Retiring at 50?

[Deleted User]

Simon11 said:

I am in my mid-30s and have been quite savvy financially and in the last few years have focused heavily on the pension. In my model, I have forecast that I need £1.6m by the age of 50 (in today's money) to retire (or to work part-time doing something I really love).

I live in London, so yours may be lower however this amount covers owning my house & cars in full, providing a joint-income with my wife of £30k p.a. until a few years after we forecast to pass away, emergency saving pot of £30k and setting aside £50k for each child (uni house deposit ect).

As you can see, there is quite a lot of work required now to really save to build your wealth and to give you the option to retire early.

Well worth getting a spreadsheet to begin calculating everything!

Are your figures correct? Assuming a 5% return, your £1.6m pot would be generating £80k per year at this point.

Marcon

gadget88 said:

I am mid 30’s and want to retire at 50 but not sure what I need to know? 

Do you need to sign on? What age do you get a work pension? I guess being mortgage free would help by 50?

Pretty much everything, by the sound of it.

You say in another post  https://forums.moneysavingexpert.com/discussion/6502656/moving-home-vs-early-retirement#latest that you '...don’t really want the hassle of talking to the bank or financial advisor' but given how clueless you are about even the most basic relevant factors, spending some of your 'substantial' savings on proper advice might put you in a better position to assess if this is a realistic aspiration.

BlackKnightMonty

Simon11 said:

I am in my mid-30s and have been quite savvy financially and in the last few years have focused heavily on the pension. In my model, I have forecast that I need £1.6m by the age of 50 (in today's money) to retire (or to work part-time doing something I really love).

I live in London, so yours may be lower however this amount covers owning my house & cars in full, providing a joint-income with my wife of £30k p.a. until a few years after we forecast to pass away, emergency saving pot of £30k and setting aside £50k for each child (uni house deposit ect).

As you can see, there is quite a lot of work required now to really save to build your wealth and to give you the option to retire early.

Well worth getting a spreadsheet to begin calculating everything!

Are you factoring in some inheritance here or is that £1.6m self made?

Simon11

[Deleted User] said:

Simon11 said:

I am in my mid-30s and have been quite savvy financially and in the last few years have focused heavily on the pension. In my model, I have forecast that I need £1.6m by the age of 50 (in today's money) to retire (or to work part-time doing something I really love).

I live in London, so yours may be lower however this amount covers owning my house & cars in full, providing a joint-income with my wife of £30k p.a. until a few years after we forecast to pass away, emergency saving pot of £30k and setting aside £50k for each child (uni house deposit ect).

As you can see, there is quite a lot of work required now to really save to build your wealth and to give you the option to retire early.

Well worth getting a spreadsheet to begin calculating everything!

Are your figures correct? Assuming a 5% return, your £1.6m pot would be generating £80k per year at this point.

I have amended my post, but its a 'wealth pot'- so the money would be in the form of money in the bank, value of house, pension pot, B2L  ect

Simon11

BlackKnightMonty said:

Simon11 said:

I am in my mid-30s and have been quite savvy financially and in the last few years have focused heavily on the pension. In my model, I have forecast that I need £1.6m by the age of 50 (in today's money) to retire (or to work part-time doing something I really love).

I live in London, so yours may be lower however this amount covers owning my house & cars in full, providing a joint-income with my wife of £30k p.a. until a few years after we forecast to pass away, emergency saving pot of £30k and setting aside £50k for each child (uni house deposit ect).

As you can see, there is quite a lot of work required now to really save to build your wealth and to give you the option to retire early.

Well worth getting a spreadsheet to begin calculating everything!

Are you factoring in some inheritance here or is that £1.6m self made?

Majority self made but of course parents have been generous with supporting with getting onto the housing ladder, as they too themselves have benefited from. Around here, an average family home is around £900k so counts for quite a chunk of the wealth pot. I started building the wealth from the age of 14, doing as much work as I could and its has been slowly paying off as everything compounds!

