Quitting work and retiring a bit early.

[Stylo]

Just turned 63. Had enough of bloody shift work now . Thinking about pulling the plug. 22 months till the big day.

What do recommend in terms of $$ in the bank required and equity etc.

I read a lot of stuff online too. Many different views there. Be nice to sign off early and have some 'me' time.

I don't have any loans or mortgage and, I'm a single man now , a recent widower. Cheers in advance.

[1/32 man]

The dollars in the bank thing.....everyone will be different but more is better than less.

I quit after thirty eight years straight and then did casual work until Covid arrived in 2019...wish I had a bit more in the bank for sure.

As a mate said, "if you are not making it, you are spending it"

As long as you are debt free and can stick to a budget you are ok.

[TheDemonLord]

Just turned 63. Had enough of bloody shift work now . Thinking about pulling the plug. 22 months till the big day.

What do recommend in terms of $$ in the bank required and equity etc.

I read a lot of stuff online too. Many different views there. Be nice to sign off early and have some 'me' time.

I don't have any loans or mortgage and, I'm a single man now , a recent widower. Cheers in advance.

My FiL took an earlyish retirement (about 12 months) - I made a joke to him that he would be back working in less than 6 months.

He lasted 3 months...

That said - He is now working at a much lower stress job (going from a manual job with high risk elements, to something cruisey), has an understanding with the Boss that he doesn't need the job per se - so if he wants to take off early on a Friday to go enjoy a weekend, he is going to etc.

Essentially the money goes into his Beer and Hobby fund, the Job keeps him fit and mobile etc.

In terms of hard financials - that would be a question for your personal accountant or financial advisor.

[pete376403]

Hitting 65 and being able to access Kiwisaver to pay the house off made a big difference to us. I kept working as the money was good and getting the superannuation was a cherry on top. Then some time after covid the company failed and I was out. Now I am in that sort of limbo of enough money to live "pretty ok" but not enough to do the big ticket items (eg RE ride to the Himalayas in India). If you can find enough to keep occupied and money isn't a problem you should take the "me time". As your recent experience shows (most painfully), no-one is guaranteed tomorrow.

[pritch]

If it's an option you could ease into retirement. I went to a four day week for a year or so before quitting. National Super covered the day off. Others I've spoken to did similar.

Apply for Super a month or two in advance. They don't do back pay.

Check with the IRD before you retire, you don't want to be getting a bill from them.

[Gremlin]

The only thing I'd say, is you're potentially a long time retired. You wouldn't want to get a long way in, and find you're running short of funds. Those stories of pensioners eeking out an existence, saying, I've worked all my life, it shouldn't be like this... it's grim.

I'd say it's better to earn while you can (especially if you have a good employer and say, it suits both sides to work part time) coz no-one knows what the hell the govt will do next, or what will happen in the world.

[pete376403]

Think more about the money thing - A reverse annuity mortgage (heartland bank) would free up quite large amounts of cash and if you are not that concerned about leaving it all to the kids, why not?

[BMWST?]

re the monies who knows? You can estimate your outgoings but of course inflation is going to keep making everythng more expensive.
I retired a couple of years ago.I was working 4 days a week before that. We were a small team and i got on well with everyone. I havent missed the work but i did miss the people a bit at first.
You got to have an interest that involves other people IMHO. Motorcycles are good for that. In your case you must already be a bit lonely? I belong to a 4wd club and do a lot with them. I am pottering around catching up with overdue house maintenance and clearing overgrown gardens.
You can free up some cash perhaps by downsizing to a smaller house. Not sure about reverse mortgage thing,no one knows how long retirement is gonna be...thats the hardest thing about how much $$ you need. Make a plan for the interim(ie potential big outgoings) and do it .

