Retire early (living off savings)
Discussion
Yipper said:
Know a retired couple who live quite happily on ~£6k a year. Do a bit of gardening, walking and reading the Express and they're happy as Larry.
I'm not trying to be a dick, but how on earth is that possible in the UK? Just basic utilities, council tax, house insurance and frugal food shopping would eat that up (and more) for 2 people. Even assuming they own their house or flat outright and have no bills for kids or any luxuries, I find it staggering that they can live or even exist on that.TwigtheWonderkid said:
I like to think we're a pretty frugal, low maintenance couple, but living on £500/month 
Council tax is £220, (ok, we have a big house in a London borough, so many would pay half that), then electric, gas, phone and broadband, house insurance, car insurance, running the car, food, water rates, etc.
Not sure that's doable in the long term.
That's why it has to be outside the UK and without a car. Somewhere with low property taxes, in a climate that doesn't need the house heating or cooling.Council tax is £220, (ok, we have a big house in a London borough, so many would pay half that), then electric, gas, phone and broadband, house insurance, car insurance, running the car, food, water rates, etc.
Not sure that's doable in the long term.
My wife is from such a country, but the medical treatment available is crap and expensive, so only really suitable if in good health, which I guess is the point of retiring early!
TwigtheWonderkid said:
I like to think we're a pretty frugal, low maintenance couple, but living on £500/month
Council tax is £220, (ok, we have a big house in a London borough, so many would pay half that), then electric, gas, phone and broadband, house insurance, car insurance, running the car, food, water rates, etc.
Not sure that's doable in the long term.
As a base line I budgeted for 1200 a month. That's house, 1 car, food and a very small ent budget (80). And I live in a low cost of living area. R and m included. Council tax is £220, (ok, we have a big house in a London borough, so many would pay half that), then electric, gas, phone and broadband, house insurance, car insurance, running the car, food, water rates, etc.
Not sure that's doable in the long term.
£1390 council tax
£3400 food
£500 dog insurance
£700 car insurance for 2 cars
£300 motorcycle insurance x 2
£1200 gas and elec
£400 car tax x2
Which are many of the basics equalling £7890 per year..not incl fuel,meals out,day trips,my hobbies etc
My wife earns £14k per yr without the £7k i am prepared to add to the pot if need be which by my reckoning works...
With £50k emergency money and a endowment payout in 3 yrs of £36k ....
£3400 food
£500 dog insurance
£700 car insurance for 2 cars
£300 motorcycle insurance x 2
£1200 gas and elec
£400 car tax x2
Which are many of the basics equalling £7890 per year..not incl fuel,meals out,day trips,my hobbies etc
My wife earns £14k per yr without the £7k i am prepared to add to the pot if need be which by my reckoning works...
With £50k emergency money and a endowment payout in 3 yrs of £36k ....
Edited by baliongo on Monday 8th January 08:09
jonah35 said:
Yipper said:
Know a retired couple who live quite happily on ~£6k a year. Do a bit of gardening, walking and reading the Express and they're happy as Larry.
Exactly.Chap I know had a brother who is a fireman who retired to Crete at age 48 and lives a lovely life. This chap I know decided to pack in his job on £18k per year in the U.K. and now lives in Crete with his brother and him and his wife live on £500pm.
If you saw him he looks 20 years younger, is thin and in shape and goes swimming jogging and cycling every day and at night the 4 of them sit down to a barbecue and eat outdoors on the terrace.
Wonderful life and have a bit back for emergencies and one day his state pension of £700pm will kick in and his wife’s of £700pm will kick in. They’ll have too MUCH money!!
Meanwhile some overweight bloke (heart attack waiting to happen) is cursing tonight bell because he has to be up early in the morning for a sales meeting in Staines and has his suit hung up in the back of his car for the week away from his family. He needs to earn £3k pm to pay the mortgage, for his wife’s Pilates and evoque and for the babysitter for the kids he is away from
It is a materialistic society and I’ll admit I once almost got trapped in it
Im early 30’s, director of my own business pulling a modest (but above average) wage, house wife with 2 youngsters.
