Which aspect of financial independence appeals to you the most: having the freedom to retire early or having the choice to continue working if you enjoy it? Share your thoughts in the comments below!
I work in IT and never enjoy it. The money is fairly good but there is always pressure and stress. I only do it for the money - my ideal job would be to work in a library or a bookshop. I can't wait to retire!
Im 63 and have,always been brought up on the school/work/buy a house/retire (enjoy yourself)/die way of thinking too but ive now realised i don't ever have to retire if i don't want to and ive decided i dont. I adore my job and im going to keep working as long as i stoll love it. It keeps me engaged, healthy and happy. Thank you so much for this video 😊
Me, I’m scared stiff of dying early without having fulfilled my dreams, so I’m ‘retiring’ now, aged 54 and I’ve bought a yacht. My wife and I are going to sail in the summers and work in the winters, even if it’s just minimum wage jobs. That’ll do.
Great video! I’m 57, financially independent, paid off mortgage at 45 and saved and scrimped to be retired by 55. Just can’t do it! Cannot change lifetime habits, but do enjoy extended holidays and loving life😁😁
I'm 55 and stopped working age 51. I have 5-6 nature recovery projects in the area where I live and a couple of community ones. During the 25 years or so it took me to become financially independent, i didn't give one thought to what kind of life i wanted to lead. Once i achieved it, it took about 18 months to get in the groove and figure out how i wanted to allocate my time.
I'm working on retiring at 55. I've got 7 years left. It won't be easy but that's the goal. I suppose honestly the goal is to have the option to retire but I honestly believe that unless your job is stress free, it is slowly killing you and time is everything.
There's so much more to life than just going to work. If it's something you enjoy then that's great. I think its a shame that you have to wait until you're retired before you can live the life you really want. I'm now ready to step into the life I've wanted for many years and I know it will serve me well going forward.
To me retirement is retiring from the workplace. It does not necessarily mean you are not working, you can still be working for yourself rather than an employer.
My dad is 80 and a characteed surveyor running his own little business in the lake district. Mum is a retired teacher and a bit younger, but they run the business together going out and doing 1 or maximum 2 surveys a week. It keeps them busy, and although he doesn't need the money, but it keeps him going both mentally and physically. I hope to set up my own surveying business and do the same, working under the VAT threshold as I would be mostly working with individuals and allowing around 100-125 working days throughout the year before I hit the £85k limit. Working for someone else isn't great.
I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
@@tatianastarcic Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
At almost 59 I'm also struggling with the concept of retirement. I'm in a well paid job in IT/electronics industry and planned to retire at 60 or so, yet last year I didn't feel ready to take a decent package that was offered. Contrastingly, a close former colleague left work in summer 2022 & after only 9 months off has already found contract work again (abroad!) as he's somewhat lost without the challenge and structure. Despite my previous thoughts of walking away from regular work I've come to the conclusion that I'm not ready to retire mentally as I don't have concrete enough post work plans, despite having many hobbies including being a very active musician. I'm also concerned about having to live off (say) £30k or so when I spend a fair bit more than that today. Once the taps are off, it isn't so easy to turn them back on again.....but perhaps the bigger issue is the psychological one..?
That’s me 100% - 59yrs - lots of hobbies, friends, sport, retired friends etc. Hoping to pack it in next year at 60yrs. Still not quite mentally there - but a demanding well paid job (big 4 consulting) which is (I think) gently and not so gently sending signals it’s time to step down….Probably the push I need
I talk to my kids (aged 22 and 17) all the time about investing now so that by the time they get to my age (59) they’ll be financially independent and be able to make choices. I’m not sure how hard they listen though. I think it’s difficult for young people to recognise themselves in 30-40 years. Do any of us at that age? I certainly didn’t! Combine that with the fact that they’re not taught any of this stuff and it’s easy to why so few save or invest anything until much later in life The thing is, the earlier someone starts the easier it is. Leave it too late and it’s easy to think “what’s the point? Great video as always Pete. Especially loved the bit we’re you said “58 was young” 😉
The key is building and executing on a plan so YOU choose to retire or not. Financial freedom give you that choice. We don't know what tomorrow brings, but the worse case scenario is having to work in old age because its the only way of keeping a roof over your head and food on the table. For some that's a reality with little choice, but for most people with planning and some sacrifice it does not need to be that way.
I retired at 41 but would not recommend it unless ( like me ) you have plenty of hobbies and enough money to enjoy yourself. Personally I'm now looking to get back into work because 1 I have exausted my hobby interests 2 I'm now starting to struggle to see how I can stay on front of inflation and the money won't last. 3 I actually miss the social side of working anyway. However I won't take on work that I don't enjoy , just pick and choose as it's not essential money but just a top up here and there.
Interesting piece. It would be interesting to revisit this in say 10 years time and see if you still feel the same. So much can change - and health and happiness generally come before wealth, but wealth can smooth certain passages. I know of someone who delayed reitrement (in the normal sense of the word) after spending the last few years of his working life doing little but working out how he could maximize his pension only to suffer a heart attack 18 months post retirement. He's just out of hospital after 3 months and given his physical state and limitations he'll never be able to enjoy the retirement he thpught he would have. Life can throw some curve balls at you. Enjoyment in whatever you do is the key I feel - be that work or soemthing else.
