On what minimum guaranteed annual income would you retire tomorrow on?

[Flangle]

And how old are you and do you have housing costs and dependent children?
Assuming annual sum has inflation built in?

My figure right now would have to be pretty high, lots of mortgage left and early teen DC, I’m late a 40s sandwich filling and therefore dreaming of quitting work.

Once mortgage paid off I’d not hesitate on 20k. Maybe lower, would need to do some sums, but for the purpose of this tough and ready question 20k sounds about right. Obviously more comfortable once state pension age kicks in.

I’m 59 and have 3 years left to work before I can retire. Currently I would need £44k a year to retire tomorrow due to mortgage payments and daughter at uni. That’s without tax so with tax I would need my current salary of £58k. In 3 years time I will have ( need) £26400 this will do me until it increases again at 67 when state pension kicks in.

Sorry to hear this.

I would consider the other benefits that work brings- ie routine, adult company, something outwith being ‘mum’. I wonder if reducing hours to make life more manageable while children are young would be an option?

again, so sorry to hear of your situation. X

Similar age to you, I don't need much. I will have paid off my mortgage and weve saved a good chunk for dd's future already. I've already travelled loads and had a lot of adventures so I imagine a retirement of enjoying the area I live in, doing my art, diy, gardening etc. I reckon £15-20k would be fine.

I retired at 57 with Teachers Pension of £12k per annum index linked plus a second Sipp I turned into an annuity of £6k per annum for 20 years until state pension kicks in. I'll get full state pension. I also have a btl portfolio that brings me in roughly £35k pa. DH retired at 60. He has a civil service pension of £24k pa plus btl investments of £5k pa. At 67 he will get a full state pension. Obvious we both pay tax on everything. We will get a full state pension dispute being contracted out for several years because we are foster carers so get out stamp from that. Even though we retired we do still foster 3 late teens with learning disabilities. We will continue to do so for another 4 or 5 years until they are well into their 20's and are hopefully more independent then.

20k a year, I reckon. One toddler, late 30s, about 100k of mortgage left with 15 to pay.

We have a decent chunk of saving investments each and moderate pensions for our ages. We'd move house, but probably to a smaller house than we'd planned, so we could fully enjoy the freedom.

I would probably make a little money out of my hobby to top up the pot, but otherwise we probably have a decent enough pot to live on.

15k a year. 12 k state pension and 3k savings wd do me.

Cheap house. No car.

DH and I are retired (67 and 64), we seem to be spending around £36,000 to £40,000 each year. No mortgage adult DS living at home, 1 dog,

Average yearly spend is

2 UK holidays £5,000/£6,000
Private Health Insurance £5,000
Food, takeaways, eating out, household £12,000
Dog £2,000
utilities, tv, broadband, house insurance £4,000
phones £500
Dentist £500
Council tax £2,500
Car £1,500
Clothes, gardening, papers, magazines, books, leisure £2,000
Football season ticket £1,600
Christmas, birthdays £1,000

It all adds up.

This is an interesting. Coat of living is hitting so hard but that it would work 5 years ago but now won’t is really sad. Will it ever improve? Prices always go up but no matter what government say they don’t go down again

You’d have to do a really good look at your current spending. I keep doing the sums. DH keeps finding things we haven’t counted! And the fear that retiring offers more opportunities to spend money!
It’s worth doing a survey of stuff too, how old is the fridge, washing machine, car, tv, computer… bathroom, house decorating, kitchen? Flooring? Those kinds of things cause real stress.

It’s an interesting question and I’m thinking about this as mortgage will be paid off later this year - although I’m only 47 so can’t take my pension yet. I can take it at 50 (old civil service pension) but it gets reduced if I do. Maybe will look into going part time. But for expenses I’d probably need £30k once the mortgage has gone.

With current mortgage £40k (although that's more than I earn now) without £30k, I live alone no kids which both increases and reduces costs.

I don't have a mortgage, but I'll have to rent forever and I live alone. Therefore £35k would mean i could quit work. Luckily I have savings and investments from the sale of my last house.

Depends if for me or me and partner. We are retired and the figure is 50k for us both. Have savings and no mortgage.

Tomorrow it would have to be the household wage which is just not possible
once teens through uni, set up for their independent adult lives, £80k

You might find this helpful @Flangle https://www.retirementlivingstandards.org.uk/

I'd say we need about £70-80k between us annual income to retire on, which we're on track for. Mortgage will be paid off, and DS will hopefully have gone through the uni and house deposit stage by then so we will be significantly lower expenses than now, but want to travel a lot when we retire.

About about 36k net at a minimum. 25k once I've finished the mortgage. Planning to retire with 35k gross including state pension plus savings

DH took early retirement 18 months and I have one very much part-time job. He has been doing the odd small job, so our income is £28k a year. We haven't got a mortgage, no depdendents. That sum covers all household bills, unexpected household repairs, clothes, presents, gym/exercise classes for each of us, coffee and cake out a couple of times a week, popping into pub on a walk as and when, we eat out approx 3x a month and tend to do around 5 mini breaks a year. Also, two cats. We've got about £200k saved, and not touched it since he retired - it's OK if we do, as will have an extra £24k old age pension (less tax of course) in 5/7 years time so will seem rich then.

You're all quoting figures that are way beyond what I even have as a lump sum. It's quite disheartening and alarming. Looks like the state pension might not be available by the time I retire at this rate either so banking on being healthy enough to not have to retire! I'd love an annual figure to quote.

Our number is £80k - but I'm not sure about the idea of a minimum, it's abstract because we have met our retirement goals and we are still working - I'm trying to stop - dh wants to work for another 5 years.

Some interesting variations here. I'm planning on retiring later this year, aiming for £24k a year in pension. Husband will have the same when he retires in a couple of years. Mortgage will be paid off, and we have savings for holidays.

I wouldn’t at a similar age.

In your shoes I would be setting up parents for outsourcing as much care as possible, I’d be investing in HRT and I’d deal with my teenagers as best as I could.

The reason I wouldn’t retire for any money is because we have prioritised paying for uni to make sure our children don’t have any debt starting out in life.

The elderly parents thing is a real challenge but we have been there already and learned there is literally no end to the amount of support it demands so we learned to step back a bit and to set expectations to a more manageable level, a marathon not a sprint.

I think this stage of life demands a lot of reality checking (what can you actually do now that you are getting older) and much less aspirational thinking than earlier stages of life. Certainly that has been my experience.

I earn £19K a year, single with no mortgage. Car paid off, no debt. Have about £40K savings.

I manage okay.

We are retired, no mortgage and downsized a year ago so bills cheaper.
We have about £80k between us a year including state pension. And live a good life...lots of travelling, in great health and enjoy ourselves. I'm aware that at any moment that could change.

£12k pa would be sufficient for me as I would continue living the way I am now. I might have to curb my craft spending but I have enough that will outlive me anyway.