Active discussions

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

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

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:
RandomLondoner · 02/02/2021 10:17

A paid-for home and and 30K a year, increasing with inflation, would be enough to live comfortably on. 30K won't pay for everything money can buy, but it will pay for anything you need, and most people don't need more than that to live a happy life.

With a tiny bit of investing understanding, it should be possible to extract such an income, without running down the original amount. In fact I would aim for it to be increasing by slightly more than inflation.

Even if buy-to-let is the only type of investing you understand, I can think of one listed residential property company you can buy share in where at the current share price I'd expect to make 4.5%. (I'm not invested in it, because I'm invested in other things that have a historical yield on current prices of 6% or more.)

GreenlandTheMovie · 02/02/2021 10:18

Lots of people change careers earlier than 50 if they have made enough money. My uncle retired at 35 after selling a financial publication for a huge amount, but he still invested privately on the stock market and devoted a lot of time to it. I know plenty of people who have done similar but stepped back from high pressure careers in the profession. Some more successfully than others. You have to find something to replace work, such as a serious interest in a sport or running a small business to ensure that you aren't wasting your life sitting around doing nothing.

unmarkedbythat · 02/02/2021 10:19

It seems like a lot people really are so lacking in interests and hobbies that they can't imagine life being fulfilling without work.

I have lots of interests but none as fulfilling as my job. It's not a failing to have a job you really enjoy and really take pride in and really feel is important to who you are. I don't see why it's any more admirable to find fulfilment in interests and hobbies than paid work?

(I mean, I would leave my job in a flash if I came into money but that in no way means I think there's anything mad about finding a job far more fulfilling and interesting than a hobby!)

christmasathomeagain · 02/02/2021 10:21

I don't think I could retire at that age and agree, that might not be enough if they live long healthy lives. I would certainly use the money to work part time and if I hated my job so much I would look to do something else either more rewarding, easier, or didn't make me unhappy. So long as they earn enough to pay their bills, the inheritance interest can be used for extras/safety net etc.

LunaHeather · 02/02/2021 10:23

RandomLondoner is that £30k for two? I reckon I could manage on £12k.

Glenchase · 02/02/2021 10:25

I’d retire from having A Job where I’m employed by someone else and have to do what I’m told. I’d “retire” and spend my time on other money making activities and self employed business ventures.

ItsIgginningtolooklikelockdown · 02/02/2021 10:30

Does inheritance have to be shared with a spouse? Wink just wondering

Tumbleweed101 · 02/02/2021 10:32

Yes. While young enough to make the most of travelling etc. Also look at investments to keep a money flow.
I’ve lived off min wage as a single parent most of my adult life so used to living modestly. This would be the chance to have part of life for fun rather than drudgery.

Spring2021 · 02/02/2021 10:33

I am 55 and work part time before being 50 I would have said yes. Now I would say yes if you worked full time, had no school age kids to support and are really miserable but if you work part time, enjoy your job, are in relatively good health and have school age kids I would now maybe like to work a few more years and if possible to retire at 60. DH the same age would like to work part time from age 60.

MintyMabel · 02/02/2021 10:52

I'd retire from the job I am in but would find something else to do instead. I'd like to work because I want to and not because I have to.

MintyCedric · 02/02/2021 10:53

God yes. I've spent my entire adult life living for other people in terms of jobs,partners, kids and now elderly parents.

If I had the opportunity to give up work and do my own thing in 5 years time I'd be ecstatic.

Throughhistory · 02/02/2021 11:55

@MrsElijahMikaelson1

I always remember one of my first ever patients-him and his wife had spent all their working lives saving for a massive round the world trip when they retired. His wife had a massive stroke within a month of their retirement and he never did ever go anywhere as couldn’t face it without her...he always said don’t waste your life away, live it! See everything you can, experience everything-those memories would have been wonderful to have now😢
My DM forced my DDad to scrimp and save for years. He eventually persuaded her to go on a really special holiday. He was dead with 6 months of that holiday, never retired to enjoy all the things he loved doing. My two closest viewings died whilst still working, as did my SiL.

We've made the decision to travel and do all the things we want to do. For some people that might be working, but for many of us, there's a whole world of things to experience and see, and that's far more fulfilling for us than work.

CandyLeBonBon · 02/02/2021 12:44

Yes but I'd do the job I do in a voluntary capacity and I'd travel for it too but if I didn't have to make a living from it then I'd do it for the love of it, knowing my livelihood was safe!

Crazycrazylady · 02/02/2021 12:59

DH wouldn't want to so i'd be gone in a heartbeat and become a lady of leisure.

IM0GEN · 02/02/2021 13:06

A million quid? Around here that would buy you four properties yielding £900 pcm. Say £9,000 a year each after maintenance etc, so a profit of £36k. Split that between the two of you and you'll pay bugger all tax, and still be able to release capital

Remember these four property can only cost about £270k. Because you have to add on 8k stamp duty, 2k legal fees and probably £20k to renovate them. I’m assuming they are unfurnished?

£900 pcm x 12 = 10,800
Minus costs - 400 for insurance, 1k for repairs / maintenance, 1k voids.
Minus landlords costs - gas and electrical safety certificates , legionella assessment, PAT tests. About 300
Minus letting agent fees - you pay extra to set up a new tenant, check references. At least 1200.

I’m assuming these are houses and not flat otherwise there will additional charges, perhaps about another 800. But I’ll not include that.

So that’s 10,800 - 3,900 costs = 6,900. 3 properties at let’s say £7k a year is £21,000.

It’s not really the life of luxury is it - the two of them living on £21,000a year?

It’s very hard to replace income.

Souther · 02/02/2021 13:09

Yes please. I just need about 500k and then I can retire with a good lifestyle.
Anyone who can help with this is welcome to contact me.
Thanks

IMissFrance · 02/02/2021 13:10

Is retire at 35 Grin

Brefugee · 02/02/2021 13:12

I'd pack in a job i hated and do something i loved part time.

user1471523870 · 02/02/2021 13:18

What about inheritance tax? Would she be able to keep £1m in her bank account or will it be considerably less once taxes are paid?

Movinghouseatlast · 02/02/2021 13:23

I would ( and have without coming into money even!)

You could invest that money in property and get a decent income for your pension.

LindaEllen · 02/02/2021 13:33

Absolutely! There are so many things I'd rather be doing than working.

QueenPenny · 02/02/2021 13:34

for those who are skeptical... what is enough then, to retire at 50?

i'm genuinely curious, and scared to be honest.

is it really not realistic to find some other kind of PT or NMW job (because we are in an ageist society etc) if you hate the career that you're in for 30 years?

LunaHeather · 02/02/2021 14:30

@user1471523870

What about inheritance tax? Would she be able to keep £1m in her bank account or will it be considerably less once taxes are paid?
I was assuming it was post IHT. If not, then sadly a ludicrous amount will go.
LunaHeather · 02/02/2021 14:31

@QueenPenny

for those who are skeptical... what is enough then, to retire at 50?

i'm genuinely curious, and scared to be honest.

is it really not realistic to find some other kind of PT or NMW job (because we are in an ageist society etc) if you hate the career that you're in for 30 years?

I know what you mean. All the articles that talk about what you need to retire at 50 are based on a lifestyle I've never had though.

It scares me when people say I can't live on what to me sounds a huge amount.

ScaredOfDinosaurs · 02/02/2021 14:58

They need solid investment advice and a diversified portfolio. Even then you are looking at an income of around 2 to 3% so £20k to £30k per year. Never touching the capital, living off the investment proceeds.

I'd take a part time job doing something I enjoyed to top that up.