AIBU to think that I can retire early just earning 45K a year?

[freedomsearcher]

I'm 30 years old and earn roughly 45K per annum.

The goal is to retire early or just cut back on the work before retirement age. Maybe around 50 years old.

I have a house with about 50K left to pay off. House is worth 250K at the minute.

AIBU or am I being unrealistic to think that I could save enough to be able to retire or go part time when I'm 50?

I love my job and my colleagues but can't see myself earning more than 50K where I am now as I'm paid generously for the job that I do, owing to long term service to the company I'm with. So I couldn't go elsewhere and command the same salary or more - but that's a whole other story for another time.

I did my long-term financial planning, so that I would be able to work part-time from the age of 55 (if I wanted to). I didn't want to be that age and having to work full time, if I didn't feel up to it, or if I was jaded by the world of work.

I'm now 60, and still working part-time, although will work even less next year. One of my friends was forced into early retirement at 50 beacuse of ill-health, and one of her challenges has been waiting the 10 years for all the rest of us to have free time to spend with her. There's more to retirement life than balancing your income and expenditure. My friend was really lonely for a long time.

For me the part-time work gives me a social life, a purpose (my work is something that is valued by individuals / society), a structure and routine. And it brings cash for holidays and luxuries.

It should be achievable if you invest well and can live on a modest income. I’m also planning to retire early and have focussed on building investments to bridge the gap between stopping work & receiving pensions. There are lots of inspiring FIRE stories out there.

I've lived off around £6000 a year (no mortgage or rent, though that was around 5 years ago, mind), so if you are able to live off a lot less than your salary and pay your mortgage off, then I can't see why you wouldn't be able to go part time, and quite soon.

That assumes you don't have dependents or other outgoings.

As for retiring early, the question of pension may be one you could ask an independent financial adviser if you want to retire on anything like your current salary - how much do you need to start paying in to a scheme that will give you that at 50 or 55? Or, if you just want to coast on savings until you are old enough for your state or current pension at a later age, then you need to work that one out.

People talk about needing a million or whatever, but it really is as simple as this: you'll probably be dead in 60 years' time, so in that time you need 60 years' spending money at whatever a year. If that's £10,000, you need £600,000 (which you can earn in 15 years), but if you want £20,000, then it'll take longer to earn that. Bear in mind you MIGHT get state or company pension, so you may already 'have' some of that money 'saved'. You need to adjust for inflation, which makes it a bit more complicated and less predictable.

I'm 50, and enjoying my working life. Why do you want to become a hermit at 50 :)

Op said retire not become a hermit
Some
People can think of lots of things to do with their time which work makes difficult

State retirement age approx 68 if you are 30
Could live to 100 ?

So you need to have an income from 50 to 68 plus retirement

Plus how do you plan for things like pandemics, poor health, inflation, hobbies, holidays, emergencies, menopause, wars, mid life crisis etc

Life looks very different when you are 50, compared to 30 !

Surely you want to live a bit in your 30s & 40s too ?

I like the idea of trying to live on a reduced income for a few years first and see how you like it. Might be fine but better than retiring and realising you don't like it.

I think it's possible but I wouldn't be hurrying to pay the mortgage off necessarily as some are suggesting - I would rather invest the extra money while you're still young and it has lots of time to grow. Also look at the /r/fireuk subreddit!