Early Retirement at 57

well24

ya see, ppl Way overestimate what they need. I know he was exaggerating but you need to be realistic!

well24

https://www.boards.ie/discussion/comment/121997781#Comment_121997781

what does lots mean :) how many out of the entire workforce in Ireland are going to have 2m :)

single digit %

Well all be working til we die at that rate…

SuperBowserWorld

2M

yagan

I know a few who'll have 2m and more in their pot on retirement, but they're workaholics who'd die rather than retire.

Even if they retired they're the type who'll buy some run down old grand house and then threat it as an investment project which they'll never relax in.

well24

https://www.boards.ie/discussion/comment/121997912#Comment_121997912

They'll be the ones that die of depression few yrs after they retire, as they have nothing else in their lives..

bilbot79

https://www.boards.ie/discussion/comment/121997781#Comment_121997781

I agree with this. My plan is for 2.15m. I have 230 as it stands and putting in 2800 a month in total and geared to high risk funds. 45 years old and if I can eek out some wage growth along with 10% investment growth I could do it. Time will tell

well24

https://www.boards.ie/discussion/comment/121997979#Comment_121997979

Market crashes and your f❌❌ked then lol

you may agree with wanting to have 2m, but he said a lot of professionals WILL have this by retirement!! Which is incorrect..

Of course they will probably increase retirement age to 70, can’t see it going beyond this, otherwise y’all have no retirement then other than when your too Old to actually do anything

Means tested I’ve already shown why this could. Not happen

well24

https://www.boards.ie/discussion/comment/121997781#Comment_121997781

obviously trolling or he doesn’t know what he’s talking about

SFT has nothing to do with the amount for retirement.

A quick google

https://nationalpensionhelpline.ie/pensions/standard-fund-threshold-ireland-complete-guide/#what

In the words of the Irish Government, “the Standard Fund Threshold is a ceiling on the total capital value of tax-relieved pension benefits that an individual can draw upon in his or her lifetime from all of that individual’s pension arrangements”. 

Put simply, there’s a limit on how much can be in your pension pot and if you exceed that limit there are some not-so-favourable taxation consequences.

A warning to @bilbot79 - dont save too much :)

bilbot79

https://www.boards.ie/discussion/comment/121998017#Comment_121998017

The market could well crash around the time I turn 60 but if it does I'll just work longer till it recovers.

well24

goes against the whole point of this thread - retiring early

You may never reach retirement then!

paddydriver

https://www.boards.ie/discussion/comment/121997979#Comment_121997979

45 y/o now with 230k in pension and you want to get to €2.15M… you've a lot of years to go even with €2800 a month. High risk funds will be hit quickest and hardest in a downturn and there is every chance of that at some stage in next 10-15 years (or before you get to retire).

Best of Luck with it though.. 💪

well24

https://www.boards.ie/discussion/comment/121998106#Comment_121998106

yeah, to get to 2m (-230) saving 2800 a month will take 52 yrs lol you could knock off a few years if investment goes up :)

You’d need to knock over 25 yrs off that by increases in investment to be able to retire at 70!

Have you actually thought about this, or just plucked numbers out of the air! Ya need some financial advise!Good luck with that!

mulbot

OP, I've an uncle that retired at 55,said it was the best thing he ever did, he had 2 apartments bought out in Spain by that time, he lives in 1 of them for about 5/7 months a year, his family use it at different times of the year, the other is rented out, no idea of his pension amounts or what cash he had etc, he potters about now with classic cars, buying and selling for a bit of extra cash. Can't believe anyone would advise to stay working if they don't need to, especially if you get stressed doing it. Good luck

naughtysmurf

what’s the OP’s wife’s savings & pension set up like as that will affect things too & maybe not positively?

bilbot79

https://www.boards.ie/discussion/comment/121998106#Comment_121998106

It's completely feasible in a 10% average growth scenario which is typical of stocks in the long term.

Stick the figures in here: https://www.calcxml.com/do/interest-calculator?skn=#results 230k starting deposit, 28750 annual savings, 5% per year contributions growth (wage rises and rising tax free thresholds at 50+) and 10% compounding interest.

2.2mil

bilbot79

Heehee lol lol

Might be you that needs financial advise :)

well24

https://www.boards.ie/discussion/comment/121998351#Comment_121998351

your making a lot of assumptions that you will have a consistent increase year on year..

Don’t know how 840k (2800 x 12 x 25, retire at 70) is going to nearly triple by compound interest lol

do investments use compound interest!

