Retiring very early- what do I need to consider?

[BippityBobbityBoo]

I’m 42 and planning to retire early, probably next year, I earn £40k. My DH is already retired and mortgage is paid off. We will probably downsize and will live off the proceeds, some savings and his small pension. He will get state pension in 5 years and I may do some small jobs to bring income (cleaning/care) My pension pot isn’t very big. What can I do to make sure I have a good pension? Thanks

I don't mean this to sound snarky, but if your plan for retirement involves cleaning or care work to supplement your "small pension" and the state pension, you can't afford to retire. I honestly don't understand your logic in thinking this is a good idea.

Why do you want to retire completely at such a young age? What are you going to do to fill your day / have a sense of achievement in your life?

Being able to retire in your early 40s is one hell of an achievement in itself.

Lots of people give up work much younger in their 20a and 30s to look after children and no one challenges that decision.

Anyone who can't imagine how someone would fill their day if not working doesn't have much of an imagination.

Life is short, if you can afford it, go for it OP. If retirement doesn't suit you for whatever reason, you can always work again, and so many volunteering opportunities if you don't need the money.

Why? , what can’t you imagine? I’ve made it clear that I’m at the beginning of a journey where I may need to supplement my income, what’s wrong with that?

Wow! Lovely post which pretty sums up my path to here, thanks! X

Thanks I think you’re right and property is the way to go x

But actually it doesn't, because you haven't been investing half your salary for 20 years?

It's a lovely dream but probably not where you are now.

No I didn’t follow this example exactly but it’s a great post to demonstrate how early retirement is possible and how it Means more to some than others. I invested a lot of my salary too! Just not 50%

aww thanks 😊

I just want to add, I’m in the planning stages of this . I (obviously!) haven’t thought it all through yet, that’s why I’m asking for advice

Good for you for looking at early retirement! The general rule of thumb is to withdraw 4% from your investments in perpetuity as income leaving the principal untouched.

I can see how that might be difficult and cause some tension and worry. It sounds as if your H is having an extended mid life crisis!
In your situation, I would be be tempted to take a different tack

Don't despair; savings are after all, only one way of storing up wealth. Tax efficient, yes but there are alternatives.
If you are buying a house, (but perhaps you are renting) there's a secure store of wealth there, especially if it's in a nice area. It can provide an income in old age through equity release or downsizing.

H needs a nice shiny new car? Well of course, you do, darling - but what about me? Well, I need some lovely shiny expensive new, gold jewellery - and lots of it. Some for Christmas, and more for birthdays, and of course some to wear for those expensive hotel dinners.... Gold is one of the oldest and most reliable stores of wealth - and your H can hardly spend it easily once you have it.

And it's not too late to start building your own pension pot - even if you don't have paid work. Some schemes take a minimum payment of just £16 a month - topped up to £20 by tax relief.

In the meantime, just relax and enjoy the benefits of the nice lifestyle.
There's more than one way to skin a turnip....

Will £20 000 be enough if you don't own your own home? I can't imagine you'd want to live on a narrow boat on your own as a pensioner? Just something else to consider.

Hi OP. I am similar to you in that I am married to an older man (15 years). However, we met later on in life and had our children when I was in my early thirties. They will be heading off to University in a couple of years. We are in the early planning stages of what our future might look like as we both yearn to be free spirits and fancy cars, designer clothes and new kitchens etc are not how we want to spend our money or time acquiring. You don't mention the age of your adult children and if you have had to include them at all in your future endeavours financially. We both have public service pensions husband is in receipt of his and this has a 50% widow's pension. We intend to downsize and give each child 100k and buy a smaller property (we too are up north). We have been accidental landlords in the past (we both had houses when we met so we rented out one) and it wasn't for us we found it too stressful. The only thing that I will be doing differently from you is that I intend to go back to University and do a masters in a totally different field and I hope to work in this field remotely (I am aware it will be for a lot less money). My advice is to go for it and make it work but like me, you are the younger of the two in the couple so you could try and morph out a different career path which would fit into your new lifestyle more and supplement your income too. Good luck.