Retirement for someone with no dependents

barnstar2077

Keith_Clunk said:

poseidon1 said:

Keith_Clunk said:
[...]

My London house is now up for sale and the proceeds will fall into a GIA. Around half will go into UK low coupon gilts, forming a gilt ladder of around 5 or 6 years, premium bonds will be maxed out and a chunk into MMF's and the remainder into global investments and dividend paying IT's. I have been studying the taxation of unsheltered investments quite rigorously for several years now and taking the average gain of my house value I can achieve very similar in a GIA. I have no debt.
[...]

Interestingly although UK inheritance is probably of no real significance in your long term planning, getting rid of the London House and partially reinvesting in UK gilts will provide a very helpful IHT saving in this regard.

I assume you are a UK born and therefore UK dom. The London house kept you firmly rooted in the UK for IHT purposes, and likely would have made your world wide estate liable to UK IHT on your death.

Selling the house assists in severing that ' umbilical cord' whilst investing in UK gilts provides you with an asset the value of which is legally excluded from IHT for all persons resident outside the UK (the FORTRA securities rule) .

Out of curiosity what have you done ( or are doing ) by way of Wills and estate planning generally?

I have been fortunate with property, owning only 3 freehold houses during my lifetime which have all gained in value. Proceeds from the 2nd paid for my 1998/99 18-month sabbatical but the bulk sat in a one-year high street fixed bond of 8.5% at the time. I always remember that percentage. The 3rd house was bought in 2001 assisted in the deposit by those endowments I'd kept going. I lived in it until 2012 once the endowments and a 10-year life policy came to fruition, and that's when I left the UK. That house is now for sale.

Prior to leaving the UK I applied for a NRL1 form from HMRC (non-resident landlord) which allowed no tax to be taken from the rental income by the agent and paid to HMRC. I would subsequently declare my rental income to HMRC via SATR each year online. Through the government gateway I also topped-up my NI to complete the 35 years, which was 30 at the time I stopped working. I did contract out of SERPS in the past so I half expect not to get a full SP despite it showing 35 of NI. They say a full SP is equivalent to circa £275k in a personal pension, or thereabouts.

Just prior to the sabbatical I made a will at the insistence of my father and it still remains unchanged to this day. I thank my father for that advice. However, I wish to change the will on my next visit back to the UK once the house is sold to see my mother (father now deceased, RIP). My mother now lives in a comfortable care home not far from the family home they'd purchased back in 1965 in which I grew up in, plus her  grandsons and their families both live nearby and visit often. I have visited her care home on numerous occasions and it is really nice compared to many I have seen. She is content in there and at 94 years of age remains sharp and clear of mind.

Incoming changes to my will are to give far more to several registered smaller animal charities and less so to relatives whose circumstances/partners have changed. Although I would have liked to give to various animal charities anyway I feel more inspired to do so now following the changes in IHT rules. I don't want any of what's left behind to be paid in tax.

Selling my home after renting for 13 years was as much to do with having enough of being an overseas landlord as it was feeling I had been very lucky in terms of decent tenants and that I'd run that gauntlet long enough, plus my age. Also, a house being such an un-liquid asset began to grind so following the 2024 Autumn budget it felt like a lucky escape regarding CGT on property, which remained unchanged with the bonus of the 28% drop to 24% (by the Tories) remaining in place, so the time had come to sell. Investment assets can be bought and sold in seconds, the house will take months.

I have one brother 18 months older than me, he has 5 children across two marriages. I had a vasectomy back in 2002, no children. Different strokes, as they say.

Here in Thailand I am never bored. I just don't get bored. It is not about filling days with things to do, I just enjoy doing nothing very much indeed. The days pass quickly, too quickly ..

 Where abouts in Thailand did you say you were living/would recommend now please?  Apologies if you have already said and I missed it.  My partners friend is trying to decide between Thailand and Malaysia to retire to.

Bostonerimus1

barnstar2077 said:

Bostonerimus1 said:

The fees at Audely and the "suits" running it are somethings that put me right off. This advert for Audley is a bit "Hyacinth Bucket" and I just wouldn't want to end my days around the old people shown in the ad. Also they show lots of hotel like images and gloss over what care they provide and how much it costs if you fall and break a hip. So I'd be very careful. I'd prefer to be a long term resident in a genteel hotel in Harrogate or Scarborough where there's a turn over of interesting guests and a murder happens every other week.

https://www.youtube.com/watch?v=xQQM8-UMRI4&ab_channel=AudleyVillages

This place looks amazing, if I had the money I would move in today!

