Category Archives: Work

The Gender Pay Gap – A Brief Analysis

This chart shows what most of us would regard as a generally positive trend – the decline in the gender pay gap – which is down to 9% for full-time workers, and even lower for part-time workers.

Gender Pay Gap 1 2014

However, there’s a lot more going on than this….

For starters, there is considerable variation by age – with women in their 20s and 30s actually earning more than men in the same age categories, with  a significant pay gap then emerging between older workers.

Gender Pay Gap by Age

The ONS notes that the gender pay gap between workers 40+ is probably down to women taking time off to become primary child carers, which to my mind is pretty bleak – Given the ‘negative’ gender pay gap between younger workers, this suggests women are getting into jobs which will give them the same (or better) wages than men (reflecting their higher educational achievement) but that this is then abruptly reversed when childcare responsibilities fall on the mother rather than the father.

It also seems that women in higher paid jobs lose out more compared to men in lower paid jobs – with the gender pay gap for the highest 10% of earners being near 20%, while it’s nearer 5% for the lowest 10% of earners (so rich women are less equal to rich men than poor women are to poor men, at least if we look purely at income). Of course this will also reflects the gendered age differences in the chart above.

Employment - gender pay gap

However to complicate matters there’s not a straightforward correlation between occupational class and the gender pay gap – it’s actually the traditionally masculine jobs which have the highest gender pay gap, not the highest income ‘professional and managerial’ jobs.

 gender pay gap occupation

There’s various explanations for this larger gender pay gap in traditionally male occupations – It could simply be the later entry of women into such occupations compared to women going into the professions – thus there are fewer older women than older men, so women on average earn less compared to men because older workers earn more than younger. An alternative explanation would be that women who go into these professions are less likely to return them after taking time out to raise children, in which case the question of whether this lack of return is due to gender-barriers, or genuine free-choice would arise. Of course, it’s probably a mixture of all three of these reasons.

Finally, it might be worth exploring what’s going in in Northern Ireland that’s led to such a significant reduction in the gender pay gap….. Whether this is down to social policy or just societal changes I don’t know, drop me a line if you do!

Employment - gender pay gap 1997 to 2014


Sociological Perspectives on Modern Apprenticeships in the UK

The material below is relevant to the Vocationalism topic within the Sociology of Education and  should help students to answer essay questions such as ”Evaluate Sociological Perspectives on the role of Vocational Education”, or various questions on contemporary education policies, as well as hopefully just being of general interest.

What are Modern Apprenticeships?

An apprenticeship is a job with training which allows an individual to earn while they learn, whilst gaining a nationally recognised qualification. Apprentices aged 19 and over are entitled to the National Minimum Wage at the same level as regular employees, but 16-18 year olds can be paid less – £3.30 an hour (from October 2015) compared to £3.87 an hour for regular employees. Of course an apprentice aged 19 or over would probably be paid less than a qualified person the same age, given that they are less experienced.

Apprenticeships are available for anyone aged 16 or over, but the most common ages for people starting them is 16-24. Apprenticeships must last for a minimum of one year, but can take up to five years to complete.

There are three main levels of Apprenticeship:

– Intermediate apprenticeship (level 2)

– Advanced apprenticeship (level 3)

– Higher and degree apprenticeships (level 4 or above).

Apprenticeships are tied into more traditional vocational qualifications – anyone undertaking a level two apprenticeship will work towards a related city or guilds or BTEC qualification, while anyone doing a higher level apprenticeship will work towards a degree.

Apprenticeships are available in over 170 industries the most popular apprenticeships in 2014 by sector being:

  • Health and social care
  • Business administration
  • Management
  • Hospitality and catering
  • Customer service
  • Children’s care learning and development
  • Retail
  • Construction skills
  • Engineering
  • Hairdressing

So in short apprenticeships are basically on the job training leading to a qualification, and besides saying this, it’s impossible to give a representative account of what a ‘typical’ apprenticeship looks like given the huge variation.