I haven't considered any potential inheritance in my calculations, as firstly I wish for my parents to enjoy all their money and secondly, you just have no idea what it could be, as it could easily be spent on healthcare in later years. Anything that comes is a surprised bonus.

kimwp

Simon11 said:

[Deleted User] said:

Simon11 said:

I am in my mid-30s and have been quite savvy financially and in the last few years have focused heavily on the pension. In my model, I have forecast that I need £1.6m by the age of 50 (in today's money) to retire (or to work part-time doing something I really love).

I live in London, so yours may be lower however this amount covers owning my house & cars in full, providing a joint-income with my wife of £30k p.a. until a few years after we forecast to pass away, emergency saving pot of £30k and setting aside £50k for each child (uni house deposit ect).

As you can see, there is quite a lot of work required now to really save to build your wealth and to give you the option to retire early.

Well worth getting a spreadsheet to begin calculating everything!

Are your figures correct? Assuming a 5% return, your £1.6m pot would be generating £80k per year at this point.

I have amended my post, but its a 'wealth pot'- so the money would be in the form of money in the bank, value of house, pension pot, B2L  ect

Ooh, how have you assessed the buy to let for the wealth pot? As saleable asset and/or converted the income into a cash pot equivalent?

Simon11

kimwp said:

Ooh, how have you assessed the buy to let for the wealth pot? As saleable asset and/or converted the income into a cash pot equivalent?

Correct, I only consider the saleable value of the asset minus any debts like the mortgage which goes towards the wealth pot. Unfortunately, unless property prices goes up, it hardly makes any profit every year after bills and taxes. However its handy to have as another option. 

MEL1981

I also plan to retire at 50 if I can get away with it. I am now 43 with approx 670k in pension, 140k in ISAs (mostly S&Ss) and plan to continue adding 20k/year in ISAs for the next 7 years in addition to the max 60k/yr into the DC pension to put me in the best position I can for reaching half a century of youth. I also have around 200k cash but that was going to be to upgrade to a larger house (no current mortgage and no plans to jump back into that nonsence). 

I had planned to top up with separate 10k/yr I'm getting on a rental property with no mortgage to give me 40k/yr income from 50 by a combination of drawing down on ISAs and rental combined until I can take from my pension at 58. 

My partner also has separate pension and income but they enjoy their job more than I do so they have no plan on retiring at 50 - or so I tell them!

Their income can support kids (10 and 6) until they flee the nest too

Could be wild and I'll never get to live the dream of retiring at 50 but only time will tell. 😊

BlackKnightMonty

Simon11 said:

BlackKnightMonty said:

Simon11 said:

I am in my mid-30s and have been quite savvy financially and in the last few years have focused heavily on the pension. In my model, I have forecast that I need £1.6m by the age of 50 (in today's money) to retire (or to work part-time doing something I really love).

I live in London, so yours may be lower however this amount covers owning my house & cars in full, providing a joint-income with my wife of £30k p.a. until a few years after we forecast to pass away, emergency saving pot of £30k and setting aside £50k for each child (uni house deposit ect).

As you can see, there is quite a lot of work required now to really save to build your wealth and to give you the option to retire early.

Well worth getting a spreadsheet to begin calculating everything!

Are you factoring in some inheritance here or is that £1.6m self made?

Majority self made but of course parents have been generous with supporting with getting onto the housing ladder, as they too themselves have benefited from. Around here, an average family home is around £900k so counts for quite a chunk of the wealth pot. I started building the wealth from the age of 14, doing as much work as I could and its has been slowly paying off as everything compounds!

I haven't considered any potential inheritance in my calculations, as firstly I wish for my parents to enjoy all their money and secondly, you just have no idea what it could be, as it could easily be spent on healthcare in later years. Anything that comes is a surprised bonus.

You sound very fortunate.

hewittinspain

gadget88 said:

I am mid 30’s and want to retire at 50 but not sure what I need to know? 

Do you need to sign on? What age do you get a work pension? I guess being mortgage free would help by 50?

So you want to use my hard earned tax so you can sit and do nothing for years.? Good luck with that 
We all want to retire at 50.
State pension alone is a struggle. You will probably need some sort of work pension too to top that up and that means investing into that for years even to get £100 a week on top unless you want to retire potless which probably isn't fun