FIRE. I'm there but I find I don't want to spend it....

[Whitengold]

My plan was always to save enough so I could retire early, leaving my occupational pension schemes intact until normal retirement age (ie not taking a reduced pension).

I have a small widows pension, and low overheads, which just about covers my essential expenses. Anything else I spend is fun money.

I have savings and investments enough to take say, £12k a year out for the next 50 odd years, but find I'm still being very cautious in my spending.

My own pensions will give me an additional £20k pa in 5 years' time and a further £20k pa in 12 years' time. So really, I only need to spend savings for the next 5 years anyway. I'm very well set up. I could take the pensions earlier at a reduced amount. I'm 55 now.

I am planning some trips, now I have the time, but am finding it very difficult to switch from saver to spender, and feel uncomfortable with spending more than my income, even though this is exactly what it was saved for.

Has anyone else felt this way?

First of all - CONGRATULATIONS!

There is definitely a mindshift needed to go from accumulate, work, save, secure.... to reaping the rewards of that. Don't downplay it. It may be worth exploring it a bit in a way that suits you the most - on paper, with a counsellor, on a spreadsheet. Along with what you want to do with your time now - and actually, really, not just vague notions of "travel" or whatever most people say.

But it's a real thing and shouldn't be diminished. Well done again.

Totally understandable.

I retired 3yrs ago at 57 with an excellent pension.
My OH is 3yrs younger than me and could be drawing his private pensions but instead has elected to continue working (admittedly only 2-days a week at a non-skilled role completely different to his old career) so he can continue to save.
He says it is his mindset (plus he likes to keep busy) and I completely get that.

Even when retired, we will not be spending all our pensions (this is before we get the SP) so we will still be saving.

How on earth did you manage to save so much?

I agree. Its difficult to switch from saver to spender. But harder probably to switch from spender to saver. Just spend wisely.

My mum was recently widowed and I went through her finances with her as she was struggling to understand how lean or not things were financially in the early days. She's always been frugal / thrifty. One thing I discussed with her was the underlying value of an activity. She and my Dad were not people who would spend money on eating out, they were "pack a sandwich and a flask" people, or "eat at home" people. I emphasised the social aspect of eating out. Yes a lunch or coffee in a cafe is more expensive than take your own, but it means you are warm and dry and also it is something her friends invite her to in order to spend time with her. So think about what you are achieving from each expenditure on terms of what it adds to your life. A train ticket is expensive but likely worth it to access whatever is at the other end. Ditto membership to a gym you enjoy - you might enjoy going to a more expensive one because they offer classes you like, the music isn't as loud, or even that your friends go there. So if you have the money, it is worth it. If you don't have the money you have to go to the less salubrious gym. Just think about what you are getting for the money beyond the item itself.

I think this is completely normal OP. For various reasons I now have more disposable income than I used to, but my spending has hardly changed. I guess it's a mindset.

No debt ever (except a mortgage which was over paid) basicaly didn't buy anything I couldn't afford. At least 10% in savings before spending anything else, from the day I started work at 16.

Then as my career took off, I increased my savings rather than my lifestyle.

Sorry, eta, some capital growth from investments.

Yes, I'm not that frugal! I wouldn't dream of popping into to Costa if I was out shopping on my own, but wouldn't say no to any invitation to go out for coffee and cake.

I've long said I'd rather spend on doing than having.

I get this so completely. I’ve got no-one to leave anything to, so i’ve got a die with zero goal. But even though my assets will keep me comfortable to 95 (as if), i just can’t get my head around spending it. The impulse to keep deferring gratification is so strong!

Is that a typo, £12k for 50 years? Or 5 years? Either way, it’s a great pension. Maybe ease yourself into the spending by booking the kind of hotel you wouldn’t have before, just that bit nicer, not madly lavish. Get flights that suit you instead of the cheapest awkward times. That kind of thing. I’m 55 as well with nowhere near your pension coming up but I’m definitely starting on the ‘treat’ phase of my life instead of always skimping.

No, 50 years. That's the point, there's plenty.

I don't feel like I skimped though. I've had all the things that are important to me. Mostly I like to spend money on doing things with people, so budget is set by what they can afford as much as by me anyway.

I've done some trips on my own, but I like hiking and backpacking. Doing it in luxury changes the experience, and if the flight's longer than 4 hours I don't want to go that much! I can't imagine anything I want less than the Dubai type lifestyle, even before this weekend's events.

I am not OP, but I am not far behind her in age or circumstance, except I have done it on my solo income alone. My route:

1. I started saving into my pensions from my very first day at work (30+ years ago now). What I never had I didn't miss. That has been the biggest thing by far.
2. By and large, all my pay rises and bonuses went into pension as well (so I got the tax benefits too). I earn quite well now, but save the vast majority of my income in one way or another. I have avoided pretty much all material lifestyle creep, I prefer doing things/experiences instead.
3. I am a natural saver and frugal personality*. That - and some lucky timing to catch the end of relatively affordable housing - meant I was able to also pay off my mortgage in my 40s.

