What minimum level of income would you need to retire

[dugsbody]

9 minutes ago, Dorkins said:

Not sure about Portugal but retiring to Spain on a low income is difficult as they have a minimum income requirement for residency for non-EU citizens. Can't see why they would change this in future, what would be the advantage for Spain in hosting a load of impoverished British GenY/Z pensioners crippled by decades of HPI stoked by the UK government? Leave it to the UK government to sort out.

They can vote for the UK to rejoin the single market by that point and then benefit from FOM again.

[PeanutButter]

20 minutes ago, Dorkins said:

Not sure about Portugal but retiring to Spain on a low income is difficult as they have a minimum income requirement for residency for non-EU citizens. Can't see why they would change this in future, what would be the advantage for Spain in hosting a load of impoverished British GenY/Z pensioners crippled by decades of HPI stoked by the UK government? Leave it to the UK government to sort out.

Maybe try Poland or Latvia? We could do an exchange programme.

[PeanutButter]

20 minutes ago, Dorkins said:

Not sure about Portugal but retiring to Spain on a low income is difficult as they have a minimum income requirement for residency for non-EU citizens. Can't see why they would change this in future, what would be the advantage for Spain in hosting a load of impoverished British GenY/Z pensioners crippled by decades of HPI stoked by the UK government? Leave it to the UK government to sort out.

Maybe try Poland or Latvia? We could do an exchange programme.

[steve99]

18 hours ago, Guillotine said:

Yes the picture is very different for two with many shared costs.

That’s fantastic that you can do that together comfortably.  What sort of sailing can you do on that budget I’d have thought that was immensely expensive?  

I still doubt it is possible for an individual to survive medium to long term on £11k without soon coming a cropper on some large essential capital expense and living in abject lonely poverty. 

 

 

I currently have an 18' trailer sailer that I sail eithe on a lake or take to places like the Norfolk broads, chichester harbour,  Cost me about £500pa in storage and sailing club membership and can tow it from place to place with a ford focus.  I could downsize to a dinghy if needed.  Conversly I could move closer to the coast and get  a cheap mooring and a bigger boat for much the same money, ie circa £3K to £5K for the boat and £500pa.  

It is more expensive for a single for sure. Much depends on owning a home outright with not too many outgoings. Cash savings to top it up can make a massive differnce also, as I keep telling friends who spend every penny while working.  Very few can rely on the likes of annuities, much better to spend it down a bit as you go.

[Insane]

1 hour ago, crash-and-burn said:

Someone I know, retired just under 6 months ago, 2 years shy of 60, in apparent good health. Moved overseas with his wife, bought their million euro dream home having squirrel away for years, and died a few days ago from a stroke...

The only thing positive I can take away from it, is to enjoy what you have in the here and now - don't plan on having it all in retirement, even if that retirement comes early.

This is the conundrum of life. 

We don't know how long we have got. I have heard many accounts of people who died just before or just after retirement , but many accounts of people living into the 80's and 90's.

It is a tragic waste when someone works all their life saves then dies without enjoying the money and time. 

However who wants to live a long life in Poverty ? So we have to plan and save for retirement. I have some good pensions income ( worked for a firm who had an excellent pension scheme ) some of it is Final Salary while the rest is money purchase.  I took the final salary at 55 , I could have waited and got more later but it is the equation of how much do I get now for how long compared to how much more later but for less years. With the Money Purchase I have taken just one lump in the last 3 years but know I can dip into it if needed. 

I still work but just part time and it is a great feeling knowing that I can walk at any time without facing financial ruin. I am so glad I never have to return to the slog of full time employment. 

[Guillotine]

30 minutes ago, steve99 said:

I currently have an 18' trailer sailer that I sail eithe on a lake or take to places like the Norfolk broads, chichester harbour,  Cost me about £500pa in storage and sailing club membership and can tow it from place to place with a ford focus.  I could downsize to a dinghy if needed.  Conversly I could move closer to the coast and get  a cheap mooring and a bigger boat for much the same money, ie circa £3K to £5K for the boat and £500pa.  