I didn't plan my retirement, more it just happened due to realising I had reached 'enough' financial independence and my workplace making it more difficult for people of my age and gender to secure decent roles in the changing workplace...so I walked. I now have choice, and time to focus on health and family which were both neglected whilst full on at work. The biggest lesson for me is you cannot guarantee your health as you grow older so be careful to avoid the trap that everything will be rosy later in life when you are no longer working!
Passive income allows you to retire without fear 🙏🏻 So much more to life than work, underneath the need to work or desire is greed and fear. Just my take on it
I can't imagine a day when I won't want to do some work as I love the social side of my job. I love the fact that my customers need and want me and that they are grateful for my service, I clean posh houses. My time is my own and my work enjoyable to me so I envisage a time when I might like to cut back and have more time to myself and lean in to my savings and investments more. The thought of stopping all together just doesn't appeal to me but my husband can't wait! Vive la difference.
Meaningful money is a superb channel!! I recently found myself feeling I needed some financial advise, so reached out to Jacksons Weaith management (Pete’s company). I was gobsmacked when Pete called me! We had a great chat and he gave me fantastic advice! Thank you for your time Pete and thank you for UA-cam videos and your podcasts!
I am close to hitting my FI number. I don’t derive any satisfaction or fulfilment from my corporate-drone job, & the commuting is hellish. I do like the idea of working on my own terms for at least a few more years, but I’m struggling to think of a realistic way to turn my very niche, subject matter expertise into an independent business. Until a few years ago, there was a thriving contract market that enabled people like myself to work for a few months at a time. Unfortunately IR35 has destroyed that market. I’ve started searching for NED positions, my skillset should be very relevant to Boards, but it’s tough to get a toe through the door without the right contacts.
Nice one Pete. I tend to agree with your view on not stopping working, but for me it absolutely depends on your job. Some people hate it, and others enjoy their work.
Very thoughtful video, I am fortunate enough to be in a position "take my pot" and no longer work, but working is a means of a reason to get up in the morning, serve your customers, and keep your mind sharp, like you Pete, cannot imagine giving it up just yet, (I'm 62 this year) Cheers
I am 62 as well. I have a part-time 'day job' plus I am a personal trainer and I manage a gym. I am retiring from the 'day job' next year but am continuing to do personal training and manage the gym. Fitness is a passion and hobby so it's great that I can still work and earn doing my hobby.
Another great video, I agree with your philosophy. It is not about retirement, IMO it’s about having the control to decide your own destiny. From a young age I have always saved, even when unemployed and on the dole in the 80's, with the ambition that when I was 50 I would not be at the beck and call of others and I could make my own decision whether I worked or did not. Fortunately, through planning and research, I achieved my objective. Keep up the good work with the videos and content.
I really hope I can work until the end, in some fashion. I really love what I do. And some of my mentors are much older than me, yet still work. My best example is in an ex-CFO that consults with us once a month. He limits his hours to 40 per month and he follows his other passions outside of that. My grandfather also worked until he couldn't anymore. He "retired" from both the Navy and then later from the FAA. He started a few businesses in there, but when he wanted to shrink it all down, he started a one person aviation consulting firm. When he wasn't doing that, he'd spend most of his time out in his massive garden and on his grounds growing everything from watermelons to flowers. He never truly stopped working everyday. I hope to emulate that. Those type of people seem happy.
Very interesting Pete, I'm rapidly approaching retirement age and my feelings on retirement were the same as yours until quite recently, i.e. I enjoy the stimulation of work and the satisfaction of helping my clients. What's changed? Well grandchildren for one thing, I now have four and while I don't intend to spend all of my spare time looking after them, there's definitely a small window when I can enjoy them one to one at a beautiful age before they're on the school treadmill. And then there's my interests and hobbies and in all honesty, fit as I consider myself to be, a little less energy to do it all as I get older! It's shaping up as a trade off and a decision to make, yes I enjoy work (and the income) but do I enjoy/value it as much as those other things? Especially at this time of year, when I'd rather be outdoors than sitting at a computer!
I refuse to worry about retirement, my philosophy is essentially "what will be, will be". Save what you can in an efficient way, be that pension/ISA/tracker funds etc, and then when you're ready to lay down the tools you simply have cut your cloth according to your means.
Im in my late 30's and I feel lucky that Ive managed to save for a house and I have two young children and have hopefully listen to Pete enough to put myself in a good position, but given that lots of companies were not giving there employees pension contributions until 2012, the high cost of rent and housing resulting in people pushing pension saving further down the list of commitments and the high cost of child care. Although it is possible to save for retirement I can easily see how this could result in younger people having little in pension savings and struggling to save at all. I guess we shall see how the above will effect retirement in 30 odd years time.
You are lucky to both enjoy AND be interested in what you do, plus you have something in which you have real personal vested interest. Fair play to you tbf, but for those whose work is a means to build for the future, then in my mind the biggest psychological challenge (irrespective of what my IFA says about my wealth), is the switch from salting away to spending my own money…..how do I get my head around that conundrum? Great channel btw…
Great stuff! Trouble is, I've worked for myself for 23 years and am now 67. Receiving state pension and pension from previous employer. Still working 'cos I enjoy it! Paying too much tax. But then I suppose that is life! My personal pension (Scottish Widows) is rubbish. Not sure what to do for the future?
