Sanity Check

SouthCoastBoy

We are considering moving house, which will result in a net spend 300k, I will finally retire at the same time. So would just like to sanity check my figures and get opinions on whether people think I'm over stretching myself.

Currently 60 years old, wife 58 (she will retire in two years time)

Current position
560k Cash
311k S&S ISAs
332k SIPP
567k Company Pension (DC)
Wife 10k DB pension at 60, reduces by 1700 at 65, max 5% increase per annum
Wife LGPS 5k DB pension at 67
2 state pensions fully funded.
 
The house move will be approx 300k once all costs are factored in. Then I have set aside 60k for upgrades once moved in.

Due to bigger house I think our new costs will be around 3000 per month as opposed to the current 2650.

I'm concerned I am slightly over stretching myself, do you think that is the case, or should I be ok? I would be interested in any thoughts.

Albermarle

Considering your usual very cautious approach, seems a bit odd to be spending £350K and retiring at the same time? 

Apart from the finances, there are some cautionary tales about people of your kind of age, buying their dream home and then having to leave it 10 years later, due to it being too big and difficult to manage as older age catches up with them. Have you taken this kind of thing into account ?

SouthCoastBoy

Yes the too big to maintain has been considered, and we most probably have to move again at some point, exactly what the current owners are doing (I would guess they are in their 80s).

However I would like to think we have at least 15 years in the house before we do that. Re the seems a bit odd comment, the motivation to move is more my wife (you can't take it with you statement!) rather than me

Cobbler_tone

SouthCoastBoy said:

Yes the too big to maintain has been considered, and we most probably have to move again at some point, exactly what the current owners are doing (I would guess they are in their 80s).

However I would like to think we have at least 15 years in the house before we do that. Re the seems a bit odd comment, the motivation to move is more my wife (you can't take it with you statement!) rather than me

Ha ha...sounds similar to mine. She always talks about upsizing and moving somewhere else. The reality is we have no children and a lovely 3 bed detached, right next to open fields and a nice market town. I'm not sure why we would move and spend £150k+ and the stress that comes with setting up a new house. Having said that, last year we'd talk about travelling around the world...and then bought a puppy. 
I reckon I can make this dream move go away! I think our retirement will be nice cars, Waitrose shopping, the odd trip in this country and some charity work. Even in our 50's we seem less inclined to do the big stuff anymore, so don't see that ramping up as we get older. We all have different versions of what makes us happy!

Albermarle

As detailed in many previous threads, you will know that the majority of replies will be that you have far more money than you need, and you should have retired years ago. 

IIRC your planned outgoings are £30K pa, so you have a massive surplus of money and future guaranteed income.

If you take out £360K and increase the outgoings a bit, then you have a slightly less massive surplus.

Even if you bumped up your expenditure to £50K, it would make hardly any difference in reality.

Your wife sounds like she is right and remember 'Happy Wife= Happy Life ' 

On-the-coast

I was about to write a shorter version of what @Albermarle just wrote - so go ahead without worry. 

Unless you both love your jobs so much that you’d be happier working than retiring. 

ali_bear

I don't think you're going to be overstretched, I think you're going to be comfortably off. You worked hard and you can now enjoy your retirement, move to your desired new house, settle in to your new community. You'll only regret it if you don't. 

Smudgeismydog

We retired and moved at the same time, although the difference in purchase price was less, we have so far spent @£100,000 on renovations.
It might seem odd for some people, but we have enjoyed undertaking the projects around the house, and it has helped to keep us busy in this first year of retirement.
We also plan to live here enjoying the house and garden until perhaps mid to late 70’s before downsizing to a bungalow!

We are all waiting to wish you a very happy retirement @SouthCoastBoy, and you have absolutely got this. 

QrizB

Your outgoings will be £36k pa.

Even after moving you will have £1.3M in assets.

A healthy 60-year-old can secure a 36k pa index-linked annuity for £800k, and that's ignoring your wife's pensions and both SPs.

I reckon you'll be OK

SarahB16

SouthCoastBoy said:

Yes the too big to maintain has been considered, and we most probably have to move again at some point, exactly what the current owners are doing (I would guess they are in their 80s).

However I would like to think we have at least 15 years in the house before we do that. Re the seems a bit odd comment, the motivation to move is more my wife (you can't take it with you statement!) rather than me

This to me is exactly the reason why I definitely would not want to do what you are doing.  Moving house is stressful but doing it in your eighties is even more difficult and knowing you have to face that too.  

Isn't there a home that you and your wife could move to within the next c.10 years that you think you could live in for the rest of your lives?  You will get to know your neighbours and not be thinking I'll have to move again in my 80s.   

You don't spend money for the sake of it but to improve the quality of your life and I'm not sure that is what you're achieving.  Surely holidays is a better way to spend the money than on a house that doesn't seem to be that suitable and of course you've got the associated moving costs, legal fees and stamp duty on top but for what to live in a larger house and then all that again when you move again.  

As you get older you realise the importance of having dear friends, neighbours and possibly family nearby but you won't be establishing that as what you are doing is just on a temporary basis.     

Sorry for my bluntness but I am failing to understand why you are doing what you are doing.  I'd try to persuade your wife to look for a more suitable house (assuming your current house isn't suitable?) that could be your last home and at least you'll have a good support network around you as you get into old age.  

BrilliantButScary

Some generic advice that I received from a retirement coach:
To enjoy a happy retirement, what are you willing to let go of?

What can you learn to let go of? In order to create space for different experiences in retirement.

Consider the following four categories of things that you might want to get rid of

* activities and obligations
* possessions
* people
* and attitudes

Retirement and moving house are two of the most stressful things you can do, individually, let alone together. Perhaps both you and your wife need to reflect on what you do and don't want in your lives moving forward.