It is more expensive for a single for sure. Much depends on owning a home outright with not too many outgoings. Cash savings to top it up can make a massive differnce also, as I keep telling friends who spend every penny while working.  Very few can rely on the likes of annuities, much better to spend it down a bit as you go.

That sounds really great.  

[MARTINX9]

2 hours ago, Dorkins said:

Not sure about Portugal but retiring to Spain on a low income is difficult as they have a minimum income requirement for residency for non-EU citizens. Can't see why they would change this in future, what would be the advantage for Spain in hosting a load of impoverished British GenY/Z pensioners crippled by decades of HPI stoked by the UK government? Leave it to the UK government to sort out.

Under the Brexit deal the S1 arrangements do of course continue for those who can do move to an EU member state - so your healthcare is covered by the UK government that once you reach state pension age.

Otherwise you need private insurance for at least the first year - and can then join the Spanish healthcare scheme.

All assuming you earn enough or have a large enough pension as a UK national to move there - not of course an issue for EU nationals!

 

[winkie]

21 hours ago, Mikhail Liebenstein said:

That is quite steep, my bill for 4 is about £220 a week, and we stick to M&S/Waitrose.  Probably used to spend more, but decided to cut back on meat and eat more fish instead.

Spam?........or push the boat out and enjoy a tasty plate of healthy sardines, bones full of calcium and omega 3, vid d and b12......mushed up on toast with lemon, seasoning and a blob of mayo.....yum.

[Cobraball]

3 hours ago, markyh said:

Someone set up a fake 2nd account to make this their 1st post, i'm touched. 

Not a fake account you just talk bull sh-t all the time. I'm sure you probably still live in the 2 bed semi 🙂

[Pop321]

23 hours ago, nome said:

Well I quit my job earlier this year and at 47 I'm going to give retirement a go.

The figure I'm planning to live off... £6k a year.

I'm mortgage free in a house that's just been fully refurbished throughout so shouldn't present me with any big bills for at least 10 years, i'm single, no kids, have always lead a very frugal and non-materialistic life and as a result I'm convinced that £6k should comfortably cover all my essential bills including running a car and having an annual contingency fund for the odd unexpected expense.

Perhaps it might not work out, but even if it doesn't then the worse case scenario is I have to get a little part time job... just 10 hours a week on NMW would be more than enough to supplement my income from investments and savings draw down.

I think you may struggle but let’s be honest….what on earth does a stranger like me know about someone else’s lifestyle and budgeting. I think it’s refreshing to see this rather than the ‘I need £40k a year just to get by’. 

My view is influenced with my work colleagues who often were 2nd income earners, clinging onto a job they hated despite being in their early 60’s to improve their pension or wait for a redundancy payment. These guys pensions were averaging £25/£30k. 

My friend retired 4 years ago on a £40k pension and his wife has a £25k pension and they aren’t sure if they will have enough despite owning their house outright and having fairly modest tastes…. I kid you not. His first year he bought a new car (to be fair £9k, new to him car) and still had more in the bank than he started with at the end of the year  

Personally (for the thread rather than directed to nome) I felt about £25k for a couple was enough for a fairly carefree retirement if you own your house outright. That was for holidays, cars, meals out. My old men drinking buddies have £6/7k pensions (‘each’ if a couple or just them if on their own) plus full state pensions, maybe £50k savings and seem to do ok. Of course this is the third world in t’north…Yorkshire. 

[markyh]

32 minutes ago, Cobraball said:

Not a fake account you just talk bull sh-t all the time. I'm sure you probably still live in the 2 bed semi 🙂

Dude , you have 2 posts, i've been here since 2004.  both only on my posts, this is 2nd account because you are a re coward who cant handle they are a loser in life and wants to hide saying it.

If you have put £2k into bitcoin in 2013, £145k into Hex in May this year, and played the housing market perfectly since 1996, you to would be a winner in life. 

Not everyone can be me. 