I have really mixed feeling about it all. I am 42, and there's part of me that can't wait to not work but there's another part of me that is worried about what I might become without the structure of a working week to cling onto. I also stress about never being able to afford to retire, I put away probably 80% of my earnings towards my retirement and yet I never seem to build much wealth (I actually save over £40k a year but it feels like all investment avenues are down). There's a big part of me that thinks I'm sacrificing a really really good life now for the promise of an amazing life later that seems to just get further and further away.
Honestly, live for now. Your health cannot be predicted or saved for so don't bank on being healthy later in life as anything can happen. Enjoy your 40's and stop fretting about your 'retirement years'....that's my advice
Great video which I. definitely resonate with and I am a (fortunately) healthy 65 year old "semi-retired" CA and FCISI still working out my life plan with a mindset of living life to the full when you can!
I am 5-8 years from retirement. I am looking to build a side hustle that I can transition to in order to stay engaged. Money will be much less important than fulfillment. You seem to have the perfect situation with a option to continue what you are good at and can select the degree to which you want to stay busy…
Pete this is so true and interesting. I think the basic advice you have given before and no doubt in your building wealth ..spend less than you earn, stocks and shares have outperformed cash so invest for the long term etc etc are foundations. But also thinking through ones values and what financial independence really means to one is critical. Not forgetting to enjoy life along the way. I love that you are thinking of what legacy you wish to leave with your company... Riverford style new thinking!
Employment, especially in a corporate role naturally leads to a retirement pathway. Self employment favours a phased steping back. I 'retire' from the day job next month at 56 but will be working on projects and p/t engagements for the foreseeable. More to stay physically and mentally active than anything else.
I am doing something similar. Next year I retire from the day job but will continue to be a personal trainer (yes at aged 62!) and managing a small gym part-time. This is a hobby for which I get paid.
I'm going to be 55 in a few months. I'll have access to my pensions. At that point I'm really fortunate that I'll be financially independent and have more than enough wealth to never have to work again. HOWEVER I'm not in a position to do this just yet. I've recently just come out of a long term relationship and the thought of not working and having nobody to share time/money/experiences with fills me with dread. I'll continue working and hopefully at some point I meet someone who shares my vision of cutting down on work and travelling. The money means nothing if you can't fill your days and share your life with a like-minded partner. Some people are happy doing this on their own, but if you're not one of these people, then you need to tread very carefully.
The state pension certainly needs reform, but I'd be careful about further extending the state retirement age. I live in an area where people aren't living longer - the Glasgow effect is real. When we increase the state retirement age based on life expectancy in the south of England, for me that just means more people in my area will contribute to the state pension but will die before they get a chance to claim it. This hardly seems fair. You and I (I'm a software developer) may well decide to work beyond state retirement age, but not everyone has the luxury of that choice. My father couldn't work after his mid-fifties due to health issues (due to the heavy manual work he did), so he had to claim invalidity benefit until he reached sixty-five and got the state pension. I'm sure there are others in the same situation even in the modern age. My main concern, now, is that my pension fund will fall just before I expect to retire. There seems to be no safe place to put your pension fund - my current fund is in a "lifestyle" tracker, so I lost a fair bit while Liz Truss was Prime Minister, because of the percentage of the fund invested in "safer" bonds.
Retiring gradually is a great way to do things. It gives time to develop friendships and interests outside of work, and enjoy life outside of work also. Finally stopping - should you wish to finally stop- is then much easier. Planning for your children and grandchildren (if any) is worth thinking about, as well as planning for your partner/spouse after your own demise. Having work that you enjoy makes a huge difference and should be your goal at every stage
A lot of people do jobs they love though, and they never wanna stop - creatives, artists, producers, all sorts of people. I think finding your passion and talents are absolutely KEY cause otherwise, whats the point of just grinding for nothing?
my current plan if i can keep it up means ill retire at 73 and sadly where i live theres not much chance of more money or a better job, anyone above me is set for life and only slightly older than me all the way up the chain and dont plan to move on. id love to retire now on my current lifestyle id never get bored.
I have 110K in the Fidelity Index World fund and 30K in iShares Emerging Markets with HL. Should I be concerned / diversify more as I’m only protected up to 85K under FSCS? Here’s a video idea!
In my opinion You don’t need that protection - your £ is tied up with the individual diversified funds (not service co) each with many individual co shares. Protection IS the diversification.
This is such a great message Pete. As someone who has just bought a house and experienced the challenges of house prices for those around my age and younger. I'm always keen to reinforce that every generation has their own opportunities. While there are some parts of life, house prices, pension provisions etc where those younger now have it tougher than previous generations. In general, there are many, many more advantages and that should embraced. It's never been easier to learn, change careers and to get your message out to others. 8% of assets can pay for a lot of plastic surgery by the way.... 🕵👀 (Joking of course)
Watching my friends i would say the No1 reason they cant retire early is doen to the cash they keep blowing on cars ever few years. Me, well, i drive a sensible car for as long as it runs. Its saved me 10s of thousands.
