Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Would you retire At 50 if you came into money?

305 replies

Quarks69 · 01/02/2021 21:05

My Work colleague is not enjoying her job at the moment. Sadly her mum died and so she has come into an inheritance which has paid off her mortgage and leaves her and hubby with a clear million. They have no real work pension so this is it. He wants to retire early but he says it’s not enough. As someone who also dislikes her job, I think she should jump at it, life’s too short etc, but she’s not sure. Thought I’d see if you think this is enough to stop work with? Not that I’m jealous or anything 😊

OP posts:
LunaHeather · 02/02/2021 15:07

What's with the "never touching the capital"? What is the point of having it then? You might as well...keep working.

Pedallleur · 02/02/2021 15:12

A million isnt a lot if you have to space it out over eg 20yrs and get involved in holidays, new cars etc. But lets say 40k 'under a mattress' every year is like £60k coming in per annum. Could 2 people live off that? 40k is 25 yrs. But I could see that one person or both could get the idea of a designer lifestyle. Careful spending would get you thro' and life is too short.

LunaHeather · 02/02/2021 15:25

I'm nearly 45

Let's say I got half a million from somewhere and had no mortgage.

If I lived on 12k a year, then that would take me to 86

If I was unlucky enough to still be here, the flat could then be sold to pay for my care

IM0GEN · 02/02/2021 16:04

If I lived on 12k a year, then that would take me to 86

At the risk of pointing out the obvious, £12 k isn’t a lot for a couple now and it certainly won’t be a lot in 40 years. Interest rates are unlikely to keep pace with the RPI.

It’s less than the state pension rate of £14k for a couple. Which they won’t get for another ? 18 or 20 years if they stop working now.

Lots of people on this thread have a very unrealistic idea of how much money it takes to lead a good life in retirement with hobbies, holidays, a car, being able to treat your children or grandchildren. Posters have talked about meals out, trips to the theatre , even travelling on a yacht!

They are not going to be able to do this on less than the state pension!

JustHereWithMyPopcorn · 02/02/2021 16:05

without a backward glance!

Thedogscollar · 02/02/2021 16:08

In a heartbeat Grin

Redwinestillfine · 02/02/2021 16:17

I would but both my husband and I have paid into decent pensions since our first jobs. I would probably invest part of it in building/ buying an eco house that would see us into old age and protect against utility price hikes etc. She's wise to think twice about how far it will go but if she can manage it why not?

LunaHeather · 02/02/2021 16:43

Imogen I'm talking about me, one person, not two.

GrumpyMiddleAgedWoman · 02/02/2021 19:49

@IM0GEN, I was allowing for various costs - you can buy a house round here, in good condition, for about 260k that will yield you £900-950pcm - that's £9,000 over ten months, plus £1800 (the other two months) to cover the cost of insurance (about £200) repairs, a void period every now and again (during which, being retired, you save on outgoings by doing the bulk of any necessary work yourself - redecorate, fix the shed door, clear the garden), annual gas cert at £40, electrical check every however many years at about £200 including a few odd bits of work, the odd new carpet and so on. Every now and again you'll have to cough up for a new kitchen and bathroom and major repairs, but if you consistently salt a few grand away each year, you'll have it ready as needed.

£9000x4= 36000. So take off tax, and a few grand into savings for large expenses on the rentals. You've got about £28k a year, with no rent or mortgage to pay. That income will, barring economic or meltdown, broadly keep pace with inflation and your asset will also appreciate. It's not wealth, but it's totally manageable.

Let's also say that you take out a 40k mortgage across the 4 houses to cover stamp duty, fees and set-up costs. That will cost you a couple of grand a year, but if you put your mind to it, you can pay it off sharpish. Stay in work for an extra year or two and blitz it that way, if you want.

And if you have work pensions, when they kick in you can either enjoy the uplift in income, or sell a property and (after capital gains) have some ready cash.

