Retiring Early - any regrets/advice?

[Bronte]

or anyone has retired earlier, say, 3 to 5 years before their normal retirement age (usually 65), can you say now that the advantages out-weighed the downsides ?

The obvious financial downsides..
- Giving up your salary/ bonuses etc... and having to fund it yourself from pensions and/or savings
- Giving up employer-paid benefits like health insurance and having to pay for these yourself
- No longer contributing to a pension pot

Non-Financial downsides...
- Social interaction with colleagues stop
- Motivation to 'get up early'
- Giving up a structured work week

(Assuming the early retirement was not forced due to health reasons)

Addressing some of this

- If you plan well and your spouse is earning the financial downside might not be that much.
- Health insurance should be factored in, if you've private insurance it's important to keep it up, not sure about in Ireland, but you should be allowed to continue with it at the same payment rate as in employment
- as regards pension pot, you might die earlier than you think and never need it, it's striking to me that my siblings now seem to be going to two funerals a week at least. My late mother was forever going to funerals ..........
- you might get time at home with your children that you never had time for if you were a high flyer and travelling a lot
- for some getting away from colleagues is a positive, a lot of that interaction can be fake. Or toxic. I've seen people blossom once they have retired
- My late mother never got up early. I'd never telephone her before lunchtime Ireland. On the other hand it was no problem to phone her at midnight. Some people are owls, others are larks, I don't think work changes that.
- Sometimes it's good to get away from a very stressful job, one which might give you a heart attack

 

[Slippers]

I turned 45 a number of weeks ago. I work in corporate America and I know that I won't being staying until 65. Financially it has been good but the constant meetings, re-orgs, project re-prioritisation, unnecessary urgency, constant abstract problems, difficult characters, and the high amount of fakeness has worn me down over the last few years.

In my head I am thinking that if I get my pension pot to a level by 50 I'll walk away and let compounding carry it to 65. I won't stop working, just get a job that is low stress, doesn't take up head space when not doing it, and covers my day-to-day expenses. A semi retirement, one can only dream!! But will I be brave enough to pull the trigger? It is a privileged decision point that I would like to reach sooner rather than later.

My father passed away in his late 60s due to illness. His last few years were tough. Aunt and Uncles have also passed away, their last few years were tough. My mothers health is now starting to fail and the last year has been tough for her, she is in her early 80s. One thing I have learned from all of this, more so in recent times, is that money doesn't appear to matter so much once health goes. No matter how much you have, or don't have, once you are in the final chapter of your life you are just existing. Also, none of them ever bent my ear about what they achieved in their working life, it didn't matter.

With each passing year I am aligning more with, work so you can retire (semi retire) early and enjoy your healthy years, which best case will take you to 80. Possibly, don't give too much thought to life after that?

For me, I think I could regret more not rolling the dice and retiring early. Finances aside, a purpose/structure to one's week is crucial during those healthy years....I suspect early retirement regrets would be minimal then.

 

[Eithneangela]

Retired 23 years ago (aged 53) and have enjoyed life a lot in the intervening years. Substantially reduced joint incomes but enough for our simple life.
Spent the first 20 years travelling round the world, visiting family in far flung places.
Covid out a stop to that gallop, and the onset of spondelolisthesis (slipped vertebra) for my husband has drastically reduced our travelling.
However, both joined local leisure centre with lots of classes and fitness activities and have made a wide circle of acquaintances and many friends. Regular fitness and social outings with these people is an added bonus. Also, I walk about 5k every day and am at smiling acquaintance with everyone in my vicinity. Living near the sea as we do helps a lot, very good for mental health to enjoy the lapping/roaring waves, the white noise of the sea.
Sufficient income to pay Health Insurance (for now) and look after 4 children and 14 grandchildren in a small financial way.
Life is good, delighted with our experiences to date. Never thought either of us would retire early as we were both Senior staff in our respective employments with very good salaries.
Life is not all about money although having sufficient to get by helps.
We live in almost rural Wexford, a quiet life. We go to France twice a year and load up on wine and beer for the year. Huge difference in price between France and here.
We don’t go to bars although we very occasionally eat out, usually with a Birthday/Xmas voucher from kiddies.
Would highly recommend early retirement if possible before age related health issues occur.
Health is wealth, especially for retirees!

