Early-retirement wannabe

MallyGirl

I have princely sum of £1100 pa from my only DB pension - it will all be DC and ISAs for me plus SP at 67. No rental income for us - all property value is in the house we live in

bugslet

Savings and a SIPP, no rental here. I may be a boomed, but apart from one person, none of my friends even had a company pension.

badmemory

I think what a lot of the baby boomer bashers don't realise is that if you didn't have access to one of these good pensions then you actually had no access to any pension at all apart from state. I was talking about this with a friend who couldn't understand why I had no personal pension until 1993. After all he had one since he was 21 (1967). But what he failed to mention was that he had his own business then & guess what, none of his employees had a pension.

AnotherJoe

badmemory wrote: »

I think what a lot of the baby boomer bashers don't realise is that if you didn't have access to one of these good pensions then you actually had no access to any pension at all apart from state. I was talking about this with a friend who couldn't understand why I had no personal pension until 1993. After all he had one since he was 21 (1967). But what he failed to mention was that he had his own business then & guess what, none of his employees had a pension.

You had access to a pension, you just had to take it out yourself. Remember those old ?Prudential? adverts showing a man aging through the decades and his changing attitude to a pension? They were in numerous newspapers all the time in the 60's and 70's.

coyrls

OldMusicGuy wrote: »

Indeed, I feel I am in a minority on here as most people seem to have DB pensions and other sources like rent for a guaranteed income floor. In many ways I feel I am more like my son's generation, most of whom will never have the chance of any form of DB pension. Obviously I will get an income floor from my SP (in 5.5 years time).

I did toy with moving some of my cash into a rental property but decided that would be too much like hard work and stress in retirement, and the tax regime doesn't encourage that now.

Maybe a minority but not alone, I retired 3 years ago at 59 and I only have (consolidated) DC pensions.

bluenose1

OldMusicGuy wrote: »

Indeed, I feel I am in a minority on here as most people seem to have DB pensions and other sources like rent for a guaranteed income floor. In many ways I feel I am more like my son's generation, most of whom will never have the chance of any form of DB pension. Obviously I will get an income floor from my SP (in 5.5 years time).

I did toy with moving some of my cash into a rental property but decided that would be too much like hard work and stress in retirement, and the tax regime doesn't encourage that now.

We have rental properties and would definitely consider more. In Liverpool where we live we have bought 3 properties for approx £105k each. All were of good standard in nice areas. Interest only Mortgages of approx £80k on each. We charge £500 pm rent which is slightly below the going rate by about £50. I used an online rental agency that advertise on Rightmove and interviewed myself. Had all the credit checks done. We also buy landlord insurance in case of default of rent.
I know there is luck involved but we have really nice tenants and never had any problems. I have made sure they all decorated to a good standard.
Profit on the 3 after expenses and tax approx £10k.
Not sure what our long term strategy but certainly for next 10 years or so going to keep them.
Not sure writing this down if it is a good investment or strategy or not but working for us So far for outlay of approx £90k we have £10k income from them plus will get that £90k back when we sell assuming house prices have risen slightly.
The tax changes have not affected us as lower rate tax payers.

TBC15

Are there any illustrations/guides to using on offset mortgage as an alternative to bonds/cash to cover the lean years if you want to stay 100% invested during retirement?

[Deleted User]

We are not 'intentional' landlords - in the sense that we bought a property as a buy to let. My husband and I have been together for 8 years and each had our own house when we met. Initially we lived in his house (for 4 years) because it was nearer to my mum after my dad died suddenly, and my daughter and son-in-law lived in mine but then our circumstances changed (my mum died and my daughter got pregnant and they bought their own house) so we decided to move back to my house. It's in a cheaper housing area so my house is much bigger. My husband was made redundant so renting out his house was a way for him to have income.

Now we have both taken early retirement, we are planning to sell the rental. It's part of our retirement financial planning. We have enough in savings to last another 3 years and after that we will sell the property which will see us through to our pensions and beyond.

TBC15

Just being nosey but what's the CGT liability on your situation on sale of the second property?

Dazed_and_confused

bluenose1

The tax changes have not affected us as lower rate tax payers

But will this still be the case once the transitional years are out of the way and none of the interest can be claimed as an expense?