Early Semi Retirement

kidmugsy

In your shoes i'd be tempted to expectthat interest rates are going to increase a bit in the near future so that it may not be a good idea to lock into any sort of fixed interest now - including an annuity.

FLAPJACK

I looked at putting £100k into an Annuity last year, thinking it should produce a good income as my health isn't that good at 53.

It transpired that even though I could start an Annuity at my age (because of my health) the £100k would only produce £4k a year!!

I was advised that at that time Annuities were not too good (not sure about now) so I should look into it again in the future.....maybe when I'm 60.

It was pointed out to me that taking out an Annuity would at least take the worry of what to do with some of my savings....but as far as my estate would be concerned when I go then that £100k dies with me.
So will have to think long and hard in the future.

property.advert

I wholeheartedly agree with LM on the work thing. Going back to work, nevermind actually finding a job with a decent salary after time out, is likely to be hard, very hard. Doing a few years now, perhaps with reduced spending, may be a far better way.

Another thing to remember is that some costs rise rapidly in retirement as a consequence of having more time available. Petrol can be a high one because you have all day every day to go out and yet if you curtail that cost by staying at home, you can resent that too. Holidays too can be a cause of higher expense as you seek to fill the time available.

My advice would be to look at retirement planning not only from a work / income angle but also from a lifestyle / free time / cost viewpoint as well.

JeffAllan

Just to report back.

I've done some research with simple spreadsheets and also using MS Money Manager Lifetime Planner, assuming 3% investment growth and 4% inflation, and it works !:j:beer::D:cool::eek: