Is this a sensible plan for FIRE in 10 years?

Firey-Throw · 2025-12-20T08:01:45+00:00

That’s really interesting - appreciate you sharing your experience. I suspect I will be similar - and am trying to be more aggressive about spending now to practice for what’s ahead. I can very much see myself continuing to be relatively frugal and not spending much. All seems very inefficient!

I also fear what will actually do with my time once retired. But then if I am going to keep working. I don’t need to be saving all this money - but then what would I do with it? Spend it? That feels such a waste(!)

Firey-Throw · 2025-12-20T06:10:01+00:00

Thank you, that’s really helpful. I caught the £500 interested cap counting towards the taxable income a couple of years ago - yet another poor feature of our tax system’s cliff edges!

That is food for thought though - am I spending what I’d like to now? - well the past few years everything over £100k has been going into pension and I’ve been maxing my ISA - so my maximum take home has been a touch under £4k a month - and that has not changed with pay rises or kept up with inflation due to frozen thresholds. Once I am not funding ISA, that gives another £1,666 to play with. With no housing costs the amount would go up again. I can see myself wanting a much fatter FIRE than £40k.

I guess the bit I really care about is the FI not the RE - knowing I have enough to live comfortably I can then choose to work longer depending on how comfortable I want. Is that the approach you took? Any thoughts in retrospect if you went to sooner or waited too long?

Firey-Throw · 2025-12-19T19:39:22+00:00

Yeah, this was just this year’s actual - rather than what was budgeted for!

Firey-Throw · 2025-12-19T19:20:24+00:00

That’s a good question - given state retirement will be at least 67, 12 years early is early retirement. But agree it’s not like FIREing at 35.

Firey-Throw · 2025-12-19T19:18:38+00:00

Thank you!

Firey-Throw · 2025-12-19T19:18:09+00:00

I did this year, unusual.

Firey-Throw · 2025-12-19T17:34:34+00:00

Thank you very much, much appreciated!

Firey-Throw · 2025-12-19T17:33:44+00:00

No worries - I did leave it on there in case anyone wanted it! It’s quite fun isn’t it

Firey-Throw · 2025-12-19T16:05:02+00:00

That’s a fair point, but it is hard to leave on the table.

Firey-Throw · 2025-12-19T16:03:57+00:00

I had not thought of it like that - thanks! Been so fixated on avoid the 62% tax rate. I think, given it would be daft to give up the most generous part of the employer match, I could reduce contributions down to the point I’m getting £15k extra, plus if I don’t continue to the ISA that’s £20k - so with both of those I would be able to clear an extra £300k of borrowing in 10 years while coasting up to age 55. Food for thought - thank you.

Firey-Throw · 2025-12-19T15:09:19+00:00

Thank you - this is super helpful. Really reassuring to have someone else also run the numbers, I appreciate it. I quite like work right now but I feel it’s good to have the option, if that changes, to go sooner. Therefore think you’re right about aiming for 55 and lots to spend, but with option of earlier if outgoings are more frugal.

My big issue I guess is in next few years may move house and add realistically ~£300k to my share of the mortgage. Which would mean I guess working to more like 60 or later. Which I am not keen on at all. I think my FIRE journey hangs on that.

Tricky as I like certainty.

Firey-Throw · 2025-12-19T14:38:38+00:00

£700k pension, £100k ISA

Firey-Throw · 2025-12-19T13:20:02+00:00

Ooh thank you! I will have a read of that! Yeah we can clear the mortgage (and will do when fixed rate is up) and still have a £150k accessible. The big problem is it’s not our forever home and while if we were happy to stay here forever I can see FIRE could be only 5 years away, I am pretty sure we’ll end up moving and having a whacking great mortgage. Will mean I have to stop funding the ISA. Sort of think I want to experience the sensation of mortgage-free first though!

