Early retirement , hints tips and any advice!

Nick9967

Durban said:

Nick9967 said:

Thanks for your negative input , last time i looked i have nearly £240 in 5 years as i said (may not quite make it but close ish) the 240 / 10 (58 years to 67 years is only 9 by the way) =  £24k gross so I'm about £300 p/m ish short after tax and NI I guess
Plus a house value of £350k etc etc ,
Why is it on forums where every you go the first person to post on yours is always negative, usually hasn' t read the post fully and can't bring them selves to be helpful, nice , anything but unpleasant!  
Bloody know it all's make me mad as hell , 240+350 is 600 grand you can certainly get 24k out of that i was simply asking for positive advice ! so go back in your hole and come out when you are more pleasant!

I don't think that you should include the value of your house even if you are going to downsize. After the costs of buying and selling , unless you downsize dramatically you won't get much out of it.

Also , are you going to run your personal pension right down till 67 and then just live on the state pension? 

My house which now has a tiny mortgage attached to it is 50% of my pension as i see it , its worth 350-.370 ish and I've worked my socks off for 30 years for it  so it is going to be used! happily down size to a value of around 220 ish in the same village and plenty big enough for us would give me another 120 odd to play with , i figure that just using that as a top up each month for a few years till its dead is worth it , we then have a comfortable house with no mortgage that will either stay for my wife or she can cash some of it in if she chooses!

kinger101

Downsizing won't release quite as much money as you think.  EA fees, legal & professional and SDLT will eat a large chunk. 

As for drawing £14,400 annually from £200K, inflation aside, the chances that this will last 20 years are very slim.   

Nick9967

kinger101 said:

Downsizing won't release quite as much money as you think.  EA fees, legal & professional and SDLT will eat a large chunk. 

As for drawing 16% annually, inflation aside, the chances that this will last 20 years are very slim.   

Hi 
downsizing would give me net at least 120 cash which is enough i think.
the 16% is the tax&NI i'd pay (very roughly) not the drawdown %, my fault not the prettiest sheet i know!
14,400 pa out of an original pot of 200k is only around  7.2% and all the calculators I've used give me plus/minus 20 years of that if everything is "middling" that's a gamble but a reasonable one.  

atush

What pension arrangements does your wife have?  
If hers come online when yours are depleted, then maybe your plan could work.  But really, id double your savings between now and your projected date at least.

Nick9967

kinger101 said:

Downsizing won't release quite as much money as you think.  EA fees, legal & professional and SDLT will eat a large chunk. 

As for drawing £14,400 annually from £200K, inflation aside, the chances that this will last 20 years are very slim.   

Also the guessing about inheritance isn't entirely accurate as i own that inheritance so it will be mine , it''s just when is the question

kuratowski

As above, it looks quite reckless.  You only expect to live till 77?!

You originally asked about a free calculator.  Try this one:
https://www.aviva.co.uk/retirement/tools/my-retirement-planner/

kinger101

Nick9967 said:

kinger101 said:

Downsizing won't release quite as much money as you think.  EA fees, legal & professional and SDLT will eat a large chunk. 

As for drawing 16% annually, inflation aside, the chances that this will last 20 years are very slim.   

Hi 
downsizing would give me net at least 120 cash which is enough i think.
the 16% is the tax&NI i'd pay (very roughly) not the drawdown %, my fault not the prettiest sheet i know!
14,400 pa out of an original pot of 200k is only around  7.2% and all the calculators I've used give me plus/minus 20 years of that if everything is "middling" that's a gamble but a reasonable one.  

OK - just shows how basic your spreadsheet is.  Even at £14,400 with no annual increase, you need a growth rate after inflation and fees of 4% to achieve this.  At the same time, you'll have to reduce the equity allocation of your pot to avoid sequence of returns risk (i.e. bad luck in the stock market too early in retirement for capital to recover).  This will constrain growth. 

And not factoring an annual increase in pension is also a huge mistake.  If CPI is just 2% over a decade, that means that £14,400 becomes worth £12,049 by year ten.  

Nick9967

atush said:

What pension arrangements does your wife have?  
If hers come online when yours are depleted, then maybe your plan could work.  But really, id double your savings between now and your projected date at least.

She wont have masses probably 25 years of local education authority TA pensions , and a fe bits and pieces 

Nick9967

kinger101 said:

Nick9967 said:

kinger101 said:

Downsizing won't release quite as much money as you think.  EA fees, legal & professional and SDLT will eat a large chunk. 

As for drawing 16% annually, inflation aside, the chances that this will last 20 years are very slim.   

Hi 
downsizing would give me net at least 120 cash which is enough i think.
the 16% is the tax&NI i'd pay (very roughly) not the drawdown %, my fault not the prettiest sheet i know!
14,400 pa out of an original pot of 200k is only around  7.2% and all the calculators I've used give me plus/minus 20 years of that if everything is "middling" that's a gamble but a reasonable one.  

OK - just shows how basic your spreadsheet is.  Even at £14,400 with no annual increase, you need a growth rate after inflation and fees of 4% to achieve this.  At the same time, you'll have to reduce the equity allocation of your pot to avoid sequence of returns risk (i.e. bad luck in the stock market too early in retirement for capital to recover).  This will constrain growth. 

And not factoring an annual increase in pension is also a huge mistake.  If CPI is just 2% over a decade, that means that £14,400 becomes worth £12,049 by year ten.  

You could well be right kinger101, that's why I'm posting , why is it though that all or at least most of the calculators if set at pessimistic rates give it 20 years , are they wrong ? should i seek alternative calculators ?  

Nick9967

kuratowski said:

As above, it looks quite reckless.  You only expect to live till 77?!

You originally asked about a free calculator.  Try this one:
https://www.aviva.co.uk/retirement/tools/my-retirement-planner/

No but after about 75 my wifes state and other pensions will kick in , and frankly its the first 20 years i'm more bothered about,