Retire early (living off savings)
Discussion
PositronicRay said:
rtz62 said:
I have half a plan to leave this miserable, cold, wet hole and move to Costa Rica.
I’m I’ll, and will not get better.
CR disbanded their armed orcas and put the money into health and education (to the extent that it is so good Nd cheap that many patients are sent there from the USA)
My concerns would be what to do with all my cold weather clothing I have here, as my 9nly concerns will be keeping cool, and depending where it was in CR, how wet I met get in the rainforest areas.
Property is also currently cheap there.
My kids are learning Spanish and I’m sure I could pick it up fairly easily.
I’m not sure how I would address what people try to tell me (oh, you will miss the seasons here’; er, no, no I won’t!)
Having said that, I would miss my wife’s family, and also don’t know how I would feel not visiting my parents cemetery plot.
Interesting, how many armed orcas had to be disbanded to fund the health care program?I’m I’ll, and will not get better.
CR disbanded their armed orcas and put the money into health and education (to the extent that it is so good Nd cheap that many patients are sent there from the USA)
My concerns would be what to do with all my cold weather clothing I have here, as my 9nly concerns will be keeping cool, and depending where it was in CR, how wet I met get in the rainforest areas.
Property is also currently cheap there.
My kids are learning Spanish and I’m sure I could pick it up fairly easily.
I’m not sure how I would address what people try to tell me (oh, you will miss the seasons here’; er, no, no I won’t!)
Having said that, I would miss my wife’s family, and also don’t know how I would feel not visiting my parents cemetery plot.
PositronicRay said:
red_slr said:
davek_964 said:
Twotyred said:
...I have enough money - about £15000 /year to love my life....
Figures like this make me think that I really could retire early. Not now - but certainly in my mid-50s - but I would need to change my lifestyle significantly. However, I would need to do that whenever I retire anyway - I'm in the bracket where I earn enough to be comfortable and buy toys, but there is no way I will have the same kind of income at retirement. So why not do it earlier.A few posts have mentioned part time work, and that doesn't sound so bad to me. There are things I'd rather do than my day job, and if they supplemented the pension (or in the early years supplemented living off savings) then they don't sound so bad. Having spent ~30 years in software roles, I daresay I could even earn some pocket money writing apps for phones etc. if I put my mind to it and that would certainly be preferable to my current job.
This thread is making me think I should start giving serious thought about how I could transition into (at least) semi-retirement in the next couple of years!
Everything else is the problem!
Even £25-30k is not a substantial income. If you want to travel and have a couple of nice holidays a year then £10k could easily disappear on them.
Another factor is where in the UK you live. The cost of living is lower in the North and West than in the South and East. That difference can easily be £3-4K a year on the same items.
It is also worth checking the tax that will apply to any income you have pre and post retirement.
Nobody has mentioned inflation. It is currently low at 3% but it could rise to over 10% as it has been in the past.
Hobbies usually cost money. Golf, cars, DIY, etc. soon eat savings. But it is vital to have some mental stimulus and something that gives some physical exertion. It is easy to become a rather boring member of society.
oilbethere said:
PositronicRay said:
rtz62 said:
I have half a plan to leave this miserable, cold, wet hole and move to Costa Rica.
I’m I’ll, and will not get better.
CR disbanded their armed orcas and put the money into health and education (to the extent that it is so good Nd cheap that many patients are sent there from the USA).
Interesting, how many armed orcas had to be disbanded to fund the health care program?I’m I’ll, and will not get better.
CR disbanded their armed orcas and put the money into health and education (to the extent that it is so good Nd cheap that many patients are sent there from the USA).
Boom boom.....
Storer said:
I can't believe that you are seriously thinking of retiring on £15k income. There is no contingency element for unforeseen expenses. It will also be a sparse penny pinching existence.
Even £25-30k is not a substantial income. If you want to travel and have a couple of nice holidays a year then £10k could easily disappear on them.
Another factor is where in the UK you live. The cost of living is lower in the North and West than in the South and East. That difference can easily be £3-4K a year on the same items.
It is also worth checking the tax that will apply to any income you have pre and post retirement.
Nobody has mentioned inflation. It is currently low at 3% but it could rise to over 10% as it has been in the past.
Hobbies usually cost money. Golf, cars, DIY, etc. soon eat savings. But it is vital to have some mental stimulus and something that gives some physical exertion. It is easy to become a rather boring member of society.
