How does this financial situation look long term…
Discussion
Shnozz said:
Armitage.Shanks said:
Do you want to keep renting in retirement or buy a house? Depending where you want to live against what you're paying in rent it's still possible to buy a house in a fairly decent area in the Uk for less than £100k.
I wouldn't be renting in retirement especialy being in the hands of a landlord that has control.
If you could save enough to meet the post brexit financial requirements I’d be looking for a nice little place in Europe. Much of it gets more for your money, lower cost of living, smaller heating bills and my Spanish council tax for an example is less than 2 months of my U.K. equivalent. I wouldn't be renting in retirement especialy being in the hands of a landlord that has control.
OP, your partner earns a lot less than you do. Without wanting to be too morbid, what would happen to them financially if you keeled over tomorrow?
For instance, do you have life cover? Have you written a will (important if you're not married)?
To echo an earlier comment, is your SIPP all cash? If so, how often does the interest rate applied to it change?
For instance, do you have life cover? Have you written a will (important if you're not married)?
To echo an earlier comment, is your SIPP all cash? If so, how often does the interest rate applied to it change?
KPHs said:
Shnozz said:
Armitage.Shanks said:
Do you want to keep renting in retirement or buy a house? Depending where you want to live against what you're paying in rent it's still possible to buy a house in a fairly decent area in the Uk for less than £100k.
I wouldn't be renting in retirement especialy being in the hands of a landlord that has control.
If you could save enough to meet the post brexit financial requirements I’d be looking for a nice little place in Europe. Much of it gets more for your money, lower cost of living, smaller heating bills and my Spanish council tax for an example is less than 2 months of my U.K. equivalent. I wouldn't be renting in retirement especialy being in the hands of a landlord that has control.
C69 said:
OP, your partner earns a lot less than you do. Without wanting to be too morbid, what would happen to them financially if you keeled over tomorrow?
For instance, do you have life cover? Have you written a will (important if you're not married)?
To echo an earlier comment, is your SIPP all cash? If so, how often does the interest rate applied to it change?
As matters stand, probably much better off! Like most of us. If I peg it tomorrow the Mrs is the beneficiary of my pensions and gets 4 x salary death in service. That’s before any property and chattels. For instance, do you have life cover? Have you written a will (important if you're not married)?
To echo an earlier comment, is your SIPP all cash? If so, how often does the interest rate applied to it change?
KPHs said:
Abroad is a good option. I live in a hotel in Portugal three months a year at roughly £3-3600 a month including breakfast. I don't pay any utility bills. Good food is cheap and plentiful.
Would you mind elaborating on this, by PM or different thread if you prefer? I'd be really interested in hearing more. I'm considering buying in Portugal but will likely only spend 3-6 months a year there, so rental or hotel is an appealing alternative. I’m surprised nobody has quoted the 4% rule (and I know this isn’t perfect but it’s a reasonable guide).
So £400K of pension will give you a sustainable £16K gross per year income (plus you’re state pension when it kicks in).
To the person that’s suggesting spending £3,600 a month on a hotel plus other living expenses, let’s say £4000 a month, £48k per year, you'd need a pension pot of £1.4M to give you that net yearly income, so not really a good suggestion for the OP
So £400K of pension will give you a sustainable £16K gross per year income (plus you’re state pension when it kicks in).
To the person that’s suggesting spending £3,600 a month on a hotel plus other living expenses, let’s say £4000 a month, £48k per year, you'd need a pension pot of £1.4M to give you that net yearly income, so not really a good suggestion for the OP
Shnozz said:
C69 said:
OP, your partner earns a lot less than you do. Without wanting to be too morbid, what would happen to them financially if you keeled over tomorrow?
For instance, do you have life cover? Have you written a will (important if you're not married)?
To echo an earlier comment, is your SIPP all cash? If so, how often does the interest rate applied to it change?
As matters stand, probably much better off! Like most of us. If I peg it tomorrow the Mrs is the beneficiary of my pensions and gets 4 x salary death in service. That’s before any property and chattels. For instance, do you have life cover? Have you written a will (important if you're not married)?
To echo an earlier comment, is your SIPP all cash? If so, how often does the interest rate applied to it change?
I'd be very tempted to increase pension contributions to soak up everything I paid 40% tax on.
Would suggest you think about something other than cash for at least some of the money in the pension, think about when you are likely to need it, and have a portfolio of cash, bonds equities that matches that timeline.
What do you mean when you say the stakeholder pension leaks?
Where do you stand with state pension eligibility?
Would suggest you think about something other than cash for at least some of the money in the pension, think about when you are likely to need it, and have a portfolio of cash, bonds equities that matches that timeline.