I have to agree, the days of retirement being a cliff are gone for most people, nevermind the statistics on life expectancy for people who totally stop working, and die after only a few years.
Hi Pete, Have you ever advised on retiring abroad? It's occurred to me that I can take my modest retirement savings and live like a millionaire in another country, where the cost of living is much, much lower than here in the UK.
If not retirement to another country, extended 'holidays' must be a thing that you've seen? For instance it must be possible to rent somewhere abroad and live for six months of the year for much less than the cost of living in the UK? And even be in 'profit' at the end of the six months? Maybe most people are too tied to their home country?
I like the idea of being able to go 'mostly retired' and work almost seasonally, when it suits me, and not to need to earn a regular income. Do something perhaps which is more of a paid hobby and not to care about the hourly rate.
Fair play Pete, your desire to leave a legacy business is a super one. Different for us Corporate slaves wishing their life away to retirement. I am luckily pulling stumps next year as I tick over to 55 after 39 years none stop work for the same PLC. The idea of doing what I want is so exciting and luckily a very well timed final salary pension exit will make it all possible.
There is no need to worry about life expectancy and pension benefits. On the current trajectory with falling life expectancy and rising pension age, most young people today will be dead before reaching pension age.
I think it's useful not to be relying overly on the state pension but try to save and invest independently anyway. Taking control as much as one can. Of course the pension is important but there are other avenues to get financial independence
Who the HELL doesn't want to have fun their ENTIRE lives? Grinding away until death? This isn't the way to live life, nor is it a self actualised life full of memories, vitality, talent, creativity etc. Look at how many incredible actors, producers, songwriters, musicians, designers etc exist. They don't fit the mould of this outdated system, at all. Its just old lies we were taught at school and everyone is waking up to the fact it is not the right way to live life at ALL.
I agree that stopping altogether is daft. If you hate work that much then you chose the wrong career. Anyway I think that "retirement" (not doing paid work to pay the bills) is not always a choice, sometimes you physically ot mentally cannot continue working till you drop. That's the reality.
I don't consider myself 'daft' for stopping altogether. I value the time I have now - my time - and the things I can do in that time. The point is - there are many options - and it's up to each individual. I can't think of anyone I know who has made a 'daft' option.
I loved my work too. But I suspect you and I are a minority. And I still reached the point where I just didn’t want to do it any more. A bit older, a bit less able to cast off the bad bits and deal with the stresses (which affects performance as well as emotional resilience). And I had plenty of other exciting things to do with the time I freed up.
Working part time is great. Have had several part time jobs for many years. At times I may do more hours total than in a full time job, and at other times I may do much less. Today is a bank holiday Monday in the UK, but all Mondays for me are like that... but I am up at 05:30 tomorrow as I going to work.
Part time since January; a trial to see if I can comfortably live on half my wage, reduced tax, reduced stress, reduced time in work, I can handle that. My wife is disabled due to MS hence the reason for trying part time at 55. Hopefully I will retire soon although the part time I do seems to keep the wolf from the door.
Pete, sorry if I am being dim, why did you say minimum age 58? I thought it was 55 although I see NMPA is going up to 57 but may be protected if you already had pension invested pre 2021? Great videos by the way!!!
Which aspect of financial independence appeals to you the most: having the freedom to retire early or having the choice to continue working if you enjoy it? Share your thoughts in the comments below!
I work in IT and never enjoy it. The money is fairly good but there is always pressure and stress. I only do it for the money - my ideal job would be to work in a library or a bookshop. I can't wait to retire!
There are millions like you.
Im 63 and have,always been brought up on the school/work/buy a house/retire (enjoy yourself)/die way of thinking too but ive now realised i don't ever have to retire if i don't want to and ive decided i dont. I adore my job and im going to keep working as long as i stoll love it. It keeps me engaged, healthy and happy. Thank you so much for this video 😊
Me, I’m scared stiff of dying early without having fulfilled my dreams, so I’m ‘retiring’ now, aged 54 and I’ve bought a yacht. My wife and I are going to sail in the summers and work in the winters, even if it’s just minimum wage jobs. That’ll do.
Perfect, Warren!
We have done exactly the same as you,
except we started when I was 50 am now 62 😀
@@terrywatson980 I am guessing that’s worked out pretty well for you! (So you recommend the plan?)
@@warrenthorp No!! Always Follow your own plan not somebody else's? 👍
@@terrywatson980 it didn’t work out well for you? I am sorry. (Nevertheless I think I will stick with the plan)
Great video! I’m 57, financially independent, paid off mortgage at 45 and saved and scrimped to be retired by 55. Just can’t do it! Cannot change lifetime habits, but do enjoy extended holidays and loving life😁😁
I'm 55 and stopped working age 51. I have 5-6 nature recovery projects in the area where I live and a couple of community ones.
During the 25 years or so it took me to become financially independent, i didn't give one thought to what kind of life i wanted to lead. Once i achieved it, it took about 18 months to get in the groove and figure out how i wanted to allocate my time.