That's what I have been thinking since seeing some of the numbers quoted in this thread.Even £25-30k is not a substantial income. If you want to travel and have a couple of nice holidays a year then £10k could easily disappear on them.
Another factor is where in the UK you live. The cost of living is lower in the North and West than in the South and East. That difference can easily be £3-4K a year on the same items.
It is also worth checking the tax that will apply to any income you have pre and post retirement.
Nobody has mentioned inflation. It is currently low at 3% but it could rise to over 10% as it has been in the past.
Hobbies usually cost money. Golf, cars, DIY, etc. soon eat savings. But it is vital to have some mental stimulus and something that gives some physical exertion. It is easy to become a rather boring member of society.
I don't dispute that people are living happily on £15k if that is what they say; in fact I admire that ability. I just can't get my head (or spreadsheet) around it. I keep imagining Tom and Barbara.
Wife & I are retired, no mortgage, no debt, no kids, three cats, two cars. We budget to spend £36k per year on routine living expenses but have yet to manage to stick to that budget. Just did the numbers for last year and we spent £42k. Best we have ever managed though so getting better.
I can see one or two line items we could reduce but not by that much. Our only extravagance is running two cars when we have need for only one. We never take holidays and live a comfortable but very modest lifestyle.
Hang On said:
Wife & I are retired, no mortgage, no debt, no kids, three cats, two cars. We budget to spend £36k per year on routine living expenses but have yet to manage to stick to that budget. Just did the numbers for last year and we spent £42k. Best we have ever managed though so getting better.
I can see one or two line items we could reduce but not by that much. Our only extravagance is running two cars when we have need for only one. We never take holidays and live a comfortable but very modest lifestyle.
Good grief. No mortgage, no kids, no holidays. Not wishing to pry, but on what do you spend £42k per annum ? Can you give a broad breakdown ?I can see one or two line items we could reduce but not by that much. Our only extravagance is running two cars when we have need for only one. We never take holidays and live a comfortable but very modest lifestyle.
The Mrs and I are actually planning to retire on a bigger income than we have now.
She is retiring at 61 this summer, and her occupational pension and investment income will equal her present income, whilst I run my own business, which means its more like a hobby than a job. I therefore cannot envisage retiring for a good 5 to 6 years with my drawdown pension in the meantime just sitting there, collecting interest and top up payments and hopefully growing.
As I see it once you do fully retire you have another 40 hours per week ( at least) in which to spend money.
You have the time for long, Indulgent, expensive holidays. For example we intend spending the winter months in Australia and thats not cheap. Potentially there could be grandkids to spoil rotten and hand back at the days end. There's new hobbies to try out, clubs to join, bucket lists to conquer. I may have another project or two. All this costs money.
And then there's care home fees.
I would suggest that matching your employed income levels in your retirement should enable a retirement that will be fulfilling and enjoyable. And if you need a new car or CH boiler or something unforseen, the cash is there without worrying.
I'll still be shopping at Lidl though. Just not at weekends.
Cheers,
Tony
She is retiring at 61 this summer, and her occupational pension and investment income will equal her present income, whilst I run my own business, which means its more like a hobby than a job. I therefore cannot envisage retiring for a good 5 to 6 years with my drawdown pension in the meantime just sitting there, collecting interest and top up payments and hopefully growing.
As I see it once you do fully retire you have another 40 hours per week ( at least) in which to spend money.
You have the time for long, Indulgent, expensive holidays. For example we intend spending the winter months in Australia and thats not cheap. Potentially there could be grandkids to spoil rotten and hand back at the days end. There's new hobbies to try out, clubs to join, bucket lists to conquer. I may have another project or two. All this costs money.
And then there's care home fees.
I would suggest that matching your employed income levels in your retirement should enable a retirement that will be fulfilling and enjoyable. And if you need a new car or CH boiler or something unforseen, the cash is there without worrying.
I'll still be shopping at Lidl though. Just not at weekends.
Cheers,
Tony
keirik said:
42k in a year?
I spent less than that last year and run a motorbike, 3 cars including a cobra and two houses, one in Essex one in Cheshire and commuted to work 5 days per week, plus we go out for dinner at least once a week
Let’s try and keep this non-judgmental shall we people. It’s not a Yorkshireman sketch. Everyone exists on a different part of the spectrum. I spent less than that last year and run a motorbike, 3 cars including a cobra and two houses, one in Essex one in Cheshire and commuted to work 5 days per week, plus we go out for dinner at least once a week
My wife and I both spend more than that on our respective hobbies each year let alone any other expenses. It’s horses for courses.
