- How did you do it?
- Looking back, what advice would you give a couple in their early 50s who want to retire age 60?
- What would you do and equally what would you NOT do?
- What are the pitfalls to avoid?
Hey DT
I retired at 60. I had an outline plan for a long time and started some detailed planning at about your current age, so your question is timely. Here is my shot at answering your questions in no particular order :
Knowing yourself/selves is critical. People have very very different priorities. A few examples of this as it applies to me. I had a very comfortable standard of living when I was working. I knew I wouldn't be poor in my old age, but I also knew that some of the working life luxuries wouldn't continue (top marque car, fine dining, etc). And I was fine with that. I came from nothing (my parents would dispute this) and regarded all that fancy stuff as transitory, to be enjoyed when I had it and not to be missed when it was gone. So I did an analysis of my annual expenditure (at age 52) and identified the stuff I was prepared to do without, leaving me with a clear idea of the income I needed for the decent standard of living I now have. That gave me the target income/cash pile I required and I built my plans around that. I had 8 years to figure all this out, and kept my finger on the pulse throughout (without it becoming an obsession). It also meant that I didn't suddenly wake up shortly after "R-day" with a chip on my shoulder because I was short of funds.
Another suggestion is to decide on your "house/accommodation" plan from now till death. That may sound drastic, but what are your expectations ? My parents left it too late to move out, and spent their later years rattling around a huge poorly insulated and somewhat isolated house. I looked at the downsizing/moving options and decided to stay in my existing house until the time goes to move to a nursing home. In making that decision I scored all the practicalities for each decade (60s, 70s, 80s). Comfort/warmth ? Garden maintenance ? Transport/Isolation? Shops/Social ? Having made the decision to stay put, I did an amount of work to "future-proof" the house - insulation, accessibility/mobility, south facing sun/reading room etc.
One other suggestion is to use any spare cash that crops up along the way to get rid of your mortgage/dump into your pension. Consider this any time you get a pay increase, bonus, tax cut/refund, windfall, legacy etc. Be brutal and do it immediately, if possible before the money is in your current account. It never ceases to amaze me that the whole country went nuts over the SSIA scheme, when pensions are an even better bonanza, just longer term. Also, this approach also helps you to start the process of cutting your cloth..........
There is lots more on the financial planning side, but you get my drift. Put a bit of time and effort into it now and a lot will fall into place over the next 8 years.
As has been pointed out by a number of posters, the non-financial side is also important (but not something to be afraid of). I had no fear on this front. I was never ever bored for as much as 1 minute at any stage in my life. I have never had a difficulty keeping my mind occupied. I had a very fulfilling and successful career, great colleagues, etc etc. But I had had quite enough of all that and I relished the day I left, said good bye to all of it and haven't looked back (Cut pretty much all the ties tbh). And the answer to all the offers of Consultancy, Project Work, Part Time work, Non-Exec Opportunities, etc etc was two words, second one OFF. I had a long list of things I wanted to do but never had the time to try, and this together with various ongoing interests means I am still short of time most days. I guess I am also fortunate that I am fearless about trying new things, and can throw myself into anything. I also fairly quickly got used to enjoying some "down time": simple things, like going to a pub on a say a Tuesday at 12:30, IT under my arm, sipping a pint and having my lunch, and heading home at 3pm. I never ever considered such a thing when I was working. But it is very very pleasant to do it now and again. I mention all this not as a template - we are all so totally different that many would find my approach an anathema. But its back to my opening statement - Know yourself - and plan accordingly. As an example of this I took a week off work when I was 54 or 55, and planned nothing in advance for the week. Each night before going to bed I planned a few things for the next day, including staying in bed for an extra 30 mins each morning, and I loved it. Walks, drives, visits, explorations etc. The freedom to do whatever I wanted.
Your 60s should, in my estimation, be the best years of your life. Free from constraints and demands, hopefully healthy, mellowed by experience and age, nobody pointing targets and expectations at you. You absolutely deserve a great decade, but you will only realise this if you prepare for it.
Sorry this is a bit rambling, but at my age I no longer feel the need to diligently arrange things in a logical and orderly fashion !!
Good luck.
