I'm 55 with £1m - Can I afford to retire? (Real case study)

Are you chasing your own definition of success or someone else's?

👉🏻 Financial Planning

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[warrenthorp]

You’re good mate. I have done this (with a bit less capital) and now I sail my boat in the summer and work in the winter. Jobs a goodun 👍

[invisipics]

This whole video is not really about money but about something else which is only partially expressed. One of the most important things we need to do in life is to work out what belongs to us and what doesn't - in particular what voices in our minds belong to us and which don't. The voice telling you to climb the work ladder and become a "high-flyer, " may well belong to your parents, for example, and not to you. Recognizing what isn't yours is really helpful in finding out what is.

[maddog]

I did the same at 59. I have a final salary pension from my first job that covers the monthly bills, my 23 year pension is managed and invested growing nicely which I don’t plan to touch for the next 5 years and 100K savings for emergencies. I do 3 sessions at my local golf club, nothing remotely related to the work I left which covers holidays and other stuff. Hardest part is not seeing the large monthly wage coming in but after 6 months seeing everything is working I am so much more relaxed and happy with my life. Best thing I have ever done.

[mrt]

Never ever trade time and health for money. Learnt this the hard way after an in my 50's, very poor diagnosis of blood cancer from no where. Had always placed my career first and never envisioned finishing work until into my 60's. I fought the cancer into remission and decided to retire at 57. The biggest challenge was the mental one. The responsibilities I held, status, importance to others and the organisation, making a difference etc. However, there is often a cost which comes with this, mine was brutal but there is always something. I walked and feel so much better in every way. Yes, I sometimes think about the money I gave up but I've been able to balance this in my head against the peace, time and health I now have. The average male has less than 1000 weeks to live once they hit 60....think about that when you perceive you have a long life to live once retired. You won't regret prioritising time and health.

[kateband]

Interesting viewing. I did exactly that, gave up a senior role which was very well paid but with huge responsibility, significant time away from home and staff management role. When I got to age 56 I was pretty much burnt out. I quit my job but my manager offered me a part time role which didn’t involve any people management or stress. I did that for 3 years and then finally took the leap into freedom aged 59. Life is short, particularly a healthy life. What I now realise that without the need to pile money into a DC pension or ISA I don’t need a huge income. I’m fortunate that I have no mortgage anymore but neither do I have expensive tastes. I’m now richer than I have ever been.

[alastairkeith]

James - cracking video - I can relate to this so much - you work hard to get to the top only to find it’s not a sustainable place to be.
I decided to have a life over a lifestyle and cut my expenditure to suit using the money I had available.

[lrac]

I retired at 55yrs old with less than half that amount, with my tiny works pension and other investments and interest I can live OK. I don't have loads of money but can do everything I want and I would class myself extremely wealthy in LIFE because stopping being on the hamster wheel paying thousands in tax and enjoying life feels unbelievable, its like a dream and this next year my partner is retiring

[dawnmartyne]

This is what I did. I went part-time with my career at 55 yrs old..coasting into retirement. No need to save anymore, no need to withdraw from pot or if I do, very little.. I works for me..I'm 58 currently..

[ChrisShawUK]

Yep, spot on. I stopped four years ago aged 51 after a 29 year career. I now have embarked upon what I hope will be my second 30 year career.

I volunteer on 5-6 nature recovery projects (a totally new area for me). This has given me purpose, structure and identity. I can't imagine living any other way.

I have a bigger pot than your couple, but my expenses are way, way lower. I literally can't think of anything to spend money on beyond essentials.

If you find your passion you don't need to spend £5k a month.

[markdavis]

Your best video yet James👏👏👏you have so struck a cord with my 52yr old self. Third time watching and your words and statements are ringing in my ears and brain. I am one of those always chasing the next dollar or the next step up thinking that next bit will be better or clearer future pathway. Well done JS❤great advice

[davidt]

Oh my god, this video plays like it was made for me - and my wife would doubtless be delighted to know that I've watched something like this. The conversations you have with your clients makes your role sound like it's half financial planner, half therapist! It also makes me wish I had followed a career path towards being a financial planner instead of taking a similar route to John the CTO.

[nocathedral]

Each to their own I suppose, but I struggle to work out what a retired couple plan to spend £5k a month on without a mortgage and *before* their £10k travel budget..

[jerry]

Absolutely brilliant video. I pretty much did this, moving from a director role to a zero hours contract consultant with the same company. It has to work for the company as well, which it does. Best thing I have ever done.

[OneAndOnlyMe]

That is what happened to me (also in IT). Was pushed and promoted into management and I hated it, everyday the first and last thoughts were work related. I switched back to a non-management senior role that I was much happier in. My plan is to retirement and occasionally contract to fill the time in between travel and relaxation.

[RJC]

Wow! Their expenses are colossal..
The most I ever earned was £80k and I retired last year at 41 with > £1.5m.
The key is being sensible with your expenditure and investments.
People always seem to be too keen to keep up with the Jones’s and being extravagant and that is what keeps them a slave to the system regardless of how much money they earn. So many people succumb to lifestyle inflation

[bjorn]

Of all the great videos you've done James, this one is the most thought-provoking. "You need to retire TO something" is a great way of looking at it; as a transition, not a threshold.

[truthseeker]

"You need to retire to something" wise words and something that a lot of people don't factor in when starting their retirement journey. It is critical.

[lxpkosd]

People are bonkers. Retire as soon as you can. Sell the house, downsize. Bank £500k. Don't spend £5k a month, be a bit more sensible! And yes - I retired at 50 by doing this. I'll tell you what success looks like - getting up and doing whatever you want without having to answer to anyone. Forget the holidays - you soon get bored of them anyway! If you really want to do something, maybe look at NED roles?

[chuckmurray]

Wow! James, this is right on point for me. I'm at that stage as well. I've already retired from 30 years in law and then went back to work full time in property management because I got bored and got an offer I couldn't turn down. Now I'm thinking that I need to cut back to about 16 to 20 hours of work a week with enough freedom to travel when I want to take a trip. I also need more time for the gym and a reduction in stress. I've been told by my current employer and one other that they want me to work with them as long as I want to work and in whatever capacity I choose so I'm going to put that to the test at the end of next year. I think I'm going to transition into full retirement slowly. I'm too active to just not do something productive but I don't want the level of obligation and stress I'm currently carrying. I think that as long as I have good health, I will want to work in some capacity. Also, the extra income will allow me to coast without taking deductions from my retirement account except for overseas travel.

I might be hitting you up again for good places to eat in my next trip to London.

[jocar-]

Not so much a financial advice video, but more of a be careful what you wish for in terms of a career video.
I decided that climbing the slippery career ladder beyond a certain point was just not worth it given the additional stress, higher levels of taxation and especially since the company I worked for stopped the DB pension scheme, so a higher salary would not be reflected every year in a pension at retirement.
I retired at age 55. Best decision I have ever made. You can't buy time.
If however, you enjoy your line of work and want to work as long as you can then carry on, that is your choice.