I think a flaw in your plan is the notion that you will have state pension to rely on at the age of 68.
I believe the joke is that they will keep raising the retirement age so that we will never retire.
it seems possible to retire - do you do it?
- Thread starter throwaway4372
- Start date
I believe the joke is that they will keep raising the retirement age so that we will never retire.
Man of Honour
I don't think this will happen exactly, but I think you're right in that the state pension will change.
Take a look at this video which (I haven't actually finished watching yet...) goes over the IFS report on it:
My mil pension is worth £20k per year if i leave now and £27k at SPA, i don't think the £20k is enough to retire on never mind £14k; that really would be a frugal existence. But £27k + SP is good. I think i will quit work at 60 and bridge to SPA.
Cost of living, car, insurances, cost of house repairs, boiler, white goods - one stream of bad luck and you are wiped out.
Cost of living, car, insurances, cost of house repairs, boiler, white goods - one stream of bad luck and you are wiped out.
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Abit of an side track here.
Suppose you did retire now, have you honestly thought about what are you going to do with all your free time? You have another 35 to 40 years left, that's a long time without any ideas what you want to do after if you retire late 30's early 40's.
No wife/gf/friends/kids....no alarm to wake upto.......Great! But whats the point when you have no purpose to wake up for?
Your plan to retire sounds great (I am crap at maths BTW!
) But to do all that and be stuck in the UK!?!!!? When we can see the country is going down hill?? I would pack my bags and move to another country but definitely wouldn't want to spend my 35 to 40 years retired in the UK, sounds depressing.
So unless you have plans to move somewhere else and do something interesting with your remaining time. I don't really see the point apart from bragging rights but thats just me
Suppose you did retire now, have you honestly thought about what are you going to do with all your free time? You have another 35 to 40 years left, that's a long time without any ideas what you want to do after if you retire late 30's early 40's.
No wife/gf/friends/kids....no alarm to wake upto.......Great! But whats the point when you have no purpose to wake up for?
Your plan to retire sounds great (I am crap at maths BTW!
) But to do all that and be stuck in the UK!?!!!? When we can see the country is going down hill?? I would pack my bags and move to another country but definitely wouldn't want to spend my 35 to 40 years retired in the UK, sounds depressing.So unless you have plans to move somewhere else and do something interesting with your remaining time. I don't really see the point apart from bragging rights but thats just me
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Soldato
Why would you need nearly £40k per year in retirement? Living the life of Riley? Constantly redecorating? Buying new appliances every year? Constantly on holiday? Needing to have a new car on the drive?
As people age they tend to find they want to do less and require less as a result.
People are generally terrible with money and could survive perfectly well on much less than they think.
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No, 9 or 10 years left, but they can be bought.
I know a couple of potential areas, I'm from the north originally. I wouldn't call it rough, but sure it's basic.
No particular plans, just a simple stress-free life. I travelled a lot as a kid, so don't feel the need anymore. If I wanted to do something specific I would have already done it.
Eh? I'm saying i couldn't afford to retire BEFORE SPA on £20k per year, never mind £14k per year. If/when SP kicks in, we'll be ok.
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Soldato
Not being funny but I think your sums are off, up 30% after 10 years is around 2.5%/Year compounded, or maybe you were making 2 separate points. 5% compounded over 10 years you would be 65% up.
Soldato
You said £27k at SPA plus SP - that’s nearly £40k per year, for one person. That’s living a life of luxury assuming no mortgage.
I agree £14k/state pension only would be frugal but liveable assuming house is paid off. £20k is plenty at that age/stage in life.
But what people dont take into consideration, your health will start to degrade too. Your millage my vary but we need to set aside money for when/if we get sick.
Cant be waiting on the NHS when you need heath issues fixed quickly.
Soldato
It’s actually more than that - it’s 30% up in just the last 3 years after I moved it from Royal London to Vanguard and stopped contributing. Would have to work out what it is from starting 10 years ago.
And yes I wasn’t saying it was the 5% that I’d achieved - just illustrating growth is quite easily achievable although will be interesting to see how it performs over the next 10 years now we’ve got normal interest rates again.
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Well most people do like to live, they like holidays and nice things. Not everyone wants to scrimp by on £14k or whatever.