Paying a small amount into a pension and Just put everything i have into renovating our new house to the fact we are now just into overdraft - thankfullt no other finance or credit cards. But we do need another £25-30k to finish it.
Just over £300k equity in the house as is, and should be upto £400k when finished.
But that will put me at 40 with 10years mortgage left with massive equity, no savings and a tiny pension - i am starting to worry.
Paying a small amount into a pension and Just put everything i have into renovating our new house to the fact we are now just into overdraft - thankfullt no other finance or credit cards. But we do need another £25-30k to finish it.
Just over £300k equity in the house as is, and should be upto £400k when finished.
But that will put me at 40 with 10years mortgage left with massive equity, no savings and a tiny pension - i am starting to worry.
easytiger123 said:
Yipper said:
Know a retired couple who live quite happily on ~£6k a year. Do a bit of gardening, walking and reading the Express and they're happy as Larry.
I'm not trying to be a dick, but how on earth is that possible in the UK? Just basic utilities, council tax, house insurance and frugal food shopping would eat that up (and more) for 2 people. Even assuming they own their house or flat outright and have no bills for kids or any luxuries, I find it staggering that they can live or even exist on that.Food is about £1500, car running £1500 (paid-for Jap shed, free bus pass), council tax £1200, heating £500, broadband and mobile £250, water £200, car insurance £200, house insurance £100, other stuff £500-1000.
They reckon, if they sold the car, and took on a lodger, or rented out the whole house and moved somewhere ultra-cheap, like Bulgaria, they could live practically for free.
Yipper said:
The Postwar Generation is pretty frugal.
Food is about £1500, car running £1500 (paid-for Jap shed, free bus pass), council tax £1200, heating £500, broadband and mobile £250, water £200, car insurance £200, house insurance £100, other stuff £500-1000.
They reckon, if they sold the car, and took on a lodger, or rented out the whole house and moved somewhere ultra-cheap, like Bulgaria, they could live practically for free.
£30 per week for food? That seems a bit extravagant, can't they manage on £20?Food is about £1500, car running £1500 (paid-for Jap shed, free bus pass), council tax £1200, heating £500, broadband and mobile £250, water £200, car insurance £200, house insurance £100, other stuff £500-1000.
They reckon, if they sold the car, and took on a lodger, or rented out the whole house and moved somewhere ultra-cheap, like Bulgaria, they could live practically for free.
V8 Fettler said:
Yipper said:
The Postwar Generation is pretty frugal.
Food is about £1500, car running £1500 (paid-for Jap shed, free bus pass), council tax £1200, heating £500, broadband and mobile £250, water £200, car insurance £200, house insurance £100, other stuff £500-1000.
They reckon, if they sold the car, and took on a lodger, or rented out the whole house and moved somewhere ultra-cheap, like Bulgaria, they could live practically for free.
£30 per week for food? That seems a bit extravagant, can't they manage on £20?Food is about £1500, car running £1500 (paid-for Jap shed, free bus pass), council tax £1200, heating £500, broadband and mobile £250, water £200, car insurance £200, house insurance £100, other stuff £500-1000.
They reckon, if they sold the car, and took on a lodger, or rented out the whole house and moved somewhere ultra-cheap, like Bulgaria, they could live practically for free.
h. In order to go forward with such plans, there has to also be a realisation and acceptance for most normal working types that there is a tipping point in life that you no longer have to keep on accumulating wealth or even maintain the wealth you already have, but actually start to eat into it, to the point that probably not a lot will be left when you finally pop your clogs.
As they say, you cannot take it away with you, so as long as any children realise that they wont be getting bailed out at some point in the future, then you need far less than some of the figures being bandied about around here, unless you want to have all the fancy things in retirement that you maybe currently have in employment.
