Early Retirement

[Jun]

Retire at 50? What job allows you that? I can work till 67 till legal retirement age arrives.

You can retire any time you like. You just need to have saved up enough money.

Someone said it's difficult to save more than 5% of income. Well, it's not that difficult.

Of course, if you earn the average income, it gets more difficult. However, many of us got University education, so it's not that difficult to earn double the average income, whilst still working in a professional but non-managerial role. A carefully selected job in Engineering or IT is sufficient. Doctors, dentists, solicitors etc really have it made.

Now if you still spend the average income, that's a large sum of money to save every year. I manage way over 50%, on a modest income as an engineer.
Then apply a few optimisations:
1 Run an old but carefully selected car.
2 Live close to work, to avoid silly commuting costs.
3 Prepare your own food.
4 Then apply the same mindset to other major expenses.
5 Since there should be no wife & kids, rent the spare room out.

Now it suddenly becomes possible to save over 50% of your income. Do that every year for 20 years & learn something about investing, then suddenly there can be quite a nice nest egg building up in your 40s.


As for the people who get promoted or run really successful businesses, it is even easier. I suppose some board members will be in that position.

There are several blogs written by people who retired early with just such a mind set.

[thaifarang]

Thanks Jun. I understand. But with my University degree (Master of Science) I indeed have an above average income (not twice the average tough), but the costs of living here are also high. I can save max 1000 EUR each month if I only spend money on the fixed stuff (mortage, food, insurances etc). But of course you also need to save for new clothes once every x months, new tv once every y years, new mobile once every 2 years and of course the 2 or 3 Thailand trips each year. So from these 1000 EUR which is possible to save every month, maybe only about 300 EUR I can set aside for retirement. So 3600 per year, so 36.000 per 10 years, so 72.000 per 20 years. That gives me I think only about 3 extra years of retirement, maybe 6 if I spend it in Thailand. Age 50 or 55 still out of reach.

Yes I understand if someone has twice the average income and lives fairly modestly and also receives extra income in the form of rent (because he rents a room to a student) then it can be done. But there aren't that many people who earn twice the average. If it was, we would see many people retire around age 50. But we almost see no one be able to do that.

That is why I think that from the onces that can retire that early the bulk got an inheritance or were fired with extremely good conditions (they good a lot of money as part of the deal). If they hadn't been fired they still had to commute to work each day, because not enough money to retire; they being laid off made it possible, not their own initiative. Also I think quite a few receive social security (work disability or other reason) and decided to live in Thailand. I think of the men who retire around 50-52 the bulk can not do it because they saved so much, but because of the reasons given. I would love to know the percentage of men who enjoy this early retirement because of their own initiative and not because of luck.

[mahjongguy]

" I would love to know the percentage of men who enjoy this early retirement because of their own initiative"

I have no idea of the percentage, I can only say that I started with nothing, had no inheritance, stuck with a career that was not so interesting but paid well for a guy without a degree, took a 15 year mortgage and paid it off in 11 years, volunteered for a force reduction program at my company, and retired at 49. Sold the house at 55 and moved to Thailand, paid cash for a house here, started getting retirements benefits at 62.

Five years later, still living rent-free, still have roughly the same amount of assets that I had when I retired.

And all along, I never denied myself anything I really needed or seriously wanted.

[Oliver]

I retired at 52 and have never regretted it, despite having to tighten my belt a little. Like Mahjonngguy, I've not had to give up anything I really care about, including my three visits a year to Thailand ....and my beloved. A huge plus was to my health; seventeen years later, I am much more fit and active than most contemporaries. I was aware of others in my profession who worked to the bitter end and died soon after retirement.
House-prices in the UK amaze foreigners. Those of us fortunate enough to own one- particularly in London- have the choice of downsizing , like PeterUK, or releasing the equity, which I chose to do.... I wanted to stay in London.

[windwalker]

So what are you really saying thaifarang? You keep harping on the same issue with all types of excuses why you can't retire. Are you calling all of us liars, cheats, crooks?

As with others, having worked a number of years and given an opportunity to retire in early 50s I took that offer. And like others had bought property and sold at 3x the paying price and in, addition, did receive some inheritances .

A fellow worker chose to work for 40 years and retired in his sixties. Has double or more the pension as I, owns a beautiful home, a new car, has more money than he can spend and has no sex life. He even looks down on people like me who choose a different approach to life.

My best advice to you is to befriend an older gay gentleman with assets and maybe someday you will be in a position to retire early and enjoy those years.

[thaifarang]

"and retired at 49. Sold the house at 55

And the 6 years between 49 and 55 you lived from saved money? You were able to save 6 yearly salaries during your working live? Or you lived from the big money deal you got when you were laid off?

I hope I will be fired around 50 (provided I also get a lot of money, if not then I don't want to be laid off).

[Undaunted]

thaifarang do you know "Beachlover"?

[a447]

Thaifarang, if you give it a bit of thought there are a number of reasons why people can retire young.

I took early retirement as I was severly affected by the sudden death of my parents and was unable to work.

People can retire if they have earned a very high wage over their working life, receive a generous payout, are the beneficiary of a large inheritance, etc, etc.

Also, gays do not have the expense of raising children or providing for a spouse in some cases and so are able to save money.

I had one extra benefit - I did not have to pay rent or buy a property. I lived in a company provided apartment in the centre of Tokyo for my entire working life. I still work a couple of weeks every year as it allows me to retain use of one of their apartments when I visit Tokyo.

The ability to retire early is not solely dependent on your annual salary.

[Gaybutton]

I've tried several times to explain about retirement pensions. Apparently our friend Thaifarang simply doesn't get it - or for whatever reasons he may have, wants us to think he doesn't get it. He keeps repeating the same idea over and over again. If he's being serious, which now I doubt, he's not going to listen no matter how clearly and thoroughly anyone explains it to him.

Of course, after so many posts about this, the word "troll" is entering my mind. If I become convinced he, or anyone else for that matter, is a troll, I think most people reading this already know what I do with trolls, along with anyone else who comes to this board to get his jollies by intentionally being a pain-in-the-ass.

[Alex]

I think it's quite possible that thaifarang genuinely thinks it's unlikely that he will be able to retire early. And that might well be true in his particular case, not knowing his individual circumstances.

If that's the case, all I'd ask him to do is to keep an open mind and to stay clear of generalizations such as most of those who retire early must be criminals. That's obviously nonsense.