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐
I'm working on retiring at 55. I've got 7 years left. It won't be easy but that's the goal. I suppose honestly the goal is to have the option to retire but I honestly believe that unless your job is stress free, it is slowly killing you and time is everything.
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐
There's so much more to life than just going to work. If it's something you enjoy then that's great. I think its a shame that you have to wait until you're retired before you can live the life you really want. I'm now ready to step into the life I've wanted for many years and I know it will serve me well going forward.
To me retirement is retiring from the workplace. It does not necessarily mean you are not working, you can still be working for yourself rather than an employer.
My dad is 80 and a characteed surveyor running his own little business in the lake district. Mum is a retired teacher and a bit younger, but they run the business together going out and doing 1 or maximum 2 surveys a week. It keeps them busy, and although he doesn't need the money, but it keeps him going both mentally and physically. I hope to set up my own surveying business and do the same, working under the VAT threshold as I would be mostly working with individuals and allowing around 100-125 working days throughout the year before I hit the £85k limit. Working for someone else isn't great.
I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
@@tatianastarcic Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Im going to start working again , just to get that feeling of retiring again 😊
At almost 59 I'm also struggling with the concept of retirement. I'm in a well paid job in IT/electronics industry and planned to retire at 60 or so, yet last year I didn't feel ready to take a decent package that was offered. Contrastingly, a close former colleague left work in summer 2022 & after only 9 months off has already found contract work again (abroad!) as he's somewhat lost without the challenge and structure.
Despite my previous thoughts of walking away from regular work I've come to the conclusion that I'm not ready to retire mentally as I don't have concrete enough post work plans, despite having many hobbies including being a very active musician. I'm also concerned about having to live off (say) £30k or so when I spend a fair bit more than that today. Once the taps are off, it isn't so easy to turn them back on again.....but perhaps the bigger issue is the psychological one..?
That’s me 100% - 59yrs - lots of hobbies, friends, sport, retired friends etc. Hoping to pack it in next year at 60yrs. Still not quite mentally there - but a demanding well paid job (big 4 consulting) which is (I think) gently and not so gently sending signals it’s time to step down….Probably the push I need
You nailed it. I have hit FI. 100 k pension, 2.5 million net worth. But I get a lot of purpose/pleasure out of my job.
I talk to my kids (aged 22 and 17) all the time about investing now so that by the time they get to my age (59) they’ll be financially independent and be able to make choices. I’m not sure how hard they listen though. I think it’s difficult for young people to recognise themselves in 30-40 years. Do any of us at that age? I certainly didn’t!
Combine that with the fact that they’re not taught any of this stuff and it’s easy to why so few save or invest anything until much later in life
The thing is, the earlier someone starts the easier it is. Leave it too late and it’s easy to think “what’s the point?
Great video as always Pete. Especially loved the bit we’re you said “58 was young” 😉
The key is building and executing on a plan so YOU choose to retire or not. Financial freedom give you that choice.
We don't know what tomorrow brings, but the worse case scenario is having to work in old age because its the only way of keeping a roof over your head and food on the table. For some that's a reality with little choice, but for most people with planning and some sacrifice it does not need to be that way.
I retired at 41 but would not recommend it unless ( like me ) you have plenty of hobbies and enough money to enjoy yourself.
Personally I'm now looking to get back into work because
1 I have exausted my hobby interests
2 I'm now starting to struggle to see how I can stay on front of inflation and the money won't last.
3 I actually miss the social side of working anyway.
However I won't take on work that I don't enjoy , just pick and choose as it's not essential money but just a top up here and there.
Interesting piece. It would be interesting to revisit this in say 10 years time and see if you still feel the same. So much can change - and health and happiness generally come before wealth, but wealth can smooth certain passages. I know of someone who delayed reitrement (in the normal sense of the word) after spending the last few years of his working life doing little but working out how he could maximize his pension only to suffer a heart attack 18 months post retirement. He's just out of hospital after 3 months and given his physical state and limitations he'll never be able to enjoy the retirement he thpught he would have. Life can throw some curve balls at you. Enjoyment in whatever you do is the key I feel - be that work or soemthing else.
I didn't plan my retirement, more it just happened due to realising I had reached 'enough' financial independence and my workplace making it more difficult for people of my age and gender to secure decent roles in the changing workplace...so I walked. I now have choice, and time to focus on health and family which were both neglected whilst full on at work. The biggest lesson for me is you cannot guarantee your health as you grow older so be careful to avoid the trap that everything will be rosy later in life when you are no longer working!
Passive income allows you to retire without fear 🙏🏻
So much more to life than work, underneath the need to work or desire is greed and fear.
Just my take on it
I can't imagine a day when I won't want to do some work as I love the social side of my job. I love the fact that my customers need and want me and that they are grateful for my service, I clean posh houses. My time is my own and my work enjoyable to me so I envisage a time when I might like to cut back and have more time to myself and lean in to my savings and investments more. The thought of stopping all together just doesn't appeal to me but my husband can't wait! Vive la difference.
Meaningful money is a superb channel!!
I recently found myself feeling I needed some financial advise, so reached out to Jacksons Weaith management (Pete’s company). I was gobsmacked when Pete called me! We had a great chat and he gave me fantastic advice! Thank you for your time Pete and thank you for UA-cam videos and your podcasts!
