Early retirment at 54....can I thrive and survive till pension arrives

Bullrush11 · 19-06-2020 05:25PM #1

Hi,
I have just turned 54 and am sick of my job.... maybe everyone gets tired at this stage in life at their job but it's pure drudgery now. Going in each morning is a killer...... add to this the newish boss (over last 2 years) makes work more boring than it should be with excessive micromanagement rather than letting me get on with it as the previous boss allowed. I've worked for 30 years and lucky to have paid into a defined benefit pension for 25.5 years. Mortgage is done, single with no kids and no debt. Have 260K in savings. Should I hang in there for a few more years? Pension won't kick in till 14 years and I won't go on the dole. Any suggestions?
Thanks!

Turbohymac · 19-06-2020 05:42PM

The 260k savings will be gone by the time you get to receive your old age pension..you're in a great position with no mortgage or debts ..but you would need a part time job at least..otherwise you'll pee through your savings and be a fairly poor old age pensioner..
As for your current job ..if its getting you down GO don't wither away being miserable every day.. it would be a part time job for me .if I were in your position and spend extra time on hobbies that you like and some travel..but a part time job to retain your current savings..
Best of luck

endacl · 19-06-2020 05:47PM

Leave the job that’s making you miserable. Pay yourself a salary of 10k a year from your savings. Find work you like on a part time basis to top this up. Something you like.

BrianD3 · 19-06-2020 06:04PM

You left out a key thing - how much money do you spend per year and how much do you project you'd need in the future. Also would you be willing to adjust your spending down in order to retire now. It depends on how much you dislike the job

260k won't provide a livable income for most people IMO unless they take substantial risk with how they invest it. The alternative is spending the capital. If you have 12 years to go to pension and have to inflate you spending by 3% per year, I reckon you can spend around 18k (in 2020 money) per year before you exhaust your 260k.

edit: sorry I missed the bit about it being 14 years till pension age. In that case, you can spend about 15.5k per year in 2020 money

2Mad2BeMad · 19-06-2020 06:22PM

Not sure how much you earn OP,
But if I was in your position, I would sit tight until im 60 and save every single penny I could.
Could easily have 350k+ probably more considering no kids and no mortage.
And at 60 you'd have more then enough to keep you going until you are retired.
If you have a private pension as well then your golden.

19-06-2020 06:24PM

2Mad2BeMad wrote: »

Not sure how much you earn OP,
But if I was in your position, I would sit tight until im 60 and save every single penny I could.
Could easily have 350k+ probably more considering no kids and no mortage.
And at 60 you'd have more then enough to keep you going until you are retired.
If you have a private pension as well then your golden.

Yeah, this. If you work a few more years and save, each one makes the gap between stopping and your pension more comfortable, less unpredictable.

JeffKenna · 19-06-2020 06:29PM

Sounds silly but once the restrictions are lifted take a holiday for a few weeks. Get away from your boss/job and it may provide clarity.

Asset management · 19-06-2020 06:34PM

‘Going in each morning is a killer’ - I feel your pain OP. Don’t stick it out unless things change. Life is for living. Can you take unpaid leave and come back in with renewed energy or make a decision then ? Or look for a change of job ? You’re in a strong position.

MAJJ · 19-06-2020 06:46PM

Some good advice on changing jobs or part time . Can you take an extended break , career break?
Otherwise your excellent financial set up and savings will be burned through. I assume they are not sitting in a single bank account with only 100k covered and inflation.

Also not mentioned do you have hobbies and interests that will occupy your time and stimulate you. Will your friends be around, it could be lonely.

Take a break and get some perspective first.

Good luck

Princess Calla · 19-06-2020 06:55PM

Would there be an option to take voluntary redundancy.... If you are going to leave may as well get paid to go

Managers come and go, they could easily have something lined up in the pipeline... How would you feel if they left soon after you did.

I think sticking it out for another couple of years and really saving... Make a plan and a budget. Remember to include a rainy day fund to for unforseen events etc. ...again as someone suggested would you be open to a part time job, not only would you earn some money but it will also help in the transition from working full time to retirement.

