Retire early (living off savings)
Discussion
mccrackenj said:
As an alternative to equity release, where you only get a proportion of the property's value, what do people think of just selling up and renting for the rest of their lives?
I know we are conditioned to think of a home as security, and therefore never sell it, but if you have no dependants you can probably rent a pretty nice apartment for 25/30/35 years from the proceeds of a normal 3 bed semi could you not? (Location dependant of course.)
No property maintenance worries, lower running costs, lock it up and go away without worrying etc?
I'm trying to talk the wife around to this proposal when we retire (about 10 years away)
Discuss.
A friend of mine did this last year and it was something he spoke about for a good few years before hand and selling his 4 bed detatched house near Hastings gave him £300K to play with after clearing any debts.I know we are conditioned to think of a home as security, and therefore never sell it, but if you have no dependants you can probably rent a pretty nice apartment for 25/30/35 years from the proceeds of a normal 3 bed semi could you not? (Location dependant of course.)
No property maintenance worries, lower running costs, lock it up and go away without worrying etc?
I'm trying to talk the wife around to this proposal when we retire (about 10 years away)
Discuss.
Last time i spoke with him he was in the Canaries with his wife and spent christmas there saying the kids have been given their inheritance early and now it is his time...where he will be next is anyone`s guess.
Its not for me but good luck to him as he like me had enough of the plumbing/heating game and wanted some sun on his back..
davek_964 said:
Renting doesn't appeal to me - purely because you don't get to decide when you move, the landlord does. If you're lucky, you can settle in - if you're not lucky, you're forced to move which I really would not need when I'm beyond retirement age.
Equity release is tempting, although my mansion is smaller than most on PH so funds would probably be limited.
I had a quote saying i was 55 yrs old (minimum age) and my £550k home would release me £150k.......no tarEquity release is tempting, although my mansion is smaller than most on PH so funds would probably be limited.
tankplanker said:
f you've enough savings to last another ten years or so then be topped up with the equity release I would be surprised if you didn't get offered more money. As the equity release firm won't expect the money until you and your partner die (worst case), paying out at 55 means they could be waiting more than 30 years. If you drew the equity at 65 then that could be 20 years. An extra 10 years of interest payments would be significant on a £150k sum.
This....Think i would rather sell up and downsize......the kids have had their share already
magooagain you seem to have it sussed.....
Edited by baliongo on Tuesday 9th January 14:00
I dont regret starting this thread one bit as it has given plenty of food for thought but i feel like a fraud now as i have just accepted a job from a good friend of mine who wants me to foreman his guys on a large job in Kensington London...
Pay is very good @ £220 per day but the job runs for a while,fortunately he knows how i feel and has asked for me to help him out and see how it pans out..doubt i will last long but he is a mate and the wage is decent and would go straight into my full retirement fund less expenses..
Keep up the comments as i have enjoyed all the of them...well most
If i make it to march i will be happy
Pay is very good @ £220 per day but the job runs for a while,fortunately he knows how i feel and has asked for me to help him out and see how it pans out..doubt i will last long but he is a mate and the wage is decent and would go straight into my full retirement fund less expenses..
Keep up the comments as i have enjoyed all the of them...well most
If i make it to march i will be happy
mikeiow said:
Indeed.....I always think retirement ought to involve some 'winding down' where there is still some income coming in, but for times/places to suit you. Then it won't feel so much like work, and as Magooagain says, you have a cash bonus that can always be put to some good use. Make some positive plans - a break at the end of the job, perhaps. Retirement is in the mind as much as the body
Yes and as i have been semi-retired the last few years my mind is already retired...just need to wake it up for next mondayJust been told that the job is programmed to finish end of march so that would tie in nicely with my plans to have spring/summer off again just like the last few years..
I did try caretaking at a local school for 3 months but that soon got very tedious and the pay was awful for the hours worked..Postie sounds good but winter wouldnt be that much fun and i do like spring/summer off so i wonder if they would take on autumn only..
