I thought it might be useful to outline, as I see it, the case for early retirement . This is partly on the back of conversations which I’ve had from curious friends, through to justifying it for myself.
None of us know how long we will live for
At 56 I am hopeful I will live for another 40 years, roughly. At least our financial projections are covering the next 40 years and even then we hope not to be too skint, broke or penniless as it will be nice to pass some money and assets to our children.
I have known many people through work who have retired at 65 and then died shortly afterwards. Almost as if their bodies can’t manage the dramatic change in lifestyles and give up in some way. Now I know that’s hardly a evidence-backed statement but even so, it makes you think.
The colleague who made the greatest impression in this way was Dave Clarke. He was a Senior Probation Officer of many years standing in Hertfordshire and at one point he was my line manager. He was a Christian and from time to time we would pray with each other, either during our lunch break or after the office had closed. He was a good man and I had the privilege of meeting his wife a few times and visiting his church. His thanksgiving service was very memorable and I’m pleased I went (I was on annual leave at the time). Dave had died shortly after he had retired and I know how he had longed for that time. Shortly before retiring he had treated himself to a Jaguar, a nice red one with beige leather seats and I remember how he proudly took me for a drive one day (we had the excuse of some Community Safety meeting to attend together). Alas he was to enjoy only a very short retirement, perhaps only for a few months and I remember feeling so sorry for him and his family when the news of his passing was shared at work.
On a different tack, the Office for National Statistics have a helpful page which touches on our life expectancy and here’s the link so you can calculate your own statistical life expectancy. Clearly there are so many variables, it can only be as a rough indication. Nevertheless here is what it says about me:
It says I can expect to live for another 29 years, until I am 85 years old. Naturally I do hope to live a longer life which is physically and mentally in good health. However from the ONS calculation, it looks like I only have a 10% chance of reaching 98, so there’s an incentive to take really good care of myself!
A healthy retirement
This is something I will undoubtedly blog about over time and naturally something we all would like. Not withstanding my current urology issues, I reckon I’m in very good shape. I hope therefore to be able to enjoy an active retirement.
The earlier we retire, the stronger the likelihood of enjoying a healthy retirement. Besides, retiring early allows us to improve our health:
- taking time to improve our nutrition, less rushing around eating junk food; eating wholesome natural food often takes more time to source, prepare and cook
- less stress is good for us. My Doctor once told me how increased stress over a sustained period of time lowers our immunity to certain cancers and other illnesses. So for me less stress = improved health
- more time for age-appropriate exercise. Once these urology issues have been solved, I am looking forward to seeing how fit I can be. I am hoping to regain the feeling of being a reasonable runner having been pleased with some results. Also I know I’m a terrible cyclist compared to a number of friends, I hope to be clocking up many more miles in the future out of sheer enjoyment
- more time for better sleep
- without becoming a member of the Worried Well Club, we can have time to monitor our own health more and spot things more easily
- have the time to improve our lifestyle more generally, in some ways this may address some of the damage done through careless living in the past
More time with people who matter
One of my big regrets is not always being a very good friend. This is often through being too busy, too preoccupied with my own life and agenda; this has led to me neglecting some friendships which have become more distant in recent years. Suddenly this makes me feel rather selfish.
So through early retirement, we have more time to spend with friends or keeping in touch with even good old-fashioned letter writing. We have time to nurture those friendships, establish new friendships and best of all, enjoy those life-long friendships even more.
It is not just about the relationship with friends, old or new. It is also about your immediate family as they should never be neglected. Being a father and a husband are the most responsible jobs in the world! We neglect these relationships at our peril. Seeing our daughters find their own way as young adults is lovely and I feel very privileged when they ask for my view on something. Even in these early days of retirement, my wife Rachel and I have spent more time with each other and this has been of real benefit.
Time to do all the retirement “things”
It is often said how a happy retirement includes travelling to see a bit more of the world and I must admit, I do have itchy feet. While I like to day-dream about far away exotic places, there is so much more to Great Britain than I have already seen and experienced; there is so much more to explore and see here in our own country.
Other retirement “things” seems to include learning new things, or so it is said. The benefits are keeping our minds active are considerable and therefore we are less likely to succumb to a mental decline.
Being able to give something back, to bless someone in some way seems to be easier now my early retirement is starting to sink in.
Stepping back from work has pros and cons
While it is true we have low unemployment rates in the UK and in Central Bedfordshire we are edging closer to full employment, I might question whether it is right to carry on working to 65, 66 or even to my state retirement age of 67.
Through giving up work, at whatever age, it often provides an opportunity for younger colleagues to be promoted and therefore it’s helpful to their own careers. If in times of financial pressures, taking early retirement may prevent someone else being made redundant. Reducing hours can also be helpful so the employer can still benefit from your experience and wisdom but a younger person maybe more productive, so the best of both worlds can often be achieved.
I have known many colleagues who have been able to retire and continue doing some form of consultancy or project-specific work. This again can be hugely beneficial for both sides.
So why should we retire at 65, 66, 67 or more?
Now I know personal finances can be a huge factor. The reality for many is a mortgage which will last beyond normal retirement age. The thought of something like that is really depressing!
And yet, careful planning, being economical and being disciplined in managing your own money can prevent the need for endless working. Why should we all continuously aspire to bigger houses, flashier cars and more consumerism? No reason at all. Surely providing we have sufficient, why be greedy to accumulate more than we really need?
Now I know some FIRE folk are seriously rich and “well done” to them. We, on the other hand, are ordinary people. Many times we could have extended our borrowing and bought bigger houses, or even additional houses and yet it seemed other things were always more important (our children’s education, our well-being, being able to give to others and so on). This all adds to what we see as the compelling case for retiring early – planning ahead, avoiding consumerism, paying off a mortgage as soon as you can, we cannot assume we will live far beyond a “normal” retirement age, especially if our work is pressured or we find adapting to retired life difficult. Naturally I am hopelessly optimistic about the future, I’m sure that makes a real difference!
Post script – money, pensions and so on
Our future finances were an important factor in taking the decision to retire early.
Although we are not particularly wealthy and we have no debts, we had come to realise we were well placed in terms of our pensions when we reach our normal retirement age – for me that is in 12 years time when I’m 67. If I were to continue working our income would be higher than it was while I was working, even allowing for inflation. In reality is more than we would need, since we have no ambitions to live an extravagant life. It seemed more important to live modestly and enjoy a longer retirement, albeit with a slightly reduced income.