So you are mid Fifties and put on the Scrap Heap... (1 Viewer)

[EuroTrotters]

So,

You are mid 50's, as per the title. You are now out of work and you are thinking, enough is enough.

Fed up of the daily grind. Traffic, weather and many other things.

What amount of money/income would you think is enough to keep you going until, fingers crossed, you draw your state or other pensions?

Over to you.........

 

[ymfb]

Clearly depends on so many factors, for us

Two children to help through Uni

A year or bit more mortgage

Might live for another 35 years

Party tokens required.

Pension fund has been neglected

 

[EX51SSS]

I'm completely buggered. In my mid 60's
Mind you, the bank manager said that I've got plenty to live on for the rest of my life.
He then added, providing you don't make it beyond 67.

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[Hollyberry]

Definitely depends on your financial commitments.
And, if this refers to you, don't think of yourself as " on the scrap heap" ---- there's always another way of life. You just need a Plan B.
I'd say if there's a lump sum of money, invest in property. Sure, values dropped ( so did pension funds) but rent keeps coming in. If you can buy a doer upper and do it up yourself to resell or rent out, there's more money in it.
I met a lot of people in Cyprus especially who'd headed out to a cheaper life thinking they could clean pools, manage holiday properties etc for ex pats and few of them ( if any) made enough to live on.
Carefully planning and realistic financial assessments are called for.

 

[FJmike]

This happened to me, made redundant at 52, went down the job centre every day to check on jobs. Found a vacancy that although not anywhere near the wage I was used to it paid the bills. Started a part time business that grew to full time. I'm not earning huge amounts of money but I'm a lot happier so think that being chucked out of my comfort zone was the best thing to happen.

 

[chaser]

All depends on what your commitments are, if you have no mortgage or any other big outlay , you can live on very little, and you say you are through with work , that's fair enough but you will soon get bored, and the opportunitys are endless for part time jobs that you may find you enjoy , doesn't matter if they are only basic wage if you enjoy it, b&q, lollipop man, trolley collecter ,litter picker , santa clause, McDonald's, KFC, parcel delivery, allsorts that maybe not supply a living wage in the accepted sense , but if you have pretty well of savings you would be ok.

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[klaatu]

I took early retirement about a year ago, at 57. My company pension is obviously a lot smaller than it would have been at full retirement age. My wife has a small company pension and also state pension.

We have a little less than the average retirement income for a couple (which I believe is somewhere around £22k - £24k) but we manage. We have simple needs, our only luxuries are a nice meal out from time to time, and the odd bottle of decent wine. I don't count beer as a luxury

We're in the process of selling the house and we are going to try full-timing for a while. Off to France (and maybe beyond) for a few months starting soon. We may buy a very small cheap house somewhere if we feel the need for a base.

I don't regret taking early retirement and a significant drop in income one bit - life is great and we're enjoying it while we can!

 

[mikebeaches]

Much depends on your outgoings and how much you need to spend day-to-day to be comfortable. Also, what if any existing property assets - need somewhere to live. Oh I suppose it could be in a MH!

£500k invested in reasonably low risk stocks should comfortably produce 3.5% in dividends ie £17,500pa, whilst maintaining your capital.

However, sensible to also keep some cash to hand too if possible.

Nonetheless, there is still an element of risk in relying on the stock market, but over the long term should be OK.

 

[Dartagnan]

Personally I would look at it in a slightly different manner. Work out what financial commitments you have and other monthly expenditure. Then you are able assess the lump sum required to provide an income. If you are comfortable with some risk then invest it in the financial markets something like an etf or investment trusts. Work on a 3-4% return on your capital.
If you already have a property buy to let is not really suitable now (just MY opinion) and in addition renting is not as easy as some think.
Just my 2p worth.
Personal experience: I took early retirement as it became an option. I sometimes thought had I done the right thing? At 55 I had a major stroke and I have just (59) had major surgery to remove a cancerous tumour and am now having chemotherapy. Do I now regret taking early retirement - absolutely not! I do miss the money and we have had to adjust our spending accordingly but I now work on the principle we are only here for a short time so I am going to make the most of it.
Please note this is only my opinion and may not be suitable for your circumstances. Just something to consider.
Just get rid of the negative 'scrap heap' mentality. Think positive!

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[Shrimp]

You are never 'on the scrap heap' life is not over until the very end!
Money depends on how much you have to start with, what your cost of living is, also things like what vehicle/s you want to run, do you still have a mortgage,?!?!?!
There are numerous permutations on 'how much money'.
I think ours runs at about £600.00 to £1000.00 a month, (in the winter it costs more because if we stay in U.K. We need EHU) depends on where we stay and how much travelling we do, then of course it changes when the dog needs a Vet, the car or van needs something-MoT/Tax/tyres etc!