I did try caretaking at a local school for 3 months but that soon got very tedious and the pay was awful for the hours worked..Postie sounds good but winter wouldnt be that much fun and i do like spring/summer off so i wonder if they would take on autumn only..
jonah35 said:
A lot depends on friends too - true lifelong friends I mean as doing things with them can be something to do that costs little
A retired chap I know helps out his other mate with his scuba business abroad and so goes on the boat many days and chats to the new people and has fun but it costs him nothing
There are ways to retire where you still have something to do in the day and you end up spending much less than you otherwise would
Even when retired (or 99% so) I think (hopefully) many would agree it’s fairly easy to earn a little bit of money each day to cover your day to day expenses such as food. Buying and selling as a hobby, helping out at a water sports place on the beach for free would still probably mean you’d get your lunch paid and a couple of tips, matched betting or just helping collect glasses for a couple of hours at lunch in a bar in Tenerife may get your lunch and a couple of pints on the house. I appreciate however you could argue that’s not retirement then
You may have a friend that works in a bar abroad and so that’s where you may have lunch or socialise and of course you wouldn’t pay full price etc
Good mate of mine is a pilot so when he has long stop overs I can go on standby (staff travel) but other than that the costs are modest
A lot of the reason we spend money is precisely because we are working. 2 cars in a family? Because you both need to get to work. If you have all day to get somewhere you can walk cycle or get public transport
Pre packed vegetables and ready made food is only to help save time
Paying over the odds to park, for food, for insurance etc is just because we don’t have the time to do the cheaper option
I reckon living in a flat in the U.K. (up north) costs c£100pm service charge and £20pm ground rent and £65pm electricity and £15pm water and maybe a little contents insurance and £8 for amazon and £50 for phone and internet. Add on a bit and say £300pm. Plus say £30 gym is £330. I’m not suggesting you would or would want to do this but £7 a day on food and you’re at about £550pm. You could even share the apartment with a mate or partner and costs would shoot down.
I wouldn’t do it if it was that tight but you could run, cycle, have mates round and have beers and a social life at the gym and still eat out as part of the £7 a day occasionally. Local cafes and so on do daytime lunch deals and mid week deals at night
Can’t wait for people to pick that budget apart lol. Don’t normally need new clothes, can have a cheap haircut and don’t need a car and don’t need much else - even contents insurance or a gym membership and could look for a low service charge or buy a terraced house. It is doable on less than you think.
It’s easier to live on a budget abroad imho than the U.K. as somehow walking on the beach or sunbathing or cycling in the sun feels better.
Some of the poorest people in the U.K. are students eating beans on toast sharing a place with their mates but I can imagine many will be going out tonight having a laugh. Some of my happiest mates are the van drivers and people with modest jobs and some of them that are the most out of shape and unhealthy are the ones in high stress jobs
As has been said there is no right or wrong answer and it’s everyones own decision as to how they value their life
Nicely put..A retired chap I know helps out his other mate with his scuba business abroad and so goes on the boat many days and chats to the new people and has fun but it costs him nothing
There are ways to retire where you still have something to do in the day and you end up spending much less than you otherwise would
Even when retired (or 99% so) I think (hopefully) many would agree it’s fairly easy to earn a little bit of money each day to cover your day to day expenses such as food. Buying and selling as a hobby, helping out at a water sports place on the beach for free would still probably mean you’d get your lunch paid and a couple of tips, matched betting or just helping collect glasses for a couple of hours at lunch in a bar in Tenerife may get your lunch and a couple of pints on the house. I appreciate however you could argue that’s not retirement then
You may have a friend that works in a bar abroad and so that’s where you may have lunch or socialise and of course you wouldn’t pay full price etc
Good mate of mine is a pilot so when he has long stop overs I can go on standby (staff travel) but other than that the costs are modest
A lot of the reason we spend money is precisely because we are working. 2 cars in a family? Because you both need to get to work. If you have all day to get somewhere you can walk cycle or get public transport
Pre packed vegetables and ready made food is only to help save time
Paying over the odds to park, for food, for insurance etc is just because we don’t have the time to do the cheaper option
I reckon living in a flat in the U.K. (up north) costs c£100pm service charge and £20pm ground rent and £65pm electricity and £15pm water and maybe a little contents insurance and £8 for amazon and £50 for phone and internet. Add on a bit and say £300pm. Plus say £30 gym is £330. I’m not suggesting you would or would want to do this but £7 a day on food and you’re at about £550pm. You could even share the apartment with a mate or partner and costs would shoot down.
I wouldn’t do it if it was that tight but you could run, cycle, have mates round and have beers and a social life at the gym and still eat out as part of the £7 a day occasionally. Local cafes and so on do daytime lunch deals and mid week deals at night
Can’t wait for people to pick that budget apart lol. Don’t normally need new clothes, can have a cheap haircut and don’t need a car and don’t need much else - even contents insurance or a gym membership and could look for a low service charge or buy a terraced house. It is doable on less than you think.
