Retirement at 50 - how much would you need in your warchest?

[pjclarke]

I've never seen an annuity starting at 50, the earliest seems to be 55, probably cos it would be Bobbins at that age. So not that relevant to the OP. And yeah, an RPI adjusted annuity will get you about £3K per £100K at age sixty. And when you're finally checked into the repository in the sky the provider gets to keep your pot ... ...

[DimPrawn]

Good luck with that.

WHS.

Far better to buy some BTL properties. Tenant pays the interest, you pay off the capital. When you retire, rents rise with inflation.

[ctdctd]

Wrong side of 50 here (just)

I am:-

a) assuming no capital growth above inflation on war-chest
b) assuming about 2.5% above inflation on SIPP
c) assuming property equity will be available should I need to move to the ContractorUK retirement home (Plan B Admin?)
d) childless so not aiming to leave much behind!

So

a) war-chest needs to equal (amount required per year x years to pension age)
b) (SIPP fund + growth) needs to be enough to give me an indexed annuity of (Amount required per year - state pension)

Both funds need to be about 30% higher than calculated to allow for unplanned happenings.

Or with sample figures. Amount required per year = £20K, current age 51 so 16 years to state pension age of 67 (probably)
Target War-chest = 16 x 20K x 1.3 = £416K
Target £300K SIPP should give 1.025^16 growth = £445K. "New" state pension should be = £140pw = £7K3pa.
Current annuity rate for age 65 with 3% PA growth is 4.2% so this gives (445K x .042) + 7K3 = £26K

So quite large figures - just to get £20K per year with reasonable certainty.

[KaiserWilly]

So quite large figures - just to get £20K per year with reasonable certainty.

Assuming no housing costs, you can survive in your old age with less than 600 GBP per month. Eg:

Food 300 GBP
Utilities 50 GBP
Gasoline 25 GBP
Internet 15 GBP
Prostitutes 100 GBP

[ctdctd]

Assuming no housing costs, you can survive in your old age with less than 600 GBP per month. Eg:

Food 300 GBP
Utilities 50 GBP
Gasoline 25 GBP
Internet 15 GBP
Prostitutes 100 GBP

I dispute the last figure..........

And there is "retire" and "survive" - two different things IMO!

[eek]

Assuming no housing costs, you can survive in your old age with less than 600 GBP per month. Eg:

Food 300 GBP
Utilities 50 GBP
Gasoline 25 GBP
Internet 15 GBP
Prostitutes 100 GBP

I doubt utilities would be £50 a month. The minimum is probably £80, £40 in summer £120 in winter.

[darmstadt]

**** all. I've got my place already reserved with all the old dossers down at the train station. I'll be seeing you all there :-)

[d000hg]

Interesting point someone made about getting solar to reduce further your actual expenditure. Saving £50/month now might not seem much but when you are living off your savings, it might be a big deal.

Of course for that you need a house you plan to stay in forever and that's a big assumption.

[ctdctd]

Interesting point someone made about getting solar to reduce further your actual expenditure. Saving £50/month now might not seem much but when you are living off your savings, it might be a big deal.

Of course for that you need a house you plan to stay in forever and that's a big assumption.

Got that sorted

[Old Greg]

Assuming no housing costs, you can survive in your old age with less than 600 GBP per month. Eg:

Food 300 GBP
Utilities 50 GBP
Gasoline 25 GBP
Internet 15 GBP
Prostitutes 100 GBP

Seeing as you murder your prostitutes, that's £1,200 p.a. saved right there.