Retire by 40, 45, 50

bilbot79

Revit Man wrote: »

If I was left to my own devices, I think I could be retired by mid 50s.

However, I have a wife and family who don't share the "careful with money" mentality, so I'll probably need to work until 85... I'm mid 30s now. Pension pot of about 30K. Not great, but at least it's underway. I started it aged 30.

That's about what I had mid 30s you'll be grand especially if your wages rise

JimmyVik

bilbot79 wrote: »

You wouldn't be forgiving him you'd be paying him

Maybe he paid tax enough to cover himself

mrcheez

shuyin1 wrote: »

If you could retire early, how old and where? Early 40's and SE Asia for me, nice weather and lots of motorbikes to choose from.

Kinda throwing that idea around at the mo in my head, though it'd be 50s probably.

Mortgage will be paid off, pension coming into play, could rent out my place for a nice lil' earner even if I have to use an agency to manage it.

Me "love the idea long time"!

mrcheez

Holy crap OP, you've started me researching this ... goddamn this looks good

https://www.youtube.com/watch?v=XuTow8dbWno

Beasty

Happy to stick around until 60. Still have over 5 months to go mind.....

JimmyVik

I found out there are countries, such as Portugal, where you dont pay any tax for 10 years if you retire there and are living off only pension or investments.

Im changing the goal from 55 to 50

stratowide

I more or less retired by 46.Just turning 51 at the end of summer.

Never really planned it that way.Things just happened the way they did with an amount of good luck thrown in.And when they did I grabbed the chance with both hands.

I now work part time and can work the hours to suit myself.Usually about 10-15 hours a week.

The luck came in the shape of..

Getting divorced at the right time(Gave away a house in the process but cest la vie)

Buying a new house right at the slump after the boom.A steal really.

Being let go and getting a lump sum and paying off the mortgage.
No mortgage is like winning the lotto.

Falling into a part time job that I can come and go as I please.

All kids grown up and working themselves.

A lot of luck involved..But am now living the dream as they say.

Another big plus is that I can fix almost everything around the house and car etc from previous experience as a tradesman.

Vastly brings the cost of living down.

JimmyVik

I just mentioned to the other half that we could retire on €500 per month.
She asked me what about money for myself. She will spend that €500 herself

shuyin1

JimmyVik wrote: »

I just mentioned to the other half that we could retire on €500 per month.
She asked me what about money for myself. She will spend that €500 herself

That's prob just her entertainment money

You'd prob have to be wholly sustainable for 500e a month. Grow your own food, off grid energy, DIY style living.

Assuming it's irl that's a tough challenge. Even in SE Asia it's around 1200 usd per month.

mrcheez

shuyin1 wrote: »

That's prob just her entertainment money

You'd prob have to be wholly sustainable for 500e a month. Grow your own food, off grid energy, DIY style living.

Assuming it's irl that's a tough challenge. Even in SE Asia it's around 1200 used per month.

I remember in the 4,000 Islands in Laos you could pay to build a hut and it became a sort of "permanent" residence (in that you could use it for free when you visited, on condition that the island authority could rent it out when you weren't there).

Price was something like €100 ... but that was back in 2003, so inflation might bring it up to €200 :rolleyes:


So I guess it is *technically* possible to live there cheaply... sure the locals get by fine on less than €500 per month too

garbanzo

Good thread, thanks to all so far. This US article from last year suggests around €28,000 pa is what you'd need to live reasonably well. Not sure if that is for a single person or couple though?

https://www.investopedia.com/articles/personal-finance/102615/how-much-money-do-you-need-retire-ireland.asp

I've always thought, for a couple with kids reared and mortgage paid off, you'd need around €24k to live a basic enough life. €36K for a better one and €48k + for a reasonably extravagant one.

ArmaniJeanss

garbanzo wrote: »

I've always thought, for a couple with kids reared and mortgage paid off, you'd need around €24k to live a basic enough life. €36K for a better one and €48k + for a reasonably extravagant one.

So if the state pension gives you (current figure) €13K from aged 68....
Then to retire at say 54 you'd need 14 x €24K = €336K to get you to 68.
And then €11K by however many more years you live. Lets say to aged 88.
So another €220K.

So €336K + €220K = €556K. Just for the 'basic enough life'.

