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How much do you think you need to retire at 50
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A lot will be needed. Got around 18yrs before government pension so its upto you to self fund. Bear in mind we have a government that is very keen on robbing the pension funds. Whatever you have you will definitely need more. |
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By *abba44Man 9 weeks ago
Broadstairs |
If you are going to travel and own your own property which you rent out whilst away,you could manage on the income from the property if you had it professionally managed for you.
Income of £1k a month should suffice after you get to starting destination ie Thailand.Have funds transferred to a bank like Starling card can be used worldwide except Zimbabwa.Travel insurence some companies cover year round so that needs sorting.
l say go for it we only pass this way once.
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We are 48. We will have £56k a year in investments/savings/etc available at the age of 55. This should be plenty for us to live on. At 50 we will have £26k from the above, so will still need to work for a bit but only part time. |
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I doubt i'll ever afford to retire and i'll be pretty screwed when i'm forced to.
Like Raven said, seriel killer or more likely a bank robber career may ensue. If i get away with it, happy days. If i fail, 3 meals a day and a roof over my head for the next 25 years awaits. |
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I did a detailed financial model that factors in things like shifting investments 20k a year to ISA from age 55 to maximise tax free income and transfer of capital growth to income bonds. It also factors in inflation on spend and expected AEV on savings (I modelled 2-5% on each) , state pension kicking in , a property downsize in around 8 years and a few big global road trips.
I’m now looking at rental income if I go walkabout for a 6-12 months or an earlier downsize but you gotta be careful of tax
The conclusion I came to in all cases was I should have retired about 10 years ago !
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Surely that depends on the individual and their circumstances. Only you can answer for you.
To retire at 50 and live how I want to, I'd need 60k a year after tax minimum. Could I get by with less,yes, but I wouldn't want to.
I'll be retiring at 57. |
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"We are 48. We will have £56k a year in investments/savings/etc available at the age of 55. This should be plenty for us to live on. At 50 we will have £26k from the above, so will still need to work for a bit but only part time."
Start building your ISA up and reduce investing. 5.1 with trading 212 and 20K remember is tax free FOR LIFE. The tax relief of 40 or 45% now is nice but reality is you’ll be paying tax if not careful , like said above this government wants to tax retired people , so keeping to your 12k personal allowance and living off tax free ISA interest is a smart move |
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"Surely that depends on the individual and their circumstances. Only you can answer for you.
To retire at 50 and live how I want to, I'd need 60k a year after tax minimum. Could I get by with less,yes, but I wouldn't want to.
I'll be retiring at 57."
Did you calculate how much you’ll be worth when you die ? To live on 60K a year , 5K a month after tax means income of 88,000 a year. To buy an annuity will cost 1.5 million at age 57 BUT 1.5 million invested would give a 75,000 income never run out.
Most snart people I know are realising they are working / worked far too long and will die with more money that they ever owned, sacrificing years of good healthy life for inheritance |
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"Surely that depends on the individual and their circumstances. Only you can answer for you.
To retire at 50 and live how I want to, I'd need 60k a year after tax minimum. Could I get by with less,yes, but I wouldn't want to.
I'll be retiring at 57.
Did you calculate how much you’ll be worth when you die ? To live on 60K a year , 5K a month after tax means income of 88,000 a year. To buy an annuity will cost 1.5 million at age 57 BUT 1.5 million invested would give a 75,000 income never run out.
Most snart people I know are realising they are working / worked far too long and will die with more money that they ever owned, sacrificing years of good healthy life for inheritance "
I'm well aware, 70% + of my income at retirement will be from stocks and shares ISAs. |
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All depends on your circumstances and the lifestyle you're wishing to achieve I guess? Take into account there's a lot of folk in this country who have never, nor will see a days work in their lifetime, and they seem to do just fine 😅 |
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By *an1978Woman 9 weeks ago
GONE/TIMEOUT (No DMs please) |
What I found, when I took career breaks... I need more money if I'm not working.
£900k-1mil I would think. For 30k a year
Never going to happen for me.
I'm down to work til 68, be gone by 75. 
If I'm working long hours all I need is food and utilities. 
How are you going to be spending your retirement?
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You want to travel. How much you need depends on how you want to travel and whether you need to maintain a home in the UK and whether you own that home outright or if it's mortgaged or rented. Once you work out how much you need to maintain your home base factoring in inflation, repairs, etc you can start thinking about how much your travel costs will be.