This includes for most, selling the big old house, release all the cash and just rent a nice little place and start spending that pile of cash, otherwise when you are gone someone else will be doing that instead on your behalf! I have seen it so many times now with elderly relatives, they live on a shoestring until they die, just so that some distant nephew who never visits can go out and buy a brand new car and have a fancy holiday with their windfall.
I am struggling to understand why the OP is even debating the matter, £120k in disposable cash, nice.....oh and by the way another £50k rainy day money, oh and £30 odd k endowment etc etc
Get on the case first thing in the morning, well after you have had a nice lie in, and just do it! :-)
As they say, you cannot take it away with you, so as long as any children realise that they wont be getting bailed out at some point in the future, then you need far less than some of the figures being bandied about around here, unless you want to have all the fancy things in retirement that you maybe currently have in employment.
This includes for most, selling the big old house, release all the cash and just rent a nice little place and start spending that pile of cash, otherwise when you are gone someone else will be doing that instead on your behalf! I have seen it so many times now with elderly relatives, they live on a shoestring until they die, just so that some distant nephew who never visits can go out and buy a brand new car and have a fancy holiday with their windfall.
I am struggling to understand why the OP is even debating the matter, £120k in disposable cash, nice.....oh and by the way another £50k rainy day money, oh and £30 odd k endowment etc etc
Get on the case first thing in the morning, well after you have had a nice lie in, and just do it! :-)
TwigtheWonderkid said:
I like to think we're a pretty frugal, low maintenance couple, but living on £500/month
Council tax is £220, (ok, we have a big house in a London borough, so many would pay half that), then electric, gas, phone and broadband, house insurance, car insurance, running the car, food, water rates, etc.
Not sure that's doable in the long term.
He may well have been exaggerating to me of course but he said his house he was buying there was £50k and it looked ok to meCouncil tax is £220, (ok, we have a big house in a London borough, so many would pay half that), then electric, gas, phone and broadband, house insurance, car insurance, running the car, food, water rates, etc.
Not sure that's doable in the long term.
A bottle of wine is a quid or two
Food is pretty cheap
Jogging is free
Swimming is free or low cost
Cycling is free or low cost
Think he said bills etc come to c£250pm and the rest is just on food and booze.
It depends on what you want to do
Over Christmas one booze night we did a blindfolded wine taste test from cheap Tesco and Aldi stuff through to some pretty expensive bottles, all had a taste and all scored it. No one got the expensive one right and most rated it average and we all liked the £4 aldi one lol. A lot is just marketing and hot air really.
You can buy Neom body wash, shop at Waitrose and buy designer suits from Harvey Nic’s and think it is impressing people but ultimately you’re just spending yours (and your family’s money) on marketing fluff
98elise said:
jonah35 said:
Yipper said:
Know a retired couple who live quite happily on ~£6k a year. Do a bit of gardening, walking and reading the Express and they're happy as Larry.
Exactly.Chap I know had a brother who is a fireman who retired to Crete at age 48 and lives a lovely life. This chap I know decided to pack in his job on £18k per year in the U.K. and now lives in Crete with his brother and him and his wife live on £500pm.
If you saw him he looks 20 years younger, is thin and in shape and goes swimming jogging and cycling every day and at night the 4 of them sit down to a barbecue and eat outdoors on the terrace.
Wonderful life and have a bit back for emergencies and one day his state pension of £700pm will kick in and his wife’s of £700pm will kick in. They’ll have too MUCH money!!