Thank you Phil! Good luck for the future!
I am close to hitting my FI number. I don’t derive any satisfaction or fulfilment from my corporate-drone job, & the commuting is hellish. I do like the idea of working on my own terms for at least a few more years, but I’m struggling to think of a realistic way to turn my very niche, subject matter expertise into an independent business. Until a few years ago, there was a thriving contract market that enabled people like myself to work for a few months at a time. Unfortunately IR35 has destroyed that market. I’ve started searching for NED positions, my skillset should be very relevant to Boards, but it’s tough to get a toe through the door without the right contacts.
Nice one Pete. I tend to agree with your view on not stopping working, but for me it absolutely depends on your job. Some people hate it, and others enjoy their work.
Very thoughtful video, I am fortunate enough to be in a position "take my pot" and no longer work, but working is a means of a reason to get up in the morning, serve your customers, and keep your mind sharp, like you Pete, cannot imagine giving it up just yet, (I'm 62 this year) Cheers
I am 62 as well. I have a part-time 'day job' plus I am a personal trainer and I manage a gym. I am retiring from the 'day job' next year but am continuing to do personal training and manage the gym. Fitness is a passion and hobby so it's great that I can still work and earn doing my hobby.
@@Oggiesilverfitness Good man, no reason to retire if your happy doing what you are happy doing, All the best!
Another great video, I agree with your philosophy. It is not about retirement, IMO it’s about having the control to decide your own destiny. From a young age I have always saved, even when unemployed and on the dole in the 80's, with the ambition that when I was 50 I would not be at the beck and call of others and I could make my own decision whether I worked or did not. Fortunately, through planning and research, I achieved my objective. Keep up the good work with the videos and content.
Couldn’t agree more. Well done on getting there.
I really hope I can work until the end, in some fashion. I really love what I do. And some of my mentors are much older than me, yet still work. My best example is in an ex-CFO that consults with us once a month. He limits his hours to 40 per month and he follows his other passions outside of that.
My grandfather also worked until he couldn't anymore. He "retired" from both the Navy and then later from the FAA. He started a few businesses in there, but when he wanted to shrink it all down, he started a one person aviation consulting firm. When he wasn't doing that, he'd spend most of his time out in his massive garden and on his grounds growing everything from watermelons to flowers. He never truly stopped working everyday.
I hope to emulate that. Those type of people seem happy.
Very interesting Pete, I'm rapidly approaching retirement age and my feelings on retirement were the same as yours until quite recently, i.e. I enjoy the stimulation of work and the satisfaction of helping my clients.
What's changed? Well grandchildren for one thing, I now have four and while I don't intend to spend all of my spare time looking after them, there's definitely a small window when I can enjoy them one to one at a beautiful age before they're on the school treadmill.
And then there's my interests and hobbies and in all honesty, fit as I consider myself to be, a little less energy to do it all as I get older!
It's shaping up as a trade off and a decision to make, yes I enjoy work (and the income) but do I enjoy/value it as much as those other things? Especially at this time of year, when I'd rather be outdoors than sitting at a computer!
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐.
Fully agree. Retire for some people is when the government gives the pension. Others they stop working. I will also Continue to work and teach.
I refuse to worry about retirement, my philosophy is essentially "what will be, will be". Save what you can in an efficient way, be that pension/ISA/tracker funds etc, and then when you're ready to lay down the tools you simply have cut your cloth according to your means.
Im in my late 30's and I feel lucky that Ive managed to save for a house and I have two young children and have hopefully listen to Pete enough to put myself in a good position, but given that lots of companies were not giving there employees pension contributions until 2012, the high cost of rent and housing resulting in people pushing pension saving further down the list of commitments and the high cost of child care. Although it is possible to save for retirement I can easily see how this could result in younger people having little in pension savings and struggling to save at all. I guess we shall see how the above will effect retirement in 30 odd years time.
You are lucky to both enjoy AND be interested in what you do, plus you have something in which you have real personal vested interest. Fair play to you tbf, but for those whose work is a means to build for the future, then in my mind the biggest psychological challenge (irrespective of what my IFA says about my wealth), is the switch from salting away to spending my own money…..how do I get my head around that conundrum? Great channel btw…
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐.
Great stuff! Trouble is, I've worked for myself for 23 years and am now 67. Receiving state pension and pension from previous employer. Still working 'cos I enjoy it! Paying too much tax. But then I suppose that is life! My personal pension (Scottish Widows) is rubbish. Not sure what to do for the future?
I have really mixed feeling about it all. I am 42, and there's part of me that can't wait to not work but there's another part of me that is worried about what I might become without the structure of a working week to cling onto. I also stress about never being able to afford to retire, I put away probably 80% of my earnings towards my retirement and yet I never seem to build much wealth (I actually save over £40k a year but it feels like all investment avenues are down). There's a big part of me that thinks I'm sacrificing a really really good life now for the promise of an amazing life later that seems to just get further and further away.
Don't forget to enjoy life along the way, that's a big savings ratio, have fun too!
80% of your earnings? How can you afford that?
@@tancreddehauteville764 no mortgage, no loans, no children, and a typically frugal weekly shop.
