Retiring on £100k Savings?

Jay83

How long can £100k retiring money last for if i invested well and didnt live a very extragent lifestyle??

What would you do to make it last you for longer?

Thanks

CLAPTON

it that your only income?
how much do you spend?
do you have debts?
are you willing to invest then money (i.e. risk losing the money)?

Meeper

Depends how much you spend.

If you spend £20k per annum, then yes, provided you plan to be dead within about 5 years. If you plan to live longer than that, then no.
If you spend £5k per annum, then yes, provided you plan to be dead within about 20 years. If you plan to live longer than that, then no.

atush

It depends on how it is invested, and if you plan to spend any of the capital.

you wouldn't be able to retire on 3-4K per year, would you? That is all you would get, not risking or spending capital. You might scrape by once your State pension comes available as well.

property.advert

In Macau I had 26 come in on roulette and the very next spin it came in again so on those odds, your £100k would be worth £122,500,000 which should be enough to retire on.

lilac_lady

How long is a piece of string?

bendix

The OP's question and assumptions is, typically, so vague as to make any response completely meaningless.

Old_Slaphead

Jay83 wrote: »

How long can £100k retiring money last for if i invested well and didnt live a very extragent lifestyle??

What would you do to make it last you for longer?

Thanks

1) Approximately 20 years

2) Spend less

jamesd

Jay83 wrote: »

How long can £100k retiring money last for if i invested well and didnt live a very extragent lifestyle??

If retired with state pensions that's more than enough for me to live on indefinitely.

It's impossible to properly answer your question because we don't know how much your minimal required spending amount is and how much the discretionary spending is.

Around here you can rent a one bedroom flat for perhaps £450 a month and bills including food, internet and such might raise that to about £1050 a month total spend. You can get about 6% of capital as income using investments instead of savings accounts so that's £6,000 a year to start, a shortfall of about £6,600 a year. With these assumptions you'd last a little over ten years.

The most important things you can do to last longer are:

1. Live in a low cost part of the country in a low cost area in that part. You can buy a flat and eliminate rent for £40k or less in some areas. Even £25,000 for a two bed place that needs lots of refurbishment. That would save you £54,000 in rent over the ten years, though at the cost of some income. Council tax and water rates may be lower, same for utility bills.

2. Make some money. Maybe a lodger in a living place with a spare room. Or more than one spare room.

3. Don't use savings accounts, use investments.

4. Use a credit card and plan your spending to stock up on non-perishable items when they are cheapest.

property.advert

jamesd wrote: »

..plan your spending to stock up on non-perishable items when they are cheapest.

This is an oft overlooked fact. Just look at the dole whallers off to the corner shop for 10 cigs (instead of 20 or 200 or better still none), a pint rather than a couple of litres of milk, gas and electric on the key meter etc. and they wonder why half their beer money disappears before they hit the pub.

Seriously though, I looked at my bulk purchases (hate shopping and love a bargain) and I reckon I pay about half the full shop price. But you do need somewhere to store a gross of shower gel, eight dozen facewash and 16 cubic metres of toilet roll !

novice-saver

Jay83 wrote: »

How long can £100k retiring money last for if i invested well and didnt live a very extragent lifestyle??

What would you do to make it last you for longer?

Q1 - impossible to say.

Q2 - go back to work.