Thinking of giving in my notice at work


J

J Ashton

Dear all, I'm thinking of packing in my job and living off my savings for a
couple of years. I've worked out, I think, what the minimum is that I can
live on, assuming no great expensive emergencies, and my savings etc will
last me around 3 years. Longer if I do bits of freelance work etc which
might be possible. I intend to live a much simpler and cheaper lifestyle,
which should be possible if I don't have to buy expensive clothes for work
etc.

What other things should I take into consideration when debating this? I'm
not sure how to work things like breaks in service for occupational
pensions, or what happens about NI payments etc. into the equation. I'm 54
if that makes any difference so I appreciate that it will be hard to get
back into the world of work in a few years time, though things are changing.
With any luck I won't have to.

Has anyone else 'downsized' in this way and what other things should I be
including in the financial reckoning.

Thanks very much

Jennie
 
Ad

Advertisements

M

mo

Thanks very much

Jennie
well non financial - you may get bored - so it makes sense may to do
freelance to make more money.

financial - like you say, any large expenses and you may be screwed, plus
you should consider rising prices and that i guess...

good on you though, i might do something similar when i am 30 :):)

and being nosy, how long have you been saving for to do this, and how much
do you think you will spend a year?
 
J

J Ashton

mo said:
good on you though, i might do something similar when i am 30 :):)

and being nosy, how long have you been saving for to do this, and how
much do you think you will spend a year?
Thanks for the encouragement. I've been thinking of doing it for years but
never thought I'd ever be able to do it. I haven't been saving but the
money comes from the proceeds of my house sale so I've decided to throw
caution to the winds and give it a go. I'm seriously fed up with the rat
race, commuting and all that and don't really feel I've much to lose. I've
worked out that I need around £728 per month, including all bills, food and
petrol (at £20 a week. I think I could cut that down but won't know by how
much till I try it.) I'll get rid of Sky but keep my mobile. That's it
really. I just don't know what I might have missed and haven't included
anything for NI/pension as I don't know what's involved or quite what
questions I should be asking.

Jen
 
M

mo

J Ashton said:
Thanks for the encouragement.
if, after a year or 2 you can see you will run out of cash then you can
always start working in the 2rd year so if it was me i would almost
certainly do it - you have to think about what you would do after the 3
years when you would need to come back to work. If you are 54 now then you
will be about 57 then so still a bit of retirement age so you will need to
do somehting in those years.

i suggest sleeping a lot - hardly costs anything :)
 
P

Paul

Dear all, I'm thinking of packing in my job and living off my savings for a
couple of years. I've worked out, I think, what the minimum is that I can
live on, assuming no great expensive emergencies, and my savings etc will
last me around 3 years. Longer if I do bits of freelance work etc which
might be possible. I intend to live a much simpler and cheaper lifestyle,
which should be possible if I don't have to buy expensive clothes for work
etc.

What other things should I take into consideration when debating this? I'm
not sure how to work things like breaks in service for occupational
pensions, or what happens about NI payments etc. into the equation. I'm 54
if that makes any difference so I appreciate that it will be hard to get
back into the world of work in a few years time, though things are changing.
With any luck I won't have to.

Has anyone else 'downsized' in this way and what other things should I be
including in the financial reckoning.
No advice to offer, but just wanted to say go for it!. Good on you.

Just remember when you do get bored, when you've had enough of watching daytime
TV, tired of going for walks etc etc, just remember the shit days at work.

Enjoy your life for bit. Of course, even with that amount of money you do
realise you could lie on a beach somewhere don't you? Visit Thailand for
example.
 
R

Richard Buttrey

Dear all, I'm thinking of packing in my job and living off my savings for a
couple of years. I've worked out, I think, what the minimum is that I can
live on, assuming no great expensive emergencies, and my savings etc will
last me around 3 years. Longer if I do bits of freelance work etc which
might be possible. I intend to live a much simpler and cheaper lifestyle,
which should be possible if I don't have to buy expensive clothes for work
etc.

What other things should I take into consideration when debating this? I'm
not sure how to work things like breaks in service for occupational
pensions, or what happens about NI payments etc. into the equation. I'm 54
if that makes any difference so I appreciate that it will be hard to get
back into the world of work in a few years time, though things are changing.
With any luck I won't have to.

Has anyone else 'downsized' in this way and what other things should I be
including in the financial reckoning.

Thanks very much

Jennie

Dare I mention your pension provision for when you finally retire?

If you think you've already got this covered, and with the pitiful OAP
(perhaps reduced if you haven't got the full 39(?) years
contributions) and any private / occupational pension, you reckon
you'll have enough to live the lifestyle you want for the next,
hopefully 40 + years, then why not have a ball now.

OTOH if you calculate you won't, then clearly you need to do something
about it. That might mean biting the bullet, staying in the rat race
for another few (6 - 11 years), and saving as much as you can in that
time, hopefully assisted by an employer who will also chip in to your
pension fund.

With people generally living longer, and governments cutting down on
pensions, then some hard decisions might need to be made.

Rgds

__
Richard Buttrey
Grappenhall, Cheshire, UK
__________________________
 
Ad

Advertisements

G

GSV Three Minds in a Can

from the wonderful person said:
Dear all, I'm thinking of packing in my job and living off my savings for a
couple of years. I've worked out, I think, what the minimum is that I can
live on, assuming no great expensive emergencies, and my savings etc will
last me around 3 years. Longer if I do bits of freelance work etc which
might be possible. I intend to live a much simpler and cheaper lifestyle,
which should be possible if I don't have to buy expensive clothes for work
etc.

What other things should I take into consideration when debating this? I'm
not sure how to work things like breaks in service for occupational
pensions, or what happens about NI payments etc. into the equation.
You'll probably want to make voluntary (class2) contributions of
~400/year, in order to ensure you can collect a full basic state pension
(whatever that's going to be worth). Check with the pensions forecast
service.

It would be rather beneficial if you could get your company to terminate
you with redundancy pay (as someone in HR once said to me 'never leave
without a package'.). Preferably after 5th April, so you can use next
year's tax allowance (just incase they make you a generous offer .. i.e.
As someone else already said, you do need to figure out what you are
going to do with your free time. And where you plan to do it (i.e. if
you are a house owner you can extract a lot of equity by selling in
London and buying in Wales .. however that will disrupt your social life
more than somewhat).
 
D

Daytona

J Ashton said:
Has anyone else 'downsized' in this way and what other things should I be
including in the financial reckoning.
Congratulations on reaching this position !

I've had 3 years off after I was unfairly dismissed from my last job.
I was living off the settlement for the first year and savings since.

I haven't downsized because I've always lived simply and happily with
no serious commitments <g> I live in a nice cottage in a nice part of
the country and I appreciate it.

My situation contrasts with yours in that I own a house with a small
mortgage that I let out which gives me a profit of ~£300pm whereas,
you have cashed in and presumably got a nice sum in the bank. I could
sell it, but it would only reduce my monthly loss from ~£540 to ~£490.
For comparison, if I sold, my outgoings would be ~£800/month, so
similar to your figure.

Have you checked your figures on a spreadsheet ?

Please don't be offended by anything, but here's my musings -

Pauls comment about being on a beach is worth considering and taking
further; entry requirement permitting, you could live for a decade or
more for the same money in some parts of the world.

Although giving up work for a year or two might be attractive it might
be better to work part time and go for a longer period of time, or any
combination of the two. eg 1 year off 5 years part time.

The even better news is that since the average salary is ~£27,000, the
median salary is ~£21,000 and the national minimum wage is ~£11,000
you should easily be able to cover your costs if you ever need to work
again. This should give you the freedom to do part time work as well.

If you get bored, you could always investigate voluntary work, which
could also give you new skills & experience which you could use to get
another job and or change careers. Many people have skills they don't
use, which could earn them a good living; they just fall into the
rat-race. "What color is your parachute"
<URL:http://www.amazon.co.uk/exec/obidos/ASIN/089815880X/> is often
recommended as a good career/lifestyle change book.

The basic state pension you will get depends upon the number of years
you earned more than the NI lower earning limit or had NI credited for
other reasons. The chart in NP46 will tell you the scale. Send off for
a forecast. Links on my webpage
<URL:http://mysite.wanadoo-members.co.uk/quickhelp/pensions.htm> Class
3 (voluntary) contributions cost £6.95/week IIRC.

To make the money go further, there's some Gilts (interest paying
loans to the government) that I'm currently considering and you may
wish to consider. These are amongst the safest investments but they
pay a fixed amount of interest, so you lose out if inflation goes too
high -

Convertible 2011 pays 7.32%pa or 4.78%pa if held to 2011 - There's a
risk that the government will convert it into another type, that's why
it's got a flat interest rate above the norm.

Treasury 7.25% 2012-2015 pays 6.68% or 4.96% if held to redemption.
Unknown time of redemption between 2012 & 2015.

I'd be looking to take advantage of the current high yield, and
selling them before redemption.

