Enough money to retire at 26?

Legacy_user

Mortgage paid off and will have £300k saved which is around £7.5k per year until I reach state pension age.

Yearly budget - £7500

To spend:
Council tax = £1000
Food = £1000
Gas Elec = £300
TV Licence = £150
NI (so I get full state pension) = £150

Broadband = £150
Clothes = £300

New car every 10 years = £500 (per year)
Car Ins = £200
Car Repairs = £250

Gadgets/computer/tech = £250


Total necessary spend = £4250

Which leaves £3250 for luxuries/treats




Do you think this plan is depressing, unrealistic, or a good idea? Just looking for some thoughts. Should I follow the plan, is it enough to not get bored each day.

Farway

I think you are are being very ambitious, who knows how inflation, depression will happen in next 10 years. let alone 50?

Energy, food & council tax costs will certainly rise, and maybe TV licence

Could be done, but make sure you have a plan B, and plan C

If you do retire, look into volunteering, you obviously have a lot of knowledge which could help others, and stop and boredom

System

Farway wrote: »

I think you are are being very ambitious, who knows how inflation, depression will happen in next 10 years. let alone 50?

Energy, food & council tax costs will certainly rise, and maybe TV licence

Could be done, but make sure you have a plan B, and plan C

If you do retire, look into volunteering, you obviously have a lot of knowledge which could help others, and stop and boredom

The £300k will rise with inflation though in the bank.

Saving interest rate = inflation rate

comeandgo

I think it's depressing. £20 a week on food? Ok for a week or two but for life? Do you not have plans for a partner and family or should they come self sufficient?

System

comeandgo wrote: »

I think it's depressing. £20 a week on food? Ok for a week or two but for life? Do you not have plans for a partner and family or should they come self sufficient?

Yes, would like a girlfriend but don't think I'll get one

£20 week is a bit low but think I can manage on that. I eat alot of natural foods and find these are cheaper than ready meals etc. Also don't drink any alcohol/fizzy drinks

s_glover

Are the car costs to cover purchase of a brand new car, if so £5000 is too little? If purchasing a second hand car you may need to consider whether you will need to replace more frequently than every 10 years.

You've not factored in anything for petrol, home insurance, water or mobile phone costs.

£20 for food seems very meagre even if you do eat fresh and this doesn't include any toiletries, cleaning products etc.

£300 for gas and electricity is very low.

What about replacement items for your house as and when these become worn e.g. carpets, kitchen appliances, bolier, furnishings etc.

If you really wanted / needed to stick to the budget you probbaly could but you'd have very little, if any left for luxuries / treats and I certainly don't think it would be a pleasurable lifestyle.

peachyprice

What a thoroughly depressing way to be planning to spend the rest of your life.

No budget for fun
No budget for inflation (have you seen interest rates lately?)
No Budget for emergencies
No budget for upgrades
No budget for the niceties in life like days out and meals with friends
No budget for general every day spending when you've got time on your hands

What do you intend to do with yourself for the next 50-60 years, sit at home alone looking at your (non-mortgaged) four walls?

At least you're realistic enough to admit that you're unlikely to get anyone to share that kind of life with you.

pigpen

Why would you want to write yourself off at 26?

You aren't planning on working or doing anything to gain experience or enjoyment from life it looks like you sit on the sofa waiting to die.. boooring!!!

I'm pretty sure that at under 26 my OH couldn't ever have imagined himself with a partner a family or anything related to the life he has now at 33... just live your life.. do things.. go places.. learn things.. LIVE!!

On your deathbed what do you want to remember? .. Amazing places and experiences or regretting the things you could have done or should have done?

I think utterly unrealistic.. and the words 'get a life' would escape my lips

nearlyrich

It's nice to have the option of taking a job or not but just existing isn't that much fun is it? Most people who can afford not to work like to do other things with the time, travel for example. Also there is the self esteem thing of achieving something from time to time maybe at 56 or 66 but 26 I think I would go crazy...

pigpen

peachyprice wrote: »

At least you're realistic enough to admit that you're unlikely to get anyone to share that kind of life with you.

That is the bit I find most sad.. if this was my son, I'd have him at the GP for depression I think.. it is so upsetting to think our younger generation who we will rely on when we are old and batty feels like this now, like they are unworthy of love or a relationship.. so very sad

System

peachyprice wrote: »

What a thoroughly depressing way to be planning to spend the rest of your life.

No budget for fun
No budget for inflation (have you seen interest rates lately?)
No Budget for emergencies
No budget for upgrades
No budget for the niceties in life like days out and meals with friends
No budget for general every day spending when you've got time on your hands

What do you intend to do with yourself for the next 50-60 years, sit at home alone looking at your (non-mortgaged) four walls?

At least you're realistic enough to admit that you're unlikely to get anyone to share that kind of life with you.

you are quite harsh! I am not saying this plan is definite.

I budgeted £3250 for fun/treats/holidays/eating out. £60 a week. So a couple meals out, 1 takeaway and 1 trip to the cinema.

There will be a savings account that gives the same rate as inflation, so it is not a problem.