You've got s way to go before you can access any private pensions you might have.
Having retired at 57 I can tell you that it's possible to live fairly well on a lot less than you imagine. |
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By (user no longer on site) 9 weeks ago
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"You want to travel. How much you need depends on how you want to travel and whether you need to maintain a home in the UK and whether you own that home outright or if it's mortgaged or rented. Once you work out how much you need to maintain your home base factoring in inflation, repairs, etc you can start thinking about how much your travel costs will be.
You've got s way to go before you can access any private pensions you might have.
Having retired at 57 I can tell you that it's possible to live fairly well on a lot less than you imagine. "
Out of curiosity, what have you retired on at 57? I’m aiming for just that. |
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"You want to travel. How much you need depends on how you want to travel and whether you need to maintain a home in the UK and whether you own that home outright or if it's mortgaged or rented. Once you work out how much you need to maintain your home base factoring in inflation, repairs, etc you can start thinking about how much your travel costs will be.
You've got s way to go before you can access any private pensions you might have.
Having retired at 57 I can tell you that it's possible to live fairly well on a lot less than you imagine.
Out of curiosity, what have you retired on at 57? I’m aiming for just that."
I'm not prepared to disclose our income obviously but we downsized to be mortgage free which makes a huge difference, were debt free eg no credit cards, car finance etc and both claimed small private pensions.
When you have plenty of time it's much easier to spend less. |
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By *lakeyMan 9 weeks ago
Teesside |
A mate of mine retired two year ago aged 48 after a Chinese guy bought his company of him I said you fancy doing a bit of freelance stuff he said nah don’t need to reckon him and his business partners all picked a few mill each up |
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By (user no longer on site) 9 weeks ago
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"I dont ever want to retire as I love working in my various professions ... the thought of doing nothing is weird to me .. always something will be able to do .... be it digitally . or physically "
It’s the difference between doing something you like and something you need to I think. Sadly getting paid for something you enjoy isn’t always the way. Those that crack it are fortunate. I’d love to retire but I’d fill my days very easily, not waking up to the sound of an alarm clock would feel like winning at life every day |
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"I dont ever want to retire as I love working in my various professions ... the thought of doing nothing is weird to me .. always something will be able to do .... be it digitally . or physically "
You don't have to be paid to make what you do day to day worthwhile . I think it's a mistake to assume that people who don't work for money do nothing. When I stopped earning a lot of people told me they'd be bored, couldn't just sit at home etc. I still don't know why they thought I'd be doing that. |
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By (user no longer on site) 9 weeks ago
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"Just one rich husband  Mrs x
Dammit. That’s where I’ve been going wrong. Should have been gay. I knew it."
I’d consider it if it meant telling my boss to do one early |
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By (user no longer on site) 9 weeks ago
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I'm looking to retire in 4 years.. I pay off my mortgage next week, so then the payments will go into my savings
I can draw private pension from 55...then gov one kicks in at 67?
I'd like to downsize - house is worth around £500, so that would give me a lot of options.
The pensions guidance was enlightening.. You need to spend early, whilst you have good health |
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By *lder.Woman 9 weeks ago
Not Local |
I can no way afford it but have a seed of a plan in a 'few' years to just sell up and fuck off for a bit. I wont have a massive lump sum from property and will be unlikely to ever get back on the property ladder again, but I will be quite happy to be out of the circus of work and bills. Im not entirely sure what my life will look like, but Im sure I could live in a van quite happily and freelance about the place. Winters are quite mild now aren't they and I like tinned beans  |
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By (user no longer on site) 9 weeks ago
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"I can no way afford it but have a seed of a plan in a 'few' years to just sell up and fuck off for a bit. I wont have a massive lump sum from property and will be unlikely to ever get back on the property ladder again, but I will be quite happy to be out of the circus of work and bills. Im not entirely sure what my life will look like, but Im sure I could live in a van quite happily and freelance about the place. Winters are quite mild now aren't they and I like tinned beans "
I can donate a tin opener to save your nails 
Sounds like a great plan though. |
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Building my business to the point of selling it. Maybe cash out with £1-2mil, maybe more depending on where the next few years go. Got 10 years until I plan to retire.
