Can I afford to retire from long-hours stressful job at age 55?

[mendacity]

Age 55
Spouse 56
1 Child 10

Income 90k public servant 30 years service of which 25 are on Class A stamp and 5 years were Class D
Spouse 35k pa approx self employed
I work in a stressful job with long hours, hence considering early retirement.

My Current spending approx 2.5k per month
Spouse the same approx

Assets
Mortgage Will Be paid off this year
Savings 150k following recent sale of a second property


I am looking at cost neutral early retirement later this year.
Pension Lump sum would be 90k approx
Annual pension 17k p.a. until age 66 then contributory pension will kick in also
Avc balance 70k approx

Spouse will continue to work. Spouse was late taking up a private pension and not well funded. Approx 10 k per annum at age 65

I have scope to take on freelance work if needed to boost income over next few years

Q1 Am I funded sufficiently to retire based on CNER figures above

Q2 Option 2 is leave job now, live on savings and preserve pension and avc lump sum until retirement age 60
Then lump sum then would be 94k approx and annual pension 23k

Any advice greatly appreciated.

 

[time to plan]

I think you need yo be much clearer in your head and plans about freelance or contract work. There is an enormous difference between never earning again, and earning x per year for the next y years.

Is freelance work just an idle notion? Or do you have a concrete plan and how sure are you that you can succeed and make the income you project? If it didn't work out,would you get a low stress modestly paid job, possibly part time?

Or is your question simply whether you can never work again?

 

[POC]

If your normal retirement age is 60, won't you get supplementary pension from age 60 until your you get your contributory pension?

 

[Steven Barrett]

If your outgoings is €30,000 a year and you receive €17,000 and your wife earns €35,000, according to a tax calculator, you will receive €43,560 a year (you will in fact get more as no PRSI on the annuity).

Your child is still quite young and will only get more expensive when they go to secondary school and then college. How are you going to fund that? What about all the other big expenses? Changing your car...or even paying for a major repair? Work done on your house etc? People tend to under estimate their expenditure and don't factor in enough discretionary expenditure and completely ignore the big costs that aren't necessarily planned for or may happen every 10 - 15 years.

Steven
www.bluewaterfp.ie

 

[Bolter]

There is a third option- career break. If you took it for six months (maybe a year) it would give you opportunity to look coolly at your options.
When you're in a high stressed position it can be hard to detach. Six months career break would give you a break .. to clear your head.. do your sums .. and see that you have options!

 

[Brendan Burgess]

I work in a stressful job with long hours, hence considering early retirement.

Age 55

This suggests to me that you are in the wrong job.

Look for another role within the public service.

Look for a job outside the public service.

But you should not be working in stressful job with long hours when you have a 10 year old child.

Brendan

 

[Dr Strangelove]

Look for another role within the public service.

I agree. It depends on your sector but €90k in the public service should not be stressful.

Lateral moves common in civil service but need some planning, a bit harder in health or education.

 

[elcato]

My Current spending approx 2.5k per month
Spouse the same approx

I'd concentrate on this. You'll be surprised how off the mark people are on their spending. Do a check on your spending for the last year to see how much you spend a year currently. This is the minimum you would require for the next 10 on average given you have a child to rear for that length of time.
Your 'approx' suggest you need 60k per annum net and Stevens figures above show you are wide of the mark by -15k if you retire.

 

[Dr Strangelove]

This is the minimum you would require for the next 10 on average given you have a child to rear for that length of time.

I’d say it’s more of a maximum.

Once you’re retired you save a lot on commuting, work wardrobe, food and drink, etc.

 

[huskerdu]

I’d say it’s more of a maximum.

Once you’re retired you save a lot on commuting, work wardrobe, food and drink, etc.

Thats very individual and its important to know what expenses will decrease or potentially increase in retirement.

You only save on commuting if your current work commute is expensive and the alternative activities you intend to do in retirement are closer to home. Personally the clothes I wear at the weekend arent cheaper than the clothes I wear to work.

 

[RonnieShinbal88]

I agree. It depends on your sector but €90k in the public service should not be stressful.

I'd imagine anything in the health system is stressful as health outcomes are high stakes and there is a moral imperative for most people not to cause harm.

 

[time to plan]

I'd imagine anything in the health system is stressful as health outcomes are high stakes and there is a moral imperative for most people not to cause harm.

I've worked in various jobs at that kind of level in both the NHS and Irish health systems. In my experience, the nearer you are to the delivery of care, the more stressful it is. If you are in an office away from healthcare delivery in a strategic role then it's considerable less stressful.