It's a stark enough sum of money really. Outside my league sadly.

******
Would be interested in where you get €24K from. Something like this perhaps.
€1500 Health Insurance. Basic Plan.
€6000 Utilities.
€5000 Food.
€2000 Clothes.
€2500 Dental/Medical outside of health cover.
€2000 General house maintenance.

That's 19K (and surely there's scope to reduce some of them) leaving a decent €5K for entertainment and holidays etc.
Doesn't seem terrible but maybe I've missed out obvious things.

mrcheez

Interesting question though, can you still claim the state pension while living in South East Asia?

Does it go direct into your account?

lalababa

A good way of 'retiring' early is to downsize, adjust/accept frugality, buy out of consumerism and status buying, and find a part/full time job that you love! It takes a strong willpower finding and doing things when you suddenly go from 40+ hours to nothing!
Owning your own place is top of the agenda. No mortgage/rent.
All you then need is food/heat/medical insurance (if your income is more than 200pw)

BrianD3

lalababa wrote: »

A good way of 'retiring' early is to downsize, adjust/accept frugality, buy out of consumerism and status buying, and find a part/full time job that you love!

Frugality and lowering expectations of what lifestyle you "should" have are very important. With frugality, savings build up more quickly and then when you start living off the savings/investment income, as you are accustomed to a frugal lifestyle you need less capital, less income and/or can take less of a risk with your investments.

A double whammy - if both earn the same, the frugal person needs less than the spendthrift but has more. This can knock many years off retirement age.

Also, Hedonic Adaptation - lots of people out there who could be much more frugal but are not willing to take 6 months of "pain" to adapt to a new normal. Time passes, one year runs into the next and suddenly they are heading towards age 60 with feck all saved and wondering if they're still going to be working in a job they dislike when they are 70. Then they start questioning whether slaving in work so they could buy a new Audi every 2 years was really worth it - but by now it's far too late.

https://www.mrmoneymustache.com/2011/10/22/what-is-hedonic-adaptation-and-how-can-it-turn-you-into-a-sukka/

JimmyVik

shuyin1 wrote: »

That's prob just her entertainment money

You'd prob have to be wholly sustainable for 500e a month. Grow your own food, off grid energy, DIY style living.

Assuming it's irl that's a tough challenge. Even in SE Asia it's around 1200 usd per month.

I know. I guess it will have to be €1000 per month now
And that works out at €750 for her

On a serious side though, i guess that both of you have to be all-in on the idea to retire early or it wont work.

JimmyVik

I figure there are about €15,000 worth of expenses I can get rid of when I retire.

eg
Wont be buying a new car ever again and will only buy with savings.
Have two at the moment. If we retired one would do us.
Petrol and tolls costs €500 per month. Could probably reduce that to €100.
Lots of other stuff too.

There are so many expenses that will be gone when you are ready to retire.

Just to list a few of them. I dont have all of these but most people do.
Any others anyone can think of?

Mortgage - Dont retire until that is cleared

Childcare - Children should be grown up.

Holidays - We personally spend a lot on these, so this is big. if you holiday in the summer months you are paying double if not 3 times the price. My company only let me take my holidays in July and at Christmas. Also there is school term time. So holiday costs would be reduced.
Take for example my Ryanair flights to Barcelona. €580. In September that would be about €100. The accommodation for that holiday is €2400 for 2 weeks. Same place is €700 for 2 weeks in September.

Weekends away could become midweeks away. More than halves the cost.

Cars - If you have 2 reduce to one. I couldnt reduce to zero myself. Dont buy new cars again

Loans - If you have any you would probably have them cleared before even thinking of retiring.

fits

stratowide wrote: »

.
No mortgage is like winning the lotto.

.

This! My god I would love not to have a mortgage.

I love these threads though and reading everyone's plans. I have no major desire to retire at all but I don't ever want to work a 5 day week again. Currently doing 4.

lalababa

lalababa wrote: »

A good way of 'retiring' early is to downsize, adjust/accept frugality, buy out of consumerism and status buying, and find a part/full time job that you love! It takes a strong willpower finding and doing things when you suddenly go from 40+ hours to nothing!
Owning your own place is top of the agenda. No mortgage/rent.
All you then need is food/heat/medical insurance (if your income is more than 200pw)

Sounds more like an existence than living.