Part of the issue is that by moving in you'd be quickly separated from your money and more with service fees and then if you ever need to sell you'd be charged some pretty steep exit fees. For people who like what Audely is selling it's important to look at the entire cost from beginning to end. Also Audely operate a program where they will do part exchange and buy your home from you to make it easier to get into their facility. You might see that as a convenience, I see it as potentially predatory.

barnstar2077

Bostonerimus1 said:

barnstar2077 said:

Bostonerimus1 said:

The fees at Audely and the "suits" running it are somethings that put me right off. This advert for Audley is a bit "Hyacinth Bucket" and I just wouldn't want to end my days around the old people shown in the ad. Also they show lots of hotel like images and gloss over what care they provide and how much it costs if you fall and break a hip. So I'd be very careful. I'd prefer to be a long term resident in a genteel hotel in Harrogate or Scarborough where there's a turn over of interesting guests and a murder happens every other week.

https://www.youtube.com/watch?v=xQQM8-UMRI4&ab_channel=AudleyVillages

This place looks amazing, if I had the money I would move in today!

Part of the issue is that by moving in you'd be quickly separated from your money and more with service fees and then if you ever need to sell you'd be charged some pretty steep exit fees. 

I understand, I would only go if I had a lot of money, and I would die there, so that solves the exit fees! :  )

Bostonerimus1

barnstar2077 said:

Bostonerimus1 said:

barnstar2077 said:

Bostonerimus1 said:

The fees at Audely and the "suits" running it are somethings that put me right off. This advert for Audley is a bit "Hyacinth Bucket" and I just wouldn't want to end my days around the old people shown in the ad. Also they show lots of hotel like images and gloss over what care they provide and how much it costs if you fall and break a hip. So I'd be very careful. I'd prefer to be a long term resident in a genteel hotel in Harrogate or Scarborough where there's a turn over of interesting guests and a murder happens every other week.

https://www.youtube.com/watch?v=xQQM8-UMRI4&ab_channel=AudleyVillages

This place looks amazing, if I had the money I would move in today!

Part of the issue is that by moving in you'd be quickly separated from your money and more with service fees and then if you ever need to sell you'd be charged some pretty steep exit fees. 

I understand, I would only go if I had a lot of money, and I would die there, so that solves the exit fees! :  )

Only the on going management fees would be an issue for you, the exit fees would be left for your beneficiaries to handle.

Keith_Clunk

barnstar2077 said:

Keith_Clunk said:
Here in Thailand I am never bored. I just don't get bored. It is not about filling days with things to do, I just enjoy doing nothing very much indeed. The days pass quickly, too quickly ..

 Where abouts in Thailand did you say you were living/would recommend now please?  Apologies if you have already said and I missed it.  My partners friend is trying to decide between Thailand and Malaysia to retire to.

I hadn't said yet so you didn't miss it, but I live in a house on the Eastern Seaboard of the Gulf of Thailand in a province called Chonburi, not a million miles from the infamous city of Pattaya, but that is easily avoided, but sometimes visited when friends are there on holiday. Choosing a country to live in truly requires as much time as possible being spent in it prior to any commitment, also visa regulations and their requirements can play an enormous part. I spent between two and four months per year for the 6 years prior to retiring there, but it still took several years before I felt committed, which is why I continued to rent my London property and not sell. I was working as an IT contractor in the City of London so flexibility was not an issue.

I travelled the length of Peninsula Malaysia overland from Thailand to Singapore, including side trips to Georgetown Penang and Langkawi and enjoyed it all very much. However, life seemed so much easier in Thailand, although the language is not easy as it is tonal. I understand far more than I can speak and be understood, but I continue to learn and use what I know.

I often thought I'd move to somewhere in Europe as time passed, but Brexit put paid to that idea regarding visas and simplicity of movement. I only planned on staying Thailand initially for a few years, but the years kept passing by and I stayed.

Five years to go until my UK SP kicks in, so decisions may be on the table regarding other country choices and options due to pension freezing, but if all remains relatively stable then that won't be an issue. The Philippines is the only SE Asian country where UK pensions are not frozen. After watching the TV show 'Shetland', I also consider Scotland as as a place to live out the winter of my life. The complete antithesis of where I am now. The heat in Thailand can be a grind, especially during April and May, two months I am always pleased to see the back of.

MaxB93

Keith_Clunk said:

I often thought I'd move to somewhere in Europe as time passed, but Brexit put paid to that idea regarding visas and simplicity of movement. I only planned on staying Thailand initially for a few years, but the years kept passing by and I stayed.

Great contributions.

I had the same thoughts regarding Europe. I do miss aspects of Italy, France, Spain but they aren't as affordable as they used to be. That's one of the consequences of living in a country where many things are cheap - you get used to it.

I also considered South and Central America but I think I am too old for that adventure now, taking into account the crime and personal security aspects, although Panama is a popular retirement destination.

MaxB93

Simon11 said:

Amazing to hear your stories- I love travelling too but I also wanted to have children otherwise I feel that you miss out on a huge part of life.

What do you generally do, day to day to keep yourself busy especially when there could be lots of time spent alone?

Do you guys have any regrets or downsides to share- it can't all be a pretty picture over there?

