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To retire in 20 years....

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    To retire in 20 years....

    If I want to retire at 57 (60 really but building in some stormy weather). I have just worked out that I will need to save up £1,000,000 is I want an annuity of £30K pa. That is £1500 per month for the next 20 years.

    Mrs BB is a civil servant with a copper bottomed pension but still I want to pay my own way.

    That is a lot of saving!!!!!!
    Faster, faster, faster, until the thrill of speed overcomes the fear of death.

    Patience is something you admire in the driver behind you and scorn in the one ahead.

    #2
    What is a 30k annuity likely to be worth in 20 years?

    Have some ambition man!

    Comment


      #3
      Originally posted by BlackenedBiker View Post
      If I want to retire at 57 (60 really but building in some stormy weather). I have just worked out that I will need to save up £1,000,000 is I want an annuity of £30K pa. That is £1500 per month for the next 20 years.

      Mrs BB is a civil servant with a copper bottomed pension but still I want to pay my own way.

      That is a lot of saving!!!!!!
      If your pot is £1,000,000 then you'll get £250,000 in instant cash to squander and your annuity on £750,000 would be 40oddK pa. So not as bad as you think, but yes, an awful lot of saving to do. Most people are going to be on benefits/state pension me thinks, but how much that'll be in 20 years time !?!?!

      Comment


        #4
        Originally posted by BlackenedBiker View Post
        If I want to retire at 57 (60 really but building in some stormy weather). I have just worked out that I will need to save up £1,000,000 is I want an annuity of £30K pa. That is £1500 per month for the next 20 years.

        Mrs BB is a civil servant with a copper bottomed pension but still I want to pay my own way.

        That is a lot of saving!!!!!!
        Why bother? You might die at age 59 or younger.
        I want to retire somewhere cheaper to live, won't need so much then, and become self-sufficient with my own little veggie patch, some sheep, cows, cod in a pond, small vineyard for me wine with genetically modified grapes to grow twice as fast and twice as big

        Anyway,it isn't 1500 a month is it? That assumes no growth of the money saved and invested. Buy a 200,000 house, it'll be worth 5billion in 20 years time.....apparently
        Last edited by SuperZ; 11 January 2010, 15:46.

        Comment


          #5
          Originally posted by SuperZ View Post
          .. Buy a 200,000 house, it'll be worth 5billion in 20 years time.....apparently
          and taxed accordingly
          Work in the public sector? Read the IR35 FAQ here

          Comment


            #6
            Originally posted by BlackenedBiker View Post
            If I want to retire at 57 (60 really but building in some stormy weather). I have just worked out that I will need to save up £1,000,000 is I want an annuity of £30K pa. That is £1500 per month for the next 20 years.

            Mrs BB is a civil servant with a copper bottomed pension but still I want to pay my own way.

            That is a lot of saving!!!!!!
            I don't understand this: why would you save £1m then buy an annuity?

            Why not save £1m and live on the money itself?

            Comment


              #7
              Originally posted by Platypus View Post
              I don't understand this: why would you save £1m then buy an annuity?

              Why not save £1m and live on the money itself?
              Hey I am not saying I will buy an annuity. However it illustrates the point.

              Mundo money needed for living modestly in the future...
              Faster, faster, faster, until the thrill of speed overcomes the fear of death.

              Patience is something you admire in the driver behind you and scorn in the one ahead.

              Comment


                #8
                Originally posted by SuperZ View Post
                Why bother? You might die at age 59 or younger.
                I want to retire somewhere cheaper to live, won't need so much then, and become self-sufficient with my own little veggie patch, some sheep, cows, cod in a pond, small vineyard for me wine with genetically modified grapes to grow twice as fast and twice as big

                Anyway,it isn't 1500 a month is it? That assumes no growth of the money saved and invested. Buy a 200,000 house, it'll be worth 5billion in 20 years time.....apparently
                err. No that assumes a 7% interest rate year on year, which IMHO is optomistic.....
                Faster, faster, faster, until the thrill of speed overcomes the fear of death.

                Patience is something you admire in the driver behind you and scorn in the one ahead.

                Comment


                  #9
                  Originally posted by rootsnall View Post
                  If your pot is £1,000,000 then you'll get £250,000 in instant cash to squander and your annuity on £750,000 would be 40oddK pa. So not as bad as you think, but yes, an awful lot of saving to do. Most people are going to be on benefits/state pension me thinks, but how much that'll be in 20 years time !?!?!
                  what is oddk?????
                  Faster, faster, faster, until the thrill of speed overcomes the fear of death.

                  Patience is something you admire in the driver behind you and scorn in the one ahead.

                  Comment


                    #10
                    Does that mean you have to save 1500 in today's prices every month ie going up each year with inflation or is it 1500 forever regardless of inflation?

                    Comment

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