How many people are doing apprenticeships?

  • Since 2010 there have been over 2 million apprenticeship starts – so more than 2 million people in the country (unless they’ve emigrated since) have either done them or are doing them.

  • In 2013-14 there were 500 000 apprenticeship starts

  • In 2013-14 850 000 people were earning and learning while doing an apprenticeship

  • There are typically over 25000 apprenticeships being advertised online at any one time.

Why have apprenticeships grown so quickly?

I put it down to three things –

  • Underlying historical demand for vocational training courses as opposed to academic learning – The UK has had a large NEET population (16-24 year olds not in employment, education or training) for over a decade now, which suggests there has been a significant demand for alternative pathways to employment other than courses offered in colleges.

  • The recent government ‘pincer movement’ on young people – 18 year olds are now (since 2015) required to be in some kind of training or employment, and combined with the government clamp down on benefits for young people, this means they have fewer options.

  • Government support for employers – The government invested £1.5 billion in apprenticeships in 2014-15 and from 2016 will exempt employers from paying National Insurance Contributions for under 25 year olds. Basically government support makes it cheaper to hire apprentices.

What are the benefits of apprenticeships?

Firstly, looked at statistically, they seem to offer economic benefits to most apprentices, employers and the economy more generally – Mainly taken from the ONS web site….

  • 90% of apprentices stay in employment after the apprenticeship has finished.

  • 70% stay on with the same employer.

  • 19% of level three apprentices advance on to Higher Education.

  • Businesses report an increase in productivity of £214/ week when they hire apprentices (which effectively means they cost the average company nothing given the low wages!).

  • Small businesses get a £1500 grant towards the start up costs of New Apprenticeships if they employ 16-24 year olds. (Any training costs for 16-19 year olds are, possibly obviously, covered by the government.)

  • For every pound of government investment in apprenticeships, the economy gets £18 – £28 back (estimates vary).

  • Apprenticeships were estimated to contribute £34 billion to the UK economy in 2014

Secondly, they diversify the education system – offering a much greater choice of training opportunities by a much wider range of providers than Further and Higher education providers could ever hope to provide.

Thirdly (but I would need to look into this further to verify it) they seem to be offering a very real alternative for young people who would otherwise be NEET because there is a distinct correlation between the increase in apprenticeships (mostly taken up by 16-24 year olds) and the recent decrease in the number of NEETs. (Of course correlation doesn’t necessarily mean causation, but in this case I think it’s pretty safe to conclude that it does!)

What are the downsides of Apprenticeships?

You wouldn’t think there were any judging by the ONS site, but if you dif around there are those who voice some legitimate criticisms of Modern Apprenticeships

Firstly: Apprenticeships might really about firms getting cheap labour:

Kathy Glover from The New Left Project points out that it’s cheaper for an employer to hire an apprentice than someone qualified – Glover cites one case study of an estate agent who sacked most of their staff in order to replace them with cheaper apprentices. Not only is this bad for the experienced, sacked staff, it’s difficult to see how a cohort of apprentices can learn anything without any more experienced people to.

There is also some evidence that the Engineering sector in the UK is preferring cheaper apprentices over already qualified people.

Also, the number of in-work training programmes have reduced by about 250 000 in recent years, which suggests that work places are simply shifting their training onto apprenticeships – meaning the government pays for it rather than them paying for it, in which case apprenticeships aren’t about more training, there just about the tax payer paying for it, not the employer.

Secondly: Apprenticeships don’t necessarily lead on to real jobs:

Firms are not obliged to take apprentices on full time after their training period and it’s cheaper for an employer to hire a string of apprentices for one-two years at a time rather than to take someone on.

The rapid expansion of more apprenticeships might even harm the wider job market in certain sectors – Glover cites UK manufacturing, which despite declining employment in recent years, has greatly increased the number of apprenticeships – BAE systems, for example, has expanded its apprenticeships programme by 25%. This must mean decreased demand for already qualified people.

