When to Stop Working

I think I would have stopped working five years ago if it wasn't for some of the clients I've worked with for a very long time, who made my job interesting and very enjoyable. 

Some have now retired and some have passed the reins to the next generation. That's about where I am, too. I have taken the decision to semi-retire and some of my work has been passed to the next generation.

What usually happens is that, eventually, the current generation of clients will reduce in favour of new clients who require the different set of skills that a new generation brings.

The Time To Stop Working is...

    when it feels like work. 

Not having that income can be a problem. You may have paid off the mortgage and be receiving a private pension but a significant drop in personal income means lifestyle changes. And weaning yourself off the business merry-go-round is a tricky one, therefore a staged retirement plan might work for you.

Those who find lifestyle changes the most challenging are people who have been so wrapped up in their business lives that there was very little provision for anything else. Many of us travelled extensively (pre-covid) both for business and leisure, and may have a desire to continue - or not, with a 'been there, done that' attitude. For example, as a family, we stopped travelling by air during covid and haven't returned to it because our memories of rushing to airports just to wait around for hours have put us off. We've looked at travelling by train but it usually takes hours to reach our desired destinations, usually with frequent changes, and the prices are laughable. As people who like a quiet break away from noise and crowds, we resist the idea of cruises - a floating hotel in an all-inclusive resort. The last time we stayed in a resort-hotel was about 15 or 20 years ago and none of us liked it, so we've have usually opted for a quiet self-catering home in the countryside (Provence, Dordogne, Trossachs, Cumbria, Tuscany and so on - all driveable, albeit with one or two overnight hotel stops).

Unless you plan to travel for several months each year (in which case, downsizing your home seems sensible), you may need to find hobbies. These are wide-ranging: golf, bowls, art, reading, writing, gardening, voluntary work plus many other opportunities. Most of these activities can be solitary or involve a small group of people (popularly believed to be essential to delay deterioration of the brain, such as dementia). Perhaps your 'local' has a regular pub quiz?

One of our clients retired at 50, sold his house and bought a canal boat. Another retired to a warmer climate, as he had the advantage of being an EU citizen (this is where the Brexit outcome spoiled our plans). And we gained a client who, in his 60s, decided to use his retirement to become an author.

So, the question of when to stop working hinges on a number of different situations. If you want to stop and you are able to stop, just bite the bullet and do it. If you find that you need to continue in some form, try easing out, either by working mornings only (which I'm doing) or by dropping a set day to a four-day week, then a three-day week, etc. (which my co-director is planning to do). 

Please add your experience or suggestions via the comments (anonymously, if you prefer).

Retirement - no longer a viable option?

 

Picture this: you've been lucky and enjoyed your chosen career then one more major change in the way you need to optimise your skills comes along and you think, "No, I've had enough. What's the point of having years' of experience just to struggle to keep up with new trends?" There are younger people whose brains are not cluttered with all this historical data who are way ahead of your curve, so you decide to retire. 

But... half your clients ask you to keep working for them and you agree - after all, part time is a gentle step towards retirement. The other half of your time, you ponder the state of your income. Used to a good living, will your pension make up for the shortfall of retirement? No, not if it's just the government pension! 

'Boomers' were mostly lucky with their pension plans - one almost-octogenarian told me recently that his retirement income is higher than if he was working. Probably not so if you're younger.

Most will have been paying into a private pension during the years of bounty or as employees of a company scheme. Due to government policy tweaks, some will have suffered heavy losses in the early part of the century, virtually wiping out their investment. Also, life expectancy is longer therefore pay-outs are often lower. 

Many people downsize their homes or move where property is better value for money, putting aside the spare cash for an unknown future. At 0.1% interest, this doesn't come close to inflation. So how does an Ordinary Joe (or Jo) enjoy their retirement? 

One solution is to keep on working as long as you can, for as long as you enjoy it. Long may it last!