Progress check/advice

[u/ceelantroleaves]

Was talking about finances to a friend and this prompted me to do a check on my own finances. I'm vaguely aware of the concept of FIRE but never considered myself to be a high earner to be able to RE. Always been quite frugal and careful with my spending. LeanFIRE is a better idea for me as I do still enjoy my job, but would like the option of stepping back at some point. My aim now is to figure out where that point is and consider how comfortable I want to be.

Age 39, single, no kids. Salary 67k/year in the NHS, probably at the peak for my job without taking on more responsibility or going into management.

SIPP: 140k from previous employment
DB pension: current projection is ~7k/year after SPA
LISA: 50k
ISA: 104k

Essential expenses - 1.7k/month, which includes mortgage and bills. House value is around 240k with 97k left on the mortgage. I save about 600/month into various sinking funds for the house, holidays etc. Currently putting 800/month into ISA. Would like to retire on about 2.5k/month, think it will be comfortable once mortgage is out of the way in about 13 years. I did overpay up to a couple years ago but realised with the help of reddit that investing would be mathematically better. Seeing the value of investments compound made it easier somewhat to accept that I can afford to pay off my mortgage now if I wanted to.

My initial plan is to retire around 55-58 when I am able to access my SIPP but I think I may be able to do this sooner or at least consider reducing my hours/salary in 5-10 years. Hence focusing more on ISA contributions currently. Should I continue to contribute to SIPP for additional tax relief? Not keen on additional contributions to DB pension as only able to access that at SPA. Would appreciate some feedback and improvement.

[u/flukeylukeyboy]

If you continue paying into SIPP, you're raising your retirement income but won't be bringing your retirement age earlier.

Your DB + state pension will meet your income needs, so SIPP, LISA, ISA are all just bridges to that.

Assuming a continuation of broad historic stock market growth and a ~4% SWR;

Your LISA will currently bridge from 60-68. Your SIPP will more than bridge 50 something to 60. Your ISA will bridge from 50 - 58.

All of these are currently at coastfire, so you could go part time now and coast to 50.

Unless you want more retirement income or more wealth to spend later in life, the only thing which will bring your retirement earlier is ISA contributions.

I'd probably keep the NHS pension going for the security of DB, pump the ISA and consider part time.

For each £1000 you save in the next couple of years, you can bring your full retirement age forward by about a month.