Early retirement @ 55 what to do with £ 380000

Legacy_user

planing to retire August this yr is this a reasonable sum to retire with
And do a flexi drawdown ?

uk1

Doesn't it depend on how much you need to spend?

I suggest you startbwith a simple spreadsheet and map out what you think your spending needs to be and what income streams you can realistically predict. Your answer should give you a starting point.

Jeff

westv

£380k may seem a lot but unless you're planning a semi frugal retirement it's not a huge amount for the next 30 or more years.

AnotherJoe

ajpr wrote: »

planing to retire August this yr is this a reasonable sum to retire with
And do a flexi drawdown ?

If you reckon the £15k or so a year this would provide would be enough, then yes.

How much do you spend / need to spend a year ?

Andypandyboy

It very much depends on your outgoings, and expectations.

System

Many thanks all, was looking around £ 25k pa ,then downsize + oap @67 to kick in

AnotherJoe

11 years, 275k. Leaves you about £100k. At 4-5% a year withdrawal rate, plus SP, gives you about £12k a year. Or £19k if you are living with someone ?

So you need double that at 55 or you need to work longer to get much more, maybe 50% more by the time you get SP if you don't withdraw anything until then.

Looks like your plan needs serious revision unless you have another pension kicking in at 66?

uk1

ajpr wrote: »

Many thanks all, was looking around £ 25k pa ,then downsize + oap @66 to kick in

I suggest (if you haven't already done so) build yourself a retirement / pension spreadsheet that starts at 55 takes off x ( say initially your 25k) and then leaves a balance to be carried forward to the next year. Increase that opening balance by say y (presumed growth rate) then take off your income and carry that forward annualy until you take state pension. And then reduce your drawdown rate by your presumed state pension and see how long your pot will,last. You can then iterate until you go blind or give up because it is insufficient

Many here could do that for you but may I suggest that honing your spreadsheet skills will really help you in burning the midnight oil and planning your way through this.

Good luck,

Jeff

AnotherJoe

Btw no one took tax into account. Taking out £25k won't give you £25k more like £22k.

Pollycat

ajpr wrote: »

planing to retire August this yr is this a reasonable sum to retire with
And do a flexi drawdown ?

ajpr wrote: »

Many thanks all, was looking around £ 25k pa ,then downsize + oap @66 to kick in

When were you born?

Going by the title of the thread - Early retirement @ 55 what to do with £ 380000 - if you were born on 1st August 1961 (making you age 55 on 1/8/2016) your state pension age is 67 not 66 (unless I've got up too early).

System

well spotted ( I wrote it too late)