44 and dreading the thought of working past 50

QrizB

hartlepool_jono said:

my number I think per year would probably need to be around 40k per year gross.

To retire at 50 and get £40k pa from investments, as a rough estimate you'll need need somewhere north of a million quid invested. You've currently got £320k.

If you can make £12k pa from your hobbies, you're down to needing £28k which will still need £750k of investments behind it.

Can you more-than-double your savings & SIPP in the next six years? Preferably most of it in the SIPP, for tax efficiency?

Albermarle

QrizB said:

hartlepool_jono said:

my number I think per year would probably need to be around 40k per year gross.

To retire at 50 and get £40k pa from investments, as a rough estimate you'll need need somewhere north of a million quid invested. You've currently got £320k.

If you can make £12k pa from your hobbies, you're down to needing £28k which will still need £750k of investments behind it.

Can you more-than-double your savings & SIPP in the next six years? Preferably most of it in the SIPP, for tax efficiency?

Slightly spookily ( for Halloween) we came up with exactly the same figure !

Bostonerimus1

QrizB said:

hartlepool_jono said:

my number I think per year would probably need to be around 40k per year gross.

To retire at 50 and get £40k pa from investments, as a rough estimate you'll need need somewhere north of a million quid invested. You've currently got £320k.

If you can make £12k pa from your hobbies, you're down to needing £28k which will still need £750k of investments behind it.

Can you more-than-double your savings & SIPP in the next six years? Preferably most of it in the SIPP, for tax efficiency?

The OP is talking about retiring at 50 and so could easily have 40 or more years of retirement. So a 4% drawdown is a bit aggressive IMO. My advice would be to do a detailed budget to really understand how much income the OP needs. Then get state pension forecasts as retiring early might impact the amount of state pension. The OP needs to be putting as much away as possible in pensions and ISAs. A good thing is being mortgage free gives an opportunity to downsize at some point to free up some capital.

Thumbs_Up

hartlepool_jono said:

  a house worth circa 550 at a guess,

If i was given £100 every time i read this comment on the the world wide web, i would have retired by fifty.

p00hsticks

Thumbs_Up said:

hartlepool_jono said:

  a house worth circa 550 at a guess,

If i was given £100 every time i read this comment on the the world wide web, i would have retired by fifty.

And the value of the house you are living in isn't really relevant to your pension calculations unless downsizing and/ or releasing equity is part of your plan. 

Simon11

p00hsticks said:

 [and you are probably going to need to continue making voluntary NI contributions for at least some future years to get to the maximum ] , . 

It is possible to reach 50 and obtain the maximum state pension.

If I fill in a 1 year gap (where I was working abroad), I will obtain it by the age of 50. Its mostly thanks to working part-time at an early age doing huge a few hours and working part time during university!

hartlepool_jono

Yes downsizing would definately be a plan. Maybe to release circa 250k. Sipp I could probably get up to 400k in next 6 years if similar work case than the last few. Isas I plan to max out each year going forward atleast for 1 of us if not both. 

GazzaBloom

I was dreading working past 50...I'm now 56 

coyrls

GazzaBloom said:

I was dreading working past 50...I'm now 56 

and working?

Bostonerimus1

hartlepool_jono said:

Yes downsizing would definately be a plan. Maybe to release circa 250k. Sipp I could probably get up to 400k in next 6 years if similar work case than the last few. Isas I plan to max out each year going forward atleast for 1 of us if not both. 

So those amounts plus what you have now and a bit of gain will get you into the region of 1 million by age 50. I'd plan around a starting 3% drawdown so that will give you around 30k. You will have to find another 10k to meet your current income estimates until SP starts. So to get that "monkey off your back" (sorry couldn't resist given your user name) that could come from some budgeting and/or part time work. You are in a pretty good situation and now just need to develop your plan a bit more and make sure you get it done.