Do i have enough for early retirement?

itwasntme001

Thanks for all your replies. How do i move this post to the pensions forum? Or does a Moderator have to do this?


To give more details:


- The 14k covers all basic costs (including dental - i have decent teeth so don't require regular treatment except for yearly checkups and cleaning) as well as discretionary expenses such as holidays. I live quite frugally and don't see my quality of life suffering due to it - i have cheap hobbies. I actually like being frugal!


- Inheritance is very likely as my parents are now retired and with state pensions, private annuity and savings they have more then enough (i think around £1.8m net worth - ignores their annuity and sp of £30k a year). The £500k potential inheritance is a minimum and pretty much guaranteed. But i prefer to ignore this as i dont like to think i need to depend on an inheritance and i hope my parents spend it all on themselves, but this is pretty much not going to happen!


- I have about 10 years full time employment so that many contributions.


- I was in another industry which i eventually could not stand anymore and i have (since leaving) been training myself on coding/programming which is what i am looking to do, although it seems quite tough to get into!


- The debt is all mortgage with a 1.5% interest rate fixed for two more years. The term is around 30 years from now.


Yes i am looking for some form of work even if not technology related. Will need to work harder at this as i have gotten lazy since leaving my work over a year ago. I suffer from depression and anxiety which has contributed to me not having a job as well. So probably not all due to laziness. However i am feeling much better now so i am hoping to get back on track with looking for something meaningful.

Thrugelmir

Sell the house. Clear the mortgage and move somewhere cheaper.

Alexland

itwasntme001 wrote: »

Inheritance is very likely as my parents are now retired and with state pensions, private annuity and savings they have more then enough (i think around £1.8m net worth - ignores their annuity and sp of £30k a year). The £500k potential inheritance is a minimum and pretty much guaranteed.

Nothing's guaranteed until it happens - they might signup to an unregulated ponzi scheme or decide to give the money to the local cats home.

itwasntme001 wrote: »

I was in another industry which i eventually could not stand anymore and i have (since leaving) been training myself on coding/programming which is what i am looking to do, although it seems quite tough to get into!

A lot of the traditional Java, C++, etc application development and maintenance work has gone offshore with a few of the more knowledgeable people left providing transition support until they wind down to retirement when most probably won't be replaced.

There are still contract roles in the UK for innovative multi-skilled coders who can develop using modern technologies in agile scrum teams. People who are flexible and have great teamwork skills are most likely to succeed in this environment.

itwasntme001 wrote: »

However i am feeling much better now so i am hoping to get back on track with looking for something meaningful.

Absolutely, and good luck to you!

Alex.

ams25

Sounds like retiring fully would not be financially sensible or particularly viable ignoring inheritance, but also it does not sound best for your well being. Finding a profession/job you are passionate about would be the best option. And It does not matter if it does not pay very well.

Re your parents..and I know this maybe difficult to raise...but worth discussing the issue of estate planning if they have not got it covered. Otherwise hmrc will be collecting a few hundred thousand for the good of the rest of us (why thank you). I have seen a few cases where little or no estate planning has resulted in relatively large tax bills for not especially wealthy people.

kidmugsy

itwasntme001 wrote: »

I have decent teeth so don't require regular treatment except for yearly checkups and cleaning.

And that too shall pass away.

Zero_Sum

If you're willing to move up north, and buy a modest house for under £150k it could be doable

Broken_Biscuits

You should try searching for a forum that specialises in early retirement. If you put the same question and information forward you will likely get mostly yes answers rather than all the no!!!8217;s you have got here.

You have not been working for over a year. Are your total holdings up or down in that time after taking out spending? How about after inflation?

Have a google of !!!8220;trinity study or 4% rule!!!8221;

Did you pick your above average priced house because it was convenient for getting to work? If you had no house , the equity from your house in your account and no restrictions based on somewhere you have to be for 35 hours plus a week, where would you live? Somewhere cheaper in the uk? Somewhere cheaper again somewhere sunny/more picturesque out of the uk?

Based on what you have said you can retire now. It sounds like you already have. To make it last you will most likely have to make some changes to your life and the way your money is set up... but all that information is out there on the early retirement type forums.

Best of luck whatever you end up doing.

Terry_Towelling

It's all too easy for me to look at what you have written, Itwasn'tme001, and make suggestions based on what I would do in your situation - given my own terms of reference and frame of mind - so I will.

Sell up, clear the mortgage and get out of London. Certainly you need to make sure you keep your NI contributions going and you need to make sure your investments are protected from taxation and excessive risk.

I really think you should have some sort of paid employment (if you can) - don't squander your abilities and worth - your original posting seemed tinged with melancholy (to me anyway). Volunteering is fine and worthy but getting paid to do something would probably be a better idea for a few years yet.

As for retiring, I reckon I could give it a bash on what you say you possess (for a few years trial anyway) and if I found it wasn't working out, I'd 'can' it and go back to work.

It may be hard to think about an inheritance now - especially as that sort of thing isn't guaranteed and there could be a dent from IHT - but you shouldn't reproach yourself for perhaps imagining how you might fit it in to your future - just don't bank on it.

We don't know what the future holds for us - for many, just keeping a job is worry enough, but your financial wellbeing looks pretty well sorted - unless you want to live lavishly. All that said, I'd be inclined to keep doing paid work in something that I enjoyed, away from London in a cheaper area for a few years yet and then have a rethink.

Like I said, this is only what I'd do - well, some of what I'd do, so apologies if it isn't helpful to you.

Zanderman

Agree with most of what others have suggested - but would particularly stress:

You cannot possibly rely on inheritance - it can easily be spent on care and nursing fees which you cannot possibly rule out. Indeed you should assume this is likely.

Re health you need to consider your own - great, you have good teeth. But that may not always be the case. And dental costs are high. Similarly you may develop illness of some sort (we all do, to some extent, as we age - some are lucky, others not so lucky). This, if you have a small budget, may be quite difficult. A reasonable income or a dedicated buffer would help cater for possible future ill-health - but you won't have either if you really retire now.

State pension - you'll only get this in full if you continue paying NI and so you need to be working or at least registered as self-employed and paying that way. I know people who retired early on a low budget who were counting the days until their state pension kicked in - as only then were they able to afford a few luxuries (their own 'frugal' systems not being nearly as good as they hoped). State Pension should be high on your list of must-haves!

Don't 'retire' with debt. So not if you still have a mortgage. Either move somewhere cheaper where you have no mortgage or don't retire. You said it has 30 years to run? What would you do if interest rates rocketed to, say 6 or 7 % in 10 years time? I know it seems inconceivable at present but,20- 30 years ago, the 0.5% circumstances of today would have seemed like science fiction.

Those are just my immediate random thoughts - but basically no, I don't think you can retire.

Work part-time maybe. But not retire.

Hope this helps.

And yes, this would be better on the pensions board - contact one of the board guides (listed at the end of the board index pages) for help transferring

atush

Thanks for all your replies. How do i move this post to the pensions forum? Or does a Moderator have to do this?

A Mod could do it, but they dont seen espcialy active.

Just copy your OP and paste it into a new thread int he pensions forum.

Have you seen your doctor about your depression? It could return. It may also be involved with you not working.