Honestly, live for now. Your health cannot be predicted or saved for so don't bank on being healthy later in life as anything can happen. Enjoy your 40's and stop fretting about your 'retirement years'....that's my advice
Keep saving 👍 but maybe not so much - remember - compound interest produces all the growth in the last 10yrs or so.
Great video which I. definitely resonate with and I am a (fortunately) healthy 65 year old "semi-retired" CA and FCISI still working out my life plan with a mindset of living life to the full when you can!
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐.
I am 5-8 years from retirement. I am looking to build a side hustle that I can transition to in order to stay engaged. Money will be much less important than fulfillment. You seem to have the perfect situation with a option to continue what you are good at and can select the degree to which you want to stay busy…
Pete this is so true and interesting. I think the basic advice you have given before and no doubt in your building wealth ..spend less than you earn, stocks and shares have outperformed cash so invest for the long term etc etc are foundations. But also thinking through ones values and what financial independence really means to one is critical. Not forgetting to enjoy life along the way. I love that you are thinking of what legacy you wish to leave with your company... Riverford style new thinking!
Employment, especially in a corporate role naturally leads to a retirement pathway. Self employment favours a phased steping back. I 'retire' from the day job next month at 56 but will be working on projects and p/t engagements for the foreseeable. More to stay physically and mentally active than anything else.
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐.
I am doing something similar. Next year I retire from the day job but will continue to be a personal trainer (yes at aged 62!) and managing a small gym part-time. This is a hobby for which I get paid.
Another great video too many assume the worst without thinking options through.
Food for thought Pete. You’ve made me think
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐
Interesting video Pete. I think the idea of financial independence to give you choice is the ideal compromise.
Fascinating thoughts.
I'm going to be 55 in a few months. I'll have access to my pensions. At that point I'm really fortunate that I'll be financially independent and have more than enough wealth to never have to work again. HOWEVER I'm not in a position to do this just yet. I've recently just come out of a long term relationship and the thought of not working and having nobody to share time/money/experiences with fills me with dread. I'll continue working and hopefully at some point I meet someone who shares my vision of cutting down on work and travelling. The money means nothing if you can't fill your days and share your life with a like-minded partner. Some people are happy doing this on their own, but if you're not one of these people, then you need to tread very carefully.
The state pension certainly needs reform, but I'd be careful about further extending the state retirement age. I live in an area where people aren't living longer - the Glasgow effect is real. When we increase the state retirement age based on life expectancy in the south of England, for me that just means more people in my area will contribute to the state pension but will die before they get a chance to claim it. This hardly seems fair. You and I (I'm a software developer) may well decide to work beyond state retirement age, but not everyone has the luxury of that choice. My father couldn't work after his mid-fifties due to health issues (due to the heavy manual work he did), so he had to claim invalidity benefit until he reached sixty-five and got the state pension. I'm sure there are others in the same situation even in the modern age. My main concern, now, is that my pension fund will fall just before I expect to retire. There seems to be no safe place to put your pension fund - my current fund is in a "lifestyle" tracker, so I lost a fair bit while Liz Truss was Prime Minister, because of the percentage of the fund invested in "safer" bonds.
This is really well said Pete!
I decided to retire at 35, well, part retire by working a 4 day week. I don't ever expect to fully retire until I die or go doolally
63 bored with work I do now so looking at retiring next April so have 10 month’s to self fund before a DB pension kicks in😊
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐
Retiring gradually is a great way to do things. It gives time to develop friendships and interests outside of work, and enjoy life outside of work also. Finally stopping - should you wish to finally stop- is then much easier. Planning for your children and grandchildren (if any) is worth thinking about, as well as planning for your partner/spouse after your own demise. Having work that you enjoy makes a huge difference and should be your goal at every stage
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐
A lot of people do jobs they love though, and they never wanna stop - creatives, artists, producers, all sorts of people. I think finding your passion and talents are absolutely KEY cause otherwise, whats the point of just grinding for nothing?
my current plan if i can keep it up means ill retire at 73 and sadly where i live theres not much chance of more money or a better job, anyone above me is set for life and only slightly older than me all the way up the chain and dont plan to move on. id love to retire now on my current lifestyle id never get bored.
It's nice to have the choice though.
I have 110K in the Fidelity Index World fund and 30K in iShares Emerging Markets with HL. Should I be concerned / diversify more as I’m only protected up to 85K under FSCS? Here’s a video idea!
In my opinion You don’t need that protection - your £ is tied up with the individual diversified funds (not service co) each with many individual co shares. Protection IS the diversification.
This is such a great message Pete. As someone who has just bought a house and experienced the challenges of house prices for those around my age and younger. I'm always keen to reinforce that every generation has their own opportunities. While there are some parts of life, house prices, pension provisions etc where those younger now have it tougher than previous generations. In general, there are many, many more advantages and that should embraced. It's never been easier to learn, change careers and to get your message out to others.
8% of assets can pay for a lot of plastic surgery by the way.... 🕵👀 (Joking of course)
Watching my friends i would say the No1 reason they cant retire early is doen to the cash they keep blowing on cars ever few years. Me, well, i drive a sensible car for as long as it runs. Its saved me 10s of thousands.
