Living on savings

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  • fatbeetle
    fatbeetle Posts: 567 Forumite
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    bostonerimus wrote: »
    Do not make plans that rely on anticipated inheritances and of course your UK state pension will not be index linked if you live in Australia......so you might want to have some investments that will grow to replace the index linking.

    The house/inheritance is not part of our planning, and is a "bonus" if anything. We will be living in Cornwall.
    Also you say you will have more than enough income from your pensions and super so do you have a plan to invest the excess?

    We've not planned on doing that, but it may be a good idea, my thanks.
    “If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”
  • fatbeetle
    fatbeetle Posts: 567 Forumite
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    bostonerimus wrote: »
    OK, then they should look into the UK taxation of Aus superannuation.

    If you are aged 60 in Aus, then superannuation income will usually be tax-free.

    https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/tax-and-super
    “If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”
  • fatbeetle
    fatbeetle Posts: 567 Forumite
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    ukdw wrote: »
    Also I like the Op's camper van idea - we did the same a few years ago, and whilst they may be a big initial capital outlay, they tend to keep their value remarkably well and massively reduce holiday costs when compared to hotel stays.

    That's very good to hear. We're lucky as one of my best mates used to be employed by a major campervan company. He now buys and does up vans as a hobby/income source.
    “If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”
  • xylophone
    xylophone Posts: 44,336 Forumite
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    If you are aged 60 in Aus, then superannuation income will usually be tax-free.

    https://www.gov.uk/tax-foreign-income/foreign-income-thats-taxed-differently

    https://www.taxation.co.uk/Articles/2014/02/05/319941/australian-pension

    Above may be worth a look.
  • MallyGirl
    MallyGirl Posts: 6,610 Senior Ambassador
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    fatbeetle wrote: »
    That's very good to hear. We're lucky as one of my best mates used to be employed by a major campervan company. He now buys and does up vans as a hobby/income source.

    We are also working towards a camper van although we won't be retiring till 60 (current plan) and we are now 50. The advantage we have is that we already own a suitable VW Transporter as I use it for sled dog activities. Once the dogs are too old for this - probably got a couple more years in them - then we will rip out the crates and hand it over to someone to convert. DD will be off at uni by then so the world will be our oyster - well the British Isles will be!
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  • jamesd
    jamesd Posts: 26,103 Forumite
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    fatbeetle wrote: »
    We will be living in Cornwall.
    The Pound is quite low compared to most currencies at the moment and raw rates of 12% or so are available from peer to peer lending from UK places, perhaps 10% after allowing for possible bad debt.

    While the Pound could fall more, or the Australian dollar rise more during say a resource boom repeat due to another Chinese building boom, you seem to have pretty good conditions for making a move now or starting on a fairly rapid moving process. If you did want to keep exposure to the currency pair there are spread betting or options available that could deliver that. Tying your retirement income to a country whose currency moves are primarily driven by commodity prices doesn't look like a good move given it currently being decently high rather than so low that the only way to go is up.
  • fatbeetle
    fatbeetle Posts: 567 Forumite
    First Anniversary First Post I've been Money Tipped!
    xylophone wrote: »
    https://www.gov.uk/tax-foreign-income/foreign-income-thats-taxed-differently

    https://www.taxation.co.uk/Articles/2014/02/05/319941/australian-pension

    Above may be worth a look.


    Many thanks, we will be taking advice.
    “If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”
  • fatbeetle
    fatbeetle Posts: 567 Forumite
    First Anniversary First Post I've been Money Tipped!
    Audaxer wrote: »
    Assuming the money is in low interest accounts, that would be roughly £40k per year to spend it all. If they need to spend that much to live off for the next 7 years I would assume their pension income after tax would be over £40k, as he says it will be well above what they need.

    Best way to do it would be to set up a monthly standing order (or orders if from various accounts) amounting to £2,500 as a monthly salary to themselves. Just a thought which could be a consideration.

    Thanks, we're actually doing that, and have budgeted to live on £25,000 pa, mortgage free.

    Living that way means we will still be able to enjoy the standard of living we would want, plus "cash in the bank" for expenses, a safety net, and treats.

    Out of the forecast pot there will be some initial set up expenses, such as house renovations and a conservatory (estimated at £30,000), buying a car ( £4,500 second hand) various insurances, etc. However all our moving costs are now paid, and we have a "proper" savings pot of some £25,000 at hand for any expenses which crop up over the coming months.

    Many thanks again to all for their thoughts
    “If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    westv wrote: »
    Can you lease cars using non guaranteed income?

    I'll be finding out shortly :D
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    AnotherJoe wrote: »
    I'll be finding out shortly :D

    Well your 'non guaranteed' income is almost certainly more guaranteed than most income streams, safer than salary, benefits, rental income etc etc

    Income is always more guaranteed if you are the one paying it.
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