[caseye]

Had a major health scare at 62, decided to go to a 4 day week, boss was brilliant, then we moved to Taupo, so I've effectively quit at 62.5, been here 2 and a bit years to date.
Loving every minute, got mates to talk to, swim with and ride with, wife is still working but won't have to in another couple of years.
We're not rich, got a good pile of cash in the bank, own a nearly Million $ house. Owe no one anything, 2 bikes mine and her indoors, a new, ok 1 yr old, but bought new hybrid a few other toys and belong to 3 local clubs, other than the Cossie or the RSA.
You are a long time dead, cut your losses and get into enjoying what you want to do for a change.:banana:

[pritch]

Think more about the money thing - A reverse annuity mortgage (heartland bank) would free up quite large amounts of cash and if you are not that concerned about leaving it all to the kids, why not?

When I was discussing options with the bank manager prior to retiring reverse mortgages came up. He said that problems were such that the bank was then considering not offering them anymore. People were living longer than they expected meaning the house may be sold out from under them. Anyhoo the bank doesn't offer them anymore.

[husaberg]

Just turned 63. Had enough of bloody shift work now . Thinking about pulling the plug. 22 months till the big day.

What do recommend in terms of $$ in the bank required and equity etc.

I read a lot of stuff online too. Many different views there. Be nice to sign off early and have some 'me' time.

I don't have any loans or mortgage and, I'm a single man now , a recent widower. Cheers in advance.


Just do what makes you happy.
Most people I know miss the social aspect and daily connections with people when they retire. I have been told to retire in the summer as it makes it more fun. As you are not house bound and can go out and do stuff.
I know a few people that do some volunteer work, to fill the hole add the social aspect and it's also great for the soul.
Myself, personally, I intend to work an extra year or three. One to get used to living on the kiwisaver and pension, two so I will have at least a years salary as pocket money, as I want to still enjoy my hobbies I will need the $$$$ to pay for it.
As others haven mentioned dropping a day or two a week might be a good compromise rather than going cold turkey
I know a few companies that are nearly entirely all staffed by dads army.
I still intend to work a side hustle for some additional pocket money. We will also still run cattle for additional pocket money.

[Blackbird]

I'm 77 now and retired at 60. No regrets as I was pretty much burned out. Consulted back to my company for a year which was useful financially but I didn't enjoy it. Financially, we live on my company pension plus state pension and that takes care of everyday stuff. We also have some managed investments which we don't touch, just let it accrue and that will principally be for our kids.

In retirement, I spent nigh on 10 years doing voluntary coaching with the Institute of Advanced Motorists which was good for me too and also helped coach local senior citizens with basic computer skills (Senior Net). Since retiring from motorcycling a couple of years ago, sea fishing with my wife, mountain biking and a classic car have helped to fill the motorcycle void. Unfortunately, I ran out of talent on the MTB a month ago when I snapped my femur on a knarly trail. Should have known better. Overall though, early retirement was the right thing to do in our circumstances as I've never had to say "If only.......".

It was a bit of a step into the unknown to take the plunge but you only get one crack at life :yes:

[BMWST?]

Just do what makes you happy.
Most people I know miss the social aspect and daily connections with people when they retire. I have been told to retire in the summer as it makes it more fun. As you are not house bound and can go out and do stuff.
I know a few people that do some volunteer work, to fill the hole add the social aspect and it's also great for the soul.
Myself, personally, I intend to work an extra year or three. One to get used to living on the kiwisaver and pension, two so I will have at least a years salary as pocket money, as I want to still enjoy my hobbies I will need the $$$$ to pay for it.
As others haven mentioned dropping a day or two a week might be a good compromise rather than going cold turkey
I know a few companies that are nearly entirely all staffed by dads army.
I still intend to work a side hustle for some additional pocket money. We will also still run cattle for additional pocket money.

agreed about the summer thing.My last day was just before xmas of that year. I did find Winter more difficult esp when there are days in a row with rain etc

[R650R]

Think more about the money thing - A reverse annuity mortgage (heartland bank) would free up quite large amounts of cash and if you are not that concerned about leaving it all to the kids, why not?