Cars ? agree 100% and that saving invested and compounded has given me about £100k or more…..
I have to agree, the days of retirement being a cliff are gone for most people, nevermind the statistics on life expectancy for people who totally stop working, and die after only a few years.
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐
Who is that said “the best job is the one you don’t need?”
No idea. Also don't know who said "Work because you want to, not because you have to."
The other saying is "Do you work to live?, or live to work?"
Dunno. Was it the same bloke who said, "find a job you love and you'll never work again" ?
I retired at 57, now 66. Long time dead comes to mind.
Hi Pete, Have you ever advised on retiring abroad? It's occurred to me that I can take my modest retirement savings and live like a millionaire in another country, where the cost of living is much, much lower than here in the UK.
Where are you thinking? And what’s the visa situation for where that is?
Not something that’s been chosen by many of my clients over the years. Note Pete Howard’s comment about the state pension - very true
@@MeaningfulMoney I'm pretty sure that the state retirement age will be 70 for me. So I'd be retiring without the state pension anyway.
If not retirement to another country, extended 'holidays' must be a thing that you've seen? For instance it must be possible to rent somewhere abroad and live for six months of the year for much less than the cost of living in the UK? And even be in 'profit' at the end of the six months? Maybe most people are too tied to their home country?
I like the idea of being able to go 'mostly retired' and work almost seasonally, when it suits me, and not to need to earn a regular income. Do something perhaps which is more of a paid hobby and not to care about the hourly rate.
Fair play Pete, your desire to leave a legacy business is a super one. Different for us Corporate slaves wishing their life away to retirement. I am luckily pulling stumps next year as I tick over to 55 after 39 years none stop work for the same PLC. The idea of doing what I want is so exciting and luckily a very well timed final salary pension exit will make it all possible.
Enjoy, Smokey! I’d say you’ve earned it…
Also, mate, you ARE young because AGE IS A NUMBER. You can feel 10 inside your head, or 15 or whatever, it doesnt matter.
There is no need to worry about life expectancy and pension benefits. On the current trajectory with falling life expectancy and rising pension age, most young people today will be dead before reaching pension age.
Chin up.
I think it's useful not to be relying overly on the state pension but try to save and invest independently anyway. Taking control as much as one can. Of course the pension is important but there are other avenues to get financial independence
The uk state pension will be gone in 15-20 years. Government can’t afford it.
@@jimbobbob9063 they just need to up taxes so we can all continue to benefit from one!! It's the worst pension in Europe I believe anyway
Who the HELL doesn't want to have fun their ENTIRE lives? Grinding away until death? This isn't the way to live life, nor is it a self actualised life full of memories, vitality, talent, creativity etc. Look at how many incredible actors, producers, songwriters, musicians, designers etc exist. They don't fit the mould of this outdated system, at all. Its just old lies we were taught at school and everyone is waking up to the fact it is not the right way to live life at ALL.
I agree that stopping altogether is daft. If you hate work that much then you chose the wrong career. Anyway I think that "retirement" (not doing paid work to pay the bills) is not always a choice, sometimes you physically ot mentally cannot continue working till you drop. That's the reality.
I don't consider myself 'daft' for stopping altogether. I value the time I have now - my time - and the things I can do in that time. The point is - there are many options - and it's up to each individual. I can't think of anyone I know who has made a 'daft' option.
@@festerarl6653 what I meant was stopping and doing absolutely nothing. Presumably you have not stopped and withdrawn from society all together?
I loved my work too. But I suspect you and I are a minority. And I still reached the point where I just didn’t want to do it any more. A bit older, a bit less able to cast off the bad bits and deal with the stresses (which affects performance as well as emotional resilience). And I had plenty of other exciting things to do with the time I freed up.
Best option is to be part time
Working part time is great. Have had several part time jobs for many years. At times I may do more hours total than in a full time job, and at other times I may do much less. Today is a bank holiday Monday in the UK, but all Mondays for me are like that... but I am up at 05:30 tomorrow as I going to work.
Part time since January; a trial to see if I can comfortably live on half my wage, reduced tax, reduced stress, reduced time in work, I can handle that. My wife is disabled due to MS hence the reason for trying part time at 55.
Hopefully I will retire soon although the part time I do seems to keep the wolf from the door.
Pete, sorry if I am being dim, why did you say minimum age 58? I thought it was 55 although I see NMPA is going up to 57 but may be protected if you already had pension invested pre 2021? Great videos by the way!!!
It’s moving to state pension age minus 10 years from 2028. For most people that will be age 58
Man plans God laughs.
I retired in my 40's... for exactly 3 months... I was bored out of my mind! 😆
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐
You're a beast of burden and legacy.
ᴀᴘᴘʀᴇᴄɪᴀᴛᴇᴅ ᴡʜᴀᴛꜱᴀᴘᴘ 👆👆 ᴛʜᴇ ɴᴜᴍʙᴇʀ ᴀʙᴏᴠᴇ ʟᴇᴛ ᴛᴀʟᴋ ⭐
Ok boomer.
I am not a frikkin’ boomer. Not even close! I’m ten years into Gen X!!!!