Not too early for retirement or aibu?

[Orangeriessmellparadise]

Anyone has retired at age 48?
Frugal lifestyle and financially OK. Deciding to retire this year and hope with no regrets, actually cant wait! but friends think I'm too young for this even if I'm able to do it.

What do you do if you are in a similar position? How do you spend your days?
How do you come across people that see you as too young for not being in the workforce? Also health is not the best at the moment and my child is already a young adult so less and less responsibilities in general.
Is it too early or shall I go for it?

Sorry if it sounds like a bit silly question but is a genuine curiosity for your opinions. Thanks!

@GnomeDePlume We have a friend a bit like this. At 72 he now has signs of dementia (we think) . Not filtering what you say or do is definitely a slippery slope. Our friend appears largely incapable of thinking about anyone bar himself snd expects to be waited on. Refuses to engage with household jobs, drive, or do anything to help his wife who was working in a demanding job until recently (she’s younger) and he has actually been like this for several decades now. We have tried encouraging, chivvying, suggesting things etc but it’s impossible now. We’ve somewhat backed away from association after a joint holiday as we were appalled. We do support his wife but we don’t know how she sticks it.

I can, but it changed to 55 for new people not that many months after I joined. It’s a DB pension though if that makes a difference in that respect….also a work place one.

I saw this a bit in lockdown. People not mixing and their views becoming entrenched… unchallenged and increasingly odd, in one particular older relative and her spouse.

I hadn’t thought about the not mixing element of retirement before this thread. A woman I know still helps out at Brownies to keep her active. I’d love to be volunteering in my retirement, but I’m too busy working at the moment.

The most frightening part must be actually spending the money you have so carefully saved up!

I think it's a bit unfair to tar a whole nation as not liking work, implying everyone is workshy. Especially when you say you stopped work at 40 and rely on your high earning husband's income.

There's plenty of hard working, diligent people in this country, paying mortgages and taxes and hoping for a pleasant, if modest, retirement.

Crowing about your millions whilst casting aspersions on others comes across as a little crass.

I didn't expect so many comments and all interesting things to read. Food for thought and very helpful indeed, so thanks AGAIN.

For more perspective, when I say living frugally it doesn't mean miserable. I do enjoy many things that only money can buy but also a lot that cost very little or nothing. I'm good balancing those things.
Also health issues myself and seeing illness in my parents at a young age have been a great eye opening and incentive to finally decide is time to enjoy and relax.
I agree it feels I'm too young for the word retirement. This is stop working and then a few years later will be fine to say retired.

I have private sources of income and inheritance to rely on in the long term. I pay national insurance voluntary too and savings already sorted for kids University.
Although is not a million or two, I think is possible and doable.

Aibu or a million or more is not necessarily/compulsory to retire early? Maybe I'm missing something? This country is very expensive I know! Thx

Helping DC with houses? That’s a huge cost. I think £1m at your age is vital. How much capital are you using? How much income do the investments bring in? Will that last and what about IHT planning.

We all know this country has an epidemic of retiring early. Of course not everyone does but it’s not helping with recruitment and labour shortages in many skilled areas. Sadly it’s a fact and holds the country back as it limits growth. With 40 year student loans there’s even more incentive to not work!

Is there a hereditary illness that your parents had at a relatively young age that you think you might get and is it life limiting or mentally decapitating, if the answer is yes to any of these I would go for it,
Retiring whilst living frugally Dosen’t sound like much fun to me though, I envisage myself as a lady who lunches and goes on long cruises in my retirement but I think unfortunately the reality will be far different from that😊……should have started saving earlier

I'd go and see a financial advisor and make sure you 've planned this properly

Aibu or a million or more is not necessarily/compulsory to retire early? Maybe I'm missing something? This country is very expensive I know! Thx

I think it depends on your whole financial picture. You mention you also have 'private sources of income'. If these are reliable and bring in enough to live on and/or you have a decent pension to cover your old age then you might not need a mlillion+ on top. If you were just looking at savings/investments plus state pension then I very much doubt £1M is enough.

Have you seen a financial advisor?

Whats not to like about a lazy day like that

Every day for, possibly, 30 plus years?

I can do that on a Saturday or Sunday.

Not knocking it but retirement, early or otherwise, doesn't appeal.

This. And good luck!

Absolutely go for it. I retired at 44 and have never looked back. I have hobbies and so much on (all choosen by me) and it really is at my leisure. The most wonderful thing is I get time to be at home being a Mom instead of rushing, battling daily commutes and deadlines or being told -off for not doing x, y or z. Goodluck and no you don't get bored🤣

I retired at 58 and haven't looked back. We don't spend hugely on everyday life, you could say we live quite frugally, but do like our holidays here and abroad. They are also relatively inexpensive.
On the income side, we each have a state pension and reasonable final salary pensions from our professional careers, plus income from a rental house. No mortgages.
We are lucky, we have a lovely life and are able to enjoy and help our kids and grandkids.
I'd say, go for it. I have recently had several health problems and I'm so pleased to have had over a decade of larking about.
Good luck!

I’m 47, and have a friend the same age. Divorced after nine months, no kids, no family apart from one sister and her husband (they are both NC with their parents).
She retired at 41. She’s a smart cookie money wise, invested well. high up in an accounting firm, she kept her flat after she got married to rent out, but then when they split, sold the house, used her half to clear the mortgage on the flat.

At 41, she was offered redundancy, had no mortgage, etc. Decoded to retire, never work again.