It’s easier to live on a budget abroad imho than the U.K. as somehow walking on the beach or sunbathing or cycling in the sun feels better.
Some of the poorest people in the U.K. are students eating beans on toast sharing a place with their mates but I can imagine many will be going out tonight having a laugh. Some of my happiest mates are the van drivers and people with modest jobs and some of them that are the most out of shape and unhealthy are the ones in high stress jobs
As has been said there is no right or wrong answer and it’s everyones own decision as to how they value their life
When i am off work i see friends who work odd shift patterns and some who have a similar thing going as me (semi-retired) but my problem is when i am off work friends and neighbours want plumbing jobs done...ok they are happy to pay but thats when i want time off..
My 2 boys have left home but visit often so it is me the wife and our dog here at home and as i said earlier i usually dont have time to fit work into my day,the day flies by when i am "resting" and today i spent 3 hours out in my workshop tinkering with my motorbikes.
I also give any spare time to our local animal sanctuary doing dog walks and other help.I also ride my mountain bike thru our local woods easily being out for 2 hours and often stopping off at the village pub for refreshments,ive sometimes needed my wife to come and pick me up as i was so knackered (pissed)
There is plenty to do if you look for it well that is how i see it ..
I also give any spare time to our local animal sanctuary doing dog walks and other help.I also ride my mountain bike thru our local woods easily being out for 2 hours and often stopping off at the village pub for refreshments,ive sometimes needed my wife to come and pick me up as i was so knackered (pissed)
There is plenty to do if you look for it well that is how i see it ..
Brave Fart said:
Very interesting thread. One thing that seems absent, however, is any mention of elderly parents especially if they're in poor health. My father and father-in-law have failing health, and my sister-in-law is severely handicapped. Point being, when I and Mrs BF retire we want to travel. We'd also like to move somewhere rural or coastal in the UK. We just can't do that until (sorry to be blunt) our parents are gone.
It feels like our lives are on hold a bit - our children are young adults, but we are obliged to stay put, so we may as well carry on working. Yes I could retire completely (I'm in my mid fifties), but I'd be frustrated knowing I couldn't fulfil my retirement ambitions. I believe it's called "the sandwich generation."
Is anyone else in this position?
Not me....It feels like our lives are on hold a bit - our children are young adults, but we are obliged to stay put, so we may as well carry on working. Yes I could retire completely (I'm in my mid fifties), but I'd be frustrated knowing I couldn't fulfil my retirement ambitions. I believe it's called "the sandwich generation."
Is anyone else in this position?
My father died 6 yrs ago aged 81 and my mother 23 yrs ago aged 65 and both my wife`s parents died 20 or so years ago in their late 60s but if they were alive i certainly would not be thinking of moving to far away from them..
MikeGoodwin said:
I realised in my mid 20s this 1-upmanship game wasn't for me, I like cars which are an un-necessary and as fellow petrolheads they can be 'showey', but that's about all I really care about. I hate dealing with stigmas attached to cars too due to age of vehicle or brand. Drives me nuts. Moving from a PCP'd 3 series repmobile to a Focus ST, Megane RS etc was met with negativity - why'd you down grade etc?
Funny, in my early 20's I had this vision of life and all its riches, driving reputable cars that made people think id done good for myself but now I just dont care. Im simply no one. Seeing my dad retire recently has made me think about the future. I dont want to to work until im 70. I have a career that wont afford me any rest in terms of education and at times can be stressful but I guess thats a trade off for doing something I can tolerate and will afford me cars.
Over the years i have been guilty of wasting money on cars but because i enjoyed them and not about 1-upmanship..I never give a toss what others think and drive what i like.Funny, in my early 20's I had this vision of life and all its riches, driving reputable cars that made people think id done good for myself but now I just dont care. Im simply no one. Seeing my dad retire recently has made me think about the future. I dont want to to work until im 70. I have a career that wont afford me any rest in terms of education and at times can be stressful but I guess thats a trade off for doing something I can tolerate and will afford me cars.
Porsches,Lotus a few classics have come and gone but now a couple of classic motorcycles are my thing keeping me busy when i am not working.
Greg_D said:
what i find most interesting about this thread is how far people will go to justify early retirement.
