Living on savings

Santamaria

I don't know what the Aussie equivalent of Council Tax is but anyone planning on living off their savings in the UK will find that their local Council will also be living off their savings. If you have more than £16K in savings you will have to pay the full Council Tax so this is something you will need to factor in to your calculations.

AlanP_2

Santamaria wrote: »

I don't know what the Aussie equivalent of Council Tax is but anyone planning on living off their savings in the UK will find that their local Council will also be living off their savings. If you have more than £16K in savings you will have to pay the full Council Tax so this is something you will need to factor in to your calculations.

So, are you suggesting that early retirees i.e. below 55 so can't (with a few exceptions) access any pension should not pay Council Tax?

If they can afford to retire without needing a pension income they can afford to contribute to the cost of local roads, schools, social care, police, fire, rubbish collection & disposal, museums, parks & recreation grounds, leisure facilities and all the other myriad of services provided by local government.

silverwhistle

Santamaria wrote: »

I don't know what the Aussie equivalent of Council Tax is but anyone planning on living off their savings in the UK will find that their local Council will also be living off their savings. If you have more than £16K in savings you will have to pay the full Council Tax so this is something you will need to factor in to your calculations.

Council tax has always been a line in my budget spreadsheet. It remains there, unlike work clothes, lunches, commute or whatever, and so it should, for reasons AlanP has noted.

Terron

Santamaria wrote: »

I don't know what the Aussie equivalent of Council Tax is but anyone planning on living off their savings in the UK will find that their local Council will also be living off their savings. If you have more than £16K in savings you will have to pay the full Council Tax so this is something you will need to factor in to your calculations.

I have never objected to paying council tax. I use the services so I should pay, though I was grateful when they forgot to charge me for 10 months once.

fatbeetle

Santamaria wrote: »

I don't know what the Aussie equivalent of Council Tax is but anyone planning on living off their savings in the UK will find that their local Council will also be living off their savings. .

No council tax here.

Leo6997

Look at Trustnet.com which tracks Investment Bonds performance. It also classifies Bonds as Agreesive, Balanced or Cautious . 5 years performance of Cautious Bonds shows average of about 7% return per year.
You can create a virtual portfolio of well known and reliable performing Bonds (you can choose different classes - Agressive etc.) just to see how they would perform had you invested in them.
Finally take advice from an Independant Financial Adviser, I’m not one but have, and am happy with the return I get, which is super cautious. After 8 years my lump sum has grown 2% per year after I!ve taken the income I wanted from it, which is what I planned.
Enjoy!

noh

fatbeetle wrote: »

No council tax here.

But there is the equivalent called council rates
https://www.google.co.uk/amp/thenewdaily.com.au/money/property/2016/02/17/local-council-gouging-rates-charges/amp/

AlanP_2

Leo6997 wrote: »

5 years performance of Cautious Bonds shows average of about 7% return per year.

And that is why people are very wary of investing in bonds at the current time, reversion to mean will happen at some stage.

bigadaj

Leo6997 wrote: »

Look at Trustnet.com which tracks Investment Bonds performance. It also classifies Bonds as Agreesive, Balanced or Cautious . 5 years performance of Cautious Bonds shows average of about 7% return per year.
You can create a virtual portfolio of well known and reliable performing Bonds (you can choose different classes - Agressive etc.) just to see how they would perform had you invested in them.
Finally take advice from an Independant Financial Adviser, I’m not one but have, and am happy with the return I get, which is super cautious. After 8 years my lump sum has grown 2% per year after I!ve taken the income I wanted from it, which is what I planned.
Enjoy!

So you'll be looking forward to the capital losses that are virtually inevitable as interest rates rise and quantitative easing is unwound.

Should be very enjoyable.

point5clue

I'm planning on a similar situation to OP, but I have the luxury of needing to live off approx £200k for 5 years in 5 years time. As such I am prepared to take a little more risk.

Half will be going into VG Global All cap - can afford to wait until 7.5 years to draw this down so reasonable chance of at least preserving capital I believe.

I've put £40k in to his and hers P2P IFISAs (the main risk I worry about over longer term with P2P loans is liquidity and if taking an income this is not a problem)

Another £40k I've put into a Secure Trust 2yr bond - basically punting it into the future at near inflation. I hope when it comes out of the TARDIS the bond market will have normalised ???

Final £20k - LS20 as a proxy for a bond fund - I don't expect any returns from this, but I wanted something to rebalance the VG all cap against. Actually rebalancing against 50/50 ratio to the extent liquidity will allow.