What do you mean when you say the stakeholder pension leaks?
Where do you stand with state pension eligibility?
The reality is to have a “comfortable” retirement you actually need quite a lot of wealth. For most people that manifests as owning their house outright, plus a pension pot (or the implied wealth of a DB income).
Average house in the UK owned outright: £275k
Pension pot to support £20k annual income, excl state pension (assuming 4% rule of thumb): £500k
Chuck in some savings/ISAs and you’re easily at >£800k in wealth.
Average house in the UK owned outright: £275k
Pension pot to support £20k annual income, excl state pension (assuming 4% rule of thumb): £500k
Chuck in some savings/ISAs and you’re easily at >£800k in wealth.
Edited by brickwall on Saturday 23 March 01:17
Edited by brickwall on Saturday 23 March 01:18
Greshamst said:
Shnozz said:
C69 said:
OP, your partner earns a lot less than you do. Without wanting to be too morbid, what would happen to them financially if you keeled over tomorrow?
For instance, do you have life cover? Have you written a will (important if you're not married)?
To echo an earlier comment, is your SIPP all cash? If so, how often does the interest rate applied to it change?
As matters stand, probably much better off! Like most of us. If I peg it tomorrow the Mrs is the beneficiary of my pensions and gets 4 x salary death in service. That’s before any property and chattels. For instance, do you have life cover? Have you written a will (important if you're not married)?
To echo an earlier comment, is your SIPP all cash? If so, how often does the interest rate applied to it change?
When Felix first came out with this about fifteen years ago it wasn't considered serious by most.
Nowadays? Pretty spot on I'd say. Maybe even a smidgen understated.
https://calvinrosser.com/notes/how-to-get-rich-fel...
Truth is, 'tho', you don't need very much wealth at all to have a fun and fulfilling life at any age.
What you DO need to know, is how to live it.
Nowadays? Pretty spot on I'd say. Maybe even a smidgen understated.
https://calvinrosser.com/notes/how-to-get-rich-fel...
Truth is, 'tho', you don't need very much wealth at all to have a fun and fulfilling life at any age.
What you DO need to know, is how to live it.
Edited by Portia5 on Friday 22 March 22:53
You haven’t said what you’re spending on a month to month. I’d be wanting as someone else said to get as much into a pension as possible. And I don’t really see the point of holding much in any other tax wrappers given your age and unlikely that you’ll be paying much tax on a pension either..
Holding it all in cash is a bit mad though, not even the most pants default fund would be anything like that!
Holding it all in cash is a bit mad though, not even the most pants default fund would be anything like that!
brickwall said:
Chuck in some savings/ISAs and you’re easily at >£800k in wealth.
It sounds a ridiculous amount of money but it’s the reality in this country. Depending where you live in the country it could easily be over £1m and you are not living that well even then.Obvious solution as others have said is to move to another country where you get more for your money.
JackJarvis said:
I'd buy a cheap property and prepare for a very frugal life in retirement.
Blimey! that is depressing. Especially as I earn half what he does, have no partner and my rent is about 75% of my take home. A 'cheap' 2 bed in outer London for the price of a one bed.I'm 61
Vague plan of moving to Tenerife as it looks like I could survive out there on my UK pension.
croyde said:
Blimey! that is depressing. Especially as I earn half what he does, have no partner and my rent is about 75% of my take home. A 'cheap' 2 bed in outer London for the price of a one bed.
I'm 61
Vague plan of moving to Tenerife as it looks like I could survive out there on my UK pension.
Residency visa for Tenerife has income / investment minimums for Brits. UK state pension alone won’t meet the requirements.I'm 61
Vague plan of moving to Tenerife as it looks like I could survive out there on my UK pension.
trickywoo said:
croyde said:
Blimey! that is depressing. Especially as I earn half what he does, have no partner and my rent is about 75% of my take home. A 'cheap' 2 bed in outer London for the price of a one bed.
I'm 61
Vague plan of moving to Tenerife as it looks like I could survive out there on my UK pension.
Residency visa for Tenerife has income / investment minimums for Brits. UK state pension alone won’t meet the requirements.I'm 61
Vague plan of moving to Tenerife as it looks like I could survive out there on my UK pension.
trickywoo said:
It sounds a ridiculous amount of money but it’s the reality in this country. Depending where you live in the country it could easily be over £1m and you are not living that well even then.
Obvious solution as others have said is to move to another country where you get more for your money.
Highlights the impending crisis nicely then. OP despite not being in a good position still miles ahead of most. Obvious solution as others have said is to move to another country where you get more for your money.
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