To think it's perfectly understandable that a high-paid, child-free couple could retire at 50?

[LoomyDee]

Someone I work with is retiring in a couple of years aged 50.

I have the same plan but I'm only just 40.

We were chatting about it the other day at work, and a couple of people were or acted completely befuddled by the situation. When the lady in question went to the toilet, a couple of people starting up with "But how on earth will she afford it?"

I don't get it.

Surely it's not extraordinarily strange and incomprehensible to realise that a couple with high-paid jobs, a fairly normal lifestyle and no children will be able to retire very early?!

Am I missing something? I've run my own numbers and 50 seems very comfortable but I worry I've completely overlooked something with how incredulous these other colleagues were!

My dad retired at 52 after working 34 years. He's now been retired for 37 years.

Plenty of ways to keep the brain active in the years beyond paid employment.
I’m a trustee of a charity, parish councillor, love all types of puzzles, learn how new languages etc. The joyful part is I can combine this with plenty of travel.

I agree with pp, financial responsibilities if you have children, do play a part in retirement plans. I like work so will carry on forever but would at some point like to be p/t. But I'm already 60, have three adult children who cost a fortune when they were children, a divorce and my lovely partner died recently so financially I'm just hanging in there. Good job I like working 🙂 sometimes life just doesn't go as you think it may.

It could be very easy depending on their planning. We retired mid fifties and are not child free. Youngest of two had just graduated.

As mentioned by @frozendaisy it’s all about planning, ISA and a decent investment portfolio.

We were in top 5% of household income for about a decade had also moved away from the South East and that was a big factor. We both left when young for University and remained working up North and met each other at work. We also bought housing just before it went crazy back in very early 2000. This is one of the biggest factors but the biggest was sterling returns on investments. Part of that is luck, we paid off our mortgage in our thirties.

We were careful but didn’t deprive ourselves in the least, lunch or dinner out once a week and a trip overseas every year, a few weekends away in the UK or travelling to see family which does have an expense as hundreds of miles away. Never been in to actual shopping. I’m on holiday now I have bought a pair of silver earrings from a small workshop that the jeweller made and he drew me a picture, just a line drawing but very nice of him. I really don’t buy much but I’m not interested. All our extra money that wasn’t saved went on holidays.

Some people don't even think about pensions until they're 40. I have a friend who only started paying in to a pension at that age and got her first mortgage around the same time. She is child free but was enjoying luxury holidays and designer handbags not really considering the future. For someone like that it might seem unrealistic that anyone could retire at 50. If you get on the property ladder and start paying into your pension straight out of uni it's achievable.

@MotherofPearl DH has taken to learning more languages, he already speaks German and French very well and is at a decent level with Spanish, he is attempting to learn Irish because if his ancestry but it’s a difficult language. He has also taught himself carpentry and is making really decent stuff.

I am volunteering for a couple of charities, the sort of work I would quite like to have done, committee work and grant applications along with hands on stuff but it was just never going to pay enough.

@JLou08 That was me a pension plan at 21 taken out almost 40 years ago. DH was a bit behind as he read for a PhD so did not start his pension till 26. I’m not from a well off family, it was entirely all self taught and pre internet when it was a huge effort to find stuff out.

People who live in the now and spend all their income, can’t possibly comprehend the mindset of a natural saver who constantly makes sacrifices in order to retire early. Deferred gratification is not for some. It’s easy for one of my children, an alien concept for the other.

Not necessarily. Some people didn't get onto the housing ladder until they were in their 40's so have expensive mortgages to pay.

This is why they shouldn't means test the state pension.

Yes, over the years I’ve had people tell me there’s no point saving
when the interest rate was low

As if they don’t understand that saving has its own value, that you’re paying yourself

It’s even possible as a single! But I must admit I think if you’re in your 30s or something then the housing cost might make it not possible. And then a lot depends on whereabouts in the country you are.

If you're a natural saver who earns well, it doesn't even feel like a sacrifice. I buy pretty much what I want, eat out a lot, travel regularly etc, but still save because I earn reasonably well, always shop around for the best price, don't spend at all on some things (no beauty treatments mostly because I CBA with the appointments/effort, dye my own hair and just get a simple cut at the local salon) and can still save.

