Retire at 55 - case study UK financial independence

Retire at 55 using careful planning around how much you save and how you access your savings in retirement. A case study of how to achieve financial independence at 55 in the UK through careful planning

How to retire at 55 in the UK

Case studies involving UFPLS drawdown, FAD drawdown and a mixture of ISA & SIPP. Plan for early retirement in the UK.

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I present a comprehensive retirement case study that delves into the crucial aspects of planning for a secure and fulfilling future. Retirement is a significant milestone in one's life, and making informed decisions is essential to ensure financial stability and peace of mind during your later life.

I analyze various retirement planning strategies, investment options, and lifestyle choices that can make a significant difference in your post-retirement life, which can be much more exciting than your working life.

I examine the importance of setting clear retirement goals and crafting a personalized retirement plan tailored to your unique needs and aspirations.

Time is a valuable asset, and starting to save and invest early can lead to substantial benefits in the long run. I explore the power of compounding and illustrate the advantages of contributing to SIPP & ISA.

Is early retirement a possibility in the UK? In this video, we dive into a case study of someone who retired at 55 and achieved financial independence. Learn the steps and strategies they used to retire early and live a fulfilling life in their 50s!

My aim is to empower individuals with the knowledge and confidence to take charge of their financial future and make informed decisions that align with their retirement goals.

Chapters
00:00 Advantages of retiring at 55
01:04 Retiremant calculator assumptions
01:55 Case study 1 UFPLS drawdown
05:48 Case study 2 FAD drawdown
07:57 Case study 3 ISA & SIPP
09:31 Summary plan for retirement

[robkewley]

Would love to see an update on the three scenarios now lifetime allowance has been removed

[V.stones]

With inflation creeping up and the cost of living skyrocketing, it's hard to pin down a number. I’ve heard people say you need anywhere between £500, 000 and £1 million, depending on your lifestyle. But what’s realistic?

[daviddawson]

Love the explanation Ian. I took my FPA certificate a few years before retiring at 54 and a little bit of knowledge changed my retirement outcome dramatically. Your right too few know about things such as LTA using back dated years for pension top up's and all the rest of the rules. Why they do not teach such at school along with basic finances. I really feel sorry for the newer generation who just aren't going to be able to so easily build up the capital to retire comfortably. I have saved myself and my family a lot in tax without any off shore funds just by taking sometime to learn the rules.

[Banthah]

Great video. Really good!

Interesting seeing the difference with 50/50 pension/ISA. Although of course having the same amount of 1M invested doesn’t take into account the tax relief you get when putting into your pension. Even as a basic tax payer to put 10k into a pension only costs 8k. So it’s not really a question of whether 50k in an ISA is better than 50k in a pension - it clearly is.

It very much depends on how much you put in. And there’s multiple factors like salary sacrifice, which may even drop you down a tax band, NI savings, employee matching etc…

Looking forward to playing with the spreadsheet. Thanks

[charleedell]

I don't trust the SIPP age to stay at 57. I do have one but people do need to be mindful that the terms can change retrospectively after you join. Another thing that puts many people off pensions is the incorrect belief that it disappears if you die - it doesn't, your dependents or chosen beneficiary get it.

[liban]

I’m watching this channel at 22 after realising I’m stuck in in work until retirement 😂 at least I’m doing better than my peers by maxing out my stocks and shares isa.

I’m yet to open a SIPP, how would you recommend I allocate a 34k a year salary? Im currently trying to max out my stocks and shares isa second year in a row

[agracian]

Hi Ian, good Video. Are you allowing for growth in personal tax allowances? Alex

[AgileSnowWeasel]

Do you have this spreadsheet but for 2024-2025. Good that the LTA was removed, as you pointed out, the early retirement issue was not good, and entirely an effect of the reduction from £1.8m done in the past 12 years in an attempt to claw back tax income.

[brodiedoesstuff]

Did you explain why there’s a big drop off at 75 in scenario one? Why is it due to lifetime allowance? I know it’s been abolished but might come back. Why do you get a bill at 75?

[declanmcardle]

In the UK can you spread the 25% tax-free sum over many years to your taxable income, thus entering the tax net at a higher gross?

[mikesweeney]

If I have assets worth £600k and no debt could I possibly retire at 55

[brucedickinson]

I want to retire at 55 but wife is worried i will turn into a couch potatoe be lucky if i need 15 grand a year with