Early Retirement

[Jun]

European countries do not have 401Ks, ROTHs and whatever else.

However, there can be other fine systems in the European tax codes.

In the UK, the most interesting are:
1 Pension schemes, including Self Invested Personal Pensions (SIPPs). You get tax relief on payments and it all rolls up with no capital gains tax payments. You will get taxed on what you take out once retired, but this is ideal for anyone paying 40% tax when working but expecting to be on a lower tax rate when reitired.
2 ISAS. You can pay in about £15k a year & it all rolls up tax free. The money can go in cash, stocks, or numerous other investments. There is no tax on what you take out. Also, if you emigrated, there would be no problem taking the whole lot abroad with you. This is an excellent scheme for running a long term stock portfolio & large sums can be built up. Several people have got more than £1million and one individual apparently has one worth £24 million. He must have made some good stock picks, considering the max annual contribution used to be about £7k
You do not even need to enter it on your tax return, which is very welcome.

As Thaifarang is paid in Euros, he needs to check what is on offer in his own country. I presume there must be some nice options.
If I were facing working until 67, I would be checking these out starting from today.

If the tax regime is too repressive, emigrate. You don't want to be working for the benefit of others who are too idle to work.

[colmx]

Am I the only one on this board that does not want to retire early?
I decided in my late 20s that I was going to keep working until they forced me to stop!

I would much prefer to have 3 x 3 Week holidays a year in Thailand and be a "nine week millionaire" than to be a spendthrift early retiree
By my estimation - my income doubles every 10 years, so I will make twice as much in my 50s as my 40s, and twice that again in my 60s

A lot of retirees that live in Thailand are completely miserable in attitude and are extremely frugal.... they sit on the same bottle of soda all night whilst pawing the boys and expect to be treated like a king... then leaving 2x20B tips and going home to write and complain on forums
(Note I said a lot of farang, not all!)

On top of that prostate problems in later life often mean than you can neither be a top or bottom, so you are now in Thailand, but actually can't have any proper fun! Medical problems such as diabetes and blood pressure also mean that Viagra can't be safely used. So all that time staying home and being frugal in your 30s/40s was actually a waste... you should have being going out and having a good time when you were in the full of your health!

Finally nobody knows how their health will be in their later years. e.g. My fathers boss spent years amassing a portfolio of properties that were to be his retirement income. The portfolio was big enough to have 3 full time employees looking after it. The guy died at 55, so never actually got to spend a penny of his retirement fund. Again an argument for living life to its fullest always... as you never know when the end is coming

[Jun]

I would much prefer to have 3 x 3 Week holidays a year in Thailand and be a "nine week millionaire" than to be a spendthrift early retiree.
By my estimation - my income doubles every 10 years, so I will make twice as much in my 50s as my 40s, and twice that again in my 60s

I don't get a 9 week holiday allowance. The maximum time away that I can get is 6 weeks. I think something around that is common in most of Europe & I believe it is less in other parts of the world. I suppose I could try a flexible working request.
How do you swing 9 weeks off ?

Then, as for your income doubling every 10 years, well done.
Excluding inflation, for many people, income no longer rises much beyond their mid 40s, unless they are getting regular promotions or in some role with performance related pay or a business. I suppose you fit one of those categories, but whatever, I am open to receiving advice.

I've deliberately decided not to go for any promotions & instead put the energy into growing my financial interests outside work. I'm at the stage where retirement is already an option.

[colmx]

I don't get a 9 week holiday allowance....
How do you swing 9 weeks off ?

Actually I usually end up with around 11 weeks a year but keep time for Family at Christmas etc

I usually work my holidays in around bank holiday weekends... that helps to maximize the return, I also tend to travel out on a Thursday night... Which means that I only miss 1 days work - but get 4 (fri, sat, sun & BH Mon)

The company I work for services clients in EU/US, so the only non working day is Christmas day, so plenty of opportunities to work on the remaining Bank holidays and gain 1.5 days time-in-lieu. Same with out of hours work, Saturdays/Sundays - all paid in TIL.