 

[buttons]

All depends on what your commitments are, if you have no mortgage or any other big outlay , you can live on very little, and you say you are through with work , that's fair enough but you will soon get bored, and the opportunitys are endless for part time jobs that you may find you enjoy , doesn't matter if they are only basic wage if you enjoy it, b&q, lollipop man, trolley collecter ,litter picker , santa clause, McDonald's, KFC, parcel delivery, allsorts that maybe not supply a living wage in the accepted sense , but if you have pretty well of savings you would be ok.

I was fortunate enough to give up full time work in my mid fifties, I can honestly say that I have never been bored and still love every minute of it. As far as how much, well the more the merrier. At a push I guess some could manage on 15k a year but it would be no fun.

If you decide to retire early then you will need at the very least 500k in loose change plus a pension to live on. Retirement is the final short section of your life, scrimping and scraping through this final stage or working in B&Q is not for everyone.

 

[gus-lopez]

All depends on what your commitments are, if you have no mortgage or any other big outlay , you can live on very little, .

Depends. I can live on less than 4k euros in Spain. My nephew,has house paid for , an 11 year old car, no kids expenses, doesn't holiday , smokes & drinks, rarely goes out , & his missus was telling my wife they need a minimum of 1k/week just to look out the window.
That's why he often works seven days a week for 2 separate firms & earning excellent money . I struggle to understand it ?

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[chaser]

I was fortunate enough to give up full time work in my mid fifties, I can honestly say that I have never been bored and still love every minute of it. As far as how much, well the more the merrier. At a push I guess some could manage on 15k a year but it would be no fun.

If you decide to retire early then you will need at the very least 500k in loose change plus a pension to live on. Retirement is the final short section of your life, scrimping and scraping through this final stage or working in B&Q is not for everyone.

I retired from dairy farming at 53 and for a year did very little, then saw an advert for a part time van driver for an electrical wholesaler in town, and got it and at basic rate, but loved it and even went full time and wished I had done it years ago, and I did it for another ten years just because I loved it.

 

[Hollyberry]

Just as a P.S on Buy to Let.
You have to pay Stamp Duty, ( unless property costs less than 50K) as it's classed as a second home.
I use agents for mine, ignore their 10 or 12%, you can negotiate them down to 7 or 8. My returns are 5.7% and 8.2% on the rents and both properties have increased in value in the past few years.

 

[MillieMoocher]

Very hard to answer as has been said, depends on your outgoings..

But re the pension situation, although state pension can't be drawn until some ever moving future date, you are entitled to draw your private pensions from age 55.

My pension was part "final salary" scheme and part "money purchase" . The final salary scheme amounts paid were heavily reduced because I took them early, but still to me an acceptable number. So far the other pot is left alone, because it's growth is tax free but (other than the 25% lump sum) anything taken is taxable so as currently we can manage without it, then we'll leave it alone.

My point is that for your private pension you don't need to wait until 65/66/67 etc.

I retired at 54, certainly don't think of myself on the scrap heap and my biggest problem is cramming all the travelling in that we want to do!

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[magicsurfbus]

I left teaching at 54 after 30 years, 26 of which were full-time. Other half left full-time teaching at 50 and set herself up as a freelance consultant - virtually all of her work in recent years has come through recommendation, like the proverbial good plumber. My bloated gold-plated public sector pension is about the same as my personal tax allowance, and my other half's is about half that, as she took time out of paid work to raise the offspring. I'm pretty certain that if neither of us could work we would manage on the pensions, including running the MH. The house is ours and there's some savings bringing in a bit of interest as a bonus, but not a huge sum. A single friend who has a Civil Service pension similar to mine says he gets by and still travels abroad.

By choice we've both kept on working - I have a low-paid part-time seasonal job with the local council, a small collectables trading business, and a joint venture with the other half working in schools. She's still running her main business as well. We do it to keep our minds active, our lifetime's working skills in use, and our days full rather than for the money, but we both enjoy what we do, and adding to the savings is never a bad thing. As we're mainly self-employed we can be flexible with when we work and how much time we have for holidays.

If I ever felt I was on a scrap heap I'd be rooting around through the scrap looking for vintage items to sell to collectors, or I'd be looking for opportunities to teach others about the history of scrap and recycling. It's only a scrap heap in your mind.

