Retirement for someone with no dependents

Stanleychops

Hi - as per the title, I am in a situation where I have no dependents and therefore do not need to have any money or property when I eventually pass away.  I'm 49, above average salary, own my own home, a private pension, work pension and some savings.  I have come to the realisation that potentially it is no longer imperative to finish paying my mortgage or worry about leaving my non-existent children/partner any inheritance.  
I realise this is not the normal situation for most, so am curious what people think and if there are any other people in my position on here who could give advice.
I am considering that once I hit the magic number for my retirement pot, I would sell my house and rent for my remaining years (hopefully somewhere warm).  Obviously I cannot predict how long I will live, but as long as I have a realistic sum to live on each month/year, I assume I just need enough money to cover the years I have left?  Is this a feasible plan?

Mum161111

All I can say is that you are doing well and please remember that you are only 49 years old.  We don't know how the future will unfold and there may yet be some unexpected surprises in your life long before retirement - whether you remain single, childless or something quite different.

Brie

Similar situation here except I'm married with no dependents, no relatives close or distant in need of handouts.  So OH & I have decided to live as nicely as we like and if cash gets short we will be looking at equity release or similar.  

I'll get around to making a will some day just to specify that certain bits of my junk go to nieces should they want them.

Yorkie1

One way to describe expenditure in retirement is a U-shaped curve.

• Increased spending in the first part of retirement, when you are active and doing all the things like travel that you may not have had time to do while working. 
• Less spending in the next part, after you've done all the exciting stuff and are slowing down a little.
• Increased spending in the later part of retirement, when you might need help around the garden or house, or even need care in your own home or a different residential setting.

Not all of that will apply to you, but it would be worth considering what your plans would be for the later part of the curve, if those scenarios came to be. If you have retired abroad, is the healthcare adequate without funding it yourself? Or might you then seek to return to the UK for that part of your life - how would you fund a property in those circumstances? 

The Renters' Rights Bill is likely to make things better for renters if / when it is passed, but you won't be able to foresee the landscape in perhaps 20-30 years' time. Renting in old age, at risk of eviction on the landlord's whim, isn't perhaps something you might relish.

So it's about thinking through all the future scenarios and planning how you might choose to handle them practically as well as financially.

Albermarle

I am considering that once I hit the magic number for my retirement pot, I would sell my house and rent for my remaining years (hopefully somewhere warm)

Renting can be insecure, many older ( and younger)  people renting would rip your right arm off to have the security of owning their own home.

 Obviously I cannot predict how long I will live, but as long as I have a realistic sum to live on each month/year, I assume I just need enough money to cover the years I have left? 

As you say the problem is that you do not know how many years you have left, or how they will pan out.
The number of people reaching their 90's is probably higher than you think and care costs can be very expensive

So best to plan to enjoy your retirement, but have some contingencies in place in case of the unexpected.

teaselMay

As per the others think very carefully before selling up and relying on renting. I'm the same age as you, also no dependents. Very different financial position because of my health.

For the second time in 14 years my rented house is being sold and I have to move. First time I was given 3 weeks notice, they made it so unpleasant that I didn't stand my ground and thankfully the estate agent found me this place which was as it turned out perfect, and what was supposed to be somewhere safe for 6 months became the place I call home. Until my elderly landlord needed to spend his savings on private health care and my home became his emergency fund. Thankfully he gave me a year's notice but it's been a horrible year. I've ended up buying by shared ownership and so will be fine, but there was until quite recently a very real risk of being homeless in May.

I'd not plan to sell up if I were you. I can't describe how much better it is to feel secure than not know, or have control over, when you'll have to move.

Bostonerimus1

If you have no desire to leave a legacy you might want to consider an annuity. But even without a spouse or children you can leave a legacy to other relatives like nieces and nephews and also charities.

ali_bear

According to the ONS you have a 25% chance of living beyond 93. 

Marcon

Albermarle said:

I am considering that once I hit the magic number for my retirement pot, I would sell my house and rent for my remaining years (hopefully somewhere warm)

Renting can be insecure, many older ( and younger)  people renting would rip your right arm off to have the security of owning their own home.

... and an increasing number (who have enough money to have the luxury of such a choice) are only too pleased to rent, and they can leave repairs and other problems to a landlord....

QrizB

Bostonerimus1 said:

If you have no desire to leave a legacy you might want to consider an annuity.

I was going to suggest that, too.

poseidon1

Stanleychops said:

Hi - as per the title, I am in a situation where I have no dependents and therefore do not need to have any money or property when I eventually pass away.  I'm 49, above average salary, own my own home, a private pension, work pension and some savings.  I have come to the realisation that potentially it is no longer imperative to finish paying my mortgage or worry about leaving my non-existent children/partner any inheritance.  
I realise this is not the normal situation for most, so am curious what people think and if there are any other people in my position on here who could give advice.
I am considering that once I hit the magic number for my retirement pot, I would sell my house and rent for my remaining years (hopefully somewhere warm).  Obviously I cannot predict how long I will live, but as long as I have a realistic sum to live on each month/year, I assume I just need enough money to cover the years I have left?  Is this a feasible plan?

Pretty much in your position but already long retired. 

The idea of selling home and renting ( at least in this country) I would  personally consider extremely ill advised given the utterly dysfunctional state of the English rental market. That said I plan to have the largest equity release mortgage possible on the home, to ensure those funds can be used/squandered as I deem fit.

However you did say somewhere  warm so perhaps somewhere abroad?  If so that is a whole host of other considerations far too long to cover here, but keep in mind the number of foreign  jurisdictions where you would lose inflation linking to  your state pension, when that eventually comes on stream.

Given the large chunk of change HMRC will pocket out of your estate exceeding the meagre £325k NRB, totally understand your point of view.