😁 

[winkie]

Once a person say 50+ that is very skilled in the job they do, have repaid their mortgage, might have a small income from a BTL......type of jobs in short supply such as doctors, lorry drivers, nurses, builders, plumbers, etc...... can't blame them for wanting to stop selling their time to others.....wind down, maybe go part-time on their own terms or even retire completely.....they might have a lump from being a beneficiary in a will......when working full time with 25 days a year time off, getting your life back to do something never had time to do, go somewhere never had time to go, or even live somewhere could never live before because of the job that gave half a life to........once no longer working cost of living is reduced....once have enough less is required to live.

Money isn't everything, in the autumn of life time can be more valuable......so important to train up the next generation to replace the previous generation..... investment into the future.

 

Edited October 14, 2021 by winkie

[steve99]

I think your figures are spot on.  Ive known lots of people on ££££ who live no better than I do on £-low and in fact far worse thanks to revolving debt.

[steve99]

43 minutes ago, Pop321 said:

I think you may struggle but let’s be honest….what on earth does a stranger like me know about someone else’s lifestyle and budgeting. I think it’s refreshing to see this rather than the ‘I need £40k a year just to get by’. 

My view is influenced with my work colleagues who often were 2nd income earners, clinging onto a job they hated despite being in their early 60’s to improve their pension or wait for a redundancy payment. These guys pensions were averaging £25/£30k. 

My friend retired 4 years ago on a £40k pension and his wife has a £25k pension and they aren’t sure if they will have enough despite owning their house outright and having fairly modest tastes…. I kid you not. His first year he bought a new car (to be fair £9k, new to him car) and still had more in the bank than he started with at the end of the year  

Personally (for the thread rather than directed to nome) I felt about £25k for a couple was enough for a fairly carefree retirement if you own your house outright. That was for holidays, cars, meals out. My old men drinking buddies have £6/7k pensions (‘each’ if a couple or just them if on their own) plus full state pensions, maybe £50k savings and seem to do ok. Of course this is the third world in t’north…Yorkshire. 

I think your figures are spot on.  Ive known lots of people on ££££ who live no better than I do on £-low and in fact far worse thanks to revolving debt.

[Cobraball]

15 minutes ago, markyh said:

played the housing market perfectly since 1996, you to would be a winner in life. 

Actually I have played the housing market with my last purchase in 1995 for over 500K, have a think about its value now?

Not that I need to brag like you do in most of your posts, I was earning over 100k a year in 1990 so don't talk to me about

being a winner because I am.

Come back in a year when your sh-tcoin is worth f--k all 🙂

[markyh]

2 minutes ago, Cobraball said:

Actually I have played the housing market with my last purchase in 1995 for over 500K, have a think about its value now?

Not that I need to brag like you do in most of your posts, I was earning over 100k a year in 1990 so don't talk to me about

being a winner because I am.

Come back in a year when your sh-tcoin is worth f--k all 🙂

I will take that bet when you take the last of your FIAT savings to the shops in a wheel barrow to buy a week groceries chump. Wish you luck.

[crash-and-burn]

Come on folks, nobody wins the game of life by having lots of money or assets, I've never understood that competitive mentality, let alone boasting about it (not very classy). Peace of mind and good health are all anybody really needs or wants, just as long as you have some sort of roof over your head and food on your plate. 

Edited October 14, 2021 by crash-and-burn

[Dorkins]

1 hour ago, crash-and-burn said:

Come on folks, nobody wins the game of life by having lots of money or assets, I've never understood that competitive mentality, let alone boasting about it (not very classy). Peace of mind and good health are all anybody really needs or wants, just as long as you have some sort of roof over your head and food on your plate. 

Okay, but the problem is that with houses and pension income so expensive relative to wages "some sort of roof over your head and food on your plate" in retirement is not a trivial achievement, particularly for younger generations on the wrong side of asset price inflation.

[nome]

in reply to @Guillotine @Pop321 or anyone else who may be interested here are my basic annual figures for my £6k a year expenditure and this is how I've been living for approximately the last 10 years, being mortgage free in that time with a take home pay of £17k a year and able to save around £10k a year...

