How do you see yourself when the retirement talk comes around

[hellohellooo]

48

No mortgage

I paid into local authority pension for 20 years

Now self- employed
Don't pay into a pension

Want to retire when I turn 50

No
Savings
No mortgage
Car is paid for

Live in a low cost area
Own another property that I rent out

What's my harsh reality here?
Do I need to really get on with my saving?

I have very low outgoings thankfully so just plan on having a simple life no hassle

Tips please 😎😎😎

Well it surely all rests on how much income your rental property brings you?

If you only have 20 years of pension and no savings what are you expecting to live off for the next 30-40 years?

You won’t get your local government pension for 17 years without massive deductions. So how do you plan to fund that 17 years?

Are you single? Married? If you’re on your own you just have to rely on the rental property income to rely on. If you’re happily married to a high earning spouse, your situation is different.

It brings in 200 per week after tax and all deductions

My outgoings are around 180 per week for everything

Yes need to do some extra work in order to save I think

Not going to work past 50

Single

Two kids

Sole earner

I have set up a business with a 6 figure income for the past few years

Plan on a simple easy life

So until your pensions kick in in 17 years time, are you saying that you have a buffer of less than £100 per month spare?

OP, I think you need a pot of emergency money - maybe £10k to cover crashed car, broken boiler, leaking roof etc. Otherwise, will the income from your rental provide living expenses ?

I've worked longer than you but in two years time, school fees will be over, my mortgage will be paid. I'll have paid into a private pension for 40 years.

I'll downsize, retreat away from London and lie down in a darkened room. 😎

With the rental changes about to come down on you. I'd hang fire until they're crystallised.

Unless of course you're in Wales in which case you'll know

So if your business for the last few years has been paying a 6 figure income and your outgoings are £180 a week, Where's the money gone?

why make yourself so poor? You would have loads of time but no money to do anything. £800 a month will get you fuck all. You really need to save if you want to not have an income until 67.

If you're going to retire at 50 you are going to have to save hard for the next few years.
Personally I think you are pushing it. The difference between your rental income and outgoings is negligible. That would be wiped out by a car repair or house maintenance bill. What about your children- are they financially independent?
Im no advocate of working till you drop. I've sacrificed some pension to leave my civil service job 2 years ago when I was 58. But I do need to generate some income until at least 65.
I also dont think you need a huge income to enjoy retirement. However I'd guess at 50 you won't be ready to sit in a rocking chair and knit. So how will you fund any activities or holidays you want to do.
Going at 58 gave me a good balance, Im not in the multiple long haul holidays bracket, more caravans in Wales but that suits me.

By all deductions do you mean you are putting money aside for repairs and refurbishment and repainting and voids etc? Because if not, you cannot rely on that £200 a week. When you say you have no savings, I presume you mean personal savings but do have savings to cover the costs of being a landlord?

There really needs to be two strands to your planning, financial and lifestyle.

I'm not sure why you are so determined not to work past 50 and I'm sure a simple easy life sounds attractive but you are very young and potentially have a long number of active years still ahead of you. I can understand someone on a secure financial footing wishing to retire to pursue a time-consuming hobby or travel or go into property development or whatever but how does your simple easy life look for you? I'm not sure what age your children are, presumably already left home, so what are you going to do with your time? Unless you are very used to your own company and to spending very little money, you are going to get very bored if you can't visit friends, pay for cinema or lunch trips, etc.

The equally important part is financial, you have no savings so even if you don't want to go on holiday, how are you going to buy a new car in five years time when yours conks out? What will you do if you need to get a new front door for your house or replace your windows? What happens if you have to do any of those kind of works on your rental property – while you may be able to live with a less than ideal situation in your own home, tenants are going to expect a boiler replacement immediately if something goes wrong.

To my kids

Great points

Yes the rental income is after I have covered repairs
Landlord insurance everything

But yes not thinking about holidays
Change of car
Etc

Mmm may need to keep going to 52-53 or drop to one day a week of work until 60

Great points

Late forties.

15 years into the original Scottish Teacher Pension Scheme. 10 more years into the new scheme. 25 years service completed this year.

20 more to go! 🤪

Interesting

Do you plan on going part time at all?

I think I have this skewed view that I can manage with a small amount per month until 68?

Crazy right

How old are your kids?

What do you plan to do with yourself when you retire as, generally, the fun retirement that people hope for when they retire early costs money. I don’t know you but assuming you are healthy, most people would start getting bored of a very simple life throughout their 50s. It’s a huge life change to go from working full time to not working at all. I think dropping your hours for a few years before finishing completely would be a good idea. And you absolutely need to get saving. Is your business something that you would sell on? Something you can do part time? I think you need to give this a lot more thought.

I’m going part time this year at 52. Down to 4 days a week for maybe a year or two years and then down to 3 days and try to go to 55 or 60.

Yes I could do my business one day a week and make quite a bit so I have that option

What kind of lifestyle do you envisage?

@hellohellooo

I’ve been part-time since I had DD1. She is autistic and not in school full-time so I need to be home with her.