Economics of Retiring

Goldiegirl

We've lived in this house for nearly 25 years, and I love it here, so we don't want to move unless we feel it is the right time

But, our needs will change over the years, so we will need to adapt to our needs.

But, I still feel from my observations, that can be a very different matter being heathy 'young' retirees in your 60's, to being increasingly frail older people in your 80's

In the 1980's my parents had just finished work and were very active, but fast forward to the 2000's and it was heartbreaking to see their illness and decline.

That's why I feel it'll be important to enjoy myself while I am fit and well, because I know it won't last forever, and I will slow up at some point in the future. I'll still feel the same inside, but physically I won't be able to do the things that I can now.

margaretclare

Goldiegirl wrote: »

What I've observed is that, if people are lucky, they can have 15- 20 'good' years of retirement, where they are healthy and fit enough to be active and do their travelling.

Unfortunately, when they hit their late 70's to early 80's, they begin to slow up a little, and although they might still want to travel, their health may prevent it.

So their need for spending money gradually reduces. At that point, if we / I hadn't already done so, I'd make the move to a smaller home, so which would hopefully mean I wouldn't need so much help with gardening etc, but would free up capital for help that I did need.

DH and I were thinking that our recent trip to the Hebrides, where we covered 2,300 miles, would be our last long driving trip. Not long after we got back, and he came up with the idea of driving to Switzerland!

Driving in an automatic car is actually easier for him than any other form of travel. He can only get into the right-hand side (driver's side), doesn't need to use his left leg at all, and his back is well-supported. Going to airports, having to stand, and to walk any distance, is a lot more difficult for him.

I agree that if you're going to 'downsize', do it sooner rather than later.

whitesatin

I hate the idea of being cooped up somewhere. I hate the idea of living in a flat. I need space now and probably in the future although we never know how things pan out.

Just a thought though, my mum was able to stay in the house where I was born until she was almost 90 because the house was big enough to take a stairlift, the bathroom big enough to have the necessary adaptations and the rooms big enough to take all the various stuff she needed when visited by her carers. I look at the houses either side of me, Victorian terraces, and wonder how it would work, straight in from the street, two up two down, small rooms, narrow staircase, small bathroom etc. etc.

I think we will try and stay put for as long as we can. If anything happens to one of us, we may have to rethink.

Dunroamin

whitesatin wrote: »

I hate the idea of being cooped up somewhere. I hate the idea of living in a flat. I need space now and probably in the future although we never know how things pan out.

Just a thought though, my mum was able to stay in the house where I was born until she was almost 90 because the house was big enough to take a stairlift, the bathroom big enough to have the necessary adaptations and the rooms big enough to take all the various stuff she needed when visited by her carers. I look at the houses either side of me, Victorian terraces, and wonder how it would work, straight in from the street, two up two down, small rooms, narrow staircase, small bathroom etc. etc.

I think we will try and stay put for as long as we can. If anything happens to one of us, we may have to rethink.

Flats don't have to be small and without a garden. Ours (and the one before) is far bigger and with larger rooms than a house for the same price.

ibizafan_2

Watching my 86 year old father dive into the hotel pool in June and swim a length under water, made me hope that the genes will be repeated in me, as I can't imagine ever not wanting to travel! However, we are planning "big" trips now we have retired (well, semi-retired in my case) in the next few years while we are in our early 60's just in case! Planning a 6 week trip to Australia next year to visit my younger son and see as much as we can while we are there. Also, planning to see something of South America, and do Route 66, as well as frequent trips to Europe and lots more National Trust trips in the U.K. I have found that retiring from my main job (with a nice bit of redundancy thrown in) hasn't made me as hard up as I thought, although the part-time job helps. Also waiting to start as a hospital volunteer. Love, love, love not getting up for work every day!

lessonlearned

Do be careful when downsizing. By all means reduce the number of rooms but don't skimp on room size.

Speaking as an ex carer for my disabled and very poorly husband - sadly now in a nursing home - I can say that size does matter. House size or flat size that is.....;) At least it does if you want to remain in your home as long as possible. Mobility aids, wheelchairs and equipment gobble up huge amounts of space. A bathroom may need to take a wheelchair and a carer.

My husband has a large tilt in place wheelchair - you need wide doorways and corridors for that. Again think carefully about access. It's not just about steps and slopes, you need a flat level surface for getting in and out of car - even if you no longer drive and use taxis. Gravel is hopeless for wheelchairs.

I have just moved again - aged 62. I did look at bungalows but the ones in my price bracket were small and pokey. OK for now but no good for my long term needs.