I'd much rather stay working than have to live frugally.

Geuze

mrcheez wrote: »

Interesting question though, can you still claim the state pension while living in South East Asia?

Does it go direct into your account?

Yes, assuming it's a Contributory SP.

Tec Diver

Never thought I'd reach the "old age" of 50...but now I'm 52. Retiring early would be great, but lots to take into account: accommodation, utilities, food, transport etc. I'd like to retire to Portugal (lower costs, nice enough weather), but if I do, I'd be traveling back to Ireland for family occasions, so that is another cost, although not substantial.
Not having a high wage, there's a limit to how much I can put into a pension, plus at the rate we are paying the mortgage, I'd still have that at 65-ish. Personally I'd rather sell the house and relocate than gift it to our kids, or maybe get them to finish paying the mortgage. At least they'd have a value attached to the house.

coleen

Really considering retiring. I feel this was like a practice for me, but I am aware that the weather was very good and this helped. I am currently 57 Husband is closer to retirement and took part time a few years ago so just works 2-3 days per week.
We are lucky in that mortgage is paid off and family are off the payroll.
I will not get State pension until I am 68 as it currently stands.
But I have saved some cash to give me 10k per year from 60 to 68.
That was my plan prior to COVID but now thinking I could go at 58 at the end of the year.
We do have a rental income of 1,700 pm and some savings but I think husband would keep doing his PT job until 65 which is net 1,700 pm also . Then he would get State pension and a small work one total 20k.
We have no loans but do like to travel and our main hobbies are walking cycling so do not cost a lot.
There really is not a lot stopping me from doing it except fear that I will be bored or not having my own income to spend.
I would also like to think that we could spend January February and possibly March in a warmer climate. Not sure if that would be expensive or not would 1k pm rent a place in Canary Islands or similar?
Apart from food and household insurances health insurance and house up keep we both drive older cars so no loans so not too expensive a lifestyle then I think 34K a year would be comfortable.
I am currently giving this a lot of though.
I have been in same job for the last 32 years and I do like it, and I am free enough to take days off and holidays when I need them so while there is some stress I still enjoy job and the people I would with and for.
I am aware we are lucky so could do it but would hate to regret it but I am sure that if I did I might be able to find other employment.
Will I jump or not 😅😅

blackbox

I was lucky enough to get redundancy at 60. Will keep me going until pension kicks in.
Pension will be less than max, but mortgage is cleared and kids educated so I should be fine.

Absolutely no regrets.

banie01

These style of thread comes up so often it may be easier to copy/paste.

Im in a far luckier position than most.
Mortgage free, nice-ish house, comfortable.

Haven't "worked" in 3yrs and was medically retired and pensioned of just over a yr ago.Was 39 at the time.

Have taken the medical limitations as an opportunity to return to university, learn some new skills and rekindle some old ones.
Also, being a house-husband, not that I ever get the cleaning right and I still can't dress a bed properly
But my cooking makes up for that.

It's not where I thought I'd be at 40, but thankfully I was mortgage free before I was ever sick.
I have some savings, and my pension is crucified with AVC's since I was 18.(not that I can draw any of that down just yet, reliant on Invalidity Pension)

My position without the above in place, it's not something I'd wish on anyone.
Even income protection will wiggle out of paying if they can, so unless you are terminal don't ever count on it.

tmh106

coleen wrote: »

... I have been in same job for the last 32 years and I do like it, and I am free enough to take days off and holidays when I need them so while there is some stress I still enjoy job and the people I would with and for.
I am aware we are lucky so could do it but would hate to regret it but I am sure that if I did I might be able to find other employment.
Will I jump or not 😅😅

Do you have the option of part-time work with your current job? If you do, then maybe your best option is to reduce your hours in work gradually over the next number of years and then look to retire fully when you hit early sixties

JimmyVik

coleen wrote: »