However, This thread has acted as a catalyst for me. The wife and I have been discussing it over the last day or so we have reviewed the sums and the plan is for us to be retired in 2 years with a ‘work out’ period as short as we can negotiate with whomever buys our business. I can’t wait!!!!
A few more numbers for you folks; Mrs BF and I spend £30k per year - detached house in Hampshire, no mortgage, 2 cars, one cat and our two offspring are 17 and 19 years old. That figure includes all expenditure apart from major holidays or any major expenditure on the house such as a new kitchen.
We're mid-fifties and looking forward to a new phase in our lives where we'll have the time to explore the world and (hopefully) enjoy each other's company a bit more. Oh, and I want to get my golf handicap down!
Our main issue right now is elderly parents who still need us around, but then again you want the ones you love to live as long as possible (assuming in fair health) so that's also a blessing really. We feel very fortunate to be in this position - watch any news bulletin to see how relatively lucky we are.
We're mid-fifties and looking forward to a new phase in our lives where we'll have the time to explore the world and (hopefully) enjoy each other's company a bit more. Oh, and I want to get my golf handicap down!
Our main issue right now is elderly parents who still need us around, but then again you want the ones you love to live as long as possible (assuming in fair health) so that's also a blessing really. We feel very fortunate to be in this position - watch any news bulletin to see how relatively lucky we are.
Anyone who thinks you cannot live a great lifestyle on 15K per year lacks serious imagination.
You're retired FFS. You are no longer restricted to the UK shores (if that's what you have been conditioned to think all your life).
Be dynamic. It's a BIG world out there with LOTS to offer. Enjoy it.
You're retired FFS. You are no longer restricted to the UK shores (if that's what you have been conditioned to think all your life).
Be dynamic. It's a BIG world out there with LOTS to offer. Enjoy it.
Go for it! 15k is do-able personally. I believe most financially savvy folk live within their means, if you have X amount to spend, you tend to spend it. If X becomes less you adjust your lifestyle to suit.
If your aim in retirement is to start enjoying the simple life (gardening, cycling, hiking, dog, grandkids etc) and are happy to reduce spend to accommodate that life (cheaper wine, understanding car restoration project takes longer, less expensive gym etc) then I think it's a viable proposition. Assuming the simple life/reduce spend trade-off is understood and adhered too.
Ultimately I guess it comes down to how much you want it. A 500k+ house sold would either buy you a phenomenal house up north with some change, or a manageable house (remember - simple life) with x3 increase on your current budget.
If you crave a material retirement that requires lots of foreign holidays, membership to 4 golf clubs, fillet steak twice a week, the Ferrari you've always dreamed of etc then it's not going to be feasible.
I've got a long way to go before retiring but working out our current expenditure (less mortgage) it would leave us with 10k a year to do whatever we wanted on your 15k budget. Again, maybe we wouldn't be living the same lifestyle as now but I think it's enough to get by on if you're living the simple life, the fillet steak becomes a once/twice a month 'treat'. Maybe it'll even increase your appreciation for things currently taken for granted, enhancing the simple life?
You have a decent contingency regardless of what some of the space cadets on here are saying is 'not enough', most people in the UK will not be sitting on a mortgage free 500k+ house in their fifties available to sell in case of an emergency. It's ridiculous to even suggest it and just goes to show how out of touch some are with the reality of average joe's finances. Facing facts, a lot of people in the UK live on the state pension + an additional few quid from private pensions and live perfectly good lives.
When it's all said and done, if the worse case happens and you exhaust all your money on an impulsive gambling trip to Vegas, you're going back to work - not the end of the world considering you've still got 17 years before actual retirement.
If your aim in retirement is to start enjoying the simple life (gardening, cycling, hiking, dog, grandkids etc) and are happy to reduce spend to accommodate that life (cheaper wine, understanding car restoration project takes longer, less expensive gym etc) then I think it's a viable proposition. Assuming the simple life/reduce spend trade-off is understood and adhered too.
Ultimately I guess it comes down to how much you want it. A 500k+ house sold would either buy you a phenomenal house up north with some change, or a manageable house (remember - simple life) with x3 increase on your current budget.
If you crave a material retirement that requires lots of foreign holidays, membership to 4 golf clubs, fillet steak twice a week, the Ferrari you've always dreamed of etc then it's not going to be feasible.