£7k a year with little allowance for inflation, unexpected bills etc.... that sounds like prison to me. it's one thing to choose a simple life, but to have no choice and no backup sounds like hell... do people really hate the 'here and now' that much that they would rather live like a hermit for 30 years.
for me, retirement should be free of any particular money worries, it should be a carefree time whereby if you want to jump on a plane, do it, if you want a new car, do it. otherwise surely life would be better with a 'simple' part time job to keep your hand in and earn a little extra pin money.
my plans are to not to have to ever think about money during retirement, i'll need a bigger pot, but i accept that. i reckon 2 more years before i'm off!
I do wonder where the figure of £7k per year came from.......i quoted £7890 to cover basics where my wifes £14K covers this and then i have approx £7k on top spare so total £21k to cover everything.....plenty £7k a year with little allowance for inflation, unexpected bills etc.... that sounds like prison to me. it's one thing to choose a simple life, but to have no choice and no backup sounds like hell... do people really hate the 'here and now' that much that they would rather live like a hermit for 30 years.
for me, retirement should be free of any particular money worries, it should be a carefree time whereby if you want to jump on a plane, do it, if you want a new car, do it. otherwise surely life would be better with a 'simple' part time job to keep your hand in and earn a little extra pin money.
my plans are to not to have to ever think about money during retirement, i'll need a bigger pot, but i accept that. i reckon 2 more years before i'm off!
easytiger123 said:
I think it was Yipper a few pages back (and a couple of others) who suggested a retired couple could live on £6k a year (£7k is taking the piss). There then followed a description of the enviable lifestyle that theoretical retired couple could look forward to including buying frozen food in bulk, growing stuff on an allotment and a digestive biscuit every Christmas as they huddled round the single lump of coal on their fire.
I must of missed Yipper`s comment GT03ROB said:
Very much agree... life is about balance. I've often joked (??) on here I'll never be able to afford to retire. What I really mean is with the lifestyle that would encourage me to retire.
I like the fact that I can currently go pretty much where I want on holiday staying in good hotels, not worrying about being at the front of the plane. Once a year flying Ryanair to a dingy little hotel/guest house in Spain isn't my idea of a happy retirement. Having to give up my cars, be able to go out for a meal once a month when the seniors discount is on is not my idea of a retirement!
I spend a lot of my income now, which if I was more prudent could probably allow me to retire a lot sooner, especially if I was prudent once retired. Or I can continue to work 6 months a year in dumps for a good income which puts more in the retirement pot & still lets me live today. A lot more could go in the pot than currently but what the hell, could be dead tomorrow.
Fair point but for me the "could be dead tomorrow" part is a good enough reason to stop working and enjoying my life even more,ok i couldnt live on £7k per year but i could live on £21k per yr comfortably with some spare cash to enjoy set aside...I like the fact that I can currently go pretty much where I want on holiday staying in good hotels, not worrying about being at the front of the plane. Once a year flying Ryanair to a dingy little hotel/guest house in Spain isn't my idea of a happy retirement. Having to give up my cars, be able to go out for a meal once a month when the seniors discount is on is not my idea of a retirement!
I spend a lot of my income now, which if I was more prudent could probably allow me to retire a lot sooner, especially if I was prudent once retired. Or I can continue to work 6 months a year in dumps for a good income which puts more in the retirement pot & still lets me live today. A lot more could go in the pot than currently but what the hell, could be dead tomorrow.
Edited by baliongo on Thursday 11th January 13:07
Greg_D said:
Don't shoot the messenger as my needs are different to a lot of people and i don't want to sound like a d**k, but i'm not going to tell fibs.
i am 40 now.
i will 'need' around £200k a year after tax to give me the carefree lifestyle i enjoy.
i have 100% debt free investments/BTLs/commercial property that is returning a good chunk of that already. i also have the sale of a business that will bring in nearly 8 figures once completed. as i stated in an earlier post, by any sensible measure, i could retire tomorrow, but i have some residual concerns regarding life direction/practicalities/boredom.