Do you seriously believe that?

well24

dont worry lads were all sorted, compound interest will save us all…

griffin100

I always aimed to retire at 60 (I’m 51 now) but as more and colleagues and friends / family hit 60 they don’t seem that old and it now seems young to retire. In any event there was a screw up with my public sector pension and I was put in the wrong scheme for years until the error was spotted and so retiring at 60 is now not financially viable for me unless my appeal against removing me from the scheme is successful.

That said the pension I’ll get at 65 will be very substantial along with a hefty lump sum, and added to that there’s the state pension and a UK pension I’m going to get. Whilst 60 now seems youngish, I’m worried that 65 will be too old to enjoy retirement and do the things I want to do. Whilst I’ve said friends at 60 now seem young, I’ve had three colleagues / friends die in the last year aged 42, 49 and 60. You can never tell what’s ahead. I try not to overthink it 😁

bilbot79

https://www.boards.ie/discussion/comment/121998374#Comment_121998374

Yes. That literally is it. Compound growth is how pension investing works. And the figures can be astounding, particularly in the last couple of years e.g. If you get to 1.5mil and that year returns 10% you'll get 150,000 in growth alone plus whatever you add to it. It snowballs.

Compound interest will save you my friend.

SeanieRetrofitter

https://www.boards.ie/discussion/comment/121997774#Comment_121997774

If you're spending well north of 300 quid a month for electricity and heat, the problem isn't your income, and you should be seriously upgrading your home to cut that by at least 60%. Likewise, 1,600 a year for health insurance is simply too much.

You can be rich on 40 grand a year and you can be poor on 100k. A lot depends on what you do with your money, and many people flush a lot of it down the toilet by buying shiny crap- cars, phones, etc..

That applies whether you're working or not.

mun1

https://www.boards.ie/discussion/comment/121996440#Comment_121996440

negative way , as in there’s a lot of time to fill in

well24

https://www.boards.ie/discussion/comment/121998467#Comment_121998467

ok , so you honestly believe 840k is going to turn into 2m.. for every 1 euro you invest you will over double your money lol

You honestly can’t believe that?

id say you looking at 1.1m, maybe 1.3 if investments are good..

how long have you been contributing to your current pension to only have 230!

bilbot79

https://www.boards.ie/discussion/comment/121998492#Comment_121998492

Yes. That's what I think. That's what 10% growth and an average of 5% contributions increase will get according to the math.

There is the risk of a downturn at the wrong time but they are generally relatively shortlived and if that happens I will just keep working

SeanieRetrofitter

https://www.boards.ie/discussion/comment/121998467#Comment_121998467

It won't save them. They're an idiot, and there's no saving an idiot...

well24

https://www.boards.ie/discussion/comment/121998502#Comment_121998502

Nothing more I can say then.. good luck!

CelticRambler

https://www.boards.ie/discussion/comment/121997615#Comment_121997615

Retired Brits are a special case. A huge number of them (pre-Brexit, at least) stayed signed up with their NHS GP and their NHS optician and their NHS dentist, and made/make trips back to GB for all their regular healthchecks. These'd be mostly the same people who never bothered to learn French/Spanish/Portugese, import/ed their groceries from Tesco or Sainsbury and were/are generally detached from whatever community they're living in - unless it's an immigrant Brits' enclave. Healthcare things do tend to go disastrously wrong for them when they're suddenly forced to join the real world and a trip back to Blighty is a physical impossibility.

The rest of us over here on the Continent go to the local doctor when we need to (17€55 per visit in France, if you're properly in the system), get our vaccines and prescriptions like you do, and get sent for x-rays/blood tests/colonoscopies/surgery/rehab just like the natives. I know three British guys who've had "health issues" in the very recent past (1xstroke+carpal tunnel, 1x prostate cancer, 1x detached retina, cataracts and severe conjunctivitis) all treated promptly and effectively in France. You wouldn't have heard of any of them, because they all lead bog-standard normal lives and attract little attention from the likes of A Place in the Sun.

dunnerc

https://www.boards.ie/discussion/comment/121997774#Comment_121997774

Sky 1200 really ? lol……

Patrick2010

https://www.boards.ie/discussion/comment/121999622#Comment_121999622

I pay virgin media 100 euro a month for tv,broadband and phone

Kaisr Sose

https://www.boards.ie/discussion/comment/121998502#Comment_121998502

Its highly unlikely you will avg 10% growth each year. Some years it will be less. As you move closer to retirement, the financial advice would be to.shore up what you have and derisk..These less risky funds won't give you 10% and its the later years where you seem to be banking on the huge growth via compound interest.

Anyway what really strikes me is you saying plan B is to defer retirement. Thats an even worse plan.