Life after contracting

[milanbenes]

how many times has this subject been provided by the dreamers ?

ok let's add a little realism,

how much do you need to enable you to retire ?

I am guessing a fund of about 5million, then you can retire

long way to go yet,

Milan.

[Lockhouse]

I'm hoping to retire from IT in 5-6 years at 52.

The plan is to have the mortgage paid off and 2 decent BTLs (paid off by the time I'm 60) so making a healthy profit.

I plan to buy an existing small business in a field that I'm interested in totally unrelated to IT and run it almost as a hobby just to keep my mind active. I plan to take lots of holidays and get up late.

Of course, plans, like life, tend to go awry.

[pzz76077]

ok, but all money-orientated it seems to me

Profit making, but not money orientated.

PZZ

[Shimano105]

At what point does age-ism prevent contracting being an option?

It's one thing to have to work until you die, but if no-one wants oldies then we're going to be in a depressing position before long.

[GreenerGrass]

I'm hoping to retire from IT in 5-6 years at 52.

The plan is to have the mortgage paid off and 2 decent BTLs (paid off by the time I'm 60) so making a healthy profit.

I plan to buy an existing small business in a field that I'm interested in totally unrelated to IT and run it almost as a hobby just to keep my mind active. I plan to take lots of holidays and get up late.

Of course, plans, like life, tend to go awry.

Not too dissimilar a plan here. Although a few more years to go. I think the prospect of ageism means aiming for semi-retirement in your early 50s is less risky than staying/going perm and expecting to work until 65.
I think with a mortgage paid off, a couple of BTLs, SIPP and ISA pot big enough to avoid utter poverty, then your motivation to work fulltime will rapidly drop.
Certainly won't need anywhere near 5 million.

You could alway contract a few months a year to subsidise your life if the business doesn't bring in enough bread, but in the above scenario your net outgoings will be a fraction of what they were previously.

[Shimano105]

You could alway contract a few months a year

That is plan A for most on here

[milanbenes]

Gentlemen,

the numbers please

if we want to retire from IT at 52, and do something else just to pass the time,

what are the numbers ?

assuming no mortgage,

what pot do we need and income from buy to lets ?

I mean, are you hoping to retire on 500gbp a week (ie 25k a year - not far above the average wage) or, are you hoping to retire on 1k gbp per week etc ?

numbers please, to put some perspective on all of this

I still think if you want to retire in your 50's and be comfortable you're gonna need a total pot of low single digit millions

Milan.

[gingerjedi]

They don't know it yet but I suspect quite a few on here may have already finished contracting for good.

[Lockhouse]

I still think if you want to retire in your 50's and be comfortable you're gonna need a total pot of low single digit millions

Milan.

With no mortgage I reckon on 2K per month before tax, index linked as a base figure you can live relatively comfortably in retirement. If you subsidise this by 20-40K per year in your late 50's either contracting for 6 months a year or running a small business you're quids in. Savings\war-chest of 100K to pay for any emergency medical stuff is probably a good idea too.

As I've got older my need for lots of "stuff" has diminished - I've got no reason to think that will change. You don't need millions, all you need to be is comfortable, in good health and happy.

[milanbenes]

Lockhouse,

back to the numbers,

for sake of argument, leave IT at 52...

2k per month, let's say 25k per year, assuming you will live to 82 that means to service this you need... 750k gbp

the, you said, 'If you subsidise this by 20-40K per year in your late 50's either contracting for 6 months a year or running a small business you're quids in.'

being realistic, you think someone can leave contracting at 52 and then on demand get back into it now and again during their late 50's ?

if the average wage is 25k year, you think it is possible at 52+ to simply 'start a business' and make 20 to 40k per year profit ?

I think this part is more dream than reality.


as we are seeing, removing the day dreams from the equation, to retire at 52 on 25k a year you will need a pile of minimum 750k gbp

you want more than this, the numbers are easy to compute, which re-inforces my estimate...


I still think if you want to retire in your 50's and be comfortable you're gonna need a total pot of low single digit millions

Milan.