Sean Leith, 30, from Edinburgh, has abandoned his traditional pension plan to pursue an ambitious goal of retiring at 45 with £700,000 in the bank. He has cut his pension contributions and now invests up to £1,000 a month into a stocks and shares ISA instead.
Investment strategy shift
Leith, an actuarial consultant, previously paid 25% of his £62,000 salary into his pension but reduced this to 5% after realising it wouldn't allow him to retire early. He has already grown his ISA from £29,500 to £67,000 through what he calls "lucky" investments, focusing on ETFs.
"The plan is to retire at 45, 50 at the latest," he said. "I think I will need just around £700,000 in today's money." He aims to live on £30,000 a year once retired.
Wake-up call during lockdown
Leith's decision was sparked during lockdown when anxiety forced him off work for six months. "I had no savings so paying bills was impossible," he admitted. He plans to spend his early retirement travelling and playing golf and padel, though he worries none of his friends are doing the same. "My only worry is none of my friends are really doing this," he said.
Experts caution that ETF investments can fall as well as rise, and advise seeking proper financial advice before making drastic changes to retirement plans.
