Retire at 40?

I’m way past 40 so it won’t be me! But who watched Channel 4’s 30-minute programme, shown on Monday night, ambitiously titled ‘How to Retire at 40‘?

I won’t go into the programme details myself except to mention that I didn’t think much of it, but there are some interesting discussions here and here, from bloggers who were actually featured (briefly) on the programme and one who missed the cut (unlucky, Huw!).

Watching the programme and seeing the young folk featured on it, I was reminded of how when I blundered into embarked on my own career in my early 20s, the very very last thing on my mind was retirement (although following my older sister’s advice, I joined the company pension scheme as soon as I was able to).

Traditional

I’m from the traditional/common way of thinking – go to school, go to university, graft for 40 years, retire in my mid-60s.

Nothing wrong with that way of thinking – it’s what many people do. I have been fortunate in that my 20+ years career (so far) has been largely fulfilling and enjoyable, and I have made close and life-long friends through work.

Despite spending most waking hours at work, I’ve been able to enjoy my life, including go on holidays every year, have enough time for family and friends, have hobbies etc. I have always been able to maintain a good work/life balance.

I will admit however that much of my life was fuelled by debt but that was me being stupid with credit cards until I came to my senses and paid them all off.

Throughout my career, I have never minded working for The Man/The Woman, although I guess I’ve been fortunate with my bosses in that they’ve all been pretty reasonable people (most of the time) and people who I respected. I may not be so fortunate in the future.

Be my own boss? No real desire to do that, sounds like too much hard work!

Anyway, what got me thinking about early retirement a few years back was stumbling across MMM and then wondering what I would do if I suddenly started to hate work and be fed up with the 9-5? Wouldn’t it be great to be able to just walk away?

Options

Well, without sorting out my personal finances, my only option would be to keep plugging away another 20 or so years until normal retirement age (67 for me). Ok if you like/love your job; not ok if you have health issues or dread going into the office every day, although of course, you can always switch jobs if this is the case.

I’m hoping that saving and investing hard now will build up a big enough pot which will allow me to choose to stop working full-time at age 55-56 (my stretch target) if I’m fed up with work by then. Some may not think this is early retirement but I consider anything <60 as early!

In the event that I’m not mentally ready to give up work then (like Jim from SHMD) or if I’m just content doing what I’m doing, I might choose to just carry on working and continue to save and invest. That’s the thing – I’ll get to choose.

I don’t think there’s such a thing as ‘too much’ in retirement funds (I won’t be anywhere near the lifetime limit!) but ‘too little’ would be a miserable scenario!

I’m barely two months into my new job and things are looking good so far but I must keep one eye on the future. I’ll be eligible to join the company pension next month so a few more £££s in the pot there.

Another win!

Anyway, ending on a good note: another month and another Premium Bond win for me (any wins for you, FiL?).

I won £50 so I’ll be lumping this in with other cash to be used to buy investments.

In it to win it, like the lottery only you get your money back (subject to inflation!)

Have a great weekend, all!