 

[LondonIrish]

My 2 cents

I stood down from my role in an investment firm when I was 53. Within the industry, this was not especially young—the firm had been very successful and the original cohort (of which I was one) were gradually stepping aside to make way for younger colleagues. The decision was mine, but if I had left it another couple of years, I may not have had a choice.

That said, the adjustment was difficult. My job was busy and high-pressured with limited downtime during the working day, which meant I had to be efficient with my free time to maximize what I could get done in the evenings and weekends. I was conditioned to early starts, even on weekends, and I found idleness hard to deal with. To be honest, I was a little manic in the first few months, and all the home projects I had lined up were completed far too quickly.

I’m a member of a couple of cycling clubs and love to tinker with bikes, but even several long rides a week left a lot of empty hours. In the end, I went back to work for the charitable arm of the company I had left just 12 months previously. My role is part-time, flexible, and low-stress, yet it has brought me a level of contentment that really surprised me.

Here are some further takeaways from my own experience that might help with your decision:

• Don't focus solely on money: If you’re too focused on the financial aspect of retirement, you might postpone the decision for too long. Shifting from saving to drawing down savings takes a big mindset shift—it actually made me a bit mean with money until I learned to relax and enjoy life more.
• Consider part-time work: A small income from a part-time job was a massive psychological support for me, even if I was still digging into savings.
• Mix with different generations: Hobbies are great, but you tend to stick to similar people as another poster pointed out. A major benefit of going back to work was mixing with different—especially younger—people. I noticed how distanced my parents became from their grandchildren partly because they only socialised with peers, gradually removing themselves from modern culture. Mixing with diverse groups challenges natural biases. You don't need a job to do this, but be wary of only hanging out with people identical to yourself.
• Be selective with volunteering: Voluntary roles can become a bit of a burden. I volunteered with Citizens Advice, a food bank, and coached kids' athletics. The athletics was great, but after two years, I called it a day. A major perk of retirement is flexibility, and volunteer commitments—while worthwhile—can limit your ability to do things on the spur of the moment.
• Get on local mailing lists: I signed up for updates from local cinemas, theatres, galleries, museums, restaurant sites, university lectures, and anything else I could think of. I try to do at least one cultural event a week and yes, seeing a movie counts as far as I am concerned.
• Say "yes" more: Move outside your comfort zone a little, whether it’s food, travel, people or cultural experiences.
• Avoid daytime TV: I rarely watched TV when working full-time, and I watch even less now. I make sure to get out at least 2–3 times a week. Evening cultural pursuits and socialising take up a few nights, and since I don't have to wake up as early, I'm happy to go out in the evenings. I only sit down to watch a movie or show I specifically want to see—never just to see what's on. I figure when mobility slows down later in life, I'll have plenty of time to catch up on all the box sets I missed. My inlaws sit down to TV around 2pm and that is all they do until bedtime. They have lived like this for 20 years now.
• Stay physically active: This comes naturally to me because I love exercise and being outdoors, but don't let tiredness or poor weather stop you from getting out daily. It makes a world of difference. Plus, Ireland is a beautiful place—take advantage of the free travel pass to explore your own country.

 

[ClubMan]

However, both joined local leisure centre with lots of classes and fitness activities and have made a wide circle of acquaintances and many friends.

On this point, I don't know about other parts of the country, but for those in Dublin the Dublin City Council Sports and Fitness Centres are an amazing resource and great value. €21 p.a. (yes, for the year) for those aged 65+ for the use of the gym/pool/sauna/steam room in Ballymun, Finglas, Ballyfermot and Markievicz Townsend Street. A bit extra if you want to include classes I think.