You're there so long you can probably do the job in your sleep.... New managers are always trying to fix things that aren't broken in order to put "their stamp on things"... Smile and nod, clock in and clock out.

Alot really comes down to your lifestyle and what you want from life on how much money you need to have saved.... But you want to be living not just surviving.

Wesser · 19-06-2020 07:00PM

With that much savings surely you should have put more into your pensions could even top up your pension at this stage.

Why dont you speak to a financial advisor. They can go through things in detail

C3PO · 21-06-2020 08:59AM

Why would you not look for another job when the current crisis eases?

Jim2007 · 21-06-2020 01:19PM

C3PO wrote: »

Why would you not look for another job when the current crisis eases?

Why would you want to if you did not have t? Don't confuse employment with working... If you are financially independent, you can pursue what interests you rather than having to do something you don't particularly like.

Jim2007 · 21-06-2020 01:22PM

Bullrush11 wrote: »

Hi,
I have just turned 54 and am sick of my job.... maybe everyone gets tired at this stage in life at their job but it's pure drudgery now. Going in each morning is a killer...... add to this the newish boss (over last 2 years) makes work more boring than it should be with excessive micromanagement rather than letting me get on with it as the previous boss allowed. I've worked for 30 years and lucky to have paid into a defined benefit pension for 25.5 years. Mortgage is done, single with no kids and no debt. Have 260K in savings. Should I hang in there for a few more years? Pension won't kick in till 14 years and I won't go on the dole. Any suggestions?
Thanks!

Are you sure you can remain in the pension fund after you leave employment early.

Defined benefits pensions are usually expensive for the employer as they are on the hook for any shortfall, so they try to kick you out if possible.

C3PO · 21-06-2020 01:22PM

Jim2007 wrote: »

Why would you want to if you did not have t? Don't confuse employment with working... If you are financially independent, you can pursue what interests you rather than having to do something you don't particularly like.

You would not be pursuing too many interests on approx €20000 per annum!

WhiteMemento9 · 21-06-2020 01:30PM

C3PO wrote: »

You would not be pursuing too many interests on approx €20000 per annum!

Rent free with no significant outgoings for family expenses?

Most peoples interests don't require a huge amount of money.

Spanish Eyes · 21-06-2020 01:40PM

If your house is big enough I'd be gone from work and let out the rooms to the max of 14k per annum tax free to lodgers. That's one sure way of earning money without having to go to work! Just throwing it out there. Having lodgers is not for everyone though I understand that.

That's more than the standard contributory OAP and plenty seem to survive on that. Then you could dip into your pot and treat yourself to a holiday or whatever say 4 or 5 grand a year. Do up a budget of absolutely necessary expenditure, for example utility bills, LPT, insurance, car maintenance, health etc. and see if you could do it.

Alternatively see if you can go part time earning roughly what you might expect to survive on after early retirement. Remember when you are retired you do not have commuting costs, lunches, work clothes and donations to every waif and stray that gets married, engaged, has a birthday, has a sprog and so on. And you don't need to change your car (if you have one) for years, as the mileage will be way down. There are lots of positives, get that pen and paper out and do up a budget! Best of luck.

WhiteMemento9 · 21-06-2020 01:40PM

My advice would be take a year off and do whatever you want in life. You have health and are still young so can do all manner of things that may close off somewhat as the years pass so I don't agree with people saying stick it out till your 60. You don't have to make such a final decision to never work ever again now. Who knows a year passes and you might have a renewed sense of vigor to work again or you might not. Your in a great position to have the option to take some time out and decide.

C3PO · 21-06-2020 01:58PM

Realistically the OP may well live for another 35 years+! I personally couldn’t imagine what I would do for 35 years without a job or a lot of money to do interesting things with!
Taking a year out is not a bad idea but why not get a qualification in something that’s of interest?

WhiteMemento9 · 21-06-2020 02:32PM

C3PO wrote: »

Realistically the OP may well live for another 35 years+! I personally couldn’t imagine what I would do for 35 years without a job or a lot of money to do interesting things with!
Taking a year out is not a bad idea but why not get a qualification in something that’s of interest?

