To Consider Retiring at 48....

[Mercurial123]

That's it really. My son graduated last year and has a job with good prospects. So it's just me and the cat at home. I'm mortgage free and have rental income from a property of £1,000 per month. I've got savings to cover repairs and can rent my spare room out to a student as I live close to a university. I can spend more time with my elderly parents and do volunteer work at the local nature reserve and with refugees. I'm kind of excited I want to make changes before I'm 50. Would you do it?

Depends how much you like your job. Depends how much you want to do other things like travel. Depends on how luxurious your tastes are. Depends if you've factored in to your spending 'voids' on your rented house, or (and you've got potentially another 40 odd years to live) if the income from your rented property would not only cover your living expense but the 'major' repairs and maintenance costs of 2 houses - re-roofing for example - rather than just the odd bit of decorating.
It seems early to me, on limited income.
I'd happily retire if I had a bigger income, it wouldn't be a worry about occupying myself from my pov.

If the £1,000 is needed to live on, what would you use if the rental property needed major repairs?

How much would a student pay for your spare room?

Hate to ask this, but are you likely to inherit?

The problem is that if you leave work for say five years, then do need more money, it's very unlikely that in your mid-50s with no recent experience you'd be able to go back to your previous role.

Thanks I've done a lot of travel in the past it wouldn't really bother me not having expensive holidays. Savings will cover all major repairs. I'm quite frugal I don't have expensive nights out. If the worst happened I could get a part time job.

I think I'd seek some proper financial advice to make sure it's 100% affordable before committing but I'm all for enjoying life as much as you possibly can! Could you work on a 2 or 5 year plan? Save all your earnings for those years and live off your retirement income to check it's comfortable? Would part time work for a while be an option? If working for a few more years would make your retirement significantly more comfortable I think I'd do it, you'd still be pretty young! X

Also have you paid enough NI contributions to the state to get a full one when you hit state pension age?

I don't think I would - it doesn't sound financially secure at such an early age. Can you go part time?

If you can afford to do it then do. No one lay on their death bed wishing they'd worked more.

I would do it - if you know you can live on your projected income, have plans and have covered the obvious risks, why not? My son off to uni this year and my need to make a major change in my life so I don't notice is overwhelming!!

I think leaving a full time job is fine, but I'd be worried about living on that little money tbh. Instead of retiring I think I'd go to part time or freelance.

I'm 48 and I don't really need to work, but I freelance because I enjoy the stimulation and challenge of work. I can also choose my clients and my hours.

If I do suddenly need to increase my income for any reason I will be in a good position to either get a job again or increase my client base.

Having said that, my dad retired at 55 and he has been so happy since he retired! And now my stepmum has retired with him, they are absolutely loving life. They do lots of volunteer stuff, walk the dog a lot, enjoy the world around them.

Thanks some good points to think about. I may have an inheritance from my parent's but not taking that into account my mum is healthy and hopefully will stay that way for many years.

My rental has always been popular the longest it's ever been empty is for a month. The roof and windows were replaced three years ago. Volunteering with refugees is something I really want to do. I can always sell my house and down size if need be.

I know it makes sense to stay working longer but if for any reason I have to go back to work I really don't care what I do.

I would see ifnwork would let you go part time perhaps?
Then you can still retire early maybe at 55 if you still want to.

If you can make it work then do so. No-one ever lies on their deathbed wishing they'd spent more time at work. Granted a few do wish they'd worked harder or achieved more but this doesn't sound like it would apply to you. Enjoy cocktails at mid-day I say!

I'd do it in a heartbeat!

I would retire in your shoes; not in a million years. You have years and years ahead of you - God willing - I really don’t understand why you’d want to commit yourself to decades of frugality. Change jobs to do something you like, but don’t retire!

I'd go part time. Make a small change, see how that feels, before committing to a wholesale life change like retiring.

My Mum did this. She was unhappy in her job then had a health issue which fortunately she recovered from. She had a very active decade with lots of interests and holidays she enjoyed and time with her Mum.

Now she has Grandkids she’s a lot more focused on them which she enjoys and she has other caring responsibilities which are now much bigger. So I think she is really happy she had that time for herself.

I was diagnosed with cancer a few years ago it's made me look at my life and priorities differently. I work to live and now I have less responsibility it may be a possibility. My expenses really are minimal I don't drive I cycle, run and do a bit of yoga. Entertain friends at home and don't drink. I really want to help people and I think it will give me new skills if I ever had to go back to work. Temping or working in a shop doesn't bother if I had to go back to work in the future.

I’d look for a PT job as a first step TBH.

Ease your way in.

No one lay on their death bed wishing they'd worked more
This^^
I did this at 49. Had a year off, did lots of voluntary work. Then I got a part time job just a few hours a week in a nice little job with no stress or responsibility.

Could you find a part time job in the charity sector for example?idk how easy that is.

I think you're suited to retiring as you've your house and a rental property however I would work part time for a bit so while you're young you can travel and explore then start proper retirement a bit kater

Have you factored in cost of living rises? £1,000 plus room rental sounds ok now, but what about in ten year's time? Will your rental income keep up with the cost of living?

OP I had an accident that had a similar effect

I also live frugally and actually like that, so things are a lot different for us than for people who enjoy spending money, if you know what I mean.

Are you happy? It sounds like quite a basic life you are planning? You could live for 50 more years.

What did you want to do when younger?

Have you made enough NI contributions to get a pension? (check on line)

Don't forget you would have to make your NI contributions, OP.

I would go part-time first too, save all that money for a year and then see how you feel.

Unless your son has got an amazing job then a bit of help to get on the property ladder will probably be needed if he is to do it whilst still in his twenties - does he already have that? If not then personally I wouldn't give you work until I could help my son a bit more in the future.