Thirdly: Apprenticeships are really about saving the government money

Kathy Glover points out that Apprenticeships allow the government to cut costs because it is much cheaper for them to pay a couple of thousand pounds or so to an employer for a year rather than to have a young person on unemployment benefit.

The problem with this is that it might mean that some people on apprenticeships are worse off than when they were on benefits. She uses the case study of Michael, 16, from Liverpool, employed at a large charity shop through the retail apprenticeship scheme to illustrate this:

“I work 37.5 hours a week for £100 a week with around 20 other staff, most of who are on some sort of work placement or volunteers. My auntie, who I live with, has lost around £70 a week in benefits due to me going on this apprenticeship because I’m now classed as being in full-time employment. The council has done things like deduct £3 per week from her housing benefit which I’ve been told I must now pay. I don’t get any separate travel expenses so I’ve also got to pay for the two hours travel per day out of my wages. By me going on this apprenticeship we’re worse off than when I was in college so I’m considering leaving the scheme and going back into education.”

Fourthly, Modern Apprenticeships remain heavily gender stereotyped

For example, females take up 94% of positions in early years childcare but only 1 and 2% respectively in construction and plumbing. All other sectors also conform to gender stereotypes.

Average wages for apprenticeships also vary between males and females – for males the average is £186 compared to females who earn on average £147 per week (2007 figures). This is because the sectors where females dominate are the lowest paid (such as early years childcare), and have little scope for career progression, so are mainly level 2 and 3 apprenticeships. The sectors where men dominate tend to offer apprenticeships which are higher paid and offer greater career progression, onto level 4 apprenticeships for example – in sectors such as engineering and IT.

Fifthly, in some sectors the training you receive may be of a very low standard

Only 22% of apprenticeships in customer service and 13% in hospitality and catering are offered at level 3, and a retail or customer service needs to only complete a minimum of two hours training a week.

Tess Lanning of the IPPR suggests that this is because Government targets to increase the number of apprenticeships, combined with a lack of interest from many employers, have led to a watering down of what constitutes an apprenticeship. New Labour widened apprenticeships to include level 2 qualifications, which evidence suggests have little to no value in the labour market, and opened them up to adults, meaning they have lost their purpose as a tool to prepare young people for entry into the labour market.

Apprenticeships: Should you do one?

I guess this depends on what sector you’re looking at – If you’re interested in Engineering then it’s probably worth spending a bit more time researching your options than if you were interested in going into retail or hospitality…

The Apprenticeships Self-Development Pack for young people is designed by the government for you to work through to see if an Apprenticeship is for you – Warning – This links pretty much exclusively to the government’s own propaganda videos about how great apprenticeships are and oozes ‘careers advisory document’ out of every pore, and yes there is the dreaded skills assessment exercise at one point too.

Ultimately it’s down to you whether you do an apprenticeship or not, but whether or not you do one, keep the following question in mind – Assuming university isn’t for you, and assuming you want/ need a job, then do you actually have the choice not to do some kind of apprenticeship, or have you been steered into it by social forces?

Further Reading/ Sources used

Apprenticeships: Fact Sheet for Parents (the best introductory summary sheet I’ve found on the topic but warning – complete lack of critical content!)

Facts, Figures and Statistics about Apprenticeships – Does what is says – The main source I’ve used for any statistical information above.

The Youtube Apprenticeship Channel – featuring apprentices and employers talking about the advantages of apprentiships (warning – complete lack of critical content!)#

Further Education and Skills: Learner Participation and Outcomes

Also see links in the document above.

Stop buying crap you don’t need now and retire 4 years earlier!