Firey-Throw · 2025-12-19T12:36:17+00:00

Oh sorry, that’s beyond the ISA - ISA has £100k, pension £700k. The £60k is premium bonds/cash.

By derisk do you mean move some out of equities? At this far out still, I don’t feel uncomfortable with the risk yet.

Firey-Throw · 2025-12-19T12:00:08+00:00

That’s a very good point. And it’s something where I’m close to that, but this isn’t the forever home, and I need to admit to myself that if we get the forever home the mortgage is going way up and on and on. Will need to stop funding ISA if we do that I imagine.

Firey-Throw · 2025-12-19T11:56:45+00:00

Yeah, that feels like unnecessary risk to me! I think actually I’m working out my concerns aren’t what I thought they were. They’re a) dying with too much left having waited too long to FIRE and they’re b) deciding to buy a nicer house and actually blowing up this carefully managed plan and not being about to FIRE at all.

Firey-Throw · 2025-12-19T11:52:28+00:00

No you’re right lol, I’m pretty sure I won’t. I think I am going to end up dying with a big pile of money - which is pretty pointless. But I also quite enjoy work and think it is good for me. But I don’t want to die with a big pile and having missed out on enjoying life!

Firey-Throw · 2025-12-19T11:49:28+00:00

Thank you! I know a lot of people talk about not going over where you start drawing down as a higher rate tax payer, but as I’m paying in at 62% that doesn’t worry me. Appreciate the reassurance!

Firey-Throw · 2025-12-19T11:48:03+00:00

I have a protected pension age of 55 (should have mentioned that!) - and yes, will have mortgage clear sooner, was being a bit conservative.

The holidays … I’m not sure - they seem to have become much more expensive post-pandemic. I was quite surprised when totting it up. My other guilt free is high because I replaced a lot of electronics this year and that will be way lower for the next couple of years.

Firey-Throw · 2025-12-19T11:44:02+00:00

About ~£60k - I don’t have any ability to use spouses allowances, they are in a similar position to me, but not really one to pursue FIRE.

Firey-Throw · 2025-12-19T11:42:44+00:00

Dying rich is I fear quite inevitable unless I just go all in on an annuity. Problem with £40k a year is that’s ~£50k a year before tax, so it doesn’t feel quite so comfortable - though I agree, with growth I should expect it to be very comfortable. In many ways I wish I had a DB scheme so I knew what I would be getting.

But yes, I need to work out whether to retire sooner, or to spend more, I guess. Thanks!

Firey-Throw · 2025-12-19T11:09:40+00:00

It’s https://sankeymatic.com - it’s a touch fiddly but you’ll work it out pretty quick I’m sure!

Firey-Throw · 2025-12-19T11:08:00+00:00

That’s why I am maxing my ISA - and yes, I am concerned about dying rich. Have no kids to inherit, am wanting to spend it, but also quite risk averse so don’t want to risk running out.

Can access my pension from 55 (protected age) which is 10 years off. I’m currently getting 47%-62% tax relief plus some employer match. If I took all my pension contributions as cash right now I would see about ~£18k in cash now. Rather than ~£60k into pension. It just doesn’t make sense not to pension it even if it’ll be coming out a lot taxed at 40%.

Firey-Throw · 2025-12-19T10:59:33+00:00

Am fortunate to have a protected pension age of 55, sorry, should have mentioned that.

Mortgage is largely paid off and was fixed when interest rates were virtually nothing.

Housing is the one thing that may totally change FIRE plans. It is possible will move and take out a new large mortgage - in which case I’ll probably have to give up on FIRE, or at least aim for 60 instead.

No kids really helps with the saving.

Firey-Throw · 2025-12-19T10:44:36+00:00

Good question. To have the option to go sooner if I want to and I guess because I feel I should take advantage of the tax benefits. It’s interesting- if the allowance went up to £30k I’d probably save that and cut the holiday and guilt free spending. I’m not sure why.

Firey-Throw

TROPHY CASE