Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Would I be mad to retire now?

127 replies

Cheeseandtomatotoastie · 11/01/2021 09:36

Long time poster but have name changed to get as neutral a view as possible.

I am mid fifties, divorced, new partner and living together, no mortgage in a house I love and work full time in a job that doesn't particularly get my juices flowing. Child finishing masters but has a graduate job lined up.

I don't know if it's the current situation or my employment but I am struggling to drag myself into work everyday and considering a life change, not immediately but when things ease up.

If I retired at the moment I would be able to draw down an income the same as my salary from my SIPP (4% draw down of total fund) I also have a small final salary pension that I can access in less than five years. My SIPP is going great guns despite the economy and I expect my retirement income to be a deal larger than my salary. I realise I am very, very fortunate in circumstances.

My job is okay but my boss is a micromanager, very frugal with salaries for employees and late 70s with little hope of retiring any time to let us just get on with running the company. There is very little in the way of benefits, no sick pay, minimum pension contributions etc. He can be very kind in some ways but I find his drive to make more and more money a bit off putting, especially as he is a multi-millionaire and his children are not interested in taking over the company.

I am tempted to make the leap and would like to spend the remainder of my life pursuing the hobbies and interests that I struggle to have time for. I would also like to invest more time in friendships and take up some voluntary work. I feel that I have spent my life in the service of others ie marriage, childcare, family and would like to make the most of the 'go-go' years.

Ideally I would like to do a couple of days a week in a coffee shop or restaurant. I have a passion for cooking and catering. The rest of the week on my hobbies and interests. My partner is also heading for retirement but probably will wind down gradually as he has a career with lots of benefits. We would be able to travel together but he wouldn't be around all the time during the week.

Should I make the leap? Am I too 'young'?

Yanbu - go for it.
Yabu - you're mad, you'll get bored,

OP posts:
Whoateallthestuffingballs · 11/01/2021 09:42

Do it! It's not like you couldn't look for something else that suits you better if you wanted to later.

My DF got redundancy at 55 (I think, give or take a year) and used it to retire. He died suddenly at 65 and one of the comforts for me was that he had ten years to travel and pursue his hobbies, when he would not even have made it to retirement had he stayed.

I am not saying this will happen to you, I'm sure you'll have many good years yet, but it was a real pivotal "life is too short" event in my life. Everyone else in my family had got to a ripe old age and it really flipped my mindset.

contrmary · 11/01/2021 09:43

You can never be too young to retire, only too old.

Thehawki · 11/01/2021 09:45

Surely you can just start work again if you get bored? I say go for it! As long as you wouldn't regret leaving this particular job and your money is secure, go and do the things you've always wanted to. Life is too short to be worried about pleasing a boss you don't even need. You're never too young to live the life you want to live. Congratulations on getting this far, what a great position to be in xx

HappyThursdays · 11/01/2021 09:46

you'd be mad not to

when you say you're drawing down 4% of the total fund - do you mean you're drawing down 4% of the capital and then using it as income? or actually starting to draw an income of 4% of the total capital you have?

mdh2020 · 11/01/2021 09:47

Do it. Don’t over think it. You are clearly ready to retire and will have enough money. Life is too short. You know the saying ‘no one ever says ‘I wish I’d spent more time in the office’. Enjoy your life with you new partner while you can. Oh, and you will be too busy to want to work in a coffee shop. But if you like cooking why not make birthday cakes for people?

Nocaloriesinchocolate · 11/01/2021 09:47

I think to me a very important factor is how far you validate yourself through your job. In other words, how much of your self-worth comes from the job you do. I know someone who retired early from a very high status job and regrets it bitterly because he feels, however wrongly, that he matters for less now as a person. If asked to describe yourself, how far down the list would your job title be? In other words, would your first description be your job title or something else, such as partner, mother, et cetera? Do you value people have retired as much as people who have a job? Do you enjoy being part of the working world (even if not your specific job?). Is it working you just like or just this job?

NiceLegsShameAboutTheFace · 11/01/2021 09:47

You can never be too young to retire, only too old.