In this post I continue my statistical critique of the ordinary life of the everyday worker-consumer. This is done through comparing a hypothetical 35 year old who earns the median salary and has average expenditure to a hypothetical construction I call the frugal-consumer who spends as little as possible without completely cutting themselves off from society. The expenditure levels of the former effectively tie them into working for a further 33 years until the current projected standard retirement age of 67-8, while the later, assuming they maintain their frugal levels of consumption, will be able to retire when they are 52-3, or 14 years earlier, or in half as much time as the average-consumer on the average wage.

Here I consider spending on Consumer Frivolities (see previous posts for other categories of expenditure).

The average-consumer spends £216.71 a month on what I call consumer frivolities, which includes unnecessary expenditure on restaurants and hotels (£73.15), furniture and furnishings (£51.48), ‘miscellaneous goods’ (£69.33), which in the ONS family spending survey mainly consists of beauty products and jewellery, and finally recreation and culture (£111.06), which for most people means the cost of purchasing audio-visual equipment and subscriptions to various services, and also includes the cost of entrance to things such as cinemas, concerts and festivals.

Over the course of one year this amounts to £3,933 and maintaining this for another 33 years will cost £129, 798,  which represents 6.0 years working earning the median salary.

So what does the average person get for this £129, 798, or 6 years of toil? Most people would say it’s hard to generalise, because the consumer gets what ever they want for the money they’ve got, assuming the market can provide it. Some people will choose a house full of antiques, others a house full of gadgets, and stilll others closets full of clothes and  boxes full of jewellery. Increasingly likely, though is that money will be spent not on stuff, but on experiences, such as playing the dating game, or weekends away and longer holidays, supplemented by such products as fake tan and sun cream to prevent an actual sun tan.

To many people, such consumerist experiences are the very purpose of life: the products we buy define us, mark us out, and the events we purchase play a crucial part in our weekly, monthly and yearly life-course – they are things we look forward to, and back on, the events which help to maintain and define our relationships with our friends and family and give us something to talk about at work, other than work.

I’ve managed to resist the urge to be utterly cynical about the role which consumption plays in most people’s lives, because just recently I’ve come to perceive most ordinary consumption as tragic, and in this context cynicism seems innapropriate. Those people  who define themselves through their stuff become tied to it (and possibly require a bigger house in which to stuff their stuff), and for those who define themselves through their experiences, it seems to me that the way in which many people consume such events involves them not really being present because they’re too concerned with acting for the sake of sharing the experience via social media, and for me if you’re not actually present, then you’re not really even alive.

Ultimately such unnecessary consumption costs the average-consumer on the median salary 6 years of their working life. In contrast to this the frugal-consumer rejects the trivial, shallow and short-lived fake-joys of consumerism and instead engages in meaningful, productive and either free or very cheap activities when not working.

The frugal-consumer is not, however, an anti-consumer, and maintains an expenditure level on ‘consumer frivoloties’ which allow them to avoid being completely cut off from ordinary society. This is mainly because I could not, hand on heart, say that I am ever likely to cut out consuming frivoloties all together myself, cut down radically yes, cutting out altogether, highly unlikely.

The frugal-consumer spends just £60 a month on such frivolities, allowing for £20 a month on restaurants and hotels (so basically no hotel stays and one trip to a restaurant a month), £20 a month on furniture and furnishings, given that this category includes spending on basic household items such as hoovers, a further £20 for ‘miscellaneous goods’ because everyone needs a little something extra, and a whopping £30 a month for recreation and culture. This amounts to an annual expenditure of £1080 a year, a total of £35 640 over 33 years, representing a saving of £94 158 or 4.33 working years of working at the median salary compared to the average-consumer.

NB If this looks unrealistic, or even unbearable, something like the bottom fifth of the U.K.  in terms of income live such a life out of necessity rather than as part of an early-retirement strategy, so it is possible.


How the median income earner could retire at 52

If you’d like a fuller version of what’s below, please do buy my latest book

Early Retirement Strategies for the Average Income Earner, or A Critique of the Curiously Ordinary Life of the Everyday Worker-Consumer

Available on iTunes, Kobo, and Barnes and Noble – Only £0.63 ($0.99)

extreme early retirement

Also available on Amazon, but for $3.10 because I’d get a much lower cut if I charged less!


