On paper it makes perfect sense but it's a big reduction in income and I seem to spend what I have currently!
Current income is £49k, bills are low, mortgage is paid but I have a big house and garden and often pay for help. There's only me to take care of it. For various sentimental and practical reasons I won't be moving.
I live well, with a busy social life. I don't have to think too hard about a new frock or a theatre trip for example.
I'm planning to retire very early. I have good occupational pensions I can take in full in 5 years time.
In the meantime I have £6000 from a pension, £6000 investment income and c. £3000 from some casual/freelance work.
I have a significant nest egg, which I plan to draw on to subsidise my income, but obviously the more I spend the less that will earn. I'm thinking I want to draw max £10k pa. So I'll have c. £25k to spend with no (very little) tax, NI or pension contributions to pay.
I can still live really well on that, surely? And if I struggle I can increase the freelancing, although if I'm going to end up doing a lot of work, I'd have been better off staying in my job.
Worst comes to the worst I can take my occupational pensions early, although that would be at a reduced rate.
I've thought of everything and it's going to be OK....?