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Is this enough to retire on?

(39 Posts)
Goodybaddy Sun 25-Aug-19 23:30:38

I’m 60 and have been offered redundancy in a job I’ve done for over 10 years because the company is downsizing. I’m not happy about but there’s not a lot I can do.

DH and I have close to £700k in savings, plus my redundancy pay.

Is that enough to retire on? Realistically I don’t think I’ll get another job at my age that will pay anything like my old salary plus I’m not sure I want to go through that sort of upheaval now.

AIBU to retire early?

blueshoes Sun 25-Aug-19 23:33:28

Is your mortgage paid off and the value of the property in addition to the £700K. Is pension included in the £700K or a separate pot?

Do you have children or dependents that you wish to support?

Will your dh continue to work?

gerritez Sun 25-Aug-19 23:34:25

Possibly, but there are so many variables to consider;

Do you still have a mortgage? If not could you sell up and downsize to release some more funds?
Other outgoings?
Dh age and is he still working?
What kind of lifestyle you would be happy with?

Another option might be to semi retire, and get a part time, low stress job to cover any shortfall in income.

ToLiveInPeace Sun 25-Aug-19 23:36:33

Sorry to hear about your redundancy. I could survive on £700k from age 60, but it depends entirely on your lifestyle and spending - how much/little can you live on per year? What large expenses might you have?

Jaffacakebeast Sun 25-Aug-19 23:36:47

I’d retire now, at 32 with 700k 😂

Aurignacian Sun 25-Aug-19 23:37:48

Yes I think that would be okay

CleverLoginName Sun 25-Aug-19 23:43:01

Yes it's plenty. Enjoy.

Goodybaddy Sun 25-Aug-19 23:46:06

Sorry, I should have said in the op that DH is already retired and has approx £15k pension pa.
no mortgage but I only have a £6k pension due to insufficient NIZ contributions.

ToLiveInPeace Sun 25-Aug-19 23:48:48

£21k/pa, mostly tax free, no mortgage, plus £700k? Hell, yes.

blueshoes Sun 25-Aug-19 23:49:03

Another option might be to semi retire, and get a part time, low stress job to cover any shortfall in income.

I would agree with this. 60 is young in today's age. You should continue to work to keep yourself and your mind active and earn enough to fund living expenses or at least subsidise a chunk of it so that you preserve your £700K capital for when you can no longer be economically productive.

I personally don't think £700K is that much if you are spending into capital considering you could live for 30+ years longer.

Hecateh Sun 25-Aug-19 23:50:39

I could
I have no mortgage and can live exist on less than £8,000 per year. With any more than that going on holidays, cars and other incidentals. From what I've read on here though, what I can live on wouldn't be enough for many people.

You can only do the sums yourself - using your last year as a benchmark for how much you need to live - and how much more would make it comfortable.

Medievalist Sun 25-Aug-19 23:58:04

Depends entirely how you want to live and how much you like to spend!

£700k sounds like a helluva lot of savings, but your pensions are very small. As pp said, you need to do the sums. Don't forget to factor in your state pension.

BackforGood Mon 26-Aug-19 00:00:43

Blueshoes - that is in 'savings' on top of the £21K pa they will have coming in each year for their pension, plus they own their property outright, plus the redundancy.

JoxerGoesToStuttgart Mon 26-Aug-19 00:02:39

Even if you live another 30 years that’s £23k a year, plus £21k of pensions between you (yours is £6k pa, right? Or lump sum of £6k?) plus a mortgage free house you could downsize if necessary?

Smellbellina Mon 26-Aug-19 00:06:07

As you feel the need to ask I am thinking no not for the lifestyle you wish or yes very much so and one day one of your relatives will inherit that shit tonne of money you keep under your bed whilst you mostly live of beans (and value beans at that)

RaininSummer Mon 26-Aug-19 00:07:14

Sounds like a fortune to me.

LellyMcKelly Mon 26-Aug-19 00:10:37

If you have no mortgage and £21k a year pus redundancy you should be fine. £700k should produce an income of at least £20k a year, possibly more, before you even touch the capital. If you do need to dip into your savings, taking out £20k a year ( not including interest payments) would last you for 35 years.

SirJamesTalbotAndHisSpeculum Mon 26-Aug-19 00:15:22

Is this just a stealth boast?

Of course it's enough! You sound really greedy, OP.

MoaningMinnie1 Mon 26-Aug-19 00:18:39

It's enough to retire on, op. You'll be fine.

Mary1935 Mon 26-Aug-19 00:19:36

I will manage it for you if you like!!!!😇

RosaWaiting Mon 26-Aug-19 00:21:59

I’d say definitely enough but do you know what your outgoings are?

Some of the reports saying “you need xx for retirement” include money spent on things I’ve never spent on in my life!

shiningstar2 Mon 26-Aug-19 00:25:37

DH and I are both 67 so have some experience of living on a pension. I would think that £700000 capital plus the pensions you now have and eventually your state pension is more that most retired people have, especially with mortgage paid off. Depends on the lifestyle you expect and are used to. We live quite comfortably day to day on joint pensions of £21000 with no mortgage. We use our modest lump sums to finance our holidays (2 abroad most years)and can still be generous to dd and grandchildren. When we first retired we adjusted our lifestyle to fit our new budget quite easily but our needs are quite modest. Depends how lavish your lifestyle now is and what adjustments you are prepared to make but seems more than doable to me smile

EileenAlanna Mon 26-Aug-19 00:34:11

I'm hoping I'll be able to get my State pension in 3 years aged 66, 6 years after I would've been able to retire before they mucked up everything. I'm over the moon that I'll be getting c.£165 pw, over £100 pw more than I get by on at the moment after a lifetime of working but being financially screwed over by my ex & "the system" while I provided for 3 DC their entire lives. No works pension, had to cash in my Civil Service superann to help survive & only able to take crap paid jobs thereafter to juggle childcare & work. Could I survive on £700k + £21K for 2? Do you think??

EileenAlanna Mon 26-Aug-19 00:37:16

Oh, pay me £10k pa & I'll be your "financial adviser". When you've that much money you need so much advice.

timeisnotaline Mon 26-Aug-19 00:41:27

I guess I don’t see why at 60 in good health you wouldn’t get a low stress job to keep from drawing on your savings. But let’s say you can earn 2% in interest & dividends from 700k suitably invested, that’s 14k on top of 21 k so £35k, and with no mortgage that seems a reasonable income without touching the capital. 2k a month for food bills and fun, a few k for holidays each year and 5-8k left for extra expenses - house maintenance, car, children etc.

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