How much would you need to comfortably retire on?

[WomblingBy]

DB has decided to retire at the age of 45. He has his own business which he’s selling for nearly £1m. Once mortgage and debts have all been paid, he’ll be left with £500k. No children and his DW will still be working earning roughly 30k which she will keep for her own expenses.

AIBU to think he’s mad?

Ok, £500k sounds like a lot of money but he’s only 45!

£500k would give an income of around £20k/yr. I guess it depends what lifestyle he wants... and that’s a lot of years of inflation to cope with too.

I would want a bit more personally but maybe he wants to live simply. Without kids they also have all the equity in the house for themselves.

I agree 500K equates to about 20K income, but I'd say the income could inrease with inflation, there's no problem in that respect.

20K and no mortgage is by itself enough to live on. Chuck in another 30K salary and they should be fine.

Depends on his income now. I wouldn’t be happy with 20k a year for the rest of my life.

He'll get another 12k in old pension at 68

Seems fine to me. Who wouldn't want to read books and eat cheese.

As long as no mortgage

What’s he planning to do with his retirement at such a young age? Will his wife not get fed up working when he doesn’t ?

I prob wouldn’t retire at such a young age

My Dad took early retirement and went absolutely off his head after a few years at home making our sandwiches and doing the school run. He was suddenly one of those helicopter parents, popping up everywhere having conversations with my Science teacher about why I'd only got a B in my last test and checking if I'd brushed my teeth that morning. My Mum used to go wild at him because he meddled constantly with everything; she would come home and he would have bought a motorbike off a man he met in Morrisons and it'd be in 57 parts on the kitchen rug while she went ballistic. She drilled it into me that you always need to keep busy.

I will never retire. I'll reduce my hours and go part time but having watched my Dad I will work til I drop down dead in my classroom.

He’s planning to spend his time on his hobbies (golf golf and golf). Fair enough he’s worked bloody hard to get his business to where it is now but I’m concerned that he’s going to regret it when he gets bored of just playing golf all day! It’s not like he can decide up and start a new business just like that. It took the best part of 20 years with this one and a lot of blood sweat and tears. Or maybe I should be more supportive. He did it once so he could do it again if need be.

Although it's doable, I'm not sure I would want to retire so young. Then again, I kind of need a focus to my day.

My husband sort of retired at 49 (different circumstances but our mortgage was paid off). He does some freelance work very part time and does the school run for our son. He never seems bored - quite happily potters about at home/has a coffee with his friend down the road etc.

So, I suppose he isn't being unreasonable but it wouldn't be my cup of tea.

Well I retired from normal life at age 49. We bought a small holding and for the past 9 years have lived the dream. Mortgage free, pressure free.
I have chickens for eggs, loads of fruit bushes and trees and some sad veggie plants (never quite got on with veggies).
I spend a bomb on fostered donkeys and our own goats, several dogs and cats who have adopted us.
We eat well - healthy and plenty of it. We overindulge in wine. We have a foreign holiday and a couple of long weekends in this country away and honestly, hand on heart, could not be happier.
Our income is £18k

When we worked, we were earning £100k between us. We were knackered and sick of life.
We have been very, very lucky.

Well £20k a year which people are quoting would last until he’s 70 and I doubt with hobbies like golf it would stretch but he could always get a job further down the line.
From my experience early retirement isn’t the smartest move and that’s nothing like enough money really even with his wife’s income and after all that could change

That seems pretty early to be 100% retired. He might also find he’s used to spending more money than he’ll be able to afford. I doubt he’ll get the full state pension as he wouldn’t have worked long enough.
Having said that, if he gets bored/needs extra money, he might decide to work part time.

Maybe he will get some part time consultancy or something with the groovy handshake brigade on the golf course.

Are his friends retired? He might run out of people to socialise with.

I would say he is mad...but that's based upon my personal preferences. I would go mad retired at that age...and £500k is nothing if he is used to a good standard of living which I will assume they are.

Having said that..I know of a friend that did this and had a year out and started yet another company....they tend to be natural entrepreneurs

You might survive on that, but you’d hardly live the high life?

Having said that, if he gets bored/needs extra money, he might decide to work part time.

Possibly. But he’s in a fast moving industry where even a short gap will show in his knowledge. Knowing him though, if he does get bored and run out of money, he’s more likely to get a job because it interests him than because it’s in his field.

£500k isn’t a lot. My DH is 66 and will finally retire at around 70 and we will have multiples of that figure! We want a good life and £20k a year doesn’t cut it!

Regular income is important. A stash of cash is fine but it will not work for a regular income anymore.

Still, I retired at 54 (oh the joys of a reveal!). No mortgage, a good chunk of savings, and a pension that is way ahead of minimum wage. Doing great. Thankfully. But I planned it carefully.

The security for me is a constant monthly payment no matter what. But everyone is different, has different needs and wants and so on.

I know I retired early, but 45 is very young. But who am I to judge.

£500k isn’t a lot. My DH is 66 and will finally retire at around 70 and we will have multiples of that figure! We want a good life and £20k a year doesn’t cut it!

See I think this is the other extreme, if you have millions why put off retirement to 70 when life expectancy is approx 79/80?

Sounds dull.

oh nooo not enough

golf could ear up a chunk of that

If he gets £20k from investing it doesn’t he still have to pay tax and national insurance?
But I think the biggest issue will be his boredom and his partner’s annoyance that they are still working!