ordinary and oddinary

I write therefore I exist.

Earlier retirement

These days I think a lot about early retirement. I’ve already made my mind up to retire (at least) in 12 years time, in my late 40s, but I’m inclined to (well, would love to) do it in half the planned time. The timing of 12 years was prescribed on the basis that my mortgage and the corresponding endowment policy would mature in such time. Also my Spanish mortgage, which is a capital repayment, will be nearly cleared off as I’m overpaying it every month.

When I reach my pensionable age 60, I’m entitled to receiving approximately £550 per month from the government (at the current rate). It will double when Mark reaches 65. Therefore, when we both are pensionable age, we will receive about £1,100 (or worth by then) per month. I think it’s good. As Mark and I have a private pension each, I’m pretty sure they will sum it up nicely by the time we retire. Therefore I’m not particularly concerned about our finance after 60.

However, my desire is to retire well before this time. Every day I feel what matters to me is the time, the ‘youthful time’ left for me. I need enough money to be able to enjoy my time and I feel compelled to find the balancing line between both.

In conclusion, I need a monthly disposable income of £2,000 to enjoy life provided that I’ve got no major liabilities, i.e., mortgages. One thing to point out is that I don’t mean to stop working altogether. I would like to find something, which is something I can be of help to others, and do it with my full heart in, not for the money. Once I’m financially stable, I won’t need to even get paid. Unless you are born a saint, I don’t believe you can be truly charitable to others at the expense of your own poverty.

Let’s say that I can get £2,000 as a 5% interest of my savings every month. It means I will have to have almost half a million £ in my account. (Here I’m not considering amortising the capital.) However, this income will not be sufficient to cover my mortgages and living costs if I shall retire in 6 years time. So my revised plan is to retire in 10 years time. I will have to save at least half of our joint income to realise this dream. Well, I’ve already consulted with Mark, so it’s our dream!

Of course there are many variables, either positive or negative, hence it could be silly to set out the retirement plan like that.

Don’t get me wrong though. I have no intention of sacrificing the present for the future either. I’ve allocated even a larger portion of budget for our lifestyle enhancement. We will travel more and experience more this year. We’ve taken all bank holidays off together already. Depending on Mark’s scan result next week, we’re going to Marrakech, Madeira, London and many more.

….I must admit the biggest and the most scary variable is Mark’s ongoing health.


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