made redundant can i live off 170k.

dylanlewis2000

yung wrote: »

I have got £15500 in an Isa High income fund giving me a tax fre income of £76 pm.

Where are you getting 5.8% from ? Best i can get is 3%

Lokolo

dylanlewis2000 wrote: »

Where are you getting 5.8% from ? Best i can get is 3%

Its a stocks and shares ISA not Cash.

theGrinch

OP, you are relatively young and should expect to live another 30-40 years or more.

1. look hard for a job, even if its below your initial expectations as long as it affords an income

2. read these boards until your eyes burn and take notes

3. go see an IFA

zerodefect

What is your trade? What is stopping you from getting another job? Is a job at one of your local supermarkets out of the question?

Yes, I realize the market is in a trough, but there ARE jobs out there, as competitive as they are.

ctdctd

srg751 wrote: »

I claim £60 a week jobseekers allowance, have a pension pot of 35k and £135k in savings.

How about:-
Assume no mortgage (as you are paying off this year)
Assume you are OK to use your capital up.
Assume you can get the full state pension
Assume single

Jobseekers allowance will only last for 6 months (I think) so ignore.
135K will last for say 16 years at 9K per year assuming a small growth above inflation.
By then you will be 70 and will have had a state pension of £95 a week for 4 years as well.
The 35K hopefully be worth 48K after 16 years growth at 2% above inflation. 48K will purchase an RPI linked annuity of say 5.5% when you are 70 so from 70 onwards your income will be the state pension plus about 2K6 = 7K540

So 54-66 - income £9000 per year using up savings
66 - 70 - income £13940 per year inc pension and savings used up
70 onwards - income £7540 per year

Is this enough?

HTH

ILW

srg751 wrote: »

ive just been made redundant at 54 with little hope of a job in the forseeable future. I claim £60 a week jobseekers allowance, have a pension pot of 35k and £135k in savings. Can someone please advise me on how to invest this money to enable me to have some income. My mortgage will be paid off later this year but even then I will still be left with an annual shortfall of 9k Any advice would be appreciated.

Why can you not get another job, 54 is not very old?

Tibbledom

ctdctd wrote: »

How about:-
Assume no mortgage (as you are paying off this year)
Assume you are OK to use your capital up.
Assume you can get the full state pension
Assume single

Jobseekers allowance will only last for 6 months (I think) so ignore.
135K will last for say 16 years at 9K per year assuming a small growth above inflation.
By then you will be 70 and will have had a state pension of £95 a week for 4 years as well.
The 35K hopefully be worth 48K after 16 years growth at 2% above inflation. 48K will purchase an RPI linked annuity of say 5.5% when you are 70 so from 70 onwards your income will be the state pension plus about 2K6 = 7K540

So 54-66 - income £9000 per year using up savings
66 - 70 - income £13940 per year inc pension and savings used up
70 onwards - income £7540 per year

Is this enough?

HTH

:T :T :T

Excellent common sense post. This is exactly the sort of analysis I would be doing in the OPs position. Doesn't give them a lot to live on up to 66 or after 70 but it gives the OP a good idea how much they need to supplement this income by, perhaps through part-time work where it comes available, to see them through the future.

It is only when you have done this sort of analysis that you can start thinking sensibly about how and in what types of investments you will put your savings and perhaps more importantly how you approach the future in terms of a work/life balance.

I would suggest the OP gets a pension forecast to check on their state pension position.

Yes. Contribution based JSA will last for 6 months (capital won't affect this) and then if not working and in good health the OP is unlikely to qualify for other benefits because of the capital.

Nick_C

I think a key factor here is your pension pot is too small to make any significant diffference to your living standards once you reach pensionable age - unless you can carry on working and leave your redundancy money untouched.

I wonder if its really worth making sacrifices now to try to make you financially independent in old age?

If benefit provisions remain broadly as they are now, I would be tempted - in your position - to use my capital to live on comfortably until I reached the age of 60, and then claim pensioner credit. This currently guarantees you a net income of £124 per week after paying council tax (and rent if you pay rent).

Some people will doubtless say this is an irresponsible attitude, but it sound like you've worked all your life and paid taxes to support all the spongers in our society.

Alternatively, consider selling everything and emigrating to a developing country (India (Goa)? Egypt?) where you could live handsomely on your capital.

I think the key thing is to enjoy life and try not to worry - none of us knows how long we've got. You are relatively fortunate in having a fair amount of redundancy pay, and I'm sure if you want to work you can find something - even if its not what you were used to in terms of status and payment.

robpw2

surely you can live off 170k .. I mean most people manage to live on 15-16k a year before tax so you will have at least 10 years of money there

dunstonh

surely you can live off 170k .. I mean most people manage to live on 15-16k a year before tax so you will have at least 10 years of money there

And when it runs out?