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Help! 53 yrs old and needing Pension guidance please

2

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  • Yes, planning to retire in UK - thanks
  • Alexland
    Alexland Posts: 9,653
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    edited 9 November 2018 at 9:07PM
    Sure the pensions are not that impressive but you have a fully paid second property and other assets so no need to panic. You have just taken a different path in life. Just make sure you have a realistic plan to meet realistic expectations on what will be possible. You sound resourceful so I have confidence you will get broadly what you want to achieve.

    It is worth considering if, in the very long term, you would want or be able to continue being a landlord and if not the potential future tax implications of eventually disposing of the second property.

    Alex
  • Albermarle
    Albermarle Posts: 21,617
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    Probably a retirement income of £18K at say age 66/67 is possible , if you include the rent; income from current savings/pensions ( that will have hopefully grown a bit in the meantime) and a full state pension.
    Unfortunately the reality is that if you want to retire before SP age , then it would have to be on significantly less, based on the info you supplied. Also it would mean starting to use your savings earlier so they would not last as long.
    Your overall financial position is not bad, and you have a home of your own but unless you can earn more/spend less and then save more, or be lucky with a premium bond/inheritance, then you will have to be realistic about what income you can achieve in retirement.
  • Again, thank you all so very much for the responses and suggestions.

    The Royal London link was very helpful on the subject of NI contributions, and I will definitely make it a priority to ensure that I have all years needed to give me the full state pension at 67.

    I will give some serious consideration to how I could possibly achieve earlier retirement, as I really think that 60 would be a better number for me and the type of work I do.

    I could certainly downsize on my home as I really don't need all the space I have, so that is a real possibility for freeing up some capital. Or I could even move into what is currently a rental property, as it is a very nice wee property and would work fine for me in retirement. That would give me another 200k or so from selling my main home. Lots to think about for me!!!

    Would love to hear any other thoughts or suggestions - all comments (good or bad) are much appreciated. Thanks everyone.
  • Alexland
    Alexland Posts: 9,653
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    edited 10 November 2018 at 6:05PM
    westie660 wrote: »
    Or I could even move into what is currently a rental property, as it is a very nice wee property and would work fine for me in retirement. That would give me another 200k or so from selling my main home.

    If you are happy with that it could be a great way to avoid the future CGT implications of disposing of one of the properties as you could get primary residence relief on the one you are currently living in.

    Alex
  • Albermarle
    Albermarle Posts: 21,617
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    Normally if £200K is invested and there is no long term crisis in markets, then this should be able to generate an income around £8K pa, which could mean you could retire earlier I guess.
  • Alexland
    Alexland Posts: 9,653
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    Albermarle wrote: »
    Normally if £200K is invested and there is no long term crisis in markets, then this should be able to generate an income around £8K pa, which could mean you could retire earlier I guess.

    Even with an adventurous asset allocation 4% increasing with inflation is a high drawdown rate when the forecasts for medium term growth are looking so gloomy. You would run a real risk of running out of money. I would suggest someone healthy planning to retire at a normal age in mid 60s considers 1/30th (under 3.5%) and as someone looking to go a bit early I am planning on 1/35th (under 3%).

    Alex
  • westie660
    westie660 Posts: 27 Forumite
    edited 11 November 2018 at 2:46PM
    Thanks folks - it certainly is a complicated business!

    I have at least decided 2 things so far. I will maximise NI contributions to ensure full state pension. Plus I will have a cold hard stare at my current budget and find a way to start adding £200 per month to personal pension accounts. I am pretty frugal at the moment, but will just need to find a way to cut cloth accordingly. The Australia commitment is expensive and will probably continue for a long time (visiting and helping to care for sister who was paralysed in a riding accident, and I am more than happy to do that and don't in any way want to change). Compared to her life, my worries are pathetic, but I don't want to be penniless in my old age, so definitely need to figure some things out

    Any other thoughts peeps? Many thanks to you all
  • atush
    atush Posts: 18,719
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    get a state pension statement incl any partial years. Make partial years up after 2016 if there are any.

    Take a lodger and use that money for pension contribs or sell your home and live in the smaller rental property.

    Consider moving some savings into private pension now
  • crv1963
    crv1963 Posts: 1,372
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    atush suggestion of a lodger is a good one, any local hospitals/ trusts near you means you could possibly get a part time lodger like me. I work 12.5 hour shifts so only stay 2 or 3 nights/ days(if on nights) per week so at £20 pn - bed and access to kettle/ bathroom am an easy lodger.

    I'd definitely move savings to pension starting this tax year.
    CRV1963- Light bulb moment Sept 15- Planning the great escape- aka retirement!
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