Fast forward to the present and I find myself endlessly thinking about and working out how much money I need to be able to afford to retire. And I think I've finally come up with a solid plan!
I've poured over this year's income and out goings. I've identified the areas of over spending 😳, areas I can cut back on and things that simply won't apply if I'm not working. I know exactly how much money I have/need to live on now and if I'm retired. If I can save enough money over the next 4 years I should have enough to retire at 60. I can live on those savings plus my teaching pension (available to me from age 55) until I collect my state pension at 67. If I work and save for the next 4 years I'm also adding to my pension pots at the same time.
I'm setting myself a target of saving £10k a year for the next 4 years (see what I did there? 😉 ) It means being really frugal and going back to basics. I'm planning a no spend year, only buying the barest of essentials. I still have a little inheritance money left which will be my Emergency Fund (as you never know what might happen) but I won't use any of that. I currently have just over £1500 in my savings account so that gives me a start.
2020 and 2021 were years we all survived and I suspect 2022 will be the same. But I want to also thrive. So I've decided my goals for next year will be Survive and Thrive! I've added them to the side bar and changed the blurb in the 'Why 40kin4years?' at the top.
It'll be a huge challenge (I'm under no illusions!) but I'm feeling inspired already. It feels good to have a solid plan in place and goals to work towards again 😊
A firm and positive challenge is a really good motivator, isn't it? It sounds excellent.
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Thanks! Retirement in sight is an excellent motivator!
DeleteI love a plan, a focus, 🤞🤞🤞 but I'm sure you can do it.
ReplyDeleteI think the alternative of teaching into my 60s is giving me a clear focus!!
DeleteWhen I was working we could put extra into our work pension via AVC's. It's effectively tax free saving. A friend of mine who is much more financially savvy than I am threw as much as was allowed into his pension in the couple of years before retiring and it boosted his pot hugely. It might be worth having a look at that too if it's still available?
ReplyDeleteIt sounds like you have a good plan. I'm sure you'll succeed! Happy New Year. x
Thanks! It's too late for AVCs to make much of a difference now, I did get financial advice on that a few years ago. I'm confident with some hard work I'll succeed :-)
DeleteIt's amazing how much it costs to go out to work - you just don't spend as much retired as you do working - I did the same as you're planning to do and finished work at 59, your works pension won't be as much as if you'd worked those extra years, but when you weigh it all up, it's worth being at home and not having that awful feeling every Sunday night because you've got to go into work the next day
ReplyDelete- Good Luck - you can do it xx
Thanks! That Sunday night feeling is not too bad so far but I've been told I'll know when it's time to stop. If I prepare now I'll be ready, I hope!!
DeleteBest foot forward and all that. x
ReplyDeleteThanks! Positive thinking and all that too :-)
DeleteI'd always planned to retire at 60, that's when I get my pension from my old job. But... having started my dream part-time job this year I can say now that I don't mind the idea of carrying on indefinitely. 3 mornings a week is fine and will top up my income in retirement.
ReplyDeleteSo happy to read that you have a plan that seems realistic, and neatly makes the name of your blog relevant for a second time :)
As long as you are enjoying life, that's all that matters.
Aww, thank you! After a couple of personal shaky years I am definitely enjoying life. I'm not ruling out working, just retiring from full time teaching :-)
DeleteI think it's good to have a clear plan and know what your working towards. Husband was offered the chance of redundancy at 54 and it was too good a deal to pass on and he could take his bank pension at 55 so now we live off a pension and two part time jobs and our quality of life is great. We are able to be much more involved with our Daughters school lives and help them and there is always one of us at home when they get in from school.
ReplyDeleteIt feels good to know what I'm working towards at last. I've been drifting a bit recently and it's been unsettling. How brilliant you were able to work around your daughters and have a better quality of life :-)
DeleteI always find that goals are something that I need to thrive. You have a plan and I am very sure you will make things work out.
ReplyDeleteGod bless.
Thanks! I will work really hard to make it work out :-)
DeleteGood luck with you goal, as a matter of interest we had a day out in Edinburgh yesterday for the pricey sum of thirty pence, a trip to the toilet. We took the bus, free as we are pensioners, no problem with parking, we did intend to have lunch out at the Christmas market but at £8 for a German sausage or little frozen style pizza we declined.
ReplyDeleteThanks! 30p?? That's brilliant esp when you compare it to my son's day out in Edinburgh a few weeks ago!!!! £8 for sausage or pizza is just daylight robbery!!
DeleteGood luck with your future plans x
ReplyDeleteThanks! :-)
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