Did You Blow Some (or All) of Your Lump Sum?

Langtang

Sea_Shell said:

jim8888 said:

Sometimes I even think about selling up the house, investing the money, and renting for retirement. I know that renting and not owning anything is a bit of a millennial idea, but I think there might be a lot of sense in it as you grow older.

As for renting in your dotage, I can see the appeal, especially if your tenancy is secure.   No maintenance to worry about etc.   And hopefully in an area not surrounded by "family" homes with kids on trampolines almost what feels like 24/7!!

I'm not so sure about renting after you retire. I'd hate to get to 80 only to be told by your landlord that he's selling up!

Would you have any rights as a sitting tennant?

Imagine having to move house at 80!

Sea_Shell

Langtang said:

Sea_Shell said:

jim8888 said:

Sometimes I even think about selling up the house, investing the money, and renting for retirement. I know that renting and not owning anything is a bit of a millennial idea, but I think there might be a lot of sense in it as you grow older.

As for renting in your dotage, I can see the appeal, especially if your tenancy is secure.   No maintenance to worry about etc.   And hopefully in an area not surrounded by "family" homes with kids on trampolines almost what feels like 24/7!!

I'm not so sure about renting after you retire. I'd hate to get to 80 only to be told by your landlord that he's selling up!

Would you have any rights as a sitting tennant?

Imagine having to move house at 80!

That's why I said it would have to be a SECURE tenancy.    Do lifetime tenancies exist for "retirement village" type properties?

Stubod

..I would not want to give up my own property to go into long term renting!?  if you need the money then I assume equity release would be a better option?

Albermarle

Sea_Shell said:

Langtang said:

Sea_Shell said:

jim8888 said:

Sometimes I even think about selling up the house, investing the money, and renting for retirement. I know that renting and not owning anything is a bit of a millennial idea, but I think there might be a lot of sense in it as you grow older.

As for renting in your dotage, I can see the appeal, especially if your tenancy is secure.   No maintenance to worry about etc.   And hopefully in an area not surrounded by "family" homes with kids on trampolines almost what feels like 24/7!!

I'm not so sure about renting after you retire. I'd hate to get to 80 only to be told by your landlord that he's selling up!

Would you have any rights as a sitting tennant?

Imagine having to move house at 80!

That's why I said it would have to be a SECURE tenancy.    Do lifetime tenancies exist for "retirement village" type properties?

There a couple of posh retirement villages near where I live ( Audley villages ) . The main way of living there is to buy a property , pay a pretty hefty maintenance charge , and then pay a % of the profit when you sell . Or you can defer some of the maintenance charge but pay a bigger % of the sale price.
The properties are very nice , in lots of manicured grounds , health club and ( expensive) bar/restaurant . Lots of add on services , hairdressers, personal care , financial advice etc

To my mind all looks a bit too organised and cut off from the real world, but new ones are springing up all the time .

Sea_Shell

I suppose it also depends on when in life is the "right" time to move or downsize.

Do you stay in that 4 bed detached family home for ever?   Maybe surrounded by families with small children.
Do you find somewhere quieter/smaller/more manageable?   But do you still have easy access to local facilities.
Do you "need" to release cash?   Either downsizing, renting or ER?

Do you do this at 50, 60, 70 or 80?    50 too young?, everything is still manageable....80 too old?, too much upheaval and stress.

cloud_dog

michaels said:

cloud_dog said:

Travel will be our thing, not long-haul but spend time travelling the UK and Europe (for example). 

The how is the big question and a bit of a stumbling block for me TBH, e.g. spend a chunk of money on a campervan (hopefully lots of cheaper second hand ones will be available by the time we come to jump ship), or budget on more frequent holidays (7-14 days each), or standard holiday with lots of frequent long weekend breaks in between, or any combination thereof

Unfortunately my number crunching side looks at the cost of a reasonable second hand campervan and thinks "that is an awful lot of holidays/breaks" 

Currently i fancy the idea of touring around in a nice car and staying in hotels or airbnbs as the depreciatuon in a camper would seem to buy a lot of nights but dont see many others thinkning this way. Are there drawbacks? 

We have considered this also.  We have an air tent and thought we could lug that around in the back of the car 'just in case'.

Silvertabby

Sea_Shell said:

I suppose it also depends on when in life is the "right" time to move or downsize.

Do you stay in that 4 bed detached family home for ever?   Maybe surrounded by families with small children.
Do you find somewhere quieter/smaller/more manageable?   But do you still have easy access to local facilities.
Do you "need" to release cash?   Either downsizing, renting or ER?

Do you do this at 50, 60, 70 or 80?    50 too young?, everything is still manageable....80 too old?, too much upheaval and stress.

There's only ever been the two of us (plus fur babe) in our 4 bed detached.  It's not a huge house, and we are not rattling round in unused rooms - our main bedroom, guest bedroom, study and hobby room.  

We have room to fit a stairlift if/when the time comes and will be well able to afford to pay for a cleaner and gargener should those jobs become a struggle.  Dr and dentist and local shops are within walking distance, and the hospital is just a few minutes drive.

 No plans to downsize - we have everything we need here.

Spreadsheetman

I don't see renting as a solution long-term given the lack of security of tenure with private rentals. All my elderly relatives seemed to lose their flexibility to cope with new situations as they aged, so having to move rentals every few years would have been very hard for them.

Back on the subject of the thread - I started drawing from my SIPP this year, but I am doing flexible drawdown with a tax free element each month. I don't need to take a lump sum as I have no debts and sufficient cash and investments outside the sipp+isa tax wrappers to cover any likely sudden capital need. It seems different for people with a DB pension, the lump sum is much more a "thing".

Ibrahim5

I have a roughly 50:50 DB:DC pension arrangement so my lump sum was a good boost to my DC pension. For people who wait until their DB pension is adequate they often don't really need their lump sum so they will blow it on something. The reality is that these people could often retire a few years earlier with a bit of financial planning.

Albermarle

Sea_Shell said:

I suppose it also depends on when in life is the "right" time to move or downsize.

Do you stay in that 4 bed detached family home for ever?   Maybe surrounded by families with small children.
Do you find somewhere quieter/smaller/more manageable?   But do you still have easy access to local facilities.
Do you "need" to release cash?   Either downsizing, renting or ER?

Do you do this at 50, 60, 70 or 80?    50 too young?, everything is still manageable....80 too old?, too much upheaval and stress.

Rather than finding somewhere quieter , apparently there is a trend for some older people to move to a city/town centre.
Plenty of development of vacant shops and offices into flats ( some of poor quality but some are fine ) .
Low maintenance - no garden , but very easy access to shops , restaurants , leisure/cultural facilities , No car needed.
Personally I would prefer that to living in a retirement village , or in a rural idyll miles for anywhere. Although would depend on the town/city of course.