My advice, don’t wait until you’re too old to do any of the things you enjoy |
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By (user no longer on site) 9 weeks ago
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I’m on the verge of semi retirement. Negotiations are underway. All my friends have jacked, just me. I’ll still work, but not with pressure of running a company. Life’s too short…. |
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"I can no way afford it but have a seed of a plan in a 'few' years to just sell up and fuck off for a bit. I wont have a massive lump sum from property and will be unlikely to ever get back on the property ladder again, but I will be quite happy to be out of the circus of work and bills. Im not entirely sure what my life will look like, but Im sure I could live in a van quite happily and freelance about the place. Winters are quite mild now aren't they and I like tinned beans "
Hope you choose a van with adequate ventilation |
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"I’m on the verge of semi retirement. Negotiations are underway. All my friends have jacked, just me. I’ll still work, but not with pressure of running a company. Life’s too short…."
Is semi retirement when you lose your stiffy? |
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Just as the thread is here, and people are talking about the balance of work and enjoying life, getting the most from pensions, savings and so on. I saw a book reviewed in the paper a few weeks ago:
Christine Benz. How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement
I've not read it, but she is an apparent maestro when it comes to pensions. The book supposedly gives a balanced view, ultimately that you have to remember to enjoy what you have worked towards, as far as I can recall. |
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So many variables, if you want to retire you need enough to live the lifestyle you want. Assuming you have paid off any debts and mortgage. You then need to make sure you have income to pay bills and save a little for problems and do things like travel..Generally speaking it's assumed you need 60% of your current salaried income at retirement but reality is if you are younger and plan on travelling you need 100% of your income or to make changes in your lifestyle (and that needs to be from sources other than paid work) stocks, shares and cash investments, Property.. lots of people just sell up and use those proceeds to travel, etc. Or move abroad. If you're fortunate to be wealthy then it's more a question of lifestyle... |
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op depends on your lifestyle. Work out monthly outgoings and where you'd like to go in the world. Do you mean live, travel long term or take a lot of holidays keeping uk as a base? Ensure you have something to occupy your day outside of these. I know someone who took early retirement and was back in work within 2 years due to boredom! Maybe go part time to get a good balance to start with. Good luck! |
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Just looking back at the profiles I can see in this thread and very few are close to retirement or actually retired.
I would say that *if you can* and I know it's not easy, put money into a pension or other investment regularly. If you haven't already, start now. Retirement might seem a long way off and lots of people say they will never be able to stop work but unless you want to be a deliveroo driver at age 85 you need to start planning now.
Here ends the mum lecture  |
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"Just looking back at the profiles I can see in this thread and very few are close to retirement or actually retired.
I would say that *if you can* and I know it's not easy, put money into a pension or other investment regularly. If you haven't already, start now. Retirement might seem a long way off and lots of people say they will never be able to stop work but unless you want to be a deliveroo driver at age 85 you need to start planning now.
Here ends the mum lecture "
I am with the mum lecture  |
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By *ib.Man 9 weeks ago
Hampshire |
It really varies depending on person circumstances and standard of living.
Inflation will continue until you die, so that will erode a fixed purse fairly heavily.
With no mortgage £500k well invested will only yield £30k a year (napkin math) and you'll still pay tax on it. I'd want that at a minimum, personally.
Can always do a bit of work here and there for bread and butter money.
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"Just looking back at the profiles I can see in this thread and very few are close to retirement or actually retired.
I would say that *if you can* and I know it's not easy, put money into a pension or other investment regularly. If you haven't already, start now. Retirement might seem a long way off and lots of people say they will never be able to stop work but unless you want to be a deliveroo driver at age 85 you need to start planning now.
Here ends the mum lecture "
What surprises me is how much people think they will need to live on and that keeps them working much longer.
I’ve always been creative & enjoyed keeping costs to a minimum as much of my life I had very little. Now travel a lot , I have 2 homes & made really good investments in the last15 or so years but I don’t spend a lot , probably less than 1/2 of most people I know. I prefer to cook and have friends over than go out to restaurants, I share or rent cars only when needed and I don’t buy any ‘stuff’ , we pass books around and we network on all kinds of rewards, deals etc. my credit card pays all my UK train costs.
Of course I love the ‘sharing’ economy
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"It really varies depending on person circumstances and standard of living.
Inflation will continue until you die, so that will erode a fixed purse fairly heavily.
With no mortgage £500k well invested will only yield £30k a year (napkin math) and you'll still pay tax on it. I'd want that at a minimum, personally.