Quality of life. This is always the missing piece of the jigsaw. Having money and time at 30/40/50 is a far different proposition than in your 70/80/90. I don't know what to tell you on the other thing. I could fill every minute of every day with things I enjoy which don't require much money.

Why does everything have to be about an end goal or a qualification. There are plenty of things in life you can just enjoy because you enjoy doing them. Not everything needs to be a means to an end.

C3PO · 21-06-2020 05:25PM

WhiteMemento9 wrote: »

Quality of life. This is always the missing piece of the jigsaw. Having money and time at 30/40/50 is a far different proposition than in your 70/80/90. I don't know what to tell you on the other thing. I could fill every minute of every day with things I enjoy which don't require much money.

Why does everything have to be about an end goal or a qualification. There are plenty of things in life you can just enjoy because you enjoy doing them. Not everything needs to be a means to an end.

I suspect you and me would have little in common! It is possible to work hard and still have a great quality of life!

starbaby2003 · 21-06-2020 05:37PM

I’m confused by people saying the OP wouldn’t be able to live on circa 20k for 14 years. He has a DEFINED pension to look forward to which I would suspect is quite high given, he has no mortgage and 260K savings. OP no one here can give you the right answer but if you have itchy feet both liquid and illiquid capital ( at least a house) a guaranteed private pension and your wits about you, I’d do whatever makes you happy.

WhiteMemento9 · 21-06-2020 05:49PM

C3PO wrote: »

I suspect you and me would have little in common! It is possible to work hard and still have a great quality of life!

I never said it wasn't? You are the one that seems to be suggesting that life would be devoid of meaning without work. That I find rather sad.

gerbilgranny · 21-06-2020 06:31PM

If you're 54, with no dependents or debts, and you hate your job - get out now. (I say this as a 59-year-old who hates their job...ha ha...but if I had 260K in savings etc....)

gipi · 21-06-2020 06:41PM

If you decide to leave and live off your savings, make sure to maintain your PRSI contribution record for your state pension in later years. Look into voluntary contributions if you don't take another paying job.

21-06-2020 06:52PM

A lower wage job which you might enjoy would not be taxed heavily.
Is part time work offered by your employer.
Don't keep your savings in one bank account as bail-in rules for figures above 100,000 now apply.

A lot of Managers drive beyond their limits the staff who are conscientious enough to work while letting others slide. Is it time to move to the dark side and barely perform.

Jim2007 · 21-06-2020 08:15PM

C3PO wrote: »

You would not be pursuing too many interests on approx €20000 per annum!

I did say if you can afford it.

Jim2007 · 21-06-2020 08:20PM

WhiteMemento9 wrote: »

My advice would be take a year off and do whatever you want in life. You have health and are still young so can do all manner of things that may close off somewhat as the years pass so I don't agree with people saying stick it out till your 60. You don't have to make such a final decision to never work ever again now. Who knows a year passes and you might have a renewed sense of vigor to work again or you might not. Your in a great position to have the option to take some time out and decide.

At 54 that might not be a great option, depending on the industry. The older you get the more difficult it becomes.

TheQuietBeatle · 21-06-2020 08:26PM

One option might be to go abroad, somewhere with sun and lower cost of living. Rent your house out and live on the earnings from that and the savings.

Quality of life is so much more important, most people regret not living more on their death bed.

Jim2007 · 21-06-2020 08:26PM

C3PO wrote: »

Realistically the OP may well live for another 35 years+! I personally couldn’t imagine what I would do for 35 years without a job or a lot of money to do interesting things with!

Do you seriously have nothing else in your life to be going on with, if you don't have a job to go to?

Purple Mountain · 21-06-2020 08:36PM

TheQuietBeatle wrote: »

One option might be to go abroad, somewhere with sun and lower cost of living. Rent your house out and live on the earnings from that and the savings.

Quality of life is so much more important, most people regret not living more on their death bed.

That's a nice idea actually.
You'd also pick up bar or cafe work for a few hours a week if you were interested.

Early retirment at 54....can I thrive and survive till pension arrives

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