Really considering retiring. I feel this was like a practice for me, but I am aware that the weather was very good and this helped. I am currently 57 Husband is closer to retirement and took part time a few years ago so just works 2-3 days per week.
We are lucky in that mortgage is paid off and family are off the payroll.
I will not get State pension until I am 68 as it currently stands.
But I have saved some cash to give me 10k per year from 60 to 68.
That was my plan prior to COVID but now thinking I could go at 58 at the end of the year.
We do have a rental income of 1,700 pm and some savings but I think husband would keep doing his PT job until 65 which is net 1,700 pm also . Then he would get State pension and a small work one total 20k.
We have no loans but do like to travel and our main hobbies are walking cycling so do not cost a lot.
There really is not a lot stopping me from doing it except fear that I will be bored or not having my own income to spend.
I would also like to think that we could spend January February and possibly March in a warmer climate. Not sure if that would be expensive or not would 1k pm rent a place in Canary Islands or similar?
Apart from food and household insurances health insurance and house up keep we both drive older cars so no loans so not too expensive a lifestyle then I think 34K a year would be comfortable.
I am currently giving this a lot of though.
I have been in same job for the last 32 years and I do like it, and I am free enough to take days off and holidays when I need them so while there is some stress I still enjoy job and the people I would with and for.
I am aware we are lucky so could do it but would hate to regret it but I am sure that if I did I might be able to find other employment.
Will I jump or not ����

Ive a retired relative who goes to Gran Canaria from Sep to Dec and then Jan to May. Herself and her other half pay €400 per month for a 2 bed apartment with pool etc in a big enough town. They also keep a car over there which costs buttons. They use a Spanish agent over there and have had the same place a few times, but are happy enough to move around if what they want is gone, but they usually book them well in advance.
They get flights for €50 each or less even when they do travel. If there is a wedding or anything important they just get the cheap flights back for a week or so and then back over to the Canaries. They dont like the summer months over there at all and stay in Ireland for them.

And they have two rooms in their house in Ireland rented on the rent a room scheme too, so that income is nice.

Heres just a random site I took off the web just now. Im sure there are deals to be made too.

https://www.idealista.com/en/geo/alquiler-viviendas/islas-canarias/con-pisos,chalets/pagina-2

CPTM

If anyone has a mortgage, really look at paying it off early. An extra 100 euro per month can reduce your mortgage by 5 years.

https://www.ccpc.ie/consumers/tools-and-calculators/extra-mortgage-payments-calculator/

For me it's the game changer. I'm pouring everything I have into it and a pension, hoping to retire before 55. Sell family home in Ireland and live in a nice enough apartment in Spain for the rest of my days.

CPTM

CPTM wrote: »

If anyone has a mortgage, really look at paying it off early. An extra 100 euro per month can reduce your mortgage by 5 years.

https://www.ccpc.ie/consumers/tools-and-calculators/extra-mortgage-payments-calculator/

For me it's the game changer. I'm pouring everything I have into it and a pension, hoping to retire before 55. Sell family home in Ireland and live in a nice enough apartment in Spain for the rest of my days.

Can’t understand the desire to move away from family and friends and the county you have spent your life, the home you have built up over the years etc. Last thing I’d want to do.

CPTM

Xiomara Crashing Tiling wrote: »

Can’t understand the desire to move away from family and friends and the county you have spent your life, the home you have built up over the years etc. Last thing I’d want to do.

None of my friends/family are here anymore. All moved abroad to various places during the recession.

JimmyVik

Xiomara Crashing Tiling wrote: »

Can’t understand the desire to move away from family and friends and the county you have spent your life, the home you have built up over the years etc. Last thing I’d want to do.

Id do it for from October to May anyway. Flights cheap enough to get home.
And depending where you go, you can just hop in the car and drive somewhere else in Europe for a holiday from your retirement. Living on an Island is right a pain.



Years ago I spent 6 months in Spain. Loved it. I would have no problem retiring there. Easy living Its the weather and the nice lifestyle that does it for me. Of course you need to be retired to really enjoy it and go off peak.

mrcheez

Xiomara Crashing Tiling wrote: »

Can’t understand the desire to move away from family and friends and the county you have spent your life, the home you have built up over the years etc. Last thing I’d want to do.

I grew up abroad in several countries so it's kind of in my DNA, but it also means I can quickly adapt to make friends in new countries, while still keeping in touch with the old ones.

I don't have any particular ties to Ireland as a result so I'm fairly fluid about where I live.

Only thing keeping me here right now is a mortgage, but once that's gone I'll up sticks again.

Electric Sheep

Xiomara Crashing Tiling wrote: »

Can’t understand the desire to move away from family and friends and the county you have spent your life, the home you have built up over the years etc. Last thing I’d want to do.

