Possible to retire at 50?

[Premos]

I would think about how you plan to reduce your outgoings to 55k as you currently have incomes that are substantially higher and as you said, no further savings. We do currently spend 55k with 3 adults and 1 teenager, by choice. However, while our level if expensiture is high in some areas, it's fairly low in others.

 

[ArthurMcB]

In all liklihood they would probably wind down from 50, take a phased approach, rathen than it being a cliff edge moment.

 

[S class]

I wonder can a different class prsi be paid somehow, through arf drawdown maybe?

5k annual ARF drawdowns, up to age 70, will give you 52 reckonable class S contributions per year. If you also have investment or rental income a combined total of these plus an ARF, of 5k will get you the Reckonable credits. (For example ARF drawdown 2k plus bank deposit interest of 3k.)

You can also make voluntary contributions, up to age 70. These could be based on previous class A or class S employment.

You could also sign on for Jobseekers credits for maximum 10 years, up to age 66. These can assist you to get BP65.

 

[Fibbernacci]

This is similar enough to my profile (except I'm 45)and I calculated that I could have a pared back but doable retirement from 52 but a comfortable retirement from 55.

ChatGPT agreed. You should punch in all your information there.

I think you're on track. I know some folks have said its difficult to have that low number coming in but the tax system is such that it's bad value to draw down higher numbers anyway so I think there's plenty there once the spouse is contributing her bit. I think your number is probably around 1.3m or so. Obviously you want to go at 50 but with compound interest just kicking off it feels like just a few more years would get you an amazing TFLS to work with. You're in a great position but if it were me I'd go 2 more years.

 

[ArthurMcB]

@Fibbernacci thank you. Yes i put it into meta AI and used a few different assumption and it seemed feasible. We re also using a conservative growth rate of 3.75% from now until death and it still seems to be ok.

Big things in their favour is ability to get two full state pensions but, of course, the risk there is policy change. Also, the fact they can max pension to age threshold but again risk there is job security etc but i think thats in their control to an extent.

As a poster above has alluded to - its not that 50 is the absolute target, its more so to asses, based on projections/assumptions, how likely is it that they can (if want to) retire at 50.

Other main risk to this plan is pension performance...

 

[bkenn14]

As you say there is a major risk to your plan pension performance, There is also the risk long that pension performance getting surcharged
I suspect sometime in the future we will need to slow down non necessary consumption to stop the world from heating up,could happen sooner than you think
We see how trump tariffs effected our pension pot
may not be in the world best interest long term to allow stocks and shares to increase at the same rate as the have for the last 100 years,
The other thing can the world long term cope with people in collage to mid late twenties expecting to retire in there early fifties, again we could see action taken sooner than you think, labour or worker shortages may tilt tax policy, simple term
Socially necessary labor requirements to service early retirement will sooner or later drive policy decisions,
At present Goverment policy is to give tax relief and wait until retirement to get some of it back is a catch 22 situation
early retirement gets some tax back early but they are down labor output,

If you look around other web sites and Askaboutmoney you will already see resentment towards people who retired after spending 40 to 50 years in the work force which provided the services that gave them a better start in life the fear is this resentment will move to the early retirees,

 

[joe sod]

The wife would retire at age 60, ten years after the main poster retires at age 50.

that wouldn't be great for matrimonial harmony, the wife going to work everyday while you can stay at home? unless she is one of those public servants that gets to work from home possibly but that could be substantially different in a decade or so

 

[ArthurMcB]

that wouldn't be great for matrimonial harmony, the wife going to work everyday while you can stay at home?

You woukd think that but in their case its seemingly ok.

Reality is early retire may mean phased retire up to 55 or something else. Wife may retire earlier than 60. Nothing set in stone, just exploring possibilities.