Over the summer I worked out that a 35 year old earning the median salary could potentially retire at 52, if they just stop buying crap they don’t need now. In contrast, the expenditure levels of the average worker-consumer effectively tie them into working until the current standard retirement age of 68.

This post is simultaneously a critique of the ordinary worker-consumer and of the Extreme-Early-Retirement model, which I don’t think can be applied in its fullest sense to an average person in the U.K. (Although if someone wants to modify my stats using different investment models to see if the retirement date could be brought forward, I’d be interested!).

In this blog post I compare two hypothetical 35 year old individuals (4) who both earn the median UK salary. One individual has average consumption and expenditure while the other has in mind the goal of retiring as early as possible and so is much more frugal, without completely having cut themselves off from society.

As testimony to my lack of Open Office Calculator and Inkscape skills, this is represented below:

Ret InfoTo make reading the above more meaningful, you should refer to this spread sheet throughout – Comparing 33 years of expenditure

For the sake of making an easy comparison, I’ve used expenditure figures based on one person living alone for the remainder of their life, and imagined that they have just bought their first property at the age of 35. The reason for selecting a 35 year old is because this is the age by which most people are settled into a stable career, and this is also the age by which most people are at least starting to think about retirement, if not yet looking forward to it in the near future. It also happens to be the age at which today’s typical graduate student can reasonably have expected to have paid off their student debts and have some kind of savings towards their first property. Although the figures in each expenditure category will vary considerably depending on variables such as age, or household make up, the levels of expenditure are generally not going to be that far away from how the majority of people spend their money for much of their lives, and thus most people should at least recognise something of their own and their friends’ expenditure habits in these figures.

However, to satisfy those who just can’t get over the problems of using averages when variables which will differ widely, I’ve included a link (4) to the spread sheet where I’ve done my calculations so you can add in your own expenditure and income levels in order to personalise these calculations for yourself, or you can even modify at a deeper level to add in things such as inflationary effects, investment returns and changes in circumstance over time.

The purpose of this exercise is to put in the starkest terms possible how many years and months (expressed in decimal terms) of one average human life one individual would have to spend working to buy certain things for the remainder of one’s normal working adult human life. In those stark terms – The expenditure levels of the average-consumer effectively lock them into working until the current standard retirement age of 67-8, while the frugal-consumer, assuming they maintain their frugal levels of consumption, will be able to retire when they are 51, or 14 years earlier, or in half as much time as the average consumer on the average wage.

Executive summary – A comparison of the 33 expenditure patterns of an average-consumer compared to a hypothetical frugal-consumer.

As far as I see it, there are three main factors which work together to keep the average 35 year old worker-consumer locked into the need to work for 33 years until they are 67-8. In terms of overall expenditure, the single most significant item is the 25 year mortgage with massive interest payments (costs 9 years). However, this lock in occurs primarily because the high cost of car ownership (costs 5 years), and what I can only characterise as fragmented expenditure on a range of unnecessary consumer frivolities (costs 4 years), which together means that a person earning the average median salary has no choice other than to drag the mortgage out over a 25 year period, and accept the attendant massive interest costs.

In contrast, what I call the frugal-consumer chooses to get rid of the car and buys a bike (saving 4 years), radically reduces consumption of frivolities (saving 2.3 years), and in addition makes some relatively marginal savings on necessities (saving 1.5 years) such as food and utilities. Taken together, these changes in lifestyle allow for an 11 year mortgage repayment term and much lower interest payments as a result (saving 2 years). All of this, factored with the lower cost of living, mean that this individual could potentially accrue enough savings over 16 to years to pay for 33 years worth of frugal consumption, allowing for an early retirement age of 52.

In future blog posts, I’ll compare expenditures across four categories – housing, transport (focusing on the car), consumer frivolities and things which may be reasonably regarded as necessities.