Floisme · 02/02/2021 19:59

I would have taken more risks with my career e.g. tried self employment or possibly retraining. But no, I wouldn't have retired at that age and on that amount of money, not without a work pension to fall back on.
Also - and I'm coming up to retirement now so I'm seeing this very clearly - I don't think it's just about having interests and friends - it's about structure and about having things in your life that mean you've still got to get up in the morning, especially when your children have grown and left. That's what I'm seeking to replace.

LunaHeather · 02/02/2021 20:14

Flo "it's about structure and about having things in your life that mean you've still got to get up in the morning"

I don't have children. The aunties I mentioned were childfree. My work has never been a reason to want to get up in the morning! 😂

LunaHeather · 02/02/2021 20:16

I am highly amused by the idea of becoming a full on alcoholic lush in retirement, mostly to confuse my friends! But yeah....I doubt I'll actually do it.

Zenithbear · 02/02/2021 20:23

Yes but it's not as much as you think.
We have a similar amount in properties, savings, investments, pensions etc.
But a good third is our home so we're still at work atm, although very part time because we want to actually live well and travel lots for at least 15 years after retiring and then be comfortable after that.

Alann01 · 02/02/2021 20:24

I'd of retired at 12 if I could've

Floisme · 02/02/2021 20:27

Maybe I didn't express myself very well but I was talking about still having things in your life that mean you've got to get up some mornings even if you don't want to. Work - whether it's fulfilling or not - normally does that unless you have a very understanding boss Grin
Like I say, nothing to do with hobbies or friends, I guess it's more about still being responsible for something or someone. It might not be important to everyone I've realised it is to me and I'm well older than the op.

whittingtonmum · 02/02/2021 20:30

I would also look for another job - ideally part time instead of full on retirement. With that amount of money in the bank you don't need to worry about being highly paid. You can just do a job you enjoy - or at least one that's a whole lot more tolerable than the old one.

sessell · 02/02/2021 20:37

Yes! If they've paid off their mortgage then they can easily live on a more modest income. I'd set an annual allowance and have no problem sticking to it. Time is the most valuable thing we have. Why work longer just to buy stuff, most of which you don't need, to impress people you mostly don't like - as the saying mostly goes... I'd happily shake off the shackles of capitalism slavery as soon as I could.

Anothermother3 · 02/02/2021 20:43

No way. I don’t work full time but would keep that up and probably just move house to have more space and keep going with less money worries and more holidays. I like working. I may move job and take a salary cut for a change of scenery if necessary at some point as wouldn’t be as worried about a few hundred pounds.

LunaHeather · 02/02/2021 20:54

@Alann01

I'd of retired at 12 if I could've
When my teachers me, aged 18, what I wanted to do, I said "retire".

So it's nice to know someone had an earlier age 😂

LuckyLuckyWoman · 02/02/2021 20:56

I always thought I would, and maybe in a non-covid world it would be fab. Stuck at home on furlough has not been great.

namechangetheworld · 02/02/2021 21:04

God yes, in a heartbeat. All of these PPs who would be bored without a job must have a tremendous lack of imagination!

Noshowlomo · 02/02/2021 21:12

I’d get a little part time job somewhere that would cover my bills and food and then spend the other 4 days off lunching like a mother fucker in marks and spencer cafe.

speakout · 02/02/2021 21:13

Floisme

I agree, for me it's also about making a contribution to society.
Living a life of complete leisure would feel vacuos to me.

But I love my work- self employed, I work from home, think paid hobby type thing. I pay tax, buy materials locally where I can, work excites me. I have no plans to retire if I can help it.

BubblyBarbara · 02/02/2021 21:17

Relatively speaking almost no one has a pension pot of £1m and they have £1m after taxes! They are in the top ten percent of the country net worth so of course she can give up her job! He can keep his job if he wishes.

LunaHeather · 02/02/2021 21:54

@BubblyBarbara

Relatively speaking almost no one has a pension pot of £1m and they have £1m after taxes! They are in the top ten percent of the country net worth so of course she can give up her job! He can keep his job if he wishes.
That's what I'm thinking. Some of the calculations here are mad.

speakout it's great you feel your work is a contribution to society.

Interestingly, if I had that half a million I would also think that someone who didn't have cash could take my job.

Swipe left for the next trending thread