Planning for retirement

[SandyD]

Not sure if this is the right place, but I want to start to plan to retire / semi-retire youngish so that I can enjoy whatever I want to do i.e. within the next 5 to 10 years.

I have been contributing very little to various pensions, not huge amounts almost negligible really due to having a lot of family commitments / raising a family, but now its all easier, I also have 2 properties, one I live in the other is let but has almost 50% mortgage on it outstanding.

What steps can I do to prepare for a financially secure retirement within 10 years max?
I have a SIPP with standard life, but as above been contributing very little into it like £150 a month for the last 10 years, reason is other commitment also I have very little faith in pensions due to collapses of pension schemes I witnessed in the last couple of decades !!

[northernladuk]

Isn't this where a good financial advisor would be of more use? You can go in to a bit more detail with them than you can if and get a better answer?

[SandyD]

Yes agreed NL, but I am suspicious of IFAs some just want to sell policies

[b0redom]

Why is it easier now? I presume kids are always going to need supporting.

I've got a B2L I owe about 50% on too, but there's no way I could live off that income. Do you own your own home outright? I would guess that's the way to start to plan for retirement. I personally would like to be in a position not to have to work, and I guess owning my own place outright would be the first place to start ie minimising outgoings.

[ASB]

"What steps can I do to prepare for a financially secure retirement within 10 years max?"

Well,how old you, what do you have at the moment, what are your income requirements. Is your life expectancy normal.

The younger you are the harder it is. Retirement at say 45 will probably need 3 times as much money as retirement at 60.

[SandyD]

Why is it easier now? I presume kids are always going to need supporting.

I've got a B2L I owe about 50% on too, but there's no way I could live off that income. Do you own your own home outright? I would guess that's the way to start to plan for retirement. I personally would like to be in a position not to have to work, and I guess owning my own place outright would be the first place to start ie minimising outgoings.

Its easier as one kid finished uni and working, and the other to finish in 2 years, I know they will always need some support, but that would be voluntarily kind of support.
Yes I own my own home outright, the mortgage is only on the let property.


I agree, I just want to be in a position where I don't have to work, I may choose to work, but sporadically and not feel I need to work for it.

[SandyD]

"What steps can I do to prepare for a financially secure retirement within 10 years max?"

Well,how old you, what do you have at the moment, what are your income requirements. Is your life expectancy normal.

The younger you are the harder it is. Retirement at say 45 will probably need 3 times as much money as retirement at 60.

I am late 40's and thinking an income of 43K a year should be what I aim for. The rent generated from the property I let is good, but I know it would need expenses / maintenance.

[b0redom]

£43k per year is a LOT for a passive income stream unless you've a few B2Ls (which are not going to be as financially beneficial in the longer term), or a big stock portfolio paying out dividends.

[Retro]

I am late 40's and thinking an income of 43K a year should be what I aim for. The rent generated from the property I let is good, but I know it would need expenses / maintenance.

An index-linked annuity would pay about 3% p.a at age 60, so I would suggest you think of saving approx. £1,500,000 if you plan to retire then, or considerably more if you want to give up work earlier. You can of course reduce this sum if your income received from property is significant.

[SandyD]

£43k per year is a LOT for a passive income stream unless you've a few B2Ls (which are not going to be as financially beneficial in the longer term), or a big stock portfolio paying out dividends.

43K is £3500 a month, I think that is a reasonable figure to aim for.