If you can’t wait, you can always buy my book – ‘Early Retirement Strategies for the Average Income Earner‘.


Boring but important – A few (selected) notes on data sources and expenditure categories and statistics

Categories of Expenditure In my analysis below I have four main expenditure categories, mainly drawn from The Office for National Statistics’ Family Expenditure Survey (5) -Mortgage repayments -Transport costs -Necessities – food, utilities, council tax, clothes, pensions contribution, communication, maintenance of dwelling, health -Consumer frivolities – recreation and culture, restaurants and hotels, ‘miscellaneous’, household goods and services, alcohol and tobacco and education.

To get my figures for individual expenditure based on one individual living along I’ve mainly used the data from the ONS’ family spending survey and divided by the average household size (2.4 people) where it makes sense to do this (dividing makes sense for clothes, but not for council tax). Because the figures are mostly weekly, I’ve multiplied by 52 to get the annual figures and then 33 to get the 33 year overall expenditure to the normal retirement age. I’ve calculated how many years working it would take the average consumer to pay for one category of expenditure earning the median net salary by  dividing the total cost of 33 years worth of expenditure by this figure (£21, 240). Where housing costs are concerned, I’ve used the figures for the cost of repaying the average mortgage which is £121 000 according to this is money (6).  Here, for the average-consumer repayment is over a 25 year term, while for the frugal-consumer, the repayment period is over an 11 year term.

Median Income

According to the UK Annual Survey of hours and earnings (7) median, full-time gross weekly earnings stands at £517.00 per week, which amounts to (*52) a median gross annual salary of £26884, which equates to a take home annual salary of £21, 240, or a monthly salary of £1770 after income tax and national insurance are taken out (£408/ week for those who like to work in weeks).

Potential problems with my modelling

Firstly, I don’t take into account inflation, I’ve just worked out everything at today’s prices, and neither do I take into account any returns you might make investing rather than paying down the mortgage, which is the main early-retirement strategy in my scenario. However, these two things being equal in both my average and frugal-consumer examples, you are still a lot better of spending as little as possible on anything other than the mortgage or savings. Another potential limitation of the model is that it is mainly based on someone having a stable job, and being single, although it is possible to ‘stick to the programme’ while moving around jobs and holding down a relationship, maybe even kids, just a lot more difficult. 

References (lots more in the book!)

(1)See the spread sheet above

(2)Office for National Statistics – Family Spending 2013


(4)ONS – Annual Survey of Hours and Earnings 2013 –

Early Retirement Extreme – A Summary

EREI came to conclusion over summer that if I could make this 6 week holiday my life, my life would be a lot nicer. Hence why I’ve got the early retirement bug and hence this blog post summarising the following book –

Early Retirement Extreme offers a critical intellectual framework for rethinking your approach to retirement that would allow someone on the median salary to retire several years earlier, and the more you earn, the earlier you should be able to achieve this goal. (The book has helped me (on £40+K) to work out an 8-12 year early retirement plan, which I’ll post on later).

Early Retirement Extreme is not a step by step guide about how to achieve early retirement. It is a critique of the paucity of normative ways of thinking about work-consumption-retirement and an overview of an alternative way of thinking about this nexus which ultimately means working and consuming less and retiring a lot earlier than normal.

If I could pick one single stand-out idea which captures the ethos of the book it is this: If your current yearly income is £10 000 and you spend 75% and save 25%, it will take you 3 years to accumulate enough savings to take 1 year off. If you invert this ratio by spending 25% and saving 75% then after 3 years you can take 9 years off.

While this hypothetical example doesn’t factor in real-life variables such what you might actually be earning, or inflation or interest on savings, it does illustrate the central principle of the book – Whatever your income, if you get used to living on as little money as possible and save as much as possible, then you will be able to retire A LOT earlier than the norm. In this model, early retirement will also require you to invest sensibly (this is not an anti-capitalist manifesto!) and develop a range of skills (social, physical, practical and technical) which will make you a more resilient person who is able to meet their downward-adjusted needs and wants with much less money.