(* I do have one category where I will happily spend money, but the rest of my life means it is easily absorbed)

Have a look at the Retirement Living standards as they give a break down of what is typically spent each year.
I am doing FIRE, and am really looking forward to actually retiring and spending more on clothes, meals out and holidays. It has really helped me to see how much I can spend when I retire.
sounds like you have the comfortable retirement budget and not the basic one. Enjoy, you have worked hard to make this happen

Are you worried about no longer being able to earn more?

I think this is very common. Natural savers don't become natural spenders overnight, but at least you've recognised the issue and can take steps to change things perhaps little by little.

You said you feel uncomfortable with spending more than your income. So how about having a monthly standing order from your savings to your current account so that your "income" figure looks bigger. If it was sitting in your current account, would you feel you had permission to spend it?

If there's something that makes you feel happy, perhaps set up a regular payment so that it's delivered to you automatically. I love cut flowers and plants in the house, so have a regular delivery of those. You might like a book subscription, coffee subscription etc.

As others have said - think about trading up the things that you currently buy. Maybe first-class train travel instead of being squashed in a normal carriage. You can spend a lot of money if you buy your food at M&S/Waitrose instead of other supermarkets!

If you have children or other family who will inherit from you in due course, perhaps let them have an "early inheritance" from you now, so that you benefit from seeing them have it? Any monies given from excess income are currently inheritance tax free, so it's tax efficient. Also you might enjoy supporting some charities which are close to your heart.

Good Luck!

@singthing I’ve saved into the pension since starting work but had a student loan to pay, & had to save lots for a house deposit & then childcare costs & of course the pension scheme I joined changed to become less generous whilst I was at uni.

Thanks @Whitengold & can I ask what investment vehicles?

Yeah, you guys got totally screwed on student loans, I am sorry for young people today. What a millstone, to add to the other millstones of CoL, house prices etc

Do what you can, when you can, as early as you can. The compound interest is at least free. Keep a fair eye on your pension funds and performance as well too.

I wish you every financial fortune.

Totally feel this way. As part of today’s society we spend much more of our lives thinking about accumulating than we do spending what we have. In recent retirement, we’re still checking our ISAs and SIPPS etc constantly even though we have more than enough. I am hoping this will wear off and we can actually enjoy and spend more soon.
I do think it’s human nature to take a while to change a mindset after many years. So, in answer to your question, yes other people do feel this way.
If it helps, our friends who have been retired a few years seem to have now got a better view on spending.

@singthing thank you!

I’ve recently inherited quite a lot of money as, coincidentally, has a good friend.
We’ve had exactly this conversation. We’ve never been on our uppers and haven’t gone without, but everything has been planned and budgeted for.
Suddenly we can splash out a little and it feels very strange! I wanted motion controlled under cupboard lights in my kitchen and really had to tell myself that spending £25 at Amazon was ok.
I’m learning tho… have booked a trip to India and bucket list mini trip to see the August total eclipse. 😄

It took me well over a year and a bit more to change from saver to spender mode. What worked for me was setting put a spending budget until I was 90 which basically showed me that if I don’t start spending money then I’d have to much left when I died. If you can afford it retire asap trust me there’s a lot about old age you don't expect which isnt good.

I have joined a facebook group, retire early. There are many in the same situation as you, me included. Always saved more than I could spend. Took packed lunch not bought lunch at work. now in a 20k PA draw down potential. 10 years to pension age.
Still struggling with spend not save mind set. Many on those who have achieved retirement savings do. You may do better to join a different online group?

I think being a saver is admirable although definitely within reason. My in-laws were perpetual savers well into retirement age. They had huge plans to eventually relax & travel in their 70s. The sad eventuality was my fil became ill & although my mil was fit as a fiddle her older years were spent as a carer and all their plans never happened. It certainly taught my DH & I life is what happens between plans. We are careful but we certainly aren't afraid to live for the moment & enjoy life while we can. We travelled & had good holidays with our children from the early years and created beautiful memories. My DH despite having a comfortable childhood never experienced what our children experienced as every penny was stashed away for a rainy day.

Retired at 54 and joined by DH when 58. While I waited for him I did a lot of volunteering and classes with the U3a.

Started pension, saving and investing really young, I am still frugal. We bought a Motorhome and had 6 weeks away last year. We often take a flask to walk along the canal if going a few miles still. As I say to DH whether is £1 or £1,000 it has to be good value. I’m not losing that mindset.

We have surprisingly made enough on our investments so that buying the Motorhome and our living costs have been recouped totally over the last year. I have started giving DS the 3k a year that’s allowed as a tax free gift. He is moving out this year so plan on buying him a couple of big ticket household items like a sofa, We are taking them to Paris with us for a week and paying as it’s my 60th.

Our main hobby is hiking, less scrambling up a dangerous hillside these days or climbing a tree anymore. but there is never a cafe in the middle of nowhere so a pack up always required. Last year I sat by a stone circle in The Peak District and on a Welsh hillside over looking Lake Bala with my flask and walked part of the South West Way. Swam in the sea a few times, nothing beats that.

It is much harder for young people these days there is no doubt about that.