Lots of small differences can add up hugely - I own a cheap car outright that I've had for 5 years, even without it's residual value, it's cost me just over £100 pm in depreciation. Others who lease a car could be paying £300 pm so that's nearly £200 a month difference. I don't change my phone often, others could be paying £60 a month for a contract, mine is under £10, another £50 a month, it all adds up.

This is my best friend who is now getting really upset when anyone mentions retirement she’s 56

Absolutely possible - most wealthy or high earning people I know who have worked have either retired anywhere from late thirties onwards or have worked part time. The ones that still work full time are certainly not doing so for monetary reasons.

Of course it’s possible ! Children are very expensive. Not sure why they were so incredulous

One of the reasons I wanted to retire sooner rather than later is that my DH is 10 years older than me. My parents had a similar age gap, DF retired at 60 and died aged 67 so they had no retirement together. I didn’t want that to happen to us. When we bought our first (and only) house together we didn’t get as big a mortgage as we could have done as we wanted to be able to manage on one income for a while when children came along. They didn’t but we were able to pay off the mortgage. When my employer offered a voluntary early severance package I jumped at it - best thing I ever did. Been retired 7 years, DH remains fit and well and we are making the most of every minute.

Of course it’s possible. If invested all the money I spend on my dc every year into the stock market I’d be loaded!

Yes, it’s perfectly achievable for a higher-earning childfree couple with good financial planning. It isn’t actually compulsory to spend fortunes every month on car leases, subscriptions, holidays, clothes, beauty treatments etc.

A guy I went to university with had a very well paid career in consulting, lived modestly, bought his clothes at M&S, wore a Seiko, drove a second hand Toyota etc. He invested £ thousands every month in property & equities and retired at 44.

It's possible for sure, my parents did it but mentally they were never the same again and IMO seemed to age very quickly after that.

With a good salary that has been coming in for years without any gaps due to unemployment and no kids of course it is possible. But I am sure that there are many 50 year olds in "ordinary" jobs and who don't have children who will have to keep going unti they are 67.

Spot on. I could have written this. I save for my retirement, enjoy my holidays & still save significant amounts every month. How? By being careful & sensible about everyday expenditure & not spending on stuff which most people think is important but which doesn’t matter to me.

A lot of people spend all or almost all their income without great thought to the future. They live in the here and now.

Their business and fine provided they are prepared to work longer.

DH and I were high earners and lived a lovely life- nice house, car, holidays etc but didn't go too crazy - maybe staying in nice AirBNBs on holiday rather than 5 star hotels every time, shopping in Lidl/Aldi, changing our car every 10 years.

We also saved for retirement taking full advantage of the tax benefits of saving into defined benefit, drawdown employers pensions and Self invested pensions.

Around us while we were working flat out in relentlessly busy roles, a number of friends with similar income were working part time buying/leasing top luxury vehicles, flying business class, drinking only the finest vintage champagne rather than making do with say Cava for non special occasions, only shopping in Waitrose, designer clothes, always wearing new outfits etc etc.

We retired in our 50s. An inheritance helped but we could have afforded it anyway.

A lot of our contemporaries who lived the more opulent life style are still having to work in their 60s and will continue doing so. It seems short sighted to me but each to their own.

And also happy to spend it all before you die.

Many retirement plans are based on "not eating into the capital" and "preserving the equity" aka handing it on to the next generation.

Another factor that makes it easier for the child free to retire early is that you don't have the same expectation about leaving an inheritance. If I have money left, I plan to leave it to my nieces and nephews but if it suits me in my later life, I might go quite far along the 'die with zero' road.

But you can spend your ordinary savings any time you like. They will likely have ISA's and premium bonds etc.

I remember my dad saying something similar, he retired at 55. Within a couple of months he had every project on, fixing old stereos, watches, going back to enjoying and collecting vinyl, walking the dog with mum (which he never did before) and the odd pub lunch and days out. He told me that he loved it, was so busy tinkering and doing things that he wondered how he ever had time to work!

You'll be amazed how quickly can adapt to retirement and do just fine!