Can I retire....carefully

YSRL

Just looking for some opinions/reassurance really

Due to illness I had to stop working a couple of years ago and even though things are improving slowly - there is the likelihood that I won't be able to go back to any kind of full time employment.

I have no pension arrangements as such but do have properties that bring in an income of £25K and have savings of around £200K, which are split between ISA's, Premium Bonds, P2P and cash.

No mortgage on my own property or any of my rental properties - so no significant debt.

The catch (I suppose) is that I'm only 50 - so a long way to go.

I know that I need to be careful (something I'm not the best at) - but, assuming I am, can I realistically get through without pressure to work?

Thanks for any advice/comments.

mark1959

Of course you can. But do you really want to?

Audaxer

Depends what commitments you have, but income of £25k pa and £200k of savings/investments would be enough for many people in retirement.

YSRL

No, I don't and that's frustrating. I'm just worrying that if I can't work again that I'll end up struggling.

jimjames

YSRL wrote: »

No, I don't and that's frustrating. I'm just worrying that if I can't work again that I'll end up struggling.

Audaxer wrote: »

Depends what commitments you have, but income of £25k pa and £200k of savings/investments would be enough for many people in retirement.

Do you have any investments or is everything cash based? Are the ISAs cash or S&S ISAs?

If you have no investments and everything is cash then you may want to look at that as cash is unlikely to retain purchasing power over 30 years of retirement. Paying into a pension would get immediate tax relief and you would be able to access as of 55.

YSRL

jimjames wrote: »

Do you have any investments or is everything cash based? Are the ISAs cash or S&S ISAs?

If you have no investments and everything is cash then you may want to look at that as cash is unlikely to retain purchasing power over 30 years of retirement. Paying into a pension would get immediate tax relief and you would be able to access as of 55.

Thanks jimjames - I have £60K in S&S ISA's (probably badly put together because I didn't take advice, but around 50% Vanguard LS60)

Paying into a pension makes perfect sense (assuming I can do that whilst not working - does my rental income count as working for pension purposes?).

Because I was ill and at one stage thought i wasn't going to be around much longer I've been scared of committing to anything long term. But, as time goes by, i know that it would be the sensible thing to do.

I've just started panicking a bit lately thinking I may not have enough behind me in the long term.

bostonerimus

What annual income do you need? Without knowing that your question cannot be answered.

kidmugsy

YSRL wrote: »

Paying into a pension makes perfect sense (assuming I can do that whilst not working - does my rental income count as working for pension purposes?).

No, rental income doesn't count (except, I've been told here, rent from holiday rentals).

So that means you can contribute only up to £2,880 per tax year, called £2,880 "net", and your pension provider claims £720 from HMRC and adds it to your pension pot. So your annual "gross" contribution is £3,600, being £2,880 + £720. It's not a lot but you can continue until you are 75, so the total could be £90,000 plus accumulated investment growth.

Presumably, however, you would in fact draw some down as income, which you can start to do from age 55 onwards.

You'd also want to investigate making extra National Insurance Contributions so that you qualify for a full State Retirement Pension.

p00hsticks

Have you got a State Pension forecast ?
https://www.gov.uk/check-state-pension

The retirement planning board can discuss further, but as bostonerimus says, more info on the kind of income / lifestyle you are aiming for is needed

http://forums.moneysavingexpert.com/forumdisplay.php?f=19

DiggerUK

The only thing you can do is screw up, as things stand you seem to be in a secure place.
You sat down a couple of years back and made your plans, and it looks like you are reviewing. You made safe decisions then, and I suspect you will now........apart from the p2p, very high risk in my view.

I believe your rental is a business rental, going forward do you see this is a sound and secure income stream. It appears to be your main income stream. Consider selling and reallocating.

For retirement savings I’m a huge advocate of gold. May not be something you ever considered, read here..._ http://moneyweek.com/a-beginners-guide-to-investing-in-gold/

economic

DiggerUK wrote: »

The only thing you can do is screw up, as things stand you seem to be in a secure place.
You sat down a couple of years back and made your plans, and it looks like you are reviewing. You made safe decisions then, and I suspect you will now........apart from the p2p, very high risk in my view.

I believe your rental is a business rental, going forward do you see this is a sound and secure income stream. It appears to be your main income stream. Consider selling and reallocating.

For retirement savings I’m a huge advocate of gold. May not be something you ever considered, read here..._ http://moneyweek.com/a-beginners-guide-to-investing-in-gold/

P2p very risk, consider selling btl yet put savings into gold??? Are you crazy?