Soldato
Even with a couple of holidays and treats I’d struggle to spend £40k per year with no mortgage. Maybe that’s just my nature though. I know family and friends waste money left right and centre on things they don’t really need.
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Soldato
Go for it but maybe a basic house in Cornwall rather than up north, feels you don't need much here for a ten times better lifestyle (I am a Yorkshireman)
Personally I don't do best with too much free time on my hands so I would do part time ( I am choosing to work at the moment until my contract expires)
Also go on an adventure maybe I did the Camino I bang on about now and again, was amazing
Personally I don't do best with too much free time on my hands so I would do part time ( I am choosing to work at the moment until my contract expires)
Also go on an adventure maybe I did the Camino I bang on about now and again, was amazing
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Soldato
Being brutal, how old are you all?
We'd struggle to survive on 40k/year with eveything paid off with current "expectations". The key is to get used to less (no Carribean holidays, forget the new car, keep the 4090 rather than go 5090) but that's also the hardest part
Currently looking to get 60k/year and will work until I hit that. Or, sod it all and go an live in a Neom project, what could go wrong!
We'd struggle to survive on 40k/year with eveything paid off with current "expectations". The key is to get used to less (no Carribean holidays, forget the new car, keep the 4090 rather than go 5090) but that's also the hardest part
Currently looking to get 60k/year and will work until I hit that. Or, sod it all and go an live in a Neom project, what could go wrong!
Soldato
That's probably what my wife and I will do, although Cornwall is getting increasingly expensive as people like me move to it!
Caporegime
The "how much do you need" argument is pretty pointless, isn't it? It all depends on your current lifestyle and how much of it you want to keep.
If you're already living a pretty basic existence, it's going to be quite easy, if it means downgrading the house, the car, the holidays, a new PC every 5 years instead of every 2, then of course it's going to be much harder.
Personally, I find that as I get older I'm less and less interested in the 'new and shiny', sometimes the excitement of things like a new GPU has worn off before the day is out. It's all just a bit meh and, as the saying goes, the things you own end up owning you.
If you're already living a pretty basic existence, it's going to be quite easy, if it means downgrading the house, the car, the holidays, a new PC every 5 years instead of every 2, then of course it's going to be much harder.
Personally, I find that as I get older I'm less and less interested in the 'new and shiny', sometimes the excitement of things like a new GPU has worn off before the day is out. It's all just a bit meh and, as the saying goes, the things you own end up owning you.
Soldato
That’s really the crux of it^
I see no need for most material things. I haven’t bought new clothes in probably 5 years. Last time I upgraded my PC was 3 years ago. Car is 6 years old.
I wouldn’t say I’m a cheapskate as that often works out more expensive over time (replacing things more often) but I don’t buy things for the sake of it anymore. Me and partner both can cook most things from scratch so our shopping bills are barely any different despite the cost of living crisis I’ve heard so much about - we just buy different things if we think they’re too expensive. I’m quite insulated I think.
Kids as well are a huge factor - I have none and don’t plan to have any so I’m quite happy to die and just leave enough to cover my costs.
I see no need for most material things. I haven’t bought new clothes in probably 5 years. Last time I upgraded my PC was 3 years ago. Car is 6 years old.
I wouldn’t say I’m a cheapskate as that often works out more expensive over time (replacing things more often) but I don’t buy things for the sake of it anymore. Me and partner both can cook most things from scratch so our shopping bills are barely any different despite the cost of living crisis I’ve heard so much about - we just buy different things if we think they’re too expensive. I’m quite insulated I think.
Kids as well are a huge factor - I have none and don’t plan to have any so I’m quite happy to die and just leave enough to cover my costs.
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Soldato
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Its probably worth looking up the % likelihood of reaching a certain age, everyone 100% expects or hopes they'll reach a grand old age, but it won't happen.
If there is a 50% chance of not making it from 55-65 years old on average, id be inclined to spend my money at an every increasing rate purely to get more out of life while I'm here.
A huge pile of money is no use to you dead - of course, this will be different if you have a family to leave money to.
If there is a 50% chance of not making it from 55-65 years old on average, id be inclined to spend my money at an every increasing rate purely to get more out of life while I'm here.
A huge pile of money is no use to you dead - of course, this will be different if you have a family to leave money to.