How do people decide when to take early retirement?

[Sophiesdog11]

I am 56.5, in a PT professional job, 2 days in office, 1 at home. Large company, was US based and employee owned but sold to a different overseas company 3 yrs ago. Culture in UK not changed particularly after buy out, still fairly relaxed in terms of hours, working at home, can take leave whenever.

However, a few things have happened at work in last year or so that have made me re-consider the future. One of these relates to the loss of a young family member, which in itself has made me realise that life is short.

I have been aiming to retire at 60, but I could finish now and be OK financially. We have a reasonable portfolio of Investments that would last until well after pensions start. Neither of us (DH a year younger & planning to finish by 60) have any massive DB pension pots, but I have 3 that will pay approx 11k a year, plus we both have DC pots and SIPPs and will get state pension at 67. We are not massive spenders but hope to travel more in retirement.

Kids are young adults, neither with a career yet but they do both have an inheritance which means we won’t have to find house deposit money.

But something is holding me back and I am not sure what.

I worry in case DH and I split and the money had to be halved - even though I have no reason to believe that would happen. Or that I will lose him shortly after finishing and wish I had work to keep me occupied (I know this could happen the other way around too)

I feel guilty about stopping work - I am sure this relates to the fact that my DB is workshy and has barely ever worked. I know this sounds silly, as I have worked for 35yrs with only 2 Mat leave breaking it up, and DH did laugh when I mentioned it.

Socially - we don’t have a massive social circle locally, and most friends are younger than us, but I do have some friends who are retired (both local and further afield). We have a Labrador who could walk for England and I also have been on some organised walking breaks, which I would like to continue.

But still, I have this fear, of stopping too early, of being seen as lazy, of not being able to fill my time.

My company has made a small no of redundancies recently - fortunately not in my team and I breathed a huge sigh of relief, whilst also realising that (although I would only get stat Redundancy) it would have been the push I needed to finish!!!

How will I/we know when to finish?

When whatever you do stops being enjoyable or satisfying or no longer gives you a sense of fulfilment or achievement, I think.

I hated my job to the point where it was affecting my health but was tied to it financially. When the opportunity came to retire on a very generous pension at 53, I grabbed it with both hands and have never looked back.

It doesn't sound to me as though this applies to you, though. I think you'll know when the time is right for you.

Same position as you, my take on it is: even retiring at 60, probably only gives you 10 years or so of a reasonably active life, sure some carry on for years longer but many do not, my DD is doing some social care in the community, loads of folk in early 70s needing help to live at home.

I m taking VR in a few months time.

Sod knows how the tories think people can retire at 75, you'd leave work on friday and die over the weekend.

Thanks for the replies, the problem is that unknown quantity of how many years ahead, esp active ones.

My mum died just after turning 90, after 30yrs of retirement. She was immobile in last 16 mths, after a fall then cancer diagnosis, but very active before that, doing lots of walking, swimming, out socially, hols in Uk and abroad inc USA. She had my kids to stay a week each in hols until 85, and took them out everyday, swimming, cinema, seeing relatives etc.

My in-laws are approaching 80, having retired from teaching in mid fifties and have only started to slow down in last year or 2, and by that I mean stopped the long haul hols! They still tow caravan to far points of Scotland and Wales regularly.

But yes I agree that lots don’t have active lives. Who knows which category we’ll be in - finish early and possible have 30-40yrs to finance ourselves, or finish a bit later but then die young without achieving half of what we want.

I would really like to have some insight into my life expectancy - just the decade would do, nothing no more.

I would agree that people tend to know when the time is right, and it can happen quite suddenly. If something is holding you back, and if you sighed with relief when not made redundant, it sounds as if you're not ready yet. Id keep it under review every 6 months, maybe a little more often.

Yes, I have tried to analyse that ‘huge sigh of relief’ feeling that I had, as it wouldn’t have been the end of the world if I had got redundancy.

I think it’s about choosing when to go, rather than being pushed. I want it to be my decision.