I've got a long way to go before retiring but working out our current expenditure (less mortgage) it would leave us with 10k a year to do whatever we wanted on your 15k budget. Again, maybe we wouldn't be living the same lifestyle as now but I think it's enough to get by on if you're living the simple life, the fillet steak becomes a once/twice a month 'treat'. Maybe it'll even increase your appreciation for things currently taken for granted, enhancing the simple life?
You have a decent contingency regardless of what some of the space cadets on here are saying is 'not enough', most people in the UK will not be sitting on a mortgage free 500k+ house in their fifties available to sell in case of an emergency. It's ridiculous to even suggest it and just goes to show how out of touch some are with the reality of average joe's finances. Facing facts, a lot of people in the UK live on the state pension + an additional few quid from private pensions and live perfectly good lives.
When it's all said and done, if the worse case happens and you exhaust all your money on an impulsive gambling trip to Vegas, you're going back to work - not the end of the world considering you've still got 17 years before actual retirement.
Edited by Classy6 on Wednesday 17th January 01:25
I guess it's a matter of finding your right balance for budget vs lifestyle.
My household bills (including mobile phone bill, netflix etc) comes in at a fair bit under £400 a month. Food is comfortably under £200 a month - although that wouldn't include the odd takeaway. On a £15k a year budget, that would leave around £650 a month for other stuff which doesn't sound so bad. A basic car - including insurance etc - shouldn't be more than £150 a month max, so ~£500 a month for other stuff seems OK.
On the other hand, it would definitely require a significant change of lifestyle. Expensive holidays, new big TVs, expensive cars etc. would obviously all have to disappear. But then, I'd hope that the fact I wasn't working for a bunch of incompetent numpties every day would help compensate for that.
The main issue I have is actually finding the balance while I am still working. Ideally, I should be cutting down my frivolous expenses (cars) so that I can plough more money into the bank. It's not quite the case, but it's not far short of the fact that one year of running my cars is the cost of one year retirement on a modest budget. So in theory I should ditch the cars and start focusing on the future. But while I have to work every day, I kind of want the toys to compensate for it........
My household bills (including mobile phone bill, netflix etc) comes in at a fair bit under £400 a month. Food is comfortably under £200 a month - although that wouldn't include the odd takeaway. On a £15k a year budget, that would leave around £650 a month for other stuff which doesn't sound so bad. A basic car - including insurance etc - shouldn't be more than £150 a month max, so ~£500 a month for other stuff seems OK.
On the other hand, it would definitely require a significant change of lifestyle. Expensive holidays, new big TVs, expensive cars etc. would obviously all have to disappear. But then, I'd hope that the fact I wasn't working for a bunch of incompetent numpties every day would help compensate for that.
The main issue I have is actually finding the balance while I am still working. Ideally, I should be cutting down my frivolous expenses (cars) so that I can plough more money into the bank. It's not quite the case, but it's not far short of the fact that one year of running my cars is the cost of one year retirement on a modest budget. So in theory I should ditch the cars and start focusing on the future. But while I have to work every day, I kind of want the toys to compensate for it........
Love reading some of these figures, I have friends with families that earn less than £20k p.a., from one working parent, who manage a mortgage, kids stuff, holidays, car(s) etc, if you couldn't live on £15k p.a. when retired you lack some serious imagination.
Our plans all depend upon whether we have children or not, but the outline is to spend 6m per year in Thailand / Cambodia / South Africa (based on todays living expenses) throughout our 50's, then closer to home (UK) in our 60's so perhaps Spain and / or France, whilst downsizing here in the U.K. (if required).
I have no need for a new car every year (especially if, as per my plan, I will not be in country), I purchased a car I have always wanted last year and plan to keep it until I can't drive anymore.
Use your imagination people, move country, travel the world, move out of the S.E., sell the Range Rover ... there is a whole world out there and you can live a decent life on very little if you truly think about it
Our plans all depend upon whether we have children or not, but the outline is to spend 6m per year in Thailand / Cambodia / South Africa (based on todays living expenses) throughout our 50's, then closer to home (UK) in our 60's so perhaps Spain and / or France, whilst downsizing here in the U.K. (if required).
I have no need for a new car every year (especially if, as per my plan, I will not be in country), I purchased a car I have always wanted last year and plan to keep it until I can't drive anymore.
Use your imagination people, move country, travel the world, move out of the S.E., sell the Range Rover ... there is a whole world out there and you can live a decent life on very little if you truly think about it
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