 

[chaser]

I was fortunate enough to give up full time work in my mid fifties, I can honestly say that I have never been bored and still love every minute of it. As far as how much, well the more the merrier. At a push I guess some could manage on 15k a year but it would be no fun.

If you decide to retire early then you will need at the very least 500k in loose change plus a pension to live on. Retirement is the final short section of your life, scrimping and scraping through this final stage or working in B&Q is not for everyone.

In my example I didn't meen you had to work , just do what you want, but if you do you will probably find you can be just as well off or even better than in your chosen fulltime carrer, but certainly not scrapping by.

 

[tonyidle]

..................... but you will soon get bored...............

I retired at 50 and have done no work, paid or otherwise, since. I don't have time to get bored. All you need is a brain and several absorbing hobbies. I would prefer to have retired at 25.

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[andyman]

Half a million in your mid fiftys to last to your pension, that's around a £1000 a week. I went wrong somewhere.

 

[Puddleduck]

Happened to me 5 years ago when I was in my mid 50s. I became ill (as it turned out quite seriously), work (health charity providing neglect in the community and contracted to the local council) decided that they needed to restructure in order to get more money from the tax payer, and I was made redundant with the lowest possible legal payout.

With my health problems there was no way an employer was or will take such a huge risk with me.

Money was a real issue to start with but I have always been a saver, the rainy day was with us, so with the help of a financial adviser, money was moved round and costs trimmed. Hubby then had the opportunity of early retirement and took it. We live on "early" personal pensions, savings and are careful with what we spend. Our lifestyle is much better, we don't have money to splash around (neither of us pays tax because our incomes are too low now), we do make sure we have "treats", lunch in Sainsbury every couple of weeks for example! We were never ones to go out clubbing or pubbing.

Costs of clothes and shoes is much less than when we were working, car running costs are minimal, I can shop round for food and other bargains. being a pack rat we are both having a good sort out of the "might come in useful" stuff and a lot of the rubbish we have stored over the years is coming in useful.

How much you need is a very personal sum. You have to see what you need rather than want and go from there.

 

[two]

Stopping work at 50 could be the best thing you do. The important thing will be to live within your means (better, slightly below). That may not be as difficult as you think. Much of what we spend our money on is unnecessary, so adjust to do without them. If you have capital, try to live off the interest only. Live life while you can. You have no idea what might be ahead.

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[PhilandMena]

I do not understand your question? do you mean per year or until you retire. As others have said its dependant on your particular circumstances. If you have no debt ! I think a couple could survive on £1,500 per month. For many this may mean an unacceptable change to their standard of living and lifestyle.

 

[deleted-member02]

If you have capital speak to a financial adviser or accountant (possibly both).
Create a limited company and invest in commercial property. Shares of company go into SIPP. Very tax efficient, good returns and little risk (commercial property v. cheap imo)
Alternatively, £500,000 would provide a decent drawdown income. £20k for 25+ years? Would also reduce potential exposure to IHT and/or care fees later on...

If no capital, go self employed or register with an agency. Work when you want/need to, if you really don't fancy a full time job...
Finally, there's always the NHS... it's full of fifty somethings who have had well regarded careers.
It might be a big drop in earnings but it's rewarding work with good benefits and the opportunity to build a pension.

Maybe mix things up and do what's best for you?
You've still got plenty of potential and options, please don't consider yourself on the 'scrap heap'!

 

[WillH]

I retired aged 51, engaged a good financial advisor to sort things out. That was 13 years ago, I now have more capital than when I retired and live very comfortably, and, I will still get the state pension next year when I'm 65.

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[irnbru]

Just wondering if the voting £££ is between a couple or is that £££ on your own?

 

[Langtoftlad]

"Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

It's not how much you need - it's the ability to live within your means, however much or little.

 

[Candapack]

I stopped work at 43. I was persuaded to retire at 58 when my boss found out.

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[andyman]

I am very surprised that almost half the voters think they need a £1000 per week live on.
They must live a very good life style.
So come on all you £500000 voters what do you spen it on.

 

[mikebeaches]

I am very surprised that almost half the voters think they need a £1000 per week live on.
They must live a very good life style.
So come on all you £500000 voters what do you spen it on.

It isn't about spending £500k!!

It's about using it to generate an income, whilst maintaining or growing the capital.

 

[Raybreck]

Good luck to those that have been clever, lucky or whatever but for us,after helping out the kids it's now keeping it all together for the grandkids. I don't feel on the scrap heap at all and am sure that some may think differently. We ourselves are very family oriented and may not have this so called half a million loose change in our back pockets but just love life and don't take TO much notice of some of it.
Ray

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