I later learnt that a couple of people had been offered voluntary severance, a friend asked me if I was going to put myself forward. My answer was a definite ‘No, I’m not ready’. But I have no idea when I will be ready.

Maybe when kids are a bit more settled, eldest has got a year to do at uni, then has plans to travel (funds already saved from a year in industry job) and knows what he wants to do career wise. Youngest due to go off volunteering and travelling soon after a gap year working, doubt she’ll go to uni but she may change her mind.

Thanks for responses, definitely providing food for thought.

I would also say, how many things are you thinking about doing in retirement but not doing now? You have 4 days a week... could some of them start now?

For me, having just retired (about 6 years earlier than if I was to take my state pension), it was a combination of circumstances.

Both my parents are now dead, and so I have "benefited" from an inheritance. I put that in speech marks as it's obviously a double-edged sword - I'd far rather have them around, but have benefited from a significant inheritance from them.

The money I've inherited means that I have been able to put 3/4 of it into my pension investments, and use the rest to make improvements to our home.

But on top of this, there were two other factors. The first was that my DM died aged only 66. She was still working (albeit part time), and so never really got to enjoy her retirement. She wanted to do lots of travelling, and never got to do that.

And for me - although I loved the work I did, and was good at it - I realised about a year ago that I'd simply had enough. I wasn't looking forward to going to work and didn't enjoy the challenge any more. I really couldn't wait to not have to go to work.

I'm fortunate in that financially I can 'indulge' myself in this way. But I do, actually, feel guilty about it - despite the fact that next week I will turn 60, which is the age I would have expected to retire when I first entered the workforce aged 21!

I m 60 soon and after some health issues decided to go from full time to part time whilst drawing pension. In my job in NHS I have seen so many people not make it to their 61st birthday so decided to slow down gradually and in the next year retire all together then do some travelling. It’s a hard decision but you only have one life and you want to enjoy things while you can. So a gradual approach allows me to plan for retirement .

TemporaryPermanent - I tend to spend my 2 weekdays off doing long dog walks and catching up with friends, plus family admin, shopping etc. Weekends is family time, with kids if around or just DH, myself and dog - pottering, walking or maybe a bike ride with DH or friends.

In terms of what I’d like to do in retirement - more travelling (we have a caravan and would probably get a camper), more exercise - I run and cycle but the problem is that I am exhausted most of the time at moment, a combination of a long commute and age, I find it hard to sleep past 6 even on my days off. I used to be able to sleep in but not now.

Maybe I’d do an OU course when not working/as tired, possibly join a walking group, but they tend to meet on Sundays and Weds - I work the latter and going Sundays doesn’t seem right when we can walk as a couple with dog (lots of groups don’t allow dogs). There is an active U3A group locally but I would definitely be very young for it at 56, my neighbour is 80+ and a lot of her friends in U3A are similar.

BIWI - I can relate to the guilt! I do wonder what my younger colleagues and friends will think about retiring early, esp if before 60, as most will have to go to at least 67. But my mum retired on her 60th, I always assumed I would and I do have the finances to do it even without pensions, so don’t understand the guilty feeling.

Those who have or are intending finishing early, is your DH (if you have one) also finishing?

I think if you are hesitating (for whatever reason) then hold off making the decision for a bit longer. You may not have all the information you need just yet. Trust you gut feeling.

My Dad took early retirement when he was 55. He died in his early 70s. After he finished his proper job he did a couple of little part time jobs, however, he aged considerably during those 15 or so years. He didn't really have much of a social circle and no hobbies. I think he lost his identity when he retired.

Having seen my Dad, I plan to work for as long as I can (hopefully in low stress part-time roles!). Do not underestimate the value of work to give your life meaning and structure (paid or unpaid).

You only work three days and your long commute is only two of those days. How are you exhausted? You're only 56. You sound very old for your age.

Don't call it retirement, call it reinvention.

That's what a colleague did and we all thought she was marvellous.

I guess the key thing is having some choice. I’ve just checked, and see I have 41 NI contribution years and before the recent increase in pension age, would be retiring shortly. Instead state pension won’t kick in till I’m nearly 67.