Early Retirement at 57

Quitelife

Whats peoples view on retiring in mid 50s , thinking of doing so in 2 years time ( 55 now ) when i clear my mortgage , would have a DC pot of 600K at that stage , take 150 tax free and draw 24K a year for circa 20 years with state pension kicking in at 66 stated work at 17 but find work very stressful in recent years and find it hard get up to face into it every day, wife earns circa 30K and is happy working away for another 8 years, kids done for.

rob316

https://www.boards.ie/discussion/2058345724/early-retirement-at-57

Its my plan too (but far away yet), go for it, the figures sound good.

Alonzo Mosley

Go for it , sounds as if you're ready to go !

Jim_Hodge

If you can afford it at all just go for it. I did it at 54 and have never looked back. There's a whole new life/world out there beyond work. Mortgage cleared, kids raised and a guaranteed income? Why not?

Generally if you think it feels right then you should do it.

homerun123

Might be worth a chat with a certified financial planner. Check that they're properly qualified here:

https://www.fpsb.ie/

GNWoodd

https://www.boards.ie/discussion/2058345724/early-retirement-at-57

How are you able to access the pension at 57 ? My pension provider is insisting on I waiting until I am 60

ctomas

great stuff, sounds like a nice plan, albeit a bit tight as you go on with inflation etc. From a first look you might want a small supplementary income assuming you’ll be in good health past your mid 70s. If your wife has a similar retirement pot built up by the time she finishes up that would be a help for sure.

Best of luck with it!

bilbot79

How is your health and how long do you expect to live?

E.g. I'm 45 with a Vo2 max of 67. This is the single biggest predictor of longevity so I need to think about keeping myself till mid 90s if I maintain my healthy habits.

I feel like I need 2m and can't retire before 60

cute geoge

https://www.boards.ie/discussion/2058345724/early-retirement-at-57

You could always supliment your pension with some part time work

Madeoface

https://www.boards.ie/discussion/2058345724/early-retirement-at-57

Go for it. If my daughter didn't have to go to a private school I'd be out the door at 57. Similar type of income but smaller lump sum.... probably have to slog on to 59/60.

Should have had my kids younger.. Finding the grind harder in my 50's for sure.

anewme

Go for it! I’m similar age and looking to get out at 60 but I’ll only have a 400k pot and some cash myself.

I’d be happy to give up the stress and work in a garden centre or something, finances permitting.

Stress is the silent killer remember.

elperello

https://www.boards.ie/discussion/2058345724/early-retirement-at-57

Financially you seem well set up.

Contentment is another issue.

Not saying you need to be one of those busy- busy retirees, you may be happy alone on the side of a mountain.

gipi

Slightly different pension-wise as I was public service, but I retired at 58 (having worked since I was 16) and was delighted to get out by then - I'd had enough.

naughtysmurf

doesn’t sound like a great idea to me, even if you got the 24k annuity, that may be a little optimistic, that’s not a lot of money, your wife isn’t earning a huge amount either assuming you still want to light & heat your home, fix / replace things when they break, take a holiday, have your bins emptied etc etc have you totted up all your non kid related monthly outgoings & what you’ll be left with?

You’ll be dipping into your 150k, doubt if you’ll have much if any left by the time your 66 which is still young, unless your idea of retirement is standing & staring out the window,

Quit the stress filled job for a less stressful full or part time one I’d suggest

Glenomra

Retire from your present position but take an alternative paying role, part time if necessary, or imo you will regret retiring very soon. An opinion based on what I have seen around me among a very large family and community. I could detail numerous instances of early retirees experiencing tedium, then poor health, depression and limited finance. Started their retirement actively, walking, cycling, gardening travelling, socialising etcc etc but very quickly inactivity and inertia crept, indeed sprinted, in. Then television,especially sport, youtube videos, but also in one instance Judge Judy dominated their daily lives. One guard retired at 52 a young active healthy man. By 62 he was 'useless '. Only a personal observation. Others probably have very different opinions and experiences.

Jim_Hodge

https://www.boards.ie/discussion/comment/121995686#Comment_121995686

I'm not denying your experience but as someone who retired early I have to say my experience, and that of my old work mates or family, has been the exact opposite.

mun1

good rounded advice here on pros and cons. 55 now , i would hope to wind down my hours to a 4 day week at 57 and then 3 days at 59 and then out at 60.

Ive a well paid but stressful Job with good pension of €60k+ per year plus lump sum at 60 and I would be a bit nervous about quitting work completely too early .

As one guy who was a bit listless when he retired after 45 year working said to me 3 weeks after retirement “every day is a bank holiday”.

Still Sticks in my head today.

Ted222

Having retired early from the day job of 40 years, I’d agree that it’s great not to have the daily grind.

