I want to give up work but cage afford to

[howaboutthistime]

Just feeling sad about going back to work.

I've worked for nearly 40 years (just 6 months off for maternity leave) and a bit too young for my state pension.

I used to like my job until we got a new boss now I'm really dreading going into work.

I hate having to get up early and I hate not being free to do what I want, when I want.

Can't really explain it. I wish I could stop working but I can't afford to. It wouldn't even help if I got another job because I just don't want to work anymore!

Anyone else feel like this, how do you snap out of it?

There is a movement called FIRE (financially independent retire early). In the US it normally means earning enough from investment returns (e.g. dividends on stock, bonds, property or pensions) like @DanaBarrettsKitchen above, but here in the UK I notice people are using savings or liquidating investments to fund early retirement by drawdown. For example if you need £40K/year for 10 years before your pension kicks in, then you save roughly £400K in advance which could include 25% of pension at 57. But there’s very little for a rainy day going into retirement, e.g. private care if needed, nursing home fees.
My only point is not to under-estimate how long you need to self-fund for and not to include inheritance.
I think we need a FIREMN thread!

I read some FIRE forums a while back but some are so extreme .
Something I found interesting was a podcast by meaningful money where they were talking about expenditures when retired and they were saying only 4-5% of people actually go into residential care whereas we are lead to believe it's part of main pension planning costs .

I'd be up for a FIRE thread. It's what we're doing but wasn't sure how familiar people would be with the term.

My golden rule is never touch the principal, make the money work for you. Once it's gone it's gone. So drawdown is a big no-no for me. Plus absolutely make use of tax free wrappers, cannot emphasise that enough, as it increases your passive income.

Sorry wrong thread !

Me too. I started work full-time at age 16 and my state pension age is 67. I've had enough now at nearly 60.

I won't even be able to afford to retire then because I never managed to buy a home so will either have to work till I drop, or accept ending up in some grim council bedsit on benefits, and I had enough of poverty when I was younger.

It's like being back in Victorian times and it makes me sick that people are in this position.

Obviously no-one knows when they are going to die or how much care they will need to self fund (I'm sure I've read that's it's 15% of people who go into care homes though) but there is no particular reason to "never touch the principal".

I have no dependents and no-one really to leave money to (nieces and nephews I guess) so there's absolutely no reason I can't just gradually use up my own money. Especially given that we actually need more while we are younger and still wanting to do things.

I'm technically in a position to retire with over £500k in savings and pension, and I'm over 55. I've also got an inheritance on the way of at least £250k (could be over £300k), no mortgage, no high outgoings, no debt or car leases.
I've got a £6k pa FS pension I can draw at 60 as well.

I'm not that keen on my job but I do take home over £3k pm plus still put c£50k pa into the pension (from salary plus bonus) so it is hard to lose that even though I know I can live on a lot less. Plus I run a side hustle which turns over around £12k pa, so I can at least pay myself something each month and could easily ramp that up (I've just got a new accreditation which I can also sell at a day rate). I could work two days a week, still take home the £3k, but not put any more in the pension.

I just can't make the decision!

Have you worked out what you need to live on @VanGoghsDog ? I agree that with no dependents you’re in a different position - no uni fees to help with, no flat deposits etc. - so can do as you choose.
With your side hustle of £12K+ and the accreditation work I’d say you’re pretty much there or thereabouts but it depends what you want to live on.

On the accreditation side I’ve been considering a similar early retirement gig. Can I ask what field you’re in?

I’m sorry to hear that @Dogsitterwoes . Are you also confined to one area of the country?

No, I am mulling over moving somewhere cheaper but it's hard to start again away from everyone I know.

I know, that’s hard esp if it feels forced rather than something you really want.

I definitely can do it financially, I just can't work out how to actually make the decision!

I think I'm going to stay as I am to the end of the financial year, then reduce my hours at work and tell work I want to leave by the end of the year, go part time and help them develop and train some junior staff so one can step up.

Re area - I'm in HR. I earn c£80k, my side hustle is simply my own consultancy which I do evenings and weekends, and take the odd day of annual leave (I get a lot of annual leave, plus I buy some to reduce tax, so this year I've got 37 days). I probably on average do half a day a week on it. Extra accreditation is a mediation certificate, I can do day rate work using that via an online register.

@Dogsitterwoes I would strongly urge you to put yourself on the council list now. You won't be priority at present but two things are in your favour:

• you'll be eligible for over 55 housing which has shorter wait times
• if you are given notice by a landlord you will then be priority for housing. Being on the list for a while before that, plus the fact you're eligible for a type of housing not everyone is will work in your favour.

Over 55 developments are often quite nice places - low rates of criminal and anti social behaviour, usually communal gardens at least even if you're in a one bedroom flat. Much much nicer than renting a bedsit or renting from a private landlord. And the rent is of course cheaper than private renting so you could perhaps even cut your hours at work.

Obviously no-one knows when they are going to die or how much care they will need to self fund (I'm sure I've read that's it's 15% of people who go into care homes though) but there is no particular reason to "never touch the principal".

As Savoury points out it really depends on the position you are in and I can only comment from mine. My golden rule of not touching the principal is so I have a continuous stream of income and the ability to grow the money so I can support my children through their milestones and leave them lump sums when I'm gone.

So in my case there is a definite reason to not do that. If I had no dependents then it could easily be different.