Meanwhile some overweight bloke (heart attack waiting to happen) is cursing tonight bell because he has to be up early in the morning for a sales meeting in Staines and has his suit hung up in the back of his car for the week away from his family. He needs to earn £3k pm to pay the mortgage, for his wife’s Pilates and evoque and for the babysitter for the kids he is away from
It is a materialistic society and I’ll admit I once almost got trapped in it
Either way he’s below the tax threshold
The other thing and I’m sure I’m alone on this point but I’m not a fan of big houses
A small 2 bed flat means less cleaning, less walking to the fridge and less mess and general clutter and you can just lock it up and leave when you go away
A big house is kind of pointless. Some of my friends live in large homes and they joke about how they only need the kitchen living room and bedroom and kind of joke they have too much space but deep down they mean it and some of them have a huge mortgage
Put it this way tomorrow morning would be better waking up, reading the paper on a balcony watching the sunrise somewhere warm and then going for a jog and coming home to take some time making a nice breakfast
Or, waking up in the dark pressing snooze a couple of times not wanting to get to work, having a bit of toast as you race out of the door to then feel your blood pressure rising sat on the m25 whilst listening to a traffic report of another overturned lorry and then being up tight all day and coming in at 630pm stressed out. You may manage to get back out to the gym but it would be a puny workout and you’ve gotta rush home cook tea (or a microwave meal) and then throw down 2 glasses of wine and go to bed to rinse and repeat whilst watching the waistline get bigger and barely speaking to your family. (But at least the new company 530d comes next month so that’s something to look forward to and in 8 months you may manage to get a week in crete to recharge your batteries lol)
Bit tongue in cheek but there is so much truth to it
Look at mulberry handbags - every woman has one but why?
A small 2 bed flat means less cleaning, less walking to the fridge and less mess and general clutter and you can just lock it up and leave when you go away
A big house is kind of pointless. Some of my friends live in large homes and they joke about how they only need the kitchen living room and bedroom and kind of joke they have too much space but deep down they mean it and some of them have a huge mortgage
Put it this way tomorrow morning would be better waking up, reading the paper on a balcony watching the sunrise somewhere warm and then going for a jog and coming home to take some time making a nice breakfast
Or, waking up in the dark pressing snooze a couple of times not wanting to get to work, having a bit of toast as you race out of the door to then feel your blood pressure rising sat on the m25 whilst listening to a traffic report of another overturned lorry and then being up tight all day and coming in at 630pm stressed out. You may manage to get back out to the gym but it would be a puny workout and you’ve gotta rush home cook tea (or a microwave meal) and then throw down 2 glasses of wine and go to bed to rinse and repeat whilst watching the waistline get bigger and barely speaking to your family. (But at least the new company 530d comes next month so that’s something to look forward to and in 8 months you may manage to get a week in crete to recharge your batteries lol)
Bit tongue in cheek but there is so much truth to it
Look at mulberry handbags - every woman has one but why?
We plan to move to a small place.
I am trying to convince Mrs SLR that we actually don't need a house for the first 3-4 years and if we don't have a house we will probably be better off as we plan to travel but she is not really on the same page with that yet so looking like a small house which we can lock up and leave for several months at a time.
I am trying to convince Mrs SLR that we actually don't need a house for the first 3-4 years and if we don't have a house we will probably be better off as we plan to travel but she is not really on the same page with that yet so looking like a small house which we can lock up and leave for several months at a time.
red_slr said:
We plan to move to a small place.
I am trying to convince Mrs SLR that we actually don't need a house for the first 3-4 years and if we don't have a house we will probably be better off as we plan to travel but she is not really on the same page with that yet so looking like a small house which we can lock up and leave for several months at a time.
Apartments are perfect for thisI am trying to convince Mrs SLR that we actually don't need a house for the first 3-4 years and if we don't have a house we will probably be better off as we plan to travel but she is not really on the same page with that yet so looking like a small house which we can lock up and leave for several months at a time.
I am currently in a modern apartment block, built about 6 years ago which is close to an affluent part of the city. The place is virtually empty, the underground carpark is like a ghost town most of the time, every now and again a car appears for a few days next to mine then gone for another 6 weeks or so!
They seem to be mainly all owned by downsizers that pop back to blighty now and again for the odd weekend visit of relatives and then in between those times an occasional airbnb party on a Friday and Saturday night by a bunch of teenagers squealing on the balcony till the early hours.
They seem to be mainly all owned by downsizers that pop back to blighty now and again for the odd weekend visit of relatives and then in between those times an occasional airbnb party on a Friday and Saturday night by a bunch of teenagers squealing on the balcony till the early hours.
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