I've resigned from my job and don't intend to get another.

[Onlygoneanddoneit]

I own my own home mortgage free and live with young adult DC, theoretically financially independent and pay a small keep.

I've been living a very nice life, several foreign trips a year and a busy social life, on a salary of £45k, as well as saving.

I now have income of c. £12k from investments and some significant savings, plus the value of the house if things get really desperate.

I'm 55 and have an old workplace pension I can take in full at 60 (or with reduction now).

I plan to see how I get by for a while before taking the pension. Once I get to 67, my combined pensions will be roughly the same as my current salary, assuming I don't take anything early.

I'm "allowing " myself £12k pa from savings for the next 5 years. I reckon I can still live pretty well on that and that going to work probably costs me more than I realise...?

Well a £1000 per month is doable with no housing costs but it does depend on how much your council tax utilities car expenses etc come to, how much to adult DC contribute to bills utilities and council tax as well as groceries. You don't need to profit from board costs but you won't be in a position to subsidize either. You have savings for emergencies so day to day it should be fine so long as no extravagant hobbies or a gas guzzling car

Sorry, I haven't been clear. I have £12000 income from investments and intend to take another £12kpa from savings, giving me £24k pa to spend. And there won't be any take on that, so I think I should be able to live pretty well, even though it sounds like half what I currently have.

I think £2000 a month for 1 person with just bills if going to be absolutely fine, my mother managed fine on 1100 but big expenses like the car and house maintenance are out of savings

There's loads of info on YouTube, Facebook etc if you search for Early Retirement. I know this because I'm nearly 56 and hoping to retire very soon!

I'd plan along the lines of what you can 'earn' paying minimum tax. If you have income from investments you'll be well used to what the nil rate band is for dividends and savings interest are and what these are for 25/26.

Sounds great.
We spend about £2k pm outside of housing costs but that's feeding four adults.
I'm retiring at the end of the year too. I'll be 60.

Amazing, I could definitely live like this. I lived in thailand for a while and met a group of 50 something ladies there who overwintered in thailand as it was cheap cost of living. You can even do something like this on your budget. There was even a lunch club!

12k is impossibly low if you want any kind of full life . I retired last summer and I spend far more than I thought I would .

sounds great and doable. I was dubious until you clarified it would actually be £24k.

Well done you! You’ve worked hard and been responsible with money and are now in a position to reap the benefits.
Your plan sounds doable, just beware that without work, you will have more time to spend money on activities, holidays etc.
I recommend making a list of things you’ve always wanted to do/learn/see and working towards those.
Oh, and keep it low-key. Some people will not always be as happy for you if they are in less favourable financial situations, even if they could have done the same as you with a little planning.

Just seen your update, 24k is more doable

I’m reading your thread for fantasy reasons. How marvellous OP. Congratulations!🥂

Amazing OP. Wish I had a passive income 😂

Sounds fantastic and doable!!
I would consider having some source of part time / occasional work, something that you'd enjoy rather than earn from. No stress.

I say that because my mother retired early at 52 and got bored after 5 years and it was hard to get back into work. She has actually had a second very full career after a break of 8 years (she completed a masters degree in the last couple of years). And ended up running a thriving business she adores. She was just on the wrong path before and needed to step away. At almost 70 she's very very happy working part time.

Yes, I am considering that, but can't think of anything I actually want to do!

I suffered a significant bereavement 4 years ago and have really struggled to find my motivation at work since then, where once work and career were everything. I changed my job and took a step back (hence the investments and pensions from a previous life when I earned much more) hoping that would help, but if anything it's got worse. I suspect menopause has played large part too.

Well done you! I’m incredibly jealous but wish you a long and happy work free retirement 🙂

Go for it but I wouldn't be relying on the state pension element with the current talks of means testing some/all of it 😭

A good break then part time would be more fail safe.

I’m nearly 53 and have decided that I probably won’t work again unless a really amazing opportunity comes along. I get £20K a year in interest from savings or can earn a similar amount working in low paid catering jobs which have destroyed my health. I’m going to focus on myself for a couple of years and see if I still feel the same - also menopause means I’m far less tolerant of workplace bullshit than I used to be.

Great. You seem to be an organised and thoughtful person and know what to do with your life. Enjoy what you like doing, money in the pot and spend wisely.

When you are ready, you can take up a p/t job; meet new friends and some social time.

I have a similar passive income, but worry that lower interest rates/dividends on shares would see that fall. Interest rates during Covid and some companies not paying divis meant I earnt about half that for a year or two. Will you still be able to manage in that scenario?

Yes, there are definitely plenty of things to worry about, but I do have the pensions in the background and capital I can spend if absolutely necessary until I can draw them, so it feels like a calculated risk.