If you are wearing my shoes.

Thumbs_Up

Hello, long time reader here but first time poster. I am like a boat lost at sea with no rudder if you get my drift (pun intended). A brief bit about me  I am a single man with no children, currently not in a relationship, unemployed and living with a relation. Claiming no state benefits soon to be 55 years of age and frugal. For referance i do understand how inflation erodes cash. Just not prepared to invest more money in the stock market or funds.

My state of affairs.

State pension £9,742 (Current figure) Retirement age 67 . 37 years completed.

Small index link pension £3000 annual (Current figure) due at 60 years of age.

Small Dc works pension not contributing £98,000 (Current figure).

Small Vanguard Sipp. Putting in £2880 every new tax year £8,000 (Current figure).

Ns&i bond £310,000 Currently 0.35%

Premium bond £50,000 - winnings this year 0.9%

Investment ISA £65,000 Down about -60% -Lloyds and petrofac

Marcus £88,000. Currently 0.6%

Cash ISA £20,000 0.45%

Spare cash £5000 0.0%

Perhaps a unusual question, but I’d like to see your view points. What would you do with your life if you were in my shoes? Would you retire early, could you afford too with the above figures? where would you live In Britain and why? Would you live in a flat, house or bungalow or would you live abroad? I guess I’m looking for inspiration for this year.

coffeehound

Hi, you might get more replies on the pensions board:

https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning

tacpot12

I retired at 55 with just £35,000 more than you have.  (Actually I retired at 53, but I had some savings that I used to keep me going until I was 55 could start drawing down on my DC pensions, but I have ignored these savings in my reply to you as they merely covered the two years until I was 55.) 

I didn't want to stay working in the career that I somewhat had fallen into. I live also frugally, but am happy. I would say that my costs are likely to be  lower than yours because I am in a relationship, so many of my main bills are shared, such as council tax, utilities, insurances, car running coss, etc. I have most of my assets invested in the global stockmarkets, with a little in bonds/cash/Premium Bonds, and a flat that I rent out. 

For a long, happy life on minimal income I would recommend that you live in a northern city, so that you can benefit from the lower housing costs, better services and the greater range of activities to get involved with. Living abroad needs a lot more money than you have. It's the cost of medical care that makes it so expensive to live aboard. If you could find somewhere warm where you get afford the cost of medical insurance as a extra cost, you might make it work. 

Dazza1902

Your housing status intrigues me, if you are living with a relative, will that be forever ? If they died would you be homeless ?
 Your sitting on a small fortune and not investing heavily on the stock market, if your housing situation is vulnerable I'd buy a bungalow ( future mobility catered for), if you have no ties to area you currently live, then buy in the north east where it's cheap and retain the bulk of your savings. 
How much do you need in retirement income ?

[Deleted User]

You have more than most. Make some plans and go for it!

Farway

You don't mention any hobbies but these could have an impact of where you choose to live, Walkers may prefer open moors or mountains, art lovers probably somewhere handy for museums , theatre etc.

If not tied to any where in particular then Dazza suggestion of bungalow [future proofing mobility] somewhere North, but I wouldn't discount southern areas, obviously Sandbanks would be out but I bet some Norfolk or Lincolnshire areas are relatively fine

Thumbs_Up

Hello again, thank you for your comments.

Can I impressed upon some  forumites this was never a smug oh look at me post, far from it. I’m sure If I was to post these musings on the pension forum I would be told I am too cash heavy and would be eating beans on toast for dinner in my 80’s.

On a personal note, it may be a interest to some ( the butcher and baker, the candlestick maker) How did I come by these numbers? My highest attained salary was about £32k and that was the latter years. I left a comprehensive school in 1983 with no qualifications to shout about with 3.5 million unemployed. Straight on to a YTS scheme earning £25 a week, and from there low payed mind numbing factory work. (These were the times I wished I applied oneself at school)

As you do I fell into a job that I never  planned and 25 years later here I am. My financial regrets? Not understanding pensions and leaving it far too late. Paying off mortgages far too quickly a flat 5 years and a house 7 years now both sold. Buying Sirius minerals shares lost £30k.

I need to pause for a break, I will return to answer your queries and comments.  

missile

There is no right answer.

Do whatever seems right for you

Farway

Thumbs_Up said:

As you do I fell into a job that I never  planned and 25 years later here I am. My financial regrets? Not understanding pensions and leaving it far too late. Paying off mortgages far too quickly a flat 5 years and a house 7 years now both sold. Buying Sirius minerals shares lost £30k.

I need to pause for a break, I will return to answer your queries and comments.  

Share buying, no one can forsee pitfalls, I had Llyods bank shares, who could foresee financial crash with Gordon Brown strong arming the chairman and the shares plummeting? Or GEC falling for the Tech bubble and shares nose diving? Both were strong, tradition & well run at the time of me buying them. My losses are not as large but still losses non the less

Thumbs_Up

The major hurdle I need to overcome is to stop being a dreamer, the problem is I have no one to kick me up the bum so to speak. Eg, sitting in the packed train carriage in the depths of winter reading the (free) newspaper on how some people just pack up the bags and migrate to a foreign land . I have no excuse I have a Homebase here (siblings house) I have the money just don’t have the courage, the knowledge and the get up and go attitude, pitiful really. I have half heartedly browse the internet on countries like Thailand, even Panama and a host of other countries where it would be cheap to live.

So at the present I live totally cost free with my younger brother, I cant see this being forever although we get on fine. I could easily live within single persons tax allowance bracket although this will be frozen for the next few years. So where to live? I have seen more of Europe then I have of my own country! Fenced in by M25 lol.

Hobbies? Need to get out more and see the beauty of this country of ours. Maybe get back in to dingy sailing (not the rubber boat kind). Rambling rings my bell as well. So maybe, just maybe this year I need to find in no particular order a 2 bedroom bungalow (new build) away from cites but close to shops and civilization (Searched on Rightmove all English counties the northeast and linconshire all seem to be a reasonable budget although the southwest seems more desirable)  A 2nd hand car sensible of course. A women.

What’s the bet 12 months from now ill still be living with my brother. Apologies for my ramblings I am sure you all have been on this journey one way or another, maybe sitting in that train carriage now reading this.  

Savvy_Sue

Stop dreaming, join a local walking group!