Can always do a bit of work here and there for bread and butter money.
"
I would hope that income bond rates stay higher than retail indexes
Inflation or RPI generally disproportionately hurts the consumerist. If you take your annual spend , deduct mortgage payments , multiply by 1.025 then add back in mortgage payments , convert to a %age compare that to an income bond like 5-6% you see you’ll be getting richer as you get older
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Obviously it's all subjective to your needs/ wants. I retired at 60 to look after my wife with a very long term illness. I had £250,00 pension pot, took 25% to alter the house for her needs . Had to live on the rest till I was in debt before DWP would give me any help. So my pension pot will run out in my late 70s . I will have to sell up and down size soon. I currently live on £1600 pm and that only covers bills etc. not had a holiday since 2001. But as I said it's all relative to the individual. |
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That depends on your risk factor you're willing to take too. The highest my pension is making at the moment is 2/2.5% but I'm on a low risk portfolio. Even so I still lost thousands when the stock market fell with Liz Truss,s budget. |
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I've just retired and was lucky enough to have a final salary pension which clears me with £3k per month plus a "contract out of serps" pension which I've just cashed in paying £500 a month.
Both also provided tax free lump sum payments but I will refrain from saying how much.
For those still awaiting private pension retirement age, take advantage of paying in avc's, for every £600 you pay in from gross wage the government also gives you £400, so that's a £1000 each month, plus you can pay higher or lower and also pay in any yearly bonus
Saves you a lot of tax.
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I’m nowhere near affording to retire
Leaving an abusive marriage 12 years ago and starting afresh had put me right back
My mortgage is like most 20 somethings are paying unfortunately
Need a side hustle lol |
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"Toying with the idea, to then go see the world question is do I have enough funds"
Something I’m looking at too
I think you need to be realistic no debts( store cards ect ) mortgage free
Have a decent amount of savings and at least 18k a year plus decent lump sum to help but still feel it won’t be enough
If your down sizing that’ll help too but I recon toul travel for a year or two then get bored and feel you need a job again just for pocket money till you reach the actually retirement age to get your additional 10k a year but if you can afford I’d say go do it life’s too short |
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For those still awaiting private pension retirement age, take advantage of paying in avc's, for every £600 you pay in from gross wage the government also gives you £400, so that's a £1000 each month, plus you can pay higher or lower and also pay in any yearly bonus
Saves you a lot of tax.
"
Ah yes, let me just locate my surplus/spare £600 knocking about each month...oh wait, reality check, I'm lucky if there is £6 leftover 🙄 |
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I’ve been paying into my pension since I was 25 and plan to retire no later than 60. Any earlier and I’ll be penalised with a smaller pension. I reckon I can manage another twelve years. It should be a healthy pot as it’s final salary and I earn three times what I did when I first started. I also have very favourable employer contributions and get a tax free lump sum.
My plan is to be mortgage free by the time I’m 52 then buy AVCs every month until I retire. I’d rather have too much money at the end of my life than too much life at the end of my money. |
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By (user no longer on site) 9 weeks ago
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I’m curious, for those saying £500k, what kind of interest rate are you taking into account on that? If it’s high street at about 5% that’s £25k then take off tax, probably leaves you with £1700 a month. Assume mortgage free, is that enough at 50, when you’re young enough to travel etc? Also got to factor in something going wrong in the house. Not picking fault, genuinely asking if it’s enough. I think I’d need £30k minimum after tax to do what I want. |
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By *usie pTV/TS 9 weeks ago
taunton |
It is all a fairly big gamble anyone doing these calculations 5 years ago probably would not have allowed a big enough margin for the inflation of the last few years and don't forget the rules can change at any time what ever tax breaks we have on pensions and ISA's today may not be there much longer the grim reaper is coming for us in the budget. Some of worked the best part of 50 years being told we could retire at 65 and get a state pension then just as we got there they moved the goal posts. |
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^^ when I started work I was told I'd retire at 60. I had to wait until I was 66 to get my state pension. I guess our kids will be working well into their 70s unless they make provision now.
