Early retirement @ 55 what to do with £ 380000

System

Many thanks all, oh bringing in approx. £8k after tax.
And so will have to look for a p/time job.

HappyMJ

ajpr wrote: »

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

It's more than reasonable for me...but that's me. I am 40 and have reduced my hours significantly to just two half days per week, I own a BTL property without a mortgage and have some money in the bank from which we earn around £13,000/year lettings income and interest payments. To most that doesn't sound like much. We don't live frugally..at least I don't think we do and seem to have more than enough money each week.

I think the thing that really saved a lot of money is not owning a car. I live within walking distance from the centre of town and if I wish to travel further then public transport is quite reasonable and very cheap.

System

Many thanks, apprehensive really, once I get going hopefully all will just be fine.
Downsizing ,potential inheritance etc

kidmugsy

ajpr wrote: »

Many thanks, apprehensive really, once I get going hopefully all will just be fine.
Downsizing ,potential inheritance etc

If I were planning to downsize I think I'd prefer to do it as a reasonably spry 55 year-old, rather than as a codger.

maximumgardener

is any part of your £380k a tax free lump sum or have you factored that already?

seems a good sum but remember you have (assuming good health etc) to make it last for 12 years till SP kicks in at age 67 (in whatever form it may be in 12 years time)

do you want to down size ? what will that add to your kitty?

try putting your own numbers into retireeasy.co.uk

System

Not really considered tfls , so not important. as for downsizing not in a rush, £150k profit

Mr_Costcutter

ajpr wrote: »

Many thanks, apprehensive really, once I get going hopefully all will just be fine.
Downsizing ,potential inheritance etc

I wouldn't count on the 'potential inheritance' - circumstances and wishes can change.

System

dead right

fcandmp

A few thoughts, as age wise we are similar, although I am in the fortunate position of having DB pensions kick in at 60, so I have a shorter time to position drawdown elements of my DC pot.

Firstly, to assure some level of certainty during drawdown in the near term, I am cash fund heavy. I am not prepared to accept the volatility risk of the stock market in that timeframe.

As, I will likely be exposed to higher rate tax once DB pensions and state pension kick in, it will be extracting up to the higher rate band drawdown while I can.

You don't mention whether you have a partner, or their pension status and the opportunity to still contribute. My OH's pension is considerably less than mine and will therefore continue to take steps to contribute to her personal pension up to state pension age.

You didn't say how your current pot is balanced in terms of funds, cash, bonds, equities. So, thinking about the proportion you might be prepared to risk for potentially higher returns, I.e. That which you won't need to access for 10 years or more.

While inflation is currently low, have you thought about what your 25k per year will need to be per year at state pension age and what growth you will need to achieve to balance that out?

mark5

Op, what's your current income and do you have large expenses you won't have in retirement?

Mortgage, pension contributions etc

I think I could retire with 380k at your age but my wife is more self sufficient. Don't forget you won't pay NI on pension income either.

I hope you can make your figures work for what you need, who wants to work until their to old to enjoy life!