I think you can. I think anytime before death will be too young for me. But that's me. Op, you should definitely go for it Smile

LaurieFairyCake · 11/01/2021 09:49

You should definitely do this

You are very wealthy to afford this - the idea of having a retirement income greater than your salary is amazing - well done for saving so hard

plominoagain · 11/01/2021 09:49

Do it . If you've got enough to live on comfortably, then why not ? I'm thinking of doing similar , tbh . I can go in 3 months if I want to , and I want to enjoy my retirement while I'm fit enough to do so . I might do a couple of days a week to top up my pension , but I've done nearly thirty years of pleasing everyone else , and now I want to please myself .

Jobsharenightmare · 11/01/2021 09:50

Do it! My FIL died suddenly one day the month before he was due to retire at 60.

By the sounds of it you have lots of ideas of how you could spend your time being truly fulfilled and happy. Life is short.

Laska2Meryls · 11/01/2021 09:53

I retired last year at 62 , with pension also in line with what my salary was and although its not been exactly the first year of retirement that I planned .. (European travel plans didnt happen, and new Campervan sitting hardly used on the drive) I have not regretted it..
Tou say you are living in new house with new partner but not remarried? .. I think as long as you have equal shares in property should you need to split it in the future, id say go for it. Also though do make wills so you know where you stand .
Yes go for it. .. life is too short to be in the office if you don't need to be !!

user1471462115 · 11/01/2021 09:53

Have you got all you NI contributions. You need 35 or so years. You may need a full state pension at some point.

Kpo58 · 11/01/2021 09:53

I think that you need to see a financial advisor to talk over your options.

In the Pension scheme that I'm in, if you took your Pension at 55, instead of 65 the pension would be 1/3 less yearly than if you waited. Your final salary Pension might be the same.

Original poster
Cheeseandtomatotoastie · 11/01/2021 09:55

Thank you everyone for the positives. I think it's fear that's holding me back.

To answer questions I will be drawing 4% of the capital to use as income. I understand this is the pension industry standard based on annual average growth of 5% ie you don't eat into the capital. I made 16.5% on the capital in the last twelve months so, fingers crossed, it continues to exceed the 5%. Obviously there are no guarantees with a SIPP investment and I think that is part of the fear.

I don't see my identity coming from my job. I am one of the those people that is bright enough but, due to circumstances, never really achieved a career or fulfilled my potential. Long story but I came to terms with it some time ago and think that people, personality and relationships is what counts in life.

I have been reading the thread on Biden and Pelosi and a lot of people seem to think that retirement can lead to atrophy!

OP posts:
Original poster
Cheeseandtomatotoastie · 11/01/2021 09:59

It's a SIPP so no penalties when I take it. I had a Financial Advisor look at my pensions recently, including the Final Salary. I didn't realise I could take the latter early without penalty so money well spent.

I need a couple more years NI contributions but you can pay them yourself if you don't work. I would like to get a part time job when things improve. Hopefully someone would benefit from the job I would leave.

OP posts:
Laska2Meryls · 11/01/2021 10:01

Looking like a full house OP!! Go for it!!

Original poster
Cheeseandtomatotoastie · 11/01/2021 10:02

My partner and I have just done our wills with lifetime interest in the house for each other. We have equal shares in the house.

OP posts:
Fairyliz · 11/01/2021 10:03

DH did this in February 2020, he’s not had much of an exciting retirement so far!
I should wait until the Covid crisis is well and truly over and see what the world looks like then. You might find you can’t do a lot of things you planned eg travel.
So far he is bored out of his mind.

Original poster
Cheeseandtomatotoastie · 11/01/2021 10:04

Can anyone think of any negatives for me to consider?

OP posts:
lidoshuffle · 11/01/2021 10:04

Have a look at the Money Saving Expert threads on retirement and pensions OP. Lots of brilliant financial advice and also more general 'Should I or shouldn't I" posts from people at the same life stage.

Imapotato · 11/01/2021 10:05

I would in your position.

HollowTalk · 11/01/2021 10:06

The only thing that would concern me is that you have a new partner and you share a house. If that went belly up, would you have enough money to buy somewhere for yourself?

ILoveMyBernina · 11/01/2021 10:06

Do it.
I retired at 55. Best decision ever if you can afford it.
Note of caution. Don't get married. Financially not a wise move (even if he is wealthier than you). Stay financially independant.

WiseOwlRelaxing · 11/01/2021 10:09

So you can ''preserve'' your pension until sixty, it won't be damaged?
I am not English and I don't understand SIP

If you can get a job 3 days a week in a cafe and you know you can, go for it!

Tier10 · 11/01/2021 10:09

If your pension pot is big enough then go for it.