See the excellent Debt Management Office (DMO) guide
<URL:http://www.dmo.gov.uk/gilts/public/investors_guides/index.htm>
and ask again if you want to get your head around these. The published
prices flatter the returns (clean pricing), you must calculate the
dirty price to get a true representation.

Is there any CGT due on the property ?

Over the 3 years I've been surprised at just how many people are
happily working part time and/or have home businesses allowing them
flexibility to work when they want. You simply don't get to see this
'alternative society' when your working 9-5. It's a real eye opener
that made me set up my own business in the hope of doing the same.

There's a great bunch of people on the Motley Fool - Living Below Your
Means board
<URL:http://boards.fool.co.uk/Messages.asp?mid=8955739&bid=50074>.

Have a holistic look at your insurance cover for lifes disasters, it's
a good idea to do this whatever your employment situation. I decided
that I can do without my contents insurance, but kept my sickness
insurance (aka PHI).

hth

Daytona
 
J

J Ashton

Congratulations on reaching this position !
Have you checked your figures on a spreadsheet ?

Please don't be offended by anything, but here's my musings -

Pauls comment about being on a beach is worth considering and taking
further; entry requirement permitting, you could live for a decade or
more for the same money in some parts of the world.

Although giving up work for a year or two might be attractive it might
be better to work part time and go for a longer period of time, or any
combination of the two. eg 1 year off 5 years part time.
If you get bored, you could always investigate voluntary work, which
could also give you new skills & experience which you could use to get
another job and or change careers. Many people have skills they don't
use, which could earn them a good living; they just fall into the
rat-race. "What color is your parachute"
<URL:http://www.amazon.co.uk/exec/obidos/ASIN/089815880X/> is often
recommended as a good career/lifestyle change book.
See the excellent Debt Management Office (DMO) guide
<URL:http://www.dmo.gov.uk/gilts/public/investors_guides/index.htm>
and ask again if you want to get your head around these. The published
prices flatter the returns (clean pricing), you must calculate the
dirty price to get a true representation.
Over the 3 years I've been surprised at just how many people are
happily working part time and/or have home businesses allowing them
flexibility to work when they want. You simply don't get to see this
'alternative society' when your working 9-5. It's a real eye opener
that made me set up my own business in the hope of doing the same.

There's a great bunch of people on the Motley Fool - Living Below Your
Means board
<URL:http://boards.fool.co.uk/Messages.asp?mid=8955739&bid=50074>.

Have a holistic look at your insurance cover for lifes disasters, it's
a good idea to do this whatever your employment situation. I decided
that I can do without my contents insurance, but kept my sickness
insurance (aka PHI).

hth

Daytona
Thank you so much to everyone for taking the trouble to reply. The beach
idea, though attractive to some, isn't really me. One of the things I would
like to do is get involved in my local community more, either voluntary work
or just get to know people better. As I live in a stunning part of the
country now, it's daft not to know it better when others pay a small fortune
to spend their spare time here. There are also tourism-related and seasonal
job opportunities I thought I might check out. But only part time - nothing
regular as I don't want to get back on any professional treadmill again.
And as you say, so much goes on when you're out at work between 7 and 7 -
I'm missing it all. I also have some freelance work that will bring in a
couple of hundred pounds a month too so I'm hoping I can do those things and
eke out the savings a bit. Also babysitting for local families. As a long
term member of the teleworker association I feel pretty well prepared to
take the plunge as it's been a dream for years and years. And am happy to
take risks too, in fact, relish the opportunity to take the risks. I really
don't want to wait till I'm 65 and retired before trying all my ideas out.
Or to look back when I'm 65 and wish I'd done that when I was 54. My
children have flown the nest - so what the hell!

I very much appreciate all the links and will follow up. My main reason for
asking on here was because I wasn't sure what to do about pension and NI and
you've given me some info to investigate further. Insurance too. So many
thanks.
 
Ad

Advertisements

R

Ronald Raygun

Mark said:
On the other hand there are
costs, envelopes cost a fortune when you have to buy them!
You simply de-register from the Mail Preference Service, and suddenly
you get envelopes for free!
[NI contributions] Otherwise one or two years
of voluntary class 3 (not 2 as someone said) is by my calculation worth
while. I believe if you become self employed you can get the credit
cheaper provided you have no income.
Not sure what you mean by "provided you have no income". As self
employed you get NI cheaper (class 2 at £2.05 per week instead of
class 3 at £7.15 per week), with no extra to pay (class 4) until
your SE income exceeds £4747 per year.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top