to do things ‘for me’ including exercise I’d perhaps not do otherwise.
Perhaps I’m considering career renewal/complete change, though have been thinking of that for almost 2 decades - often too easy to carry on when you have a fair salary even if you don’t enjoy it as much as you should.
In reality complete retirement would be unlikely, though I could take some pension next year, and potentially continue work in the same field with a different employer or maybe the same with reduced hours.
Perhaps, again due to being an only child, I’m pretty happy with my own company and don’t think I’d get bored as I have many things I’d love to do, pursue or educate myeslf about I just have less free time than I’d like currently despite not working full time.
Alley Cat, I think you might reflect on what is underlying your thoughts about retiring and ……
Are you able to continue with your current job/role but simply switch off any frustration/resentment/stress. Basically, just ‘cruise’ for a year or two ? Minimal input, minimal stress.
Would retirement simply equate to abdicating or running away ? Into an empty void ?
Have you actively explored new, potential occupations, paid/unpaid, or engaging, recreational activities that you are confident would keep you active in mind and body ?
Avoid acting on impulse or out of vengeance .
Ignore or smile at any or all of the above. I’m no expert.
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Spot on Don.
Can I switch off? At times, but not the highly stressful ones - these are infrequent anti-social hours commitments that make me angry days in advance, the family notices, I’m a different person. This has been the case for well over a decade, but for 2-3 years prior to the pandemic there was a significant change fro the better, when the pandemic came it was back to the old pattern but I’d say 200-300% worse.
Several pre-retirement colleagues have left, all retirees who had been working part-time post-retirement have left, we were understaffed for many years, it’s all worse and I’m not unique in my group considering leaving/retiring/something else.
Yes it would be running away from something that affects me physically and psychologically many times each year I have no control over apart from walking away.
I’ve not actively explored other options, but for now they would be lateral moves or new career choices, I’m not old enough to do nothing at all, but I guess until I’m a lot older I would want to be paid for any significant call on my time.
“Avoid acting on impulse or out of vengeance .”
I guess that’s what this thread is largely about - I’ve acted impulsively, largely on principle, several times in the past - in retrospect I should have stayed quiet, bit my lip and carried on until I moved on without guilt.
Oh, and this isn’t simply a thread for me, I thank everyone for their contributions, but have honestly wondered if the pandemic has made anyone else feel the same.
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Yes thinking about retiring early - and in part the pandemic has encouraged me to do so.
I own an Infrastructure Consultancy and we have demonstrated that we can work effectively from home locations.
I have worked very hard for many years - am now nearly 59- and the pandemic has helped me to question doing things differently to the roller coaster of commuting and chasing fee income etc.
We are financially in good shape, I enjoy most of the consulting work- but I now want more balance in my life - so aiming to work 3 days per week - and pursue othe interests the rest of the week.
Planning to have all this in place in the next 3-6 months.
If I can achieve that then happy to continue working 3 days per week for a few more years - just to keep mentally active.
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Sounds ideal, the key is you enjoy it and probably have some degree of control over what you do.
yes certainly having choice over work type does help- albeit amazing how quickly many clients can drift from the original brief - and occasionally it feels like im giving the same advice and input year after year - and organisations not doing enough to help themselves re continuous improvement and knowledge transfer etc- but if I say this too loudly my work might dry up
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I like this option. There are many people that bend over backwards through their career because they are professional, and conscientious. These people don’t take time off sick, and often take the load of others. I think the pandemic has been a reminder to those people that sometimes you have to put your own health first, particularly as you reach retirement as part of your preparation. As you get older, your body can’t cope the same, but no-one tells that to your workload. The company probably owes you a lot, so working to rule may be a mind set you need to move to. You will still be doing your job well, but with winding down always at the forefront of your mind. Start saying no more often, switch your phone off at the end of the day - then perhaps go for a walk to get the day out of your system. I’m not saying it will be easy, but just think, when did you last see someone get sacked for just doing their basic job. Of course if you do get sacked (heaven forbid), who cares as you hopefully will be moving onto retirement then, and it won’t really matter. (OK it might matter to you for a bit, but after 1 years retirement, you won’t care) - Just my thoughts…
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I think Don made some very good points/challenges.
It is a difficult thing dealing with a stressful job - in one job I had, most days I worked about 8.30-18.00 with no lunch break, went home, had dinner, played with my kids for about half an hour, then did another 2-4 hours work, plus often more at the weekend, for best part of 10 years. I was head of the facility, and it was constantly under threat of closure, and that was what I felt was necessary to try to fight it, build the place up and try to secure a better future for both myself and staff. I enjoyed what was supposed to be my job, but not the fact that it took over my life: I had no social life, I all but missed my young children growing up, and I was permanently exhausted. I was lucky to have an understanding wife because I became increasingly short tempered and irritable. In the end we were shut down anyway - I was made redundant, and with that came the stress of worry about the future - but in fact that was the best thing that could have happened: I found work quickly, and promised myself never again to let work run my life, and haven’t.
So if things have reached the point of being nothing buts stress, it is time to do sonmething about it, whether that is early retirement or finding something else to earn money, even if not as much.
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Is this is an accurate portrait of the impact your job is having, then you really have to address that. A few options, early retirement, part time work, change of work, a gap year, but you need to put yourself and family first. I was in a similar situation a few years ago and left a very lucrative Directorship role in a small consultancy. I would have been rich by now, but the price wasn’t worth paying.
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I read a study once that that basically said the longer you work, the earlier you die. It wasn’t quite that simple - the big ‘No’ is working at full pace in a stressy job up to 65 or 66 and then stopping. But if you wind down or work part time there aren’t ill-effects.
Since my father died aged 67 just a couple of years after retiring from a high-pressure job, it influenced my decision to cut down to 4 days a week and then retire at 59. I was surprised to work out that financially it was possible to retire earlier than I had expected, especially as the children were finishing university. Since then, I’ve found myself doing about 3 days a week on contracts and enjoying that work a whole lot more - MUCH less stress. It was absolutely the right decision for me.
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