By saving 75% of his income Fisker managed to become financially independent in five years, and the blog recommends that you aim to save at least 40-60% of your income to make early retirement possible (I’ve managed 56%).

In Fisker’s model, the first step to early retirement is to get over the habitual way of thinking about work as something we do for 40 years, and to get over the idea that a high-level of consumption is what we do with those small chunks of time when we are not working. In his view, many of the consumer goods and services which are regarded as normal have little real value, and as examples he lists everything from kitchen gadgets to gym memberships but also cars and higher education.

Instead of working-consuming for 40 years, Fisker suggests that we stop consuming and start saving and we spend our non-working time developing ‘resilience skills’ which will make us less dependent on money. He suggests four types of skill – practical (e.g. building your own house rather than paying £100K interest on a mortgage), technical (a diverse range of professional skills), physical (being able to cycle rather than needing to drive), and social (sharing a house rather than living alone).

Each individual will approach early retirement in different ways depending on their own specific circumstances, and Fisker suggests that it is up to the individual to weigh up their own talents and find their own individual (or couple/ small network) path to retiring early – In this vision, thinking for yourself, and creativity are crucial.

The fact that the idea of saving 75% of your income will seem unrealistic to most and down-right impossible to many is, to Fisker, simply a sign of how colonised our minds have become by societal work-consumption-retirement norms and very early on in the book Fisker contrasts his own creative ‘renaissance’ approach to early retirement to the slavish mentality which keeps us chained to our sub-optimal 40 hour a week/ 40 year career working norm.

He uses Plato’s cave analogy to illustrate how we have become wage slaves, the wall in his modern rendering of this tale representing us being trapped by the multitude of things we mistakenly think we need. However, unlike physical walls, our chains are mental, because rather than using our imagination to creatively break free of this cycle, we develop excuses which keep us locked into this cycle of a long-career and short-retirement.

Fisker criticises what he casts as the ‘wage-credit-spend-consume-retire on a million-cycle’ – Into which we have been duped. He is especially critical of our wasteful consumption practices – we are taught to be materialists through toys from childhood and later on our mortgage-purchased houses become places in which we store stuff which goes largely unused.

As briefly outlined above, rather than spending, Fisker’s solution to breaking free of this cycle is simple – spend less and save like what appears to be crazy to build a relatively small retirement pot. His own version of retirement really is extreme – saving 75% of his income, it took him 5 years to retire on a third of the median income (something like $700 annually), reducing his expenditure to the very basics of life and finding creative ways to enable him to live on less.

Given that he lives on $7000/ year, it seems reasonable to assume that he had an income of $30 000 over these five years of saving, meaning that he has ‘retired’ on an income pot of $150 000, although it will almost certainly be more than that given that he appears knowledgeable about investing.

Obviously this is more than most people will be earning in their late 20s/ early 30s when he started out on his early retirement mission, but Fisker holds that it is the 75-25 ratio that is the crucial thing, and more crucially, the mindset to spend as little as you can by finding creative ways to avoid the con-of-consumption and save what remains.

If you haven’t already done so, I thoroughly recommend checking out the early retirement extreme blog which has details of many people on a mission to retire early, and in a future post I’ll put together a number of links to U.K. based early retirers…

If you like this sort of thing – then why not my book which is more focused on early retirement in the UK?

Early Retirement Strategies for the Average Income Earner, or A Critique of Curiously Ordinary Life of the Everyday Worker-Consumer

Available on iTunes, Kobo, and Barnes and Noble – Only £0.63 ($0.99)

extreme early retirement

Also available on Amazon, but for £1.99 because I’d get a much lower cut if I charged less!

You might also like…

How the median income earner could retire at 52

Your Mortgage or your life…