The state pension was first introduced in 1909 so it's not much over 100 years but in that time life expectancy has increased massively. My dad has been claiming his for nearly 33 years. |
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"I’m curious, for those saying £500k, what kind of interest rate are you taking into account on that? If it’s high street at about 5% that’s £25k then take off tax, probably leaves you with £1700 a month. Assume mortgage free, is that enough at 50, when you’re young enough to travel etc? Also got to factor in something going wrong in the house. Not picking fault, genuinely asking if it’s enough. I think I’d need £30k minimum after tax to do what I want."
Who mentioned living off interest? |
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By *aven.Woman 9 weeks ago
Not the North West... |
"I’m curious, for those saying £500k, what kind of interest rate are you taking into account on that? If it’s high street at about 5% that’s £25k then take off tax, probably leaves you with £1700 a month. Assume mortgage free, is that enough at 50, when you’re young enough to travel etc? Also got to factor in something going wrong in the house. Not picking fault, genuinely asking if it’s enough. I think I’d need £30k minimum after tax to do what I want.
Who mentioned living off interest?"
Exactly, what you saving it for? You'll be dead soon.
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"I’m curious, for those saying £500k, what kind of interest rate are you taking into account on that? If it’s high street at about 5% that’s £25k then take off tax, probably leaves you with £1700 a month. Assume mortgage free, is that enough at 50, when you’re young enough to travel etc? Also got to factor in something going wrong in the house. Not picking fault, genuinely asking if it’s enough. I think I’d need £30k minimum after tax to do what I want.
Who mentioned living off interest?
Exactly, what you saving it for? You'll be dead soon.
"
It must be an alpha thing |
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By (user no longer on site) 9 weeks ago
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"I’m curious, for those saying £500k, what kind of interest rate are you taking into account on that? If it’s high street at about 5% that’s £25k then take off tax, probably leaves you with £1700 a month. Assume mortgage free, is that enough at 50, when you’re young enough to travel etc? Also got to factor in something going wrong in the house. Not picking fault, genuinely asking if it’s enough. I think I’d need £30k minimum after tax to do what I want.
Who mentioned living off interest?
Exactly, what you saving it for? You'll be dead soon.
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Realistically, you could live until you’re 80, £500k soon disappears if you’re not working and really want to enjoy it.
If I’m retiring I don’t ever want to work again, and enjoy life out and about, so thinking might need more. Each to their own, I’m just curious how different people are approaching it, no right, no wrong, hoping to pick up some ideas. |
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"I’m nowhere near affording to retire
Leaving an abusive marriage 12 years ago and starting afresh had put me right back
My mortgage is like most 20 somethings are paying unfortunately
Need a side hustle lol "
the side hustle is attached to you below your neck and above your stomach lol😂 |
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I doubt I'll ever reach retirement age, so I'm just spending and enjoying life as it comes. Until I cannot work anymore but by then assisted dying might be hopefully available. I'm quite pragmatic in that regards. |
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Realistically, you could live until you’re 80, £500k soon disappears if you’re not working and really want to enjoy it.
"
Realistically, many people have zero chance of affording to build up a 500k pension pot, let alone more. |
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Realistically, you could live until you’re 80, £500k soon disappears if you’re not working and really want to enjoy it.
Realistically, many people have zero chance of affording to build up a 500k pension pot, let alone more."
Depends how many people are getting inheritance from folks as well I guess.
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"I’m curious, for those saying £500k, what kind of interest rate are you taking into account on that? If it’s high street at about 5% that’s £25k then take off tax, probably leaves you with £1700 a month. Assume mortgage free, is that enough at 50, when you’re young enough to travel etc? Also got to factor in something going wrong in the house. Not picking fault, genuinely asking if it’s enough. I think I’d need £30k minimum after tax to do what I want."
You make some very good points.
5-6%
Remember pre (50-55) and during retirement you can shift 20K a year from pensions to ISA’s so by the time you’re living off interest you should not be paying tax on it.
Each 20K in Trading212 ISA currently makes £85 a month. So work out after your £12,000 or so allowance how many extra 20Ks you need to live off interest in 50s, 60s then factor in inheritance, downsizes or swapping cash for interest and simplifying as you get older.
I think it’s sensible before retirement or early in your 50s to fix up your house against future costs. Maybe even change it to a bungalow, fit multi fuel , Solar , heat pump etc and learn to cook if you can’t , equip yourself with skills and tools (and friends!) to live a little differently.
Travel costs a fraction of what it does when you are working working. Get a credit card that gives you DragonPass and start using self transfers. You’ll halve your flight costs for a start.
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