Sport and Fitness Centres Price List

Prices for Sports & Fitness Finglas, Sports & Fitness Ballymun, Sports & Fitness Markievicz, Sports & Fitness Irishtown, Sports & Fitness Ballyfermot.

www.dublincity.ie

I'm still too young for that bargain but they recently gave me the 60+ discount a month early - €158 instead of the normal adult rate of €326. Plus you get loads of free unsolicited health advice for many of the other users. I think I'm an expert in joint replacements now.

 

[redstar]

If you’re too focused on the financial aspect of retirement, you might postpone the decision for too long

This is a great point. Even at 2 years out from normal retirement, i've been calculating the financial cost; salary given up + pension contributions lost and wondering about hanging on for 2 more years.

The work has become hectic since we introduced AI everywhere (developing and testing) and after 43 years in IT i've basically lost interest in tech.
My plan is to go within 6months but now i'm hesitating. I have run the numbers and financially we'll be ok - no extravagant lifestyle or debts or kids to fund.

It was interesting that almost none of the replies here had regrets about the financial losses, which is very heartening!

Sitting in front of a computer for 2 more years into my mid-60's is not what i want to do, and tbh is not very healthy...

As someone says; 'Retire into' something else not retire from... , and i already have planned for that too.

 

[Bronte]

Here are some further takeaways from my own experience that might help with your decision:

A lot of your advice resonates with me. For which I thank you for your insight. I’ve a BIG decision to make about going back to Ireland, I can go now, or 3 years more, when youngest is done for in education, also I’ve an Irish last property project. Or go in 5 years max. (More money) Your experiences are very persuasive.

For the rest of you, my view is you need money until you’re 80, health is everything, after 80 you won’t care about travelling or things. I sold the family car a couple of months ago, sold up property in Ireland and here a couple of years ago, downsizing (to very nice renting) has worked well, now set for the next downsizing as older children have achieved proper employment abroad.

There is no way I’d live in Ireland without private health insurance. And I think Nov not Dec, Jan-March in southern Spain or the Far East. Ireland is a way better prospect for me since Global Warming!

 

[confused87]

The responses here are making me change my mind and maybe keeping my non-indexed DB pension when i retire rather then sell like a lot of people in the company have been doing recently. Could be nice to have weekly income rather then monitoring 1 ARF pot too closely.

 

[ClubMan]

Could be nice to have weekly income rather then monitoring 1 ARF pot too closely.

Don't forget that those who qualify (from age 66 onwards) for a partial or full state Old Age Contributory Pension also receive an effective annuity that should be factored in to overall retirement income calculations/modelling.

 

[patfert1]

- Giving up a structured work week

On this point, look at my post from a few weeks ago regarding an article I linked.

https://www.askaboutmoney.com/threads/article-why-autonomy-is-the-true-gift-of-retirement.244493/

its important not to 'retire from...', but 'retire to...' whatever that may be - have some interests to keep you occupied

My fav example... Christian Ronaldo... unable to "retire from" because nothing to "retire to", I imagine.

 

[DingDing]

I retired a couple of years ago at a little over 60. I had prepared for it as I got into some hobbies and activities that I really enjoy. I do some work with the local Tidy Towns group and I think I add value there, in areas realated to my previous role. I am on a couple of audit and risk committees and I am also a volunteer director of a credit union, which I find very interesting. I am on about 70% of my previous salary, but I had reduced my pay in the 3 years before retirement as I was purchasing pension. So I was well prepared for the reduction in pay. I still meet current and retired friends from work regularly. I also would probably work a day or two a month, interview panels and that sort of thing. All activities that are complete on the day.

No regrets at all, and I am really comfortable with the decision.

Also being able to do things I want to do when I want to do is fantastic.