Early-retirement wannabe

Marine_life

So here are our current retirement assets:

Current House - Value €675,000
Appartment - Value €150,000
Shares - €300,000
Investments - €100,000
Cash - €450,000

Total "close to cash" = €1,675,000

I have converted Defined benefit pension schemes to cash equivalent values.

DB pension - annual value today €45,000 (cash equivalent value c. €1,5 m)
DB pension 2 - annual value today €12,000 (cash equivalent value c. €400,000)
Deferred benefit plan - terminal value €750,000

Total "Long term investments" = €2,650,000

Total = €4,325,000

We have sold the apartment and bought a second house for €500,000. We hope to sell house 1 for its current value which means we will release €325,000 to our retirement fund meaning once that goes through we will have €1,15 m to fund our retirement for 12 years.

Nearly time to go time.;)

chucknorris

Marine_life wrote: »

So here are our current retirement assets:

Current House - Value €675,000
Appartment - Value €150,000
Shares - €300,000
Investments - €100,000
Cash - €450,000

Total "close to cash" = €1,675,000

I have converted Defined benefit pension schemes to cash equivalent values.

DB pension - annual value today €45,000 (cash equivalent value c. €1,5 m)
DB pension 2 - annual value today €12,000 (cash equivalent value c. €400,000)
Deferred benefit plan - terminal value €750,000

Total "Long term investments" = €2,650,000

Total = €4,325,000

We have sold the apartment and bought a second house for €500,000. We hope to sell house 1 for its current value which means we will release €325,000 to our retirement fund meaning once that goes through we will have €1,15 m to fund our retirement for 12 years.

Nearly time to go time.;)

We are in the same ball park (total) as you, but there are 2 stark differences:


1. Far less in pensions and far more in property. I only use a multiplier of 27 on my DB pensions (even though it is actually worth more), I tend to use a multiplier that I would personally get on buying an annuity of my choice(which wouldn't give all the benefits of my DB pension).
2. We only hold about half as much in cash.


Most of that cash is in ISA's which now that they have become NISA's (fully transferable between cash and shares) will probably drift more into shares. Why do you hold so much in cash? Have you somehow got access to good interest rates, we do have one savings bond paying 5.15% but that matures this Oct.

Marine_life

chucknorris wrote: »

Why do you hold so much in cash? Have you somehow got access to good interest rates, we do have one savings bond paying 5.15% but that matures this Oct.

It is a lot of cash that's true and the main reason is that we are about to pay for the new house before we have sold our existing house (we will likely hold both houses for between 6-12 months, depending on when we decide to move).

Aside from that we have around €140,000 on long term (five year) deposit accounts which we took out a few years ago (maturing in 2015 and 2016 at 4-5%).

Once everything shakes out we will need to find a home for the cash that's for sure.

JasonPr

Marine_life, have you thought about health insurance in Austria? With your level of savings, it won't be a problem, but it would be for many other people (I haven't looked it up but I guess you have to pay 500-600 EUR per month for coverage).

The UK is really great for early retirement since health insurance is provided to all residents.

bugslet

bigadaj wrote: »

The average age of a farmer is 59 which given the age range suggests that a majority are in their sixties and many in their seventies.

.

The average age of a truck driver is around 56 now. It's not the easiest job to sell and youngsters aren't coming into the profession, that and the pay can be pretty appalling, especially when you are first setting out.

gadgetmind wrote: »

The talkers will spend their entire "careers" at the bottom of the hierarchy because they can't think on their feet and solve the kind of problems that managing a modern business in a competitive environment throws at you on a regular basis no matter how well run it is.

Of course, those who are sure they could run a multinational company in a rapidly-changing field such as technology without the odd "crisis du jour" are entirely free to prove this by actually doing it.

Talk is cheap.

I was thinking that was a really negative post to start with, but having given it some thought, you are right. No matter what you plan for, some external curveball gets you right between the eyes.

kidmugsy

bugslet wrote: »

No matter what you plan for, some external curveball gets you right between the eyes.

Only if you go to live in the US though.

Marine_life

JasonPr wrote: »

Marine_life, have you thought about health insurance in Austria? With your level of savings, it won't be a problem, but it would be for many other people (I haven't looked it up but I guess you have to pay 500-600 EUR per month for coverage).

The UK is really great for early retirement since health insurance is provided to all residents.

Yes we have.

Basically in Austria you can pay voluntarily into the public system for around €375 per month plus an extra €90 or so for each dependent (i.e. my wife!). Not free but the standard of care is very very good.

bugslet

kidmugsy wrote: »

Only if you go to live in the US though.

Part of my current problems are caused by American regulations - total PITA. That curveball can travel a long way:D

melanzana

I am retiring early next month at age 56.

I will have a six figure tax free lump sum and a pension of 35k.

Maybe I am wrong to be happy out and not worry about anything. I am probably sleepwalking into this. But I am not worried at all.

I have small enough savings 40k.

I have no mortgage, no debts, no dependants. A house worth 300k.

I don't want loads, just enough.

I hope...think... I will be absolutely fine!

Best wishes to all those heading for the Great Escape.

I can't wait!

kidmugsy

melanzana wrote: »

I am retiring early next month at age 56.

I will have a six figure tax free lump sum and a pension of 35k.
...
I have no mortgage, no debts, no dependants. A house worth 300k.

I suggest you check the level of inflation protection on your £35k p.a. If it's weak, I further suggest you invest that lump sum so as to protect yourself from inflation. Otherwise, best of luck.