Many of us have friends who are like ourselves - spread out over the world, not living in the same little bubble we were born in.

I could move to any of a large number of countries and be with friends I have known for many years, I am not confined to one county in one country.

Xiomara Crashing Tiling

Xiomara Crashing Tiling wrote: »

Can’t understand the desire to move away from family and friends and the county you have spent your life, the home you have built up over the years etc. Last thing I’d want to do.

I can't understand why anyone would wish to stay around their small homeplace, with the same people, in the same pubs, talking the same gossip or building a house right next door to mammy, but I guess some do.
Personally I plan on spending most of the year away, depending on the parent situation

hynesie08

Xiomara Crashing Tiling wrote: »

Can’t understand the desire to move away from family and friends and the county you have spent your life, the home you have built up over the years etc. Last thing I’d want to do.

I'm an inner city dub, born and raised, this place pulses through my veins, but I don't want to see out my days here, a nice apartment in Italy, that's the dream.

Baby01032012

I’m 44 now.

Changed career last year, sacrificed good salary to do something I had passion for Which meant starting from scratch pay wise but after 2 years retraining/qualifying I hope to start my own business.

Sadly lost both parents last year. They left me enough not to have to work another day in my life again. My attitude to money has changed, it’s a means but doesn’t bring happiness, sure it’s going to make life a lot easier and easier to pursue what I want to do but I’d give it up to have my parents alive. This and the pandemic has really made me think about life. My kids are what I live for now. I’ll work to build my own business and something to handover to my kids. I’ll spend more quality time with them but I wouldn’t retire. Maybe if I didn’t have kids life would be different and I’d move to somewhere hot and work remotely.

Jamsiek

CPTM wrote: »

I'm pouring everything I have into it and a pension, hoping to retire before 55. Sell family home in Ireland and live in a nice enough apartment in Spain for the rest of my days.

Sounds nice, I could live with that

BohsCeltic

Stacksofwacks wrote: »

That's fine if you have no mortgage to pay or dependents to support, then you've no choice.

Well that's the position i am in. I can take my pension at 55. Have no children or mortgage.
SE Asia where the weather is nice and cheap to rent a nice place, but obviously prices can change quickly but i always would have my home here in Ireland to go back to.
Could live very comfortably on little money.
But also need to factor in other expenses like emergencies if i needed to travel back home.

But it's something to have a good think about.

BohsCeltic

Baby01032012 wrote: »

I’m 44 now.

Changed career last year, sacrificed good salary to do something I had passion for Which meant starting from scratch pay wise but after 2 years retraining/qualifying I hope to start my own business.

Sadly lost both parents last year. They left me enough not to have to work another day in my life again. My attitude to money has changed, it’s a means but doesn’t bring happiness, sure it’s going to make life a lot easier and easier to pursue what I want to do but I’d give it up to have my parents alive. This and the pandemic has really made me think about life. My kids are what I live for now. I’ll work to build my own business and something to handover to my kids. I’ll spend more quality time with them but I wouldn’t retire. Maybe if I didn’t have kids life would be different and I’d move to somewhere hot and work remotely.

Sorry for your loss. But you are so right about money. Yes it helps a lot but you can have everything but never be happy.

I won't be left anything when my parents pass. So it's up to me to find a way i can enjoy life with not much money but comfortable and most importantly happy.

Greyfox

bubblypop wrote: »

I can't understand why anyone would wish to stay around their small homeplace, with the same people, in the same pubs, talking the same gossip or building a house right next door to mammy, but I guess some do.
Personally I plan on spending most of the year away, depending on the parent situation

Where your from will always be your real home, living away is nice but for me it's only a matter of time before I'd want to return home. Also I think living away from home is more of a young person's thing.

mad m

Been to a few retirements over past few years. It’s sad to say a year or two later I’ve heard they have either passed away or got a serious illness, you’d wonder what’s it all about.

My mam lied about her age when she was 12 , said she was 14 when she got her first real job. She stayed in same place for 50+years before she had to retire. It killed her to retire, loved that job. Thankfully she is still alive and her birthday tomorrow 71... but if she was offered a job she’d be onto it.

I’d seriously think about trying to retire at around 60. Jesus I’ve 12 years to go...