So this current move is not my final move.

As for money. I have a state pension and a small private pension. Current net income is around £10K - that's plenty.

Travel - not too bothered at the moment because I have a new challenge......

At the tender age of 62 I have decided to go self employed. I'm in partnership with my sons. They provide the brawn - I provide the brains.:rotfl: I will still be able to manage and direct the business even if I was wheel chair bound.

Because it is my own business I can pace myself and work as much or as little as I want. I can visit my husband in the nursing home whenever I want and spend quality time with him, knowing that he is well looked after and receiving a level of care I simply can no longer provide.

It is not the retirement that I had hoped for and that my husband and I had planned. He will not be with me to share "our golden years". However, apart from the ongoing grief and sadness at my husband's illness I feel that I now have a good balance in my life. Enough income, my work is my hobby, my wonderful sons (no grandchildren as yet) and plenty of friends.

I am content, serene and happy.

My parents are long lived. My mum is now in a nursing home but dad still tootles about happily enough. Hopefully I too have inherited good genes.

pollypenny

We bought a bungalow when we moved to this town. Very limited choice. But it will work for us into our dotage.

Savvy_Sue

whitesatin wrote: »

We don't shop on particular days like we used to (I hated the Saturday morning supermarket trip) and now just pick things up as we go along or eat out - something else we do more nowadays.

We gave up the regular Saturday morning supermarket trip once the boys moved out: we buy what we need through the week, and we're still both working!

zygurat789

Goldiegirl wrote: »

I've been reading this thread with much interest, as early retirement is very much on my mind.

I'm 53 and my husband is 61.

I was made redundant when I was 50, and was able to take a pension as part of my settlement. I'm now working part time, 2 days a week and my husband also has a pension and is working 4 days a week.

We've set ourself a target April 2016 to stop work completely.

This will be 6 months before my husband is 65' so it won't be much of an early retirement for him, but I'll be 56.

We want to stop work in the April, so we can enjoy the summer. We'll just have our current pension income for those 6 months, but it should be sufficient, then when my husbands other pensions kick in, we should certainly have enough to live as we do now.

At present we are saving money every month, and we just want to get bit more in the bank before we stop work, as we have travel plans for retirement.

However, I think for day to day living we will need less money in retirement. For example, we'll only need the one car, and we won't have to spend nearly as much on petrol.

I've noticed that I spend less by working part time. For example, myself and a couple of colleagues used to go out for a coffee at lunchtime everyday. At £2 a time, that was £40 a month! Now I'm part time, I only have 30 mins break at lunch time, so I don't have time to go anywhere!

We have a contingency that we could downsize our house if we needed too, and when I'm 66 I will get my state pension, so there'd be the prospect of a pay rise in the distant future.

But overall, and after a lot of thought, I think our situation will be manageable.

As one gets older, I think one spends less. So we want to enjoy the younger active part of our retirement by seeing some of the places we've always dreamed off. After about 10 to 15 years, it'd be very likely that we wouldn't be as fit and healthy, so we wouldn't be wanting to travel, and would need less money day to day.

Neither of us work on a Wednesday, so we sometimes take the opportunity to have a day out, and we see lots of retired people out and about enjoying themselves, and think, 'that'll be our life soon'!

I increasingly feel that my two days a week at work are an unwelcome interruption to my otherwise pleasant life, but at the moment I 'm willing to carry on, as it will make retired life more comfortable.

But roll on April 2016' that's all I can say!

The actual date when you stop work and start taking a pension can affect
the tax you pay if your annual income is around the personal allowance level.
To maximise the benefit of the personal allowance, currently £9,440 and expected to rise to £10,000 before the end of this parliament, you should aim for an income of at least this amount in the tax year 6 April to 5 April covering the retirement date. Anything less would have been tax free.

Goldiegirl

zygurat789 wrote: »

The actual date when you stop work and start taking a pension can affect
the tax you pay if your annual income is around the personal allowance level.
To maximise the benefit of the personal allowance, currently £9,440 and expected to rise to £10,000 before the end of this parliament, you should aim for an income of at least this amount in the tax year 6 April to 5 April covering the retirement date. Anything less would have been tax free.

That's a good point.

My current pension is less than the personal allowance, so I really should work for a few extra months to bring my income up to the level of my personal allowance for that year.

However, I think I'll weigh it up at the time - believe me it's a real effort going to work now, so I think, when the time comes I'd finish around the time when we've planned.

I have a feeling the sheer delight of not working will outweigh the thought of some untaxed income!