Like many other kiwis I thought these were the go to option. However personal experience of family friend and media stories mean read the fine print and do your maths. It’s not quite as simple as it appears.
Just like a normal mortgage you still own the house, so your paying insurance, rates and upkeep etc.
The bank charges interest on the money they are paying out to you just like how a normal mortgage clocks up interest. If you end up living longer than expected (who’d have thought that was a problem)or the property value drops significantly you’re in a bind.
Some good lenders will limit how much the will reverse lend to help you avoid this.

I was late to the saving game so I’m not looking forward to it all but 15-20 years to play catchup.

[pete376403]

When I was discussing options with the bank manager prior to retiring reverse mortgages came up. He said that problems were such that the bank was then considering not offering them anymore. People were living longer than they expected meaning the house may be sold out from under them. Anyhoo the bank doesn't offer them anymore.

While I wouldn't dispute what your bank told you, it would seem that to be left in the situation described you would have to live into your late 90's or more, property values would have sunk to a negative and the amount borrowed would have to be close to the total value of the property at the time the loan was taken out. When I looked into the Heartland offerings, (thinking about the Indian bike riding trip) the maximum amount loaned is around a quarter of the RV, so between the residual amount and capital gain, the odds of that as described happening are slim.

[HenryDorsetCase]

When I was discussing options with the bank manager prior to retiring reverse mortgages came up. He said that problems were such that the bank was then considering not offering them anymore. People were living longer than they expected meaning the house may be sold out from under them. Anyhoo the bank doesn't offer them anymore.

Its for the same reason that a lot of the rest homes (sorry, retirement villages) don't open to people under 70 now.

[Moi]

Two thoughts...

First, something told to me when I made it known I was retiring at the end of the year: go through how you pay for weekly, monthly and yearly expenditure? Such as weekly groceries, monthly expenses like mobile phone/internet etc and yearly such as rates, insurances and vehicle expenses. Go back at least 2 years, preferably 3 or 4 and get a good idea of your expenditure. Will your retirement income cover all of that and with some left over for whatever?

Second, have you looked at what Mary Holm - she writes in the Saturday edition of the NZ Herald - has to say about retirement? Have a look at her website: https://maryholm.com/

[Grumph]

Its for the same reason that a lot of the rest homes (sorry, retirement villages) don't open to people under 70 now.

Yeah, they get their bonus income from turning the units over. If they're occupied too long income drops.

Last week i ran into a well known ChCh motorcycling identity who looks like he's just stepped out of his leathers....

The bastard's 93. Even now,no rest home would have him. Probably good for a ton plus.

[husaberg]

Yeah, they get their bonus income from turning the units over. If they're occupied too long income drops.

Last week i ran into a well known ChCh motorcycling identity who looks like he's just stepped out of his leathers....

The bastard's 93. Even now,no rest home would have him. Probably good for a ton plus.
Must be all that chlorine you cantabs insist on putting in the water, looks like trump was right about the bleach...:innocent:

[Kickaha]

I'm just looking at this, made redundant in November at age 60, ideally I need to work at least a couple more years but I have a house on the coast I'm going to look at buying and if I sold this place and buy that I'd walk away with enough in the bank to be able to do it until the pension and kiwisaver comes through and still live an ok lifestyle

I don't really need the social aspect as I'm quite happy to sit home all-day reading, on the computer or in the garage

I haven't really investigated the employment market on the coast to see what options are there as I've been too busy riding bikes and being an unemployed bum for the first time since 1986

[husaberg]

I'm just looking at this, made redundant in November at age 60, ideally I need to work at least a couple more years but I have a house on the coast I'm going to look at buying and if I sold this place and buy that I'd walk away with enough in the bank to be able to do it until the pension and kiwisaver comes through and still live an ok lifestyle

I don't really need the social aspect as I'm quite happy to sit home all-day reading, on the computer or in the garage

I haven't really investigated the employment market on the coast to see what options are there as I've been too busy riding bikes and being an unemployed bum for the first time since 1986

Pretty much only those that don't want a job here don't have a job here.