Council Tax - £1000

Weekly shopping - £2,400

Water - £300

Electric - £350

Broadband and phone - £240

Home insurance - £120

Car - £600 (That's for everything, MOT, VED, Insurance, servicing and maintenance and petrol)

All that basic/essential expenditure comes to just over £5k so still leaves me at least £800 for other bits and pieces of expenditure which inevitably crop up.

As I said previously I've always lead a very simple non materialistic life and I've always lived in AONB's and/or on the edge of National Parks (Peak District previously and currently Snowdonia) so never felt the need for holidays, quite happy just walking or cycling from my doorstep which is also my only form of 'social' activity (although I'd rather go out alone!) so what little social life I do have is zero cost.

I don't have gas, just electric heating and a log burner (with access to free wood) but very rarely have the heating on anyway as I hate feeling too warm indoors hence why my electricity bill is so low.

Another point to consider in my decision to (hopefully) retire now at 47 is as others have mentioned, life expectancy post retirement, virtually all of my male relatives have been dead or dying by 70 so I'm not banking on having any kind of long and healthy old age so I'd rather take my chances now.

[winkie]

5 minutes ago, nome said:

in reply to @Guillotine @Pop321 or anyone else who may be interested here are my basic annual figures for my £6k a year expenditure and this is how I've been living for approximately the last 10 years, being mortgage free in that time with a take home pay of £17k a year and able to save around £10k a year...

Council Tax - £1000

Weekly shopping - £2,400

Water - £300

Electric - £350

Broadband and phone - £240

Home insurance - £120

Car - £600 (That's for everything, MOT, VED, Insurance, servicing and maintenance and petrol)

All that basic/essential expenditure comes to just over £5k so still leaves me at least £800 for other bits and pieces of expenditure which inevitably crop up.

As I said previously I've always lead a very simple non materialistic life and I've always lived in AONB's and/or on the edge of National Parks (Peak District previously and currently Snowdonia) so never felt the need for holidays, quite happy just walking or cycling from my doorstep which is also my only form of 'social' activity (although I'd rather go out alone!) so what little social life I do have is zero cost.

I don't have gas, just electric heating and a log burner (with access to free wood) but very rarely have the heating on anyway as I hate feeling too warm indoors hence why my electricity bill is so low.

Another point to consider in my decision to (hopefully) retire now at 47 is as others have mentioned, life expectancy post retirement, virtually all of my male relatives have been dead or dying by 70 so I'm not banking on having any kind of long and healthy old age so I'd rather take my chances now.

There is a lot to be said when living in a peaceful place around nature, when have openess and fresh air about you, nobody to make a call upon you, no emails, no phone calls, you could say everyday is a holiday.......wood to burn and some soil to grow.

Suits some people very well, others would be petrified.

[Pop321]

39 minutes ago, nome said:

in reply to @Guillotine @Pop321 or anyone else who may be interested here are my basic annual figures for my £6k a year expenditure and this is how I've been living for approximately the last 10 years, being mortgage free in that time with a take home pay of £17k a year and able to save around £10k a year...

Council Tax - £1000

Weekly shopping - £2,400

Water - £300

Electric - £350

Broadband and phone - £240

Home insurance - £120

Car - £600 (That's for everything, MOT, VED, Insurance, servicing and maintenance and petrol)

All that basic/essential expenditure comes to just over £5k so still leaves me at least £800 for other bits and pieces of expenditure which inevitably crop up.

As I said previously I've always lead a very simple non materialistic life and I've always lived in AONB's and/or on the edge of National Parks (Peak District previously and currently Snowdonia) so never felt the need for holidays, quite happy just walking or cycling from my doorstep which is also my only form of 'social' activity (although I'd rather go out alone!) so what little social life I do have is zero cost.

I don't have gas, just electric heating and a log burner (with access to free wood) but very rarely have the heating on anyway as I hate feeling too warm indoors hence why my electricity bill is so low.