Wow that is some lifestyle and one that i have no envy of whatsoever....i often wonder if i made even more of an effort i would be better off and financially of course i would (i have only worked 6 mths of the year for the last 5 years) but i am content with my lot...the better cars have gone (i still have nice bikes) and i have had decent holidays over the years but my health is good and that is what matters to me..but good luck to you i am 40 now.
i will 'need' around £200k a year after tax to give me the carefree lifestyle i enjoy.
i have 100% debt free investments/BTLs/commercial property that is returning a good chunk of that already. i also have the sale of a business that will bring in nearly 8 figures once completed. as i stated in an earlier post, by any sensible measure, i could retire tomorrow, but i have some residual concerns regarding life direction/practicalities/boredom.
200Plus Club said:
put in perspective also guys n gals, a lot of people (probably non PH regulars) wont have anything like those sort of figures, and many will have no option but to work to 67 now going forward, and still having a "frugal" retirement, so enjoy what you have, and the life you can lead.
i think there was some Unison type figure bandied about once that showed the average Nurse achieves an average pension of around £8k pa in retirement in addition to the state pension, and the average wage in the UK is only £23k or so if i recall, there are millions of people who will not have a fortunate comfy retirement through circumstances outside their control at times.
Slightly off thread but my wife is a nurse and i remember seeing the news many years ago concerning a nurse who ate just baked beans for years so she could afford a new Dodge Viper even admitting to showering less to save money....obviously she was single but that just popped into my head..as you were i think there was some Unison type figure bandied about once that showed the average Nurse achieves an average pension of around £8k pa in retirement in addition to the state pension, and the average wage in the UK is only £23k or so if i recall, there are millions of people who will not have a fortunate comfy retirement through circumstances outside their control at times.
https://www.youtube.com/watch?v=R1P03zyOU0o she went to more detail in the news report i saw at the time...
Edited by baliongo on Thursday 11th January 14:42
200Plus Club said:
Nadine is still alive and well, still on my friends list, the last time i spoke to her she had bought an old F1 car as a "project" to get it running. great lady!
Well...she sure had/has commitment to the cause and from what i can remember it took many years to get her Viper.@magooagain you are quite right this thread has ticked over nicely with some very interesting informed comments and id like to thank everyone involved..great reading and its nice to hear other peoples ideas on the subject.
Edited by baliongo on Thursday 11th January 17:19
My mother passed away aged 65 yrs from cancer which she first got in her late 40s and that was 23 yrs ago,she lived life to the full learning dance later in life and generally being the life of the party type...she died far far too young being physically fit till the end.
My father passed 6 yrs ago aged 81 and was the chalk to her cheese being rather tight with money and who managed to live passed his retirement (aged 65) pottering around in his garden and living very cheaply,he said he was happy with his lot.
He also died of cancer.....both my wife`s parents died of cancer in their late 60s.
Makes you think......
My father passed 6 yrs ago aged 81 and was the chalk to her cheese being rather tight with money and who managed to live passed his retirement (aged 65) pottering around in his garden and living very cheaply,he said he was happy with his lot.
He also died of cancer.....both my wife`s parents died of cancer in their late 60s.
Makes you think......
FocusRS3 said:
Without question I’ll need to do something to keep the mind active but only part time .
Quite fancy the use of painting and decorating winter time and gardening in the summer all of which will be totally different to what I’ve done for many years . Total change is what appeals actually .
Great thread OP btw
Thanks but those who have contributed have made it a great thread...Quite fancy the use of painting and decorating winter time and gardening in the summer all of which will be totally different to what I’ve done for many years . Total change is what appeals actually .
Great thread OP btw
My trade (plumbing/heating) lends itself well to carrying on into retirement but as i said before i really do not enjoy it anymore but spring/summer gardening for people does seem a far better prospect for me,trouble is my favourite times of the year are spring/summer and its these times i enjoy tinkering on my own garden...
Leggy said:
My mantra has always been to reduce your borrowings at every opportunity. Any bonus and spare cash was used to keep paying bits of the mortgage off. It’s amazing how many years it’s possible to shorten it by, with even modest over payments.
Once that burden is out of the way and the kids are self sufficient, then you have the freedom to decide whether to work, retire or do something part time and get off the hamster wheel!
I paid off my mortgage aged 43 yrs and i was fooled into taking out a endowment policy in the 90s but paying it off early coincided with downsizing to a 3 bed bungalow from our 4 bed house...i kept the endowment going and its due to mature in a couple of years but i may cash it in soon.Once that burden is out of the way and the kids are self sufficient, then you have the freedom to decide whether to work, retire or do something part time and get off the hamster wheel!
Mortgage free was a huge weight off..
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