Then, as for your income doubling every 10 years, well done.
Excluding inflation, for many people, income no longer rises much beyond their mid 40s.

I'm in my early 40's so maybe I am in for a short sharp shock!

[Jogger]

A lot of retirees that live in Thailand are completely miserable in attitude and are extremely frugal.... they sit on the same bottle of soda all night whilst pawing the boys and expect to be treated like a king... then leaving 2x20B tips and going home to write and complain on forums
(Note I said a lot of farang, not all!)

-I am sure u are correct many farangs in Thailand (who retired early or not) are miserable/frugal. But others are having the time of their lives with plenty of money, sex and good times.

Only those with plenty of dosh ($$$) should retire early...or come to live in Thailand!

[RichLB]

A lot of retirees that live in Thailand are completely miserable in attitude and are extremely frugal.... they sit on the same bottle of soda all night whilst pawing the boys and expect to be treated like a king

I tend to agree with colmx. Surprisingly, I find many early retirees spent so much energy amassing their nestegg they never learned to enjoy their lives. Many come to Thailand believing a constant diet of sex will compensate for poorly developed social skills, a dearth of hobbies, or the satisfaction of a sustained loving relationship. In short, generating retirement funds without accompnying life skills won't yield a happy retirement.

[Gaybutton]

I am sure u are correct many farangs in Thailand (who retired early or not) are miserable/frugal.

My feeling is many of those miserable/frugal farang in Thailand are probably living in Seventh Heaven compared to the life they had before they ever came to Thailand. Imagine how miserable that life must have been.

Just look at some of the farang sitting in the bars. Instead of looking happy and appearing to be having a good time, many just sit there with a scowl - looking more like someone who has been severely constipated for the last two weeks than someone enjoying life.

I think Geezer said it best. I hope, Geezer, you don't mind me quoting you - "The moment I decide I don't like it in Thailand, I know where the airport is."

[painai2]

As a retired gay man, I can truly say that my worst days in Pattaya are better than any of my best days would be living in the USA.

[loke]

I think we have to separate the Americans from European countries here regarding retirement and the laws. The laws in every country is different. In my country (EU country ) I can not just retire when I'm 50 unless there is a specific reason for it. It is expected that you work until you're in your 60s' . I can get a pension when I'm 62 , that's the earliest after working for more than 40 years .

So what did I do when I moved to Thailand ? I took the work with me , I work as a freelancer, as a digital nomad . My country will give me a pension when I'm 62 , so just need to stay alive until that happens....

The only people I know that retired earlier are successful business owners, or people that had money enough at early age to make investments in stocks etc.

So I can relate to the questions from thaifarang. We are both Europeans.

[Jun]

I think we have to separate the Americans from European countries here regarding retirement and the laws. The laws in every country is different. In my country (EU country ) I can not just retire when I'm 50 unless there is a specific reason for it. It is expected that you work until you're in your 60s' . I can get a pension when I'm 62 , that's the earliest after working for more than 40 years .

Completely incorrect. You are confusing getting a pension with retiring.

Many countries have laws about when you can take your pension.
However, you can retire without taking a pension, which means you can retire at any age you like, providing sufficient funds are available.

So if you have a stock portfolio, a property portfolio or any other investments that bring in the money, you can retire. At any age. Even within that dysfunctional EU organisation.

Regarding saving the money to build that portfolio, well some people choose to spend every penny they earn, others choose to live well but optimise their expenditure to allow money to be saved.
For example, most of my neighbours have one or more premium German cars on the drive, which must cost thousands a year. I'm happy to run an ancient, but reliable car, costing a few hundred per year, plus fuel. Then many of them have families, which I never have any interest in. Eliminating those two costs alone is the basis for a good savings rate.