Over 50's, how did you accumulate your wealth?

OldMusicGuy

Sadly I started saving seriously into pensions too late (not until my 30s) so I had a moderate sized pot by my early 50s. I have bumped that up significantly in the last 6 years by putting large amounts into the pension and taking advantage of additional rate tax relief. I've been ploughing all my annual performance bonuses and the value of stocks I have sold from my company share scheme into the pension pot. This has allowed me to get to a point where retirement at 60 is feasible. So it's aggressive saving in the last 6 years plus some growth in the pension pot. We will also be able to realise equity from our house (about £250K to 300K) by downsizing.

Apart from the mortgage (which was paid off 5 years ago), I've never been in debt apart from a car loan early in my life, which was silly. Didn't make that mistake again.

marlot

What went well:

• Was fortunate in working for employers with decent pension schemes.
• Put lots of money into my pension (2/3 of gross salary at the peak)
• Wife and I kept ourselves to a modest lifestyle, and managed to stay married
• Chose a career which paid well, and kept myself up to date (but long hours)
• Went to work abroad for a period
• Moving from a more expensive area of the country to a cheaper one before retirement
• Lots of time spent refurbishing the houses we lived in
• Avoiding taking on debt. 1 x car loan early on, 1 x loan for a video recorder. Mortgages.

What gave a few issues:

• Wife having to change work due to stress in her 30s. Halved her income.
• Me having an illness which meant I might not be able to work beyond 50
• Being made redundant at 48 (I was able to find another job quickly, but at half the salary)
• Buying my first house at the peak of the market, on 5 x salary - only for it to lose nearly 1/2 of its value soon after. I had to crystallise the loss when I got a new job elsewhere in the country.

On the whole, I consider myself extremely fortunate - but I've only lived a modest life. Maybe I should have spent a bit more and lived a bit more?

Johnnyboy11

For me, and in approximate chronological order:
Being born in the UK, having access to free healthcare
Taking advantage of free primary, secondary and tertiary education
Working hard, long hours, long commute, high responsibility
Marrying someone who did likewise
Both taking full advantage of company pension schemes and me taking advantage of a voluntary severance deal
Modest increase in property prices and inheritance
Me working abroad (Middle East) when the UK was broken (2010 to date) and not paying any UK income tax
Following the 'Mortgage Free Wannabe' forum
Latterly squirrelling away as much as humanly possible, commensurate with having three teenage children
Both planning to retire in April next year, age 51/ 52:)

Malchester

Spend less than earn
Invest carefully and selectively
Get a job where, for 20 years where a house was provided - no rent / mortgage, no maintenance costs, no decorating costs, no council tax / water rates which enabled saving and to buy outright a property
Keep on top of savings accounts and move money to get good rates and leave interest invested
Good 'gold plated' DB pensions, one ready to take when I am 60 with no reduction for taking early

Mnd

Worked for company with 1/40th pension accural rate
Bought first house in 1980 for 16500, saved deposit and married 1981
Both worked full time and started accumulating savings
Had child fairly late, wife continued to work part time
Got made redundant in 1999. Approximately 32k payout

Got divorced. Insisted on keeping house and first wife took the above cash!

Met new wife, sold her house and mine and traded up keeping joint level of mortgage the same
Had to cash in my occupational pension at 50 as divorce settlement was to pay first wife 25% of cash sum (which enabled me to hang on to above house)
Endowment policy on first house matured which by now was my asset

Put son through uni, and he is doing very well

Paid off mortgage early, which I know was a mistake in one way, but in those days new wife would have wanted to spend the cash! Different outlook on cash now...

Started saving seriously for a lump sum to bridge as much as possible to cover up to old age pensions

Discovered 52000 pension that new wife didn't know about!! That helped!!

Worked full time since 16 never unemployed, and both Mrs D's did as well until our child was born

Never in debt, all together has led me to be able to retire at 63 and my wife can go at 61 in 4 years

dunroving

Unlike most of my friends of a similar age (60), I haven't made any money on property. I bought a place in the late 80s, did it up, and sold it about 3 years later just before the crash, and netted about the same amount I had put into it. It did make me "save" though, as all the money I spent on renovations came back when I sold it.

I self-funded a MSc and PhD in the US from house sale #1, and from working part-time jobs between 1990-1996.

I've owned two properties in the US, from 1997-1999 and 2001-2006. Neither made any money as prices didn't change where I was living (the deep South).

My current house in Scotland was purchased in March 2007 and is worth the same, or slightly less, than I put into it. However, thanks to low mortgage interest rates and an offset mortgage, I now have "saved" about £70k's-worth of capital. Of the £624 pcm mortgage payments, less than £100 pcm were interest - so essentially, my rent has been £100 pcm since 2007.

Essentially, I therefore started from scratch in 1996, at age 39, when I started my current career in academia, in the US.

1996-2006, I paid the minimum/standard contributions into TIAA-CREF (US defined-contribution retirement scheme where you select the mutual funds you want to invest in). Its current value is almost exactly double what I and my employer paid in. Not bad, as it has weathered the tech bubble, the post-9/11 crash and the 2007 clusterf*ck.

2006-present, I have paid into my current UK final salary/defined benefit scheme, made AVCs for additional years, made MPAVCs to self-selected funds, paid into a SIPP (self-selected funds) and paid into an ISA (self-selected funds). I'd guesstimate the SIPP and ISA have returned about 30% between 2008 and today, bearing in mind most of my contributions were made in the latter 5 years.

No major windfalls to speak of, other than a ca. £40k inheritance that I will receive in the near future (pending a house sale).

Retired today (literally), and will have a modest income from the current employer defined-benefit scheme and a decent TFLS + SIPP + ISA as a cushion. My US defined-contribution funds are sitting there and I plan to just drip-draw from them.

So overall, my current "wealth" (I prefer to call it capital value, as I don't feel particularly wealthy) has come from hard graft, self-education, modest living and plunging money into investments over the past 20 years, but mainly since about 2008.

It may sound simplistic, but you can't save what you spend - I think a lot of people squander a lot of money on unnecessary "stuff".

bugslet

Congratulations on your retirement dunroving.

Not particularly wealthy, but was able to retire at 52, though I still work. Business in my case, took 15 years at least before I had any money.

Saved a little, overpaid mortgage. Not always savvy with credit cards, that's probably my biggest failing.

pandora205

Studied hard to get into a career I love, with DB pension (not a reason for choosing but a real perk), paid off mortgage in early 50s then ploughed the 'spare' cash into extra pension, made decision to go for promotion later in career than most, and will work another couple of years until state retirement age. Oh, and resisted aspirational purchases such as large houses and flash cars (though I do like my holidays and have three adult children who are helped intermittently). Currently live on less than pension I'll receive, so fingers crossed, I should be fine in the future. Really looking forward to retirement and the adventures it will bring.

nickcc

Work for one of the Major oil company's and retire at 50, had a great time since retiring 22 years ago and still get my index linked pension. Look for a good employer that looks after their staff, if theirs any left.

boingsaidzebedee

Have been married four times.
Unfortunately each of my wives had unforseen and tragic accidents on our respective honeymoons.
Due to being a prudent type of person I had luckily always taken out substantial life insurance policies on our marriage days.Added to which I had volunteered to take over all assets and bank accounts to save them any financial worries.On their demises all these said assets and accounts had already been transferred into my name so avoided any complications.
I have always been a great believer in insurance which twinned with feminine naivity has enabled me to enjoy my present comfortable lifestyle.