Another point to consider in my decision to (hopefully) retire now at 47 is as others have mentioned, life expectancy post retirement, virtually all of my male relatives have been dead or dying by 70 so I'm not banking on having any kind of long and healthy old age so I'd rather take my chances now.

Interesting. And if you can do it that’s great. Speaking to a friend yesterday about money he has a new Porsche. He loves it and he had a super Merc before this. 
I said I love the cars but I wouldn’t want one…only because although I like to see the car I don’t appreciate it enough to own one, but I get he wants one because he loves it. Your note, his car just shows no rights and wrongs just differences….he runs an IT company and has money so can afford his car and his job.

One thing no one can dispute is a finite life, living and enjoying yourself particularly as we get older. I left work at 50 and that was important to me….covid suppered travel plans but I am happier now. I liked my job but it was too much time doing it…3 days a months would have been great  others like to work until they are 70, odd but not wrong if they like it.

So good luck with it. Hope it works out. 👍🏻

 

Edited October 15, 2021 by Pop321

[Guillotine]

3 hours ago, nome said:

in reply to @Guillotine @Pop321 or anyone else who may be interested here are my basic annual figures for my £6k a year expenditure and this is how I've been living for approximately the last 10 years, being mortgage free in that time with a take home pay of £17k a year and able to save around £10k a year...

Council Tax - £1000

Weekly shopping - £2,400

Water - £300

Electric - £350

Broadband and phone - £240

Home insurance - £120

Car - £600 (That's for everything, MOT, VED, Insurance, servicing and maintenance and petrol)

All that basic/essential expenditure comes to just over £5k so still leaves me at least £800 for other bits and pieces of expenditure which inevitably crop up.

As I said previously I've always lead a very simple non materialistic life and I've always lived in AONB's and/or on the edge of National Parks (Peak District previously and currently Snowdonia) so never felt the need for holidays, quite happy just walking or cycling from my doorstep which is also my only form of 'social' activity (although I'd rather go out alone!) so what little social life I do have is zero cost.

I don't have gas, just electric heating and a log burner (with access to free wood) but very rarely have the heating on anyway as I hate feeling too warm indoors hence why my electricity bill is so low.

Another point to consider in my decision to (hopefully) retire now at 47 is as others have mentioned, life expectancy post retirement, virtually all of my male relatives have been dead or dying by 70 so I'm not banking on having any kind of long and healthy old age so I'd rather take my chances now.

Thanks Nome. You didn’t have to set that out I took you at your word.

wow. Truly enlightening. 

I am in a Surrey AONB but it is anything but quiet - M25 like a buzz saw at the top of the village and under the Heathrow and Gatwick flight paths!  But I do also have access to wood as fuel, but  I’d better crack on and collect it.

 

[iamnumerate]

A friend lives off £7K pa.  But she doesn't have a car, TV licence or broadband.

She does has a cinema pass which I think costs about the same as TV licence which seems strange.

She could work she is not retirement age yet but doesn't want to.

She owns her own home.

[coypondboy]

2 minutes ago, iamnumerate said:

A friend lives off £7K pa.  But she doesn't have a car, TV licence or broadband.

She does has a cinema pass which I think costs about the same as TV licence which seems strange.

She could work she is not retirement age yet but doesn't want to.

She owns her own home.

Sounds like me over the past 18 mths having been on furlough I managed to get living costs for my share of bills to 450 pm so plan to retire next March at 55 and enjoy life as covid taught me we could go at anytime.  Why work 60 hrs pw in a stressful job with a boss you hate to then keel over a few years into retirement.  I play tennis and golf 2-3 times a week don't travel during rush hr and cycle everywhere.

[kzb]

17 hours ago, winkie said:

Money isn't everything, in the autumn of life time can be more valuable......so important to train up the next generation to replace the previous generation..... investment into the future.

Errr....50 is the new 30 you know.  50 is not the autumn of your life any more.

I have male relatives who have started afresh after that age, babies, new wives, mortgages, the lot....