Blub123

Am 41 & 3 things stopping me going now.
A)3 Kids at national school
B)Pension pot
C)Want to hand each kid a property to help them become financially independent from a young age as I missed the boat with that... (Anyone in their 20's reading this research the financial independence movement. You will thank me later)
Have the house we are in. Have another rental.
8 years left on the mortgage.
Wife same age. Teacher gold plated pension and was smart enough to load her Avc's from the start of working life.. She wants to go at 55 latest.
I reckon 650k pension pot between us would be sufficient.
At 65 I'll have a 685k pension pot herself will have her pension (her Avc's will be used to bridge 55 to 60 gap at which point she qualifies for full pension )
I won't work until 65 though in the job I'm in as it's quite stressful .. Hopefully go before 60 but will be after 55.... At which point kids will be youngest, 22 (when I'm 60)
Also own a small piece of the business I work for which should also provide an income when I leave or they will buy me out through a 6 figure pension contribution.
Side hustle.... If you can get one, do it.. I currently have one which is tax free and while not producing the level of income at the moment that I envisage, I do see it bringing in circa 1500 to 2k a month doing something I consider a hobby...this is a side hustle ill be able to take on my travels.
Dream is to winter Oct through to april in a different country every year while we are able and summer in Ireland.
We don't have v expensive tastes, rarely booze, never have bought a new car but do like a holiday...really looking forward to retirement but worried it won't be what it's cracked up to be after all the planning etc.... Currently work 50 plus hr weeks and my wife jokes that I'll go crazy when I retire.. Its v hard to know and will be a bit like stepping into the abyss when the time rolls around

bilbot79

hynesie08 wrote: »

I'm an inner city dub, born and raised, this place pulses through my veins, but I don't want to see out my days here, a nice apartment in Italy, that's the dream.

Just don't buy it in the south where the Mafia run free

Electric Sheep

Greyfox wrote: »

Where your from will always be your real home, living away is nice but for me it's only a matter of time before I'd want to return home. Also I think living away from home is more of a young person's thing.

I don't agree, I don't feel like that at all. I would never move back to where I'm "from". I left because I didn't like it there, and nothing has changed about that.

Electric Sheep

Electric Sheep wrote: »

I don't agree, I don't feel like that at all. I would never move back to where I'm "from". I left because I didn't like it there, and nothing has changed about that.

It would be a minority opinion though, most people given the choice would live where they have grown up.

Xiomara Crashing Tiling

Xiomara Crashing Tiling wrote: »

It would be a minority opinion though, most people given the choice would live where they have grown up.

I don't believe that. I wouldn't & I know the majority of people I know have no interest in living at home.

mrcheez

bubblypop wrote: »

I don't believe that. I wouldn't & I know the majority of people I know have no interest in living at home.

Yeah I could give two ****s about living back in the neighbourhood I lived in when I was in school in Ireland (or any of the other neighbourhoods while living abroad).

Home for me is out west where my Dad's family farm is, but I never lived there, just go there for holidays.

The_Kew_Tour

I have my house new house nearly ready move to, herself has very secure job, we have no mortgage to pay and I still don’t see myself retiring before 60 at best.:pac:

bubblypop

bubblypop wrote: »

I don't believe that. I wouldn't & I know the majority of people I know have no interest in living at home.

Whereas the majority of my extended family and my friends either live at home or close to home and have settled there for good.

I only have one of my main group of friends (the ones I’ve had since primary school/early secondary) living outside the country and it’s only across in the UK. I’ve a few other friends I’ve met though work living around in a few other counties but most aren’t irish and had moved here and then moved on. I’ve one aunt settled abroad (had moved before I was born) but aside from that I’d have to go a long way down the distant cousin route to get family members living outside Ireland, virtually none outside my home county even.

I would find it hard to put into words how much I’d hate even the thought of having to live abroad or the idea of not settling down at home (having lived a few hours away for a few years just reinforced this).

You live in some utopia nox!

I have no issue with anyone who wants to see out their days near their homeplace.
Each to their own!
I for one cannot wait for 9 years when I retire & get to spend most of the year somewhere else

mvl

ah, well this reminded me I had saved this bookmark on couple of years ago https://www.reddit.com/r/EuropeFIRE/
- didn't get to really look into it, but do want to retire in my early 50s.