However, if there’s one thing I’ve come to realise, it’s that you need to remain relevant - in whatever form that works for you.

The “every day’s a holiday “ mindset doesn’t last long and you need to have a plan for maintaining body, mind and soul.

SharkMX

https://www.boards.ie/discussion/comment/121995708#Comment_121995708

Im planning on retiring early if i can. Its a fair bit away but, Anyone ive spoken to (about 5 people who have actually done it and i trust to tell me the warts and all details) has told me that they are positive they did the right thing and couldnt imagine still doing someone elses daily grind. They can do whatever they want whenever they want.

The only downside that ive heard from a couple of them is that once friends and family know you are retired they seem to ask you to do favours all the time. Babysitting, driving people around, picking up from the airport, driving people to appointments, helping them paint, pet sitting, come work for our charity, sell some tickets for us. They tell me it took them a while before they felt able to say "Its MY retirement, not yours, and I dont have time for your errands".

If ever you were on the fence, watch this video.

SuperBowserWorld

I would say if you have any untreated mental health problems unrelated to work, then you need to start to address these before you retire, otherwise you'll end up facing your demons with no work to distract you.

banie01

If the figures work for you and they're sustainable? Go for it.

You have a decent pot built up and your lump sum offers you a decent immediate cash pile

One piece of advice I'd offer, is to have a plan to fill your time. Be it a hobby, some nixers, some part time work or even returning to education. Doing "nothing" can quickly lead to friction with one's partner aswell as being quite disheartening if you are used to being productive and having pride in your work.

Whatever you decide to do? All the very best with it and enjoy your retirement, whenever it comes.

Furze99

As regards taking 25% of your pension, presumably it's a PRSA type? I thought you had to nominate your retirement age when setting this up? That you can't just choose when it suits you. But maybe I'm wrong on that.

For ourselves, I think I'll be taking in income long after 65. All very well with a few bob from PRSA and state pension but living is getting more expensive all the time. How's your health insurance OP?

BraveDonut

If you leave your job at 57, could you not sign on for a year and get jobseekers benefit or do you have to draw down your pension?

zg3409

FActor in cost of health insurance if your employer is paying that now. That can be a massive new bill if you retire and need to pay it yourself. Often company health insurance covers both persons and it can be the difference between waiting years for a scan and a scan in a couple of weeks.

SeanieRetrofitter

€24k per annum isn't a whole lot to enjoy your retirement with. I assume that's the "safe" option. You will safely survive and scrounge- annuities are a massive waste of cash for retirees.

You could reasonably expect much more if you put your pot towards an index tracking fund- risky and volatile in the short term but safe as houses (statistically far safer actually) in the long term. At 57 you'd have a life expectancy of 25 years, which definitely qualifies as the long term.

As far as what to do with your time, that's only a valid question if you have the retirement income to spend with your time . Once you do, shouldn't be too hard.

pavb2

With respect to retirement early or otherwise the comment that stuck with me and I know it’s a generalisation was ‘You can have the time or you can have the money but you can’t have both.’

bullpost

This is worth watching on how to pace your retirement.

https://www.youtube.com/watch?v=DMHMOQ_054U&t=17s

And dont forget you can now get 4% interest on savings with Banks such as N26 and its all EU guaranteed , so good option for your tax-free lump sum.

well24

https://www.boards.ie/discussion/comment/121995584#Comment_121995584

You think he will spend 600k in 9 years? what?

Thats 66k a year, alot of people live perfectly fine on less than half of that (even with mortgage!)

well24

Retirement is all about having things to do, you should have hobbies / interests built up throughout your life

Pity those folk that gave it all to their career, what a waste of time…

my plan to get a place abroad, I think it would be very hard to get motivated during the winter months the older you get !

well24

https://www.boards.ie/discussion/comment/121995967#Comment_121995967

Where's phase 3?

BTW didnt listen to it all, couldnt listen to him talk about 'squeezing all the juice' all the time…

SnowWhale78

Firstly OP Well Done on getting to where you are now. Many people will not be in such a good set up at 55. If you can do it then go for it. I think the hardest thing will be trying not to think on the "What if" I was still working. After a while away from work you tend to forget the tough parts and remember the good things (I experienced this at least during a sabbatical from work).

If you do go ahead try honour the decision and make the most of it. There are pros and cons to everything but focusing on whats good about it will serve you better and thinking of anything you may be missing out on.

I am 45 currently and aiming to also retire at 55ish. My biggest challenge is trying to determine a lifestyle I would be happy with. It wouldn't be the one I have now based on my pension forecast but where would I be happy with if say I lived 25-30 years after that? For example been able to go out and eat a few times a week or only having that option once every 2 weeks? I think its such freedom of spending choices we have when working that become somewhat limited when we retire.