I agree that you miss out by not having children. But you can't have everything. And having children isn't just about how good it is for the parents. The important thing is that it's your call: in no way should you assume that it's automatic. I know expats who have children here or have adopted - officially or otherwise - their partner's children. I have even seen single mothers with children relocating here from the US and elsewhere. Schooling however can be very expensive, as much as several thousand dollars per term.
I find that I am never bored. It may be that the longer someone has worked and the more demanding or rewarding their job was the bigger the shock is when they stop. It can be an issue when someone's sense of status or self-worth is tied to their day job, which is why some never retire. I mentioned the internet because it is such an incredible resource. For those who watch sport it is now easily available online and via cable. Some people play chess, some play golf... I think wondering what to do to 'keep busy' would be a a red flag in itself.
There are certainly downsides. The expat retiree community is littered with disasters. Obvious examples would be those who run out of money due to poor planning or romance scams, those who have no business experience and buy into hospitality ventures, or who overindulge in alcohol due to their social routine. Perhaps most at risk are people who have 'worked hard all their lives' to finally retire in the sun and behave as if they were on holiday. When you stop working you never have a holiday again. When you relocate you are just living in a different place. We change our skies but not ourselves.
Everywhere has its pros and cons. When I first visited Thailand I stopped in Phuket for two nights in a guesthouse run by an Englishman. He was sitting on a bar stool playing backgammon with his cheap cigarettes and a Thai woman standing at his side keeping his beer topped up. He had been there for a few years and I asked him if he liked living in Thailand and he replied 'It's better than Bolton'. That stuck with me: we all make our choices based on our preferences and our options - it's a personal call. Or at least it should be.
There's a book called Die with Zero by Bill Perkins that emphasises the benefits of not always living as society may expect you to, for example marrying, having children, getting a mortgage, accumulating capital for it's own sake. In reality money only has value when we spend it on an experience, although having a cushion against potential disasters is comforting. It's a question of balance. 

Albermarle

Bostonerimus1 said:

barnstar2077 said:

Bostonerimus1 said:

The fees at Audely and the "suits" running it are somethings that put me right off. This advert for Audley is a bit "Hyacinth Bucket" and I just wouldn't want to end my days around the old people shown in the ad. Also they show lots of hotel like images and gloss over what care they provide and how much it costs if you fall and break a hip. So I'd be very careful. I'd prefer to be a long term resident in a genteel hotel in Harrogate or Scarborough where there's a turn over of interesting guests and a murder happens every other week.

https://www.youtube.com/watch?v=xQQM8-UMRI4&ab_channel=AudleyVillages

This place looks amazing, if I had the money I would move in today!

Part of the issue is that by moving in you'd be quickly separated from your money and more with service fees and then if you ever need to sell you'd be charged some pretty steep exit fees. For people who like what Audely is selling it's important to look at the entire cost from beginning to end. Also Audely operate a program where they will do part exchange and buy your home from you to make it easier to get into their facility. You might see that as a convenience, I see it as potentially predatory.

You are not wrong, but these places seem increasingly popular, especially in the more traditionally prosperous parts of the UK . New ones are springing up all the time.
I suspect many of the residents have so much money, they do not really care too much about exit fees etc.
Not everyone is an MSEr !

pterri

Albermarle said:

Bostonerimus1 said:

barnstar2077 said:

Bostonerimus1 said:

The fees at Audely and the "suits" running it are somethings that put me right off. This advert for Audley is a bit "Hyacinth Bucket" and I just wouldn't want to end my days around the old people shown in the ad. Also they show lots of hotel like images and gloss over what care they provide and how much it costs if you fall and break a hip. So I'd be very careful. I'd prefer to be a long term resident in a genteel hotel in Harrogate or Scarborough where there's a turn over of interesting guests and a murder happens every other week.

https://www.youtube.com/watch?v=xQQM8-UMRI4&ab_channel=AudleyVillages

This place looks amazing, if I had the money I would move in today!

Part of the issue is that by moving in you'd be quickly separated from your money and more with service fees and then if you ever need to sell you'd be charged some pretty steep exit fees. For people who like what Audely is selling it's important to look at the entire cost from beginning to end. Also Audely operate a program where they will do part exchange and buy your home from you to make it easier to get into their facility. You might see that as a convenience, I see it as potentially predatory.

You are not wrong, but these places seem increasingly popular, especially in the more traditionally prosperous parts of the UK . New ones are springing up all the time.
I suspect many of the residents have so much money, they do not really care too much about exit fees etc.
Not everyone is an MSEr !

I’m two decades away (touch wood) but yep, I’m not leaving money to anyone so exit fees are not my concern. The idea of comfortable supported housing is attractive, live off my DB and SP and use the house to buy a place? Dunno. A question for another time

Bostonerimus1

MaxB93 said:

When I first visited Thailand I stopped in Phuket for two nights in a guesthouse run by an Englishman. He was sitting on a bar stool playing backgammon with his cheap cigarettes and a Thai woman standing at his side keeping his beer topped up. He had been there for a few years and I asked him if he liked living in Thailand and he replied 'It's better than Bolton'. 

Sounds like "Heat of Darkness", was his name Kurtz?