early retirement

t2000

Hi all,
Hopeing to retire early 58? 53 now,Basically worked hard since 15 now have 2 paid for houses both worth approx £150,000 each, currently 2 house is rented out £400 month, looking to sell this one and have approx £300 a week (what im working for now)for 10 + years + gov pension when 65, +i also have approx £50,000 savings, Have no dependents (single) and am not looking at expensive cars or holidays etc,(could still do small diy bits + peices if needed) Any advice grate fully received,

dunstonh

You do give a question in your post. Is it that you are asking if you can retire or not?

If so, that will depend on whether you feel you can afford to see yourself through or not. You are talking about funding about 30 or so years. Now if you look at the value of the assets and take a cash equiv at 5% then that would equate to £350k x 5% = £17,500. Add in the occupational pension (which probably wont be much with just 15 or so years) and that is roughly your income.

Every capital expenditure you make in the future will reduce that income although you will get the state pension kicking in at 65. You will also need to consider inflation over the 30 odd years.

How much do you think you can save up between now and 58?
Is a very rough figure of £17,500 enough?
Have you got a state pension forecast and do you know what the scheme pension will offer you at 58?

EdInvestor

The OP plans to live oin the proceeds of his 2nd house sale for 10 years, right and then on his state pension and 50k savings?

Or is there an additional pension?

t2000

Hi again, have company pension but only works out about £30 a week if i work till im 65, just thought selling 2 home for approx £150,000 when i am 58 would give me £300 a week for 7 years then gov pension would kick in so with rest of house money savings etc i should be getting approx £300 for next 6 years or so?, or am i living in cloud cuckoo land?

EdInvestor

Should be no problem - if you invest the 150k @5% net, and live off the income plus drawing down a top-up from the capital, you should still have around 100k left over after 7 years.