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!

I don't entirely buy this argument, it only saves you money if you buy lots of expensive work clothes and constantly buy lunch/coffee and go shopping on the way home from work! Aside from a couple of £ on the bus fare I wouldn't save anything by not working and apart from an off-peak gym membership I think I'd spend more money going places and doing things.

We earn about 150k between us, and we have a child, and are expecting to retire early 50s, so of course childfree people could.

We live in an area with good COL to income ratios, though. The SE might be a different matter.

It depends entirely on your situation doesn't it. My commute used to cost me several thousand pounds per year. I needed a whole separate wardrobe of work clothes.

All my hobbies are relatively cheap - sea swimming, hill walking, gardening, cycling, volunteering - I keep busy and stimulated spending barely a penny.

If you understand money and have invested relatively early on they would have benefited from the US Stock market. Retiring at 50 is relatively easy if you planned up front for it! especially with no children!

Work I chose to do for the community I live in. Not some ridiculous crap that someone in head office believes is a good idea.

Only if you think retirement means sitting in a rocking chair knitting and watching daytime TV!

It's totally achievable. Everyday I spend money that takes me further away from retirement but if it genuinely was my goal, then I know where I could save £100s each month. I'd cut my tv package, get the bus instead of paying for a city centre carpark, buy basic toiletries and cut-out luxury beauty.

I'm not willing to sacrifice my lifestyle today for an early retirement. Some people are though and others dont even need to if they're high earners.

This actually sounds quite dismal to me - I want to live, not mark time till I can retire. I'd rather work longer and be able to buy soap!

Investing is key. Even my kids, both renting, invest what they can. Some people never get their head round personal finances and are utterly clueless about pensions.

Yes I’m 43 with children and will be retiring in the new year at 44 . Everybody has different circumstances

Agree. I'm not bothered about early retirement because I enjoy my job and it's the kind Nd of thing I can do more and more part time, and can also do other things related to it. As long as I can go on holidays I don't mind working

I don't think it's easy to retire at 50. You need to have perhaps 40 plus years of living expenses provided for. I say this as my mother is 92 and going strong. That's not easy to do at age 50 in my view. I'm glad for you that you have it sorted but I'm not surprised you colleagues are surprised.

It is possible but to me would depend very much on lifestyle, if you are a high earner and suddenly go to living on a fixed income at 50
then it would most likely result in a drop in lifestyle. With more time on your hands and less money to spend that doesn’t sound like a great equation to me. But I’m 51 with kids and still very ambitious at work and want to make more money after taking a step back when they were younger so I probably see things very differently than a child free person would

I think for people under 40 that’s difficult largely due to housing costs

More than feasible and not restricted to high earners.
The age where you can access a private or company pension is still 55 (changes to 57 in 2028) but if you have set everything up then yes, perfectly achievable.
My OH & I were both standard rate taxpayers but with the mortgage paid off (long ago), healthy savings and access to pensions (neither of us get the SP until 67), it is very doable and still live a fulfilling & busy life.

I think with high earnings putting large amounts into pensions with 25-40% extra with the tax
or working for the state so final salary or good pensions

the problem for people earning less they arent getting that 40% added and pensions just dont grow anywhere near as fast.

someone of 40 retiring at 50 would need at least 18 years before state pension age so 216k each person.
or need 300k in a pension to withdraw 4% of 12k a year.

OP was referring to high earners. They always have been able to retire early and probably always will especially if child free. Many have passive incomes so still actually earning, just not working.
Plenty get bored though after awhile and go back to work in some form, such as contracting or just a low stress p/t role.

Maybe being able to invest the money saved. Compounding interest would mount up nicely.
The trick would be retiring at the right time. Even past generations have been caught out in the last few recessions when they have had to retire when their investments have dropped. Especially those who had to retire due to medical reasons.

It's still getting up at a set time. I'm retired, but do childcare, as in my GCs primary school run. I don't sleep well, as a lot of women find they don't, as they get older. I'm looking forward to eventually not having to get up (at 6am). But only a couple of mornings a week would be great. Although having said that, I wouldn't want the retirement I see some people having. Unless there's some planned activities, community involvement or travel etc, people do age quicker. No-one has mentioned how expensive grandchildren can be. I know some don't bother, but in my circle, we are all helping in some way and some have decided to keep working to help with the property ladder. My eldest DD and Son in law, could take retirement, because they have inherited property that they rent out, but my youngest GC, their DN, will struggle to earn a good wage and with the housing situation, they want her to have her own home, so are planning on staying working until at least 60. We all have different family situations and what we feel we want to help with.

I think it's possible now but depends on your situation. Dh retired at 55. Mortgage paid off, kids grown up. Friend who is in 60s and had kid in his late forties and bought a bigger house at that time still has a mortgage to pay and university to fund.

I’m 71 now, retired from teaching at 50 and did a bit of tutoring for a few years but am coping fine despite having raised two daughters, one of whom was still at uni when I retired. I think mortgage free is even more crucial than child free. My ex and I paid ours off really quickly. I live frugally but don’t go without anything i need or really want, the latter being mainly travel.

I used to work in the City, I knew people who retired aged 27-30 it was normal for a successful trader to retire at this age because they could afford to do so. I would say these days though if you want to retire at 50 you need a very big war chest as you will be surviving for around 30 years at least 10 of them in ill health- that's just the way the stats are now.

I don't think it's wild at all, should be fairly easy, good savings, a good pension and a paid off house and it'd be fine. Especially as normally around 50 any parental inheritance has sadly arrived or arrives soon. My parents had 3 kids and my mum (gp so good salary and pension) was part time at 50 and fully off at 55.
The only thing I'd say is have a plan for what you want to do and make yourself do it, because retirement often means your brain does less and you see younger people/engage with the world a bit less and I have seen my parents age because of that very quickly. I'd suggest a fairly robust plan of activities for body and mind that you'll enjoy, you could have 30 or even 40 years retired so it'd seem a waste to spend it all on the sofa.

I know several people who worked 16 to 50
Did not go to uni
Had children
Mortgages paid off
Were able to access their large private pension at 50

They started a new career at 50
They used this money for lots of holidays & some bought holiday homes
Paid into new private pension
Some stopped working at 60

So yes it is possuble

Sorry posted on wrong thread!!