Six years later she has gone back to work, same role, 3 days a week. I asked her why, she said “I’m just so lonely”.

In her case, I introduced her to a lady I know who she made friends with and they spent lots of time together, but then our mutual friend died and she realised she was her only real friend who was available at the drop of a hat.

So, in a nutshell - if you can afford it and don’t want to work any more, do it. But also, I personally would need to fill my days in other ways or it would wear thin, I think.

Retired at 50.
I do a little bit of volunteering. Am currently enjoying an acting course and a hypnotherapy course. My days are full and I love not working. I did start working 1 day a week because I fancied the job but it’s sooo nice to be able to pick and choose.

@Mia85 I think a million could be enough if it was invested in a pension or whatever so that you could drawdown the amount it grows by each year, say, 5%, which would be £50,000 per annum so that you’re not touching the capital. You wouldn’t be able to go crazy but it’s enough to live a reasonable life with meals out, and a holiday or two. Better still if you have any other sources of income to top that up because life is expensive. The younger you are the more expensive it is. Plan to spend more up to you’re about 80. Things will start to slow down then probably and you won’t be spending so much going out and about and lots of holidays unless you are very physically fit. Definitely plan to try and get your house paid off by the time you retire because that is one big chunk out of your income that you could do without.

But you’d have to account for inflation too and over a 40-50 year retirement that’s a big risk so you’d have to cut the drawdown rate to a much lower %

@Orangeriessmellparadise

If you retire at 48 can you spend potentially another 40 years or so being frugal?

My in laws retired going over twenty years ago now.

They now have to really pinch the pennies after so many years retires and with the cost of life in general so high.

They have to take a flask of coffee out now instead of a take out one when they go for a walk which is most days,in the same plac because they don't want to use fuel.

Their holiday this year is a sun cheaply in a campsite in a bronze van which mil is hating.

They haven't had a meal out for years unless it was Wetherspoons for a special birthday.

Xmas is no giving now at all and they don't go to any gatherings because again it's expensive to eat out.

Mil goes to Aldi with a solid small
List every week and they don't deviate or buy anything special.

Frugal was fine for them in the beginning but after so many years of it they've spent their years bored and penny pinching.

I plan to lower my hours gradually to get a great balance but while I can I'm saving and paying into my pension so that I can enjoy my retirement and not scrape by

I have read through the whole thread and nobody seems to have mentioned care home costs. OP, do your research on those as they are quite sobering. Depending on the level of care needed, the average costs currently range from about £700 to £1000 a week. You may not have to pay for all or any of it depending on your assets, and a lifetime cap is being introduced, but it is still more than most people imagine. Policies may also change over the years. I personally would not want to burn through my savings at a relatively young age, then end up having no money left to pay for the slightly nicer nursing home in my 80s when I am more vulnerable.

Personally I think after a while you will be bored silly. People need social contact, will you get that if you retire. Maybe cut hours down to a minimum part time first and see how it goes from there. Don't forget the cost of living is rising everyday and what seems manageable now might not be in five years time.

I have read through the whole thread and nobody seems to have mentioned care home costs

That's because the majority of people don't end up in a care home. So why waste precious time worrying about something that'll probably never happen.

@getulou would you mind expanding as much as you can share on what you mean by “good investments”
I always wonder what I’m missing- is it share portfolios and putting in major capital to get 10/15% ROI in form or dividends or big capital increases- curious as to how much I would need to invest to make substantial return/ live of an income
perhaps it’s not shares with you?? Property? Startups? VC’s??
don’t mean to be so nosy…. But suppose I am really😁

@unsuresue2

I'm not the OP but I'm in the same boat and happy to share. I'm planning to retire in the next 6 months at the age of 48.

DH and I are currently receiving pensions from the AFPS (both ex military). He's over 55 so his has gone up, mine will go up when I reach 55. Getting about £32k/year at the moment from this income, which covers all thr household bills.

We have a property which we own outright and is let out, bringing in £500-800 per month.

We have a dividend portfolio of £500k, which at 10% brings in £50k/year gross.

We have investment ISAs approximate value £200k, which we will grow to the same value as the dividend portfolio and then switch that to provide tax free dividend income.

Once we've switched to using the ISAs as the dividend income, we'll use our main investment pot to buy a house (we currently rent) or just wait and move into our own property when we retire and use the money to get the kids on the housing ladder.

We also have cash savings for emergency funds should we need to use them for repairs. Our children will also be going private for secondary school, so we will use this to fund any shortfall in monthly income.

I have a SIPP which I'm managing that I'll draw down on when I'm 55.

We both have state pensions (I'll need to top mine up). So by the time we reach state retirement age we should have the income from 5 pensions.

I have no worries about being bored in retirement. I've worked since I was a teenager and I need a break. We also enjoy managing our investments, so it keeps us plugged into the world and we have lots to talk about. I also have kids so routine is not an issue!

I'm just waiting on my final investment piece to slot into place and the world of work won't see me for dust!!

If you can make it work, go for it. That's what I say 😊

@DartmoorWild how have you managed to build up such large investments? Have you been very frugal, inheritance, or have investments just done really well?

For the OP I would be a bit hesitant at that age if she needs to be frugal (although I sometimes find on mumsnet that 'frugal' can have a very wide range, I've seen posters claiming they'll need to be frugal in old age even though they will have a £30k + income each year) whereas in @DartmoorWild position sounds pretty decent.