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.

Thank you. Very wise words. I’m well on in the marathon that is EP struggles but the finish line keeps getting moved further.

I have a DH, so the figure would be for me to retire.

We’re in Scotland, don’t know how much longer university tuition will be covered for though, it’s just not sustainable, but supporting DC financially is a strong incentive to not throw in the towel with work.

Late 40’s and would happily quit today! Current net is £40k a year but paying mortgage so I guess that would be ok and give me a bit extra each month if the mortgage was cleared (which it nearly is)

I'm 51 and only really been paying into a pension in the last 5 years for various reasons. I still don't earn a huge amount but started to prioritise it now and have a pot of c. £100k and paying roughly £5kpa in (low income so this is quite a big chunk!) . At this rate this will still only give c.£11kpa if I hold out until 67 which is quite depressing and DH's situation isn't much different so combined total of c.£20k plus state pension. Once our mortgage is paid off we can increase our contributions quite significantly which will help but won't benefit from much compound interest then.

We certainly won't be going on fancy holidays or living a luxury life on that but we are lucky to have benefitted from big SE house price rises so will downsize & move somewhere cheaper so can probably free up c.£200k for savings/pension boost. Our lucky DC have a trust fund from DH's parents for house deposits and all will be past uni age shortly so it's really just our day to day living costs to cover. I'm concerned but not panicking.

Minimum £40k (adjusted for inflation) between us with no mortgage (currently £1450 a month) We're 43 and only have private sector pensions which are not that substantial. We earn about £80k+ between us (bonus and overtime dependant) and have a 5 year old, DH tries to put everything he earns above 50k in pensions too. I only work part time at the mo though and bring in between 15-20k depending on hours so I'm hoping to increase my earnings as DC gets older. I used to earn £40k+ before kids but I've stepped off my original career ladder for better hours and a less demanding role in an adjacent sector and hope I can get my career back on track soon.

I do worry we'll be working till we drop. I'm guessing alot of the salaries stated here are London based, we're South of Manchester in an expensive bit of the North but average mumsnet salaries always amaze me 😅 I say this as a couple of professionals with masters degrees.

We are spending around £25k a year, no mortgage, kids left home, no debts, no tax as living off interest (isas) plus I work pt just below tax limit as I don’t have enough ni credits yet. You spend far less than you think once you have no debt or children to pay for. We have chosen a smaller house than we could afford which means only band d council tax, going down to one car once I quit work (plus a motorbike). We live very well and do not need to penny pinch at all. Kids are very expensive!

@Whatwerewetalkingabout You are working part time though. Plenty of teachers I know get around £50,000 and we are in the south east. If you had continued with your career, what would you have been earning by now? A masters for part time work makes little odds probably. Many women don’t step off the career ladder though.

DH and I have managed on 20k in the past with a mortgage, car payments and boiler payments to cover. I’d be quite happy with that amount assuming the mortgage etc. were paid off. We don’t have children and live in a very cheap area.

I am retired, early due to many health problems (50 years old). I get a £2,500 (monthly) pension with inflation. Its enough but I'm still paying for housing. I save 400-500 a month. I live alone but have two DC.

I have made choices throughout my working life to be able to retire at 55. I have chosen to work beyond 55 because I enjoy my job but the lack of pressure to have to work helps.

I didn’t buy a bigger house 10 years ago, so didnt double my mortgage payments. I don’t borrow to buy a car I drive what I can afford. I saved £10,000 and used that for my car. I holiday in Europe but well costed.

My DC’s are all independent.

I have a long contract, never broken (36 years) and have savings of £200,000.
My DB pension offers a lump sum of £50,000 and an income of £17,000. I have an additional pension and an additional AVC and then an added state pension at 67.

After a recent couple of years of a number of family bereavements I can reflect that the choice about the bigger house was the right one. I can retire now, I don’t have the added stress and sadness of downsizing. I will sell my car too as I only need it for work.

I retired at 60 and survived on a pension of £11,000 but I had no mortgage, downsized and used funds to do up my house and it was before covid and the insane cost of living rise. It was thereafter tricky at times and I had to be careful and occasionally dip into savings until I was 66 and entitled to the state pension which definitely helped.

I wouldn’t want to give up my career. I’m 45 and have been out of work for nearly 2 years due to cancer. I could probably live happily on £40-50k a year. I wouldn’t want less though just to avoid working. I love work. I wish I could be doing it now instead of sitting around waiting on medical appointments and worrying if I’m going to die before my kids grow up. I wouldn’t want to leave work before 65, regardless of income.

@Multiway You obviously don’t live in the country then! No car would kill me!

£25k net, so around £2k per month.

I have no mortgage, no kids, no dependants, I'm not a sandwich filling and I have savings for the big purchases.

I actually like around £3k per month, but if I had a guaranteed £2k, I'd stop work, as per the question. I only work very part time and a bit of freelance anyway, don't get £2k pm as it is.

I think I can probably achieve that with my current pension in fact, but I'm just waiting for a few things to happen before I make the decision. I'm 57.

To live exactly how I am now, 19K at year. I am currently putting all spare money into savings, so i can plug the gap between taking private pension at 55/60 and state pension. Also want to have extra to make house accessible prior to retirement, so it will not be an added expense and a small fund for
house repairs/emergency.

DC are now adults and (though they both live with me) are financially independent. Mortgage fully paid.

50k rising with inflation yearly

I retired at 50 on an income of 50k. (at a time when you could do that, HMRC rules changed and the age limit to draw occupational pensions is now 55) obviously pension was much less but has increased in line with inflation since.
DH retired at 55 and has an index linked pension (Civil Service adjacent) plus a smaller teachers pension. He went into teaching for 10 years after his first retirement.) Mortgage was paid off when he was 55,
We're doing OK but we did pay AVCs for quite a while, which I would recommend if funds allow, it's tax efficient.

This is such an interesting thread, thank you @Flangle for starting it.

With no mortgage, I would need an absolute minimum of £20k, to cover bills, clothes and a few modest treats and possibly a low budget holiday.

To live the kind of retirement I would want to, I will be looking to achieve at least £30k pa.

I think this income would be judged as below the poverty line but does highlight what we can manage on. I'm assuming you would have done savings for those one time larger expenses such as household appliances etc?

Also note that the rules re: when you can take a private pension are changing, and the age is rising from 55 to 57, so if you wanted to go earlier you would need to have additional savings.

I live in a tiny city, surrounded by great countryside, with good transport links and a partner (doesn’t live with me) with a car. I also have a bike.

My car has always been an added expense, just for work.

That is a consideration you need to make at retirement or just after. Living in the country may be wonderful when you're fit and healthy and can drive, but it's absolutely shit when you have to give up your car and are suffering from reduced mobility. Move to a town, ideally to live in a bungalow, with at least a local convenience store before you're forced to by infirmity.

I’d retire now for a guaranteed £100k a year. I’m 31 and DH is 34, we still have our mortgage and three kids 12, 5 and nearly 2. We get by ok but no wiggle room on combined £70k. We’d like to move and be able to afford a few of life’s luxuries.

Well if you’re offering - £1million a year pls.

When my mortgage is paid off this year, I could live off £400 a month, maybe 5k per year? I live very frugally and don't go holiday.

Husband retired and I’m finishing at Easter. He’s 60 and I’m almost 57. We’ll have 53k pretax income between us plus approx 250k in savings. Mortgage paid